Riley Gold and Kinross Advance a New Carlin-Type Target Along Nevada’s Cortez Gold Belt
By Peter Kennedy
Riley Gold Corp. [RLYG-TSXV] is a Canadian exploration company that is betting that there are more large gold deposits to be found in north central Nevada. Optimism is based on the location of Riley Gold’s flagship Pipeline West/Clipper project, which is on strike and adjoins the Cortez District, which has delineated or produced over 50 million ounces of gold. Nearby deposits in the area include Nevada Gold Mines’ Cortez and Pipeline complexes, are huge operations and rank among the top producers in a state that has consistently produced between four and five million ounces of gold annually.
Riley’s proximity to nine underground and 12 open pit mines controlled by Nevada Gold Mines, a joint venture held by two of the world’s leading gold miners, Barrick Mining Corp. [ABX-TSX, B-NYSE] and Newmont Corp. [NGT-TSX, NEM-NYSE, ASX, PNGX], has already attracted the attention of Kinross Gold Corp. (K-TSX, KGC-NYSE), which has two mines in Nevada.
Two years ago, in March 2024, a unit of Kinross Gold gained an option to earn up to a 75% interest in the Pipeline West/Clipper Gold project (PWC) by spending a minimum of US$20 million on exploration within seven years and are well underway.
The primary target is a large Carlin-type deposit peripheral to the Gold Acres stock, which is the geologic setting for Nevada Gold Mines’ Pipeline gold deposit.
While exploration is still in the early stages at PWC, the signs have been positive so far. In a November, 2025 press release, Riley said drilling results and logging confirm Carlin-type fluid signatures are present in holes PW25-02 and PW25-03, representing a Carlin-type gold system within the PWC claim block. Highlighted intersections from drill hole PW25-03 include 4.26 metres of 1.33 g/t gold from 804.37 metres, including 1.22 metres of 2.19 g/t gold from 804.37 metres. Results in hole PW25-03 also include a significant 149-metre-thick intersection (0.09 g/t gold from 1040.9 metres) of Carlin-type disseminated gold mineralization in the lower plate Wenban formation.
Having completed three drill holes so far, Kinross has confirmed that planning is underway for a committed next phase of exploration at PWC, which will include additional framework drilling in 2026, based on the 2024 and 2025 drill results. A geochemical soil survey is being completed, expanding the previous successful gold-in-soil survey coverage to the south/southwest to fully delineate and potentially expand the existing +3.0 kilometre open gold and pathfinder-element soil anomaly at surface. The discovery of Barrick’s Fourmile deposit was significantly aided by identifying gold-in-soils at surface. Kinross has also increased the property size by 2.5 square kilometres, to over 27 square kilometres, via additional claim staking.
“A discovery opportunity in this gold-rich trend can be company making but requires patience,” said Riley Gold CEO Todd Hilditch. That said, in only a few holes, we have identified signatures that give us confidence and comfort that we are on the right track.” He said it is worth pointing out that Barrick’s Fourmile deposit was discovered on the 14th drill hole, which Hilditch said is very quick, and has now turned into a world class generational find of 16 million ounces of 16 g/t gold, so we are in early days. “We are looking for something that is geologically akin to Fourmile and Meikle,’’ he said. Fourmile is regarded by Barrick as one of the century’s most significant gold discoveries and is expected to be developed using infrastructure held by the Nevada Gold Mines joint venture.
Aside from the location of its key property, Riley also benefits from a highly experienced management team. The technical advisory committee for PWC is lead by Paul Dobak who spent 15 years working as chief geologist with Barrick Mining. In that role he supported the development of district exploration programs at many of Barrick’s Nevada mines. “Paul is critical to our involvement [at the PWC project],’’ said Hilditch, a veteran of the financial side of the mining sector where he has been involved in mergers and acquisitions. Chairman William Lamb is CEO of the Lundin Group company Lucara Diamond Corp. [LUC-TSX, LUCRF-OTC].
Management currently holds 22% of the 42.2 million outstanding Riley Gold shares. They recently traded at 25 cents in a 52-week range of 28 cents and 12 cents.
Having a partner like Kinross with a proven track record of gold production from two mines in Nevada (Round Mountain and Bald Mountain) is extremely valuable from a technical and operational standpoint, Hilditch has said.
Under the 2024 agreement Kinross assumed operatorship of the project immediately as well as subscribed to a strategic 9.9% (partially diluted) equity stake in Riley via a private placement. Kinross acquired that interest by participating in Riley’s $1.5 million non-brokered private placement of 10.0 million units priced at 15 cents per unit. Each unit consisted of one common share and one share purchase warrant. Each warrant entitles Kinross to purchase one additional share for 25 cents for 60 months.
Kinross holds the right until such times as it holds less than a 3.5% interest in Riley, to maintain, on a pro rata basis, its percentage ownership interest in Riley to a maximum of 19.9% should Riley undertake any future equity offerings.
Under the agreement, Kinross can earn an initial 60% interest by spending a minimum of US$10 million in qualifying work expenditures within five years. That includes US$1.5 million in guaranteed work expenditures within 18 months following execution which was completed. Additionally, Kinross is to core drill a minimum 2,200 metres within three geographically distinct targets. The agreement requires Kinross to spend another US$8.5 million on or before the fifth anniversary of the effective date of the agreement.
Under a “second earn-in right” Kinross can earn an additional 15% stake in PWC (for a total interest of 75%) by incurring a minimum of US$10 million more in qualifying work expenditures within an additional two-year period following the exercise of the initial earn-in option.
The deal required the establishment of a project technical committee to include members from both Riley (Paul Dobak) and Kinross. Also, once the initial earn in option has been exercised, a Nevada limited liability company will be formed through which Kinross and Riley will hold their respective interests in the PWC project. Upon exercise or termination of the second earn-in option, Kinross and Riley Gold will fund on-going operations of the LLC in accordance with their proportionate interests.
The agreement includes a dilution provision. It states that if Riley Gold’s interest in the LLC is diluted to 10% or less, the company’s interest will be converted to a 2.0% net smelter return royalty.