Riverside Resources (CVE:RRI) Thursday announced, together with partner Choice Gold Corp., the discovery of a new oxide gold zone at the Sugarloaf Peak project, near Quartzsite, Arizona.
Shares were up 15% to 90 cents Thursday afternoon.
Diamond drill hole SLG-11-04 intercepted 1.76 grams per tonne (g/t) gold over 9.91 metres between a depth of 5.3 metres and 15.24 metres. The discovery hole is located approximately 1 kilometer northeast from the core of the historically known mineralized zone.
President and CEO of Riverside Resources, John-Mark Staude, said: "The shallow oxide portion at Sugarloaf Peak has identified favourable near surface mineralization and has expanded the potential for the project moving forward.
"The results from Sugarloaf are the first reported from four partner funded drill programs that were undertaken during the summer, and shareholders can now expect a steady flow of drill results throughout the fall."
The Sugarloaf Peak gold project covers an area of 12 square kilometres and has been the object of intermittent drilling and small scale mining during the 1950s through the 1990s.
In February this year, Riverside signed an option deal with Choice Gold Corp, whereby Choice Gold could acquire a 100% stake in the Sugarloaf property.
Riverside currently holds 8.6 million shares of Choice and stands to receive an additional 5 million shares over the course of the option agreement.
Vancouver, B.C.-based Riverside has properties in Mexico and the United States. Currently, the company is jointly advancing eight gold and silver projects with partners, and operating a $1.5 million exploration alliance with Cliffs Natural Resources.