Riverside Resources (CVE:RRI) and Mexigold Corp (CVE:MAU) said Wednesday they have redefined drill targets for ongoing exploration at the Catrina property in Durango, Mexico.
Operator Riverside previously completed an analysis of soil sample results, and identified two new anomalous zones, Palmitos and Los Jaspes, in October.
Soil geochemistry thus far has been successful in identifying six multi-element anomalous zones that are targeted for follow up exploration, the companies said.
Riverside recently completed detailed geological mapping and systematic rock channel sampling from a trenching program at two of the anomalous zones.
A total of nine trenches were dug with the aim of collecting additional geological data to support the soil geochemistry and IP survey results, and help further refine diamond drill targets for the proposed fall 2011 drilling program. A total of 904 rock samples were also collected and submitted to for analytical assays.
"The results of the rock channel samples from the trenches, along with coincident soil sampling, ground magnetic and IP-Resistivity surveys, demonstrate the continuity between these two target areas and suggest that Catrina-La Dura are connected to each other, forming a large NE trending zone that now measures 1.4 km long by 0.45 km wide and remains open in both directions," the companies said.
The upcoming drill program is designed to test the geology, geochemistry and geophysics identified at Catrina-la Dura and Patos targets, and will consist of approximately 8 angled holes totaling 2,000 metres.
Mexigold can acquire a 75 percent interest in the Durango properties, which consist of Catrina, Pedernal and Escondida, by issuing Riverside around 2.6 million Mexigold shares, making total cash payments of $500,000 to Riverside, and incurring $4 million in exploration expenditures within 36 months of the agreement.
As part of the deal, a minimum of 3,000 metres has to be drilled on the Durango properties, which cover 76,000 hectares, within 12 months from the date of the agreement.