Riverstone Resources Inc. (XE:A0MX39)
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3 Years : From Oct 2012 to Oct 2015
Riverstone Resources Inc. (TSX VENTURE:RVS)(OTCQX:RVREF)(FRANKFURT:3RV) ("Riverstone" or the "Company") is pleased to announce that Senet (Pty) Ltd. ("SENET") of Johannesburg, South Africa has been engaged to conduct the independent definitive Feasibility Study for the Company's flagship Karma Gold Project (the "Karma Project") in Burkina Faso, West Africa. The Feasibility Study will entail development of a comprehensive operating plan and cost estimate for a 3 to 4 million tonne per annum ("Mtpa") open pit, heap leach gold mine similar to that described in the independent Preliminary Economic Assessment ("PEA") (see Riverstone news release dated August 20, 2012 and in dependent NI 43-101 compliant technical report titled, "Preliminary Economic Assessment Report for the Karma Project, Burkina Faso, West Africa", with an effective date of August 2, 2012, filed on www.sedar.com ("SEDAR") September 17, 2012) on the Karma Project. The Feasibility Study will be based on a total indicated, in-pit, resource of free-leaching material containing 1.03 million ounces of gold (see Riverstone news release dated October 3, 2012, and independent NI 43-101 compliant technical report titled, "Technical Report and Updated Resource Estimate on the Karma Project, Burkina Faso, West Africa", dated effective October 1, 2012, filed on SEDAR November 7, 2012) and will focus on mining and processing of the free-leaching portions of the deposit only. The Feasibility Study is scheduled to commence November 2012 and is expected to be completed in mid-2013.
SENET has a wealth of experience engineering and building mining projects in Africa. They have demonstrated expertise in heap leach and were engaged in the construction of the Kalsaka Mine, a 1.6 Mtpa heap leach operation located in Burkina Faso, 50 km south of the Karma Project site. SENET proposes to subcontract the mining and heap leach pad and hydrology design portions of the Feasibility Study to SRK Consulting and Knight-Piesold (Pty) Ltd., respectively, also of South Africa.
Riverstone is active in Burkina Faso, West Africa, where it holds a portfolio of four high quality exploration projects covering in excess of 2,000 km. Riverstone's flagship project is the Karma Project, which as reported in the PEA, comprises a NI 43-101 compliant in-pit Whittle total indicated resources of approximately 1.9 million ounces of gold in 56.5 million tonnes with an average grade of 1.07 g/t gold and total inferred resources of approximately 492 thousand ounces of gold in 15.4 million tonnes with an average grade of 1.0 g/t gold. The results of the PEA, which highlights the Karma Project to have robust economics, is based on Riverstone's previous January 9, 2012 resource estimate and while relevant and valid in regards of the January 9, 2012 estimate cannot necessarily be extrapolated to the updated resource estimate announced on October 3, 2012.
The PEA is considered preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the production profile concluded in the PEA will be realized. Mineral Resources that are not Mineral Reserves have not yet demonstrated economic viability.
Paul G. Anderson, M.Sc., P. Geo., the Company's Vice-President, Exploration, is the Company's Qualified Person for the purposes of National Instrument 43-101 and has reviewed and approved the technical contents of this release.
Additional information about the Company and its activities may be found on the Company's website at www.riverstoneresources.com and under the Company's profile at www.sedar.com.
ON BEHALF OF THE BOARD
Dwayne L. Melrose, President & CEO
Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, with respect to statements regarding the PEA, updated resource estimate and Feasibility Study, the assumptions set forth in this news release and in the Company's news release of January 9, 2012, August 20, 2012 and October 3, 2012 and risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development results, completion date of the Feasibility Study, SENET engagement of subcontractors will not be consistent with the Company's expectations, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, labour disputes, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at www.sedar.com. Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
This news release may use the terms "measured", "indicated" and "inferred" as these terms are defined under Canada's National Instrument 43.101. U.S. Investors are advised that, while such terms are recognized and required by Canadian regulations, they are not recognized by the United States Securities and Exchange Commission ("SEC") and may not be comparable to similar information for United States mining or exploration companies. As such, certain information contained on this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. U.S. investors are cautioned not to assume that any part or all of the mineral deposits described in these categories will ever be converted into proven or probable reserves, as defined in the SEC's Industry Guide No. 7.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Vancouver Office: Riverstone Resources Inc.
Dwayne L. Melrose
Riverstone Resources Inc.
Riverstone Resources Inc.
Riverstone Resources Inc.