TSX-V: ADG RSS Feed
Identification & Advancement of Early Stage Mineral Prospects

Project Overview

Corporate Overview

Recent Updates

News Releases

Show printable version
April 11, 2008
Arcus options Chapalota gold prospect from Riverside Resources

Vancouver, BC -- April 11, 2008:

Arcus Development Group Inc. ("Arcus") and Riverside Resources Inc. ("Riverside") announce that subject to TSX Venture Exchange acceptance, Riverside has granted Arcus an option to acquire up to a 65% interest in the Chapalota gold prospect, located in southern Sinaloa, Mexico. The Chapalota property was acquired through staking and is wholly-owned by Riverside.

The Chapalota property covers an area of approximately 91 square kilometres and lies along the western edge of the Sierra Madre Occidental Volcanic Province. The property was staked by Riverside on the basis of geology, known gold anomalies and small scale historic gold production in the area. The shear hosted quartz-sericite alteration and deformed quartz veining at Chapalota is similar to that at the Herradura Gold Mine (Penoles/Newmont). The Chapalota property also lies immediately north of La Noria Mo-Cu-Ag project (Geoinformatics Exploration/Kennecott). Geologically similar intrusions and breccias to those at La Noria have been identified at the Chapalota property by Riverside.

To exercise an initial option and acquire a 51% interest in the Chapalota property, Arcus is required to pay Riverside $300,000 cash, issue Riverside 350,000 Arcus shares and incur exploration expenditures of $4,000,000 prior to the fourth anniversary of the option agreement. Exploration expenditures in year one of the initial option include a firm commitment of $350,000. After exercising the initial option, Arcus will have the right to acquire an additional 14% interest in the property by incurring a further $2,500,000 in exploration expenditures within a two year period and paying Riverside $500,000.

The Chapalota property is not subject to any underlying royalty interests and no finder's fee was paid in connection with this transaction.

Eric Tweedie, the Arcus VP of Exploration stated, "The Chapalota property represents an excellent exploration opportunity for Arcus based on the geological setting and past gold production in the region. Riverside's team has done a very good job of identifying high quality gold prospects in areas that have not already been extensively explored."

John-Mark Staude, the Riverside President and CEO stated, "Riverside is delighted to partner with Arcus on the Chapalota project as this project lies in a major gold belt of western Mexico in a region with hundreds of years of precious metal production. We look forward to collaborating in exploration and unlocking the value to all stakeholders".

About Arcus

Arcus is a well structured Vancouver based mineral exploration company operated by experienced management. The Arcus business model is to acquire interests in quality mineral prospects by way of joint venture or other collaborative arrangements with exploration groups recognized in the industry as competent project generators.

About Riverside:

Riverside follows a prospect generator business model using experienced local prospectors, explorers and geologists to identify and acquire high quality mineral opportunities. To date Riverside has announced several property acquisitions which are summarized at www.rivres.com, and continues building a diverse mineral property portfolio.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

You can view the Next News Releases item: April 17, 2008,Arcus Acquires Second Mexican Project

You can return to the main News Releases page, or press the Back button on your browser.