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Riverside Advances Ontario Gold Assets Through Blue Jay Spinout

Nov 18, 2024


Riverside Resources Inc. has announced the successful transfer of its three key Ontario gold properties—Pichette, Oakes, and Duc—to its wholly-owned subsidiary, Blue Jay Resources Inc. This strategic move is designed to elevate Riverside’s Ontario portfolio by establishing Blue Jay as an independent exploration company. Riverside shareholders gain exposure to potential gains from Blue Jay while the parent company retains a 2% net smelter royalty (NSR) on each project.

 

“We are excited to see Blue Jay Resources rapidly progress towards becoming a focused exploration company, dedicated to advancing this quality portfolio of Ontario gold assets. This spinout provides our shareholders with exposure to a new vehicle for value creation, while Riverside retains upside through a 2% NSR on the projects,” said Dr. John-Mark Staude, CEO of Riverside Resources. “Our goal is to unlock the inherent value of these properties for our shareholders through the potential share spinout.”

 

The spinout strategy mirrors Riverside’s successful approach with Capitan Silver Corp., where Riverside shareholders benefited from a share distribution as exploration advanced. The structure for Blue Jay could offer shareholders direct ownership in the new exploration entity, aligning their interests with the potential growth of both companies.

 

Leadership and Exploration Plans

 

Blue Jay Resources is led by Geordie Mark as CEO, supported by incoming Chairman John-Mark Staude and a strong board of directors. Mark’s extensive experience includes over 15 years as a mining analyst in North America, providing the expertise needed to develop an exploration strategy for Blue Jay’s Ontario properties.

 

Geordie Mark expressed his enthusiasm: “I’m thrilled by the opportunity to lead Blue Jay as we explore Ontario’s well-established Beardmore-Geraldton greenstone belt, especially in such a proactive mining jurisdiction. Both the Pichette and Oakes projects are strategically positioned near the Equinox Gold Greenstone Gold project, Canada’s fourth-largest open-pit gold mine, which emphasizes the potential of this area.”

 

Plans include initiating a targeted drill campaign during the first half of 2025, leveraging Blue Jay’s focused exploration strategy to unlock the potential of these assets.

 

Project Highlights

 

Pichette Project

Located in the Geraldton-Beardmore Greenstone Belt, the Pichette Gold Project spans 1,190 hectares near Equinox Gold’s Greenstone Gold Project. Historical drilling from the 1950s revealed high-grade gold intercepts, including 3.4 metres at 16.7 g/t Au. The project is accessible via the Trans-Canada Highway, with exploration targeting depth and strike extensions of banded iron formations (BIF).

 

Oakes Project

Situated 20 kilometres east of the Greenstone Gold Mine, the 5,200-hectare Oakes Project has shown high-grade gold results, with drill intercepts up to 8 g/t Au and surface assays over 30 g/t Au. Its proximity to major infrastructure and favourable geological features make it a strong candidate for further discoveries.

 

Duc Project

Covering 580 hectares in the Porcupine Mining Division, the Duc Project targets gold and potential rare earth elements within the Kapuskasing Structural Zone. Recent geophysical surveys have identified promising exploration targets for follow-up work.

 

Outlook

 

The spinout of Blue Jay Resources positions Riverside Resources to continue generating shareholder value while focusing its efforts on advancing other projects. As Blue Jay accelerates exploration in Ontario’s mining-rich greenstone belts, shareholders could benefit from the upside potential of these assets.

 

For more information on Riverside’s portfolio and developments, visit www.rivres.com.



Tags: Northern Ontario / Deals & Financial / Gold / All Articles