Riley Gold tables update on Kinross drilling in Nevada

Riley Gold Corp. [RLYG-TSXV, RLYGF-OTCQB] has released an update for the company’s Pipeline West/Clipper Gold project located in the Cortez mining district of the Battle Mountain Eureka Trend in Nevada. The PWC project is operated by Kinross Gold U.S.A. Inc., a unit of Kinross Gold Corp. (K-TSX, KGC-NYSE), under an exploration earn-in agreement executed in March 2024 whereby Kinross has the right to earn up to a 75% stake in PWC by spending US$20 million.

Riley said Kinross initiated its first PWC framework drill hole [PW24-01) in July 2024 to test for favourable lower plate carbonate Carlin type host rocks. The inaugural core hole was spotted using geologic and geophysical interpretations and was drilled to 1,096 metres. The drill hole was designed to identify local stratigraphy in a large area within the 25 square kilometre land package with no previous deep drilling.

“Kinross has successfully identified stratigraphy and lithology at explorable depths similar to that of local large gold deposits like the Fourmile discovery and the Cortez Complex owned and operated by Nevada Gold Mines LLC,’’ said Riley Gold CEO Todd Hilditch.

“The technical committee, lead by Kinross, is happy with the information derived from the first hole under the program and we look forward to continued drilling in 2025,’’ he said.

Kinross is a Canadian senior gold mining company with mines and projects in the U.S., Brazil, Mauritania, Chile, Ghana and Canada.

PWC constitutes a very prospective exploration property for Carlin-type, disseminated and replacement gold deposits.

Kinross is funding and operating PWC and has a strategic 9.9% (on a partially diluted basis) equity interest in Riley acquired through a private placement that raised $1.2-million,  and consisted of 8.0 million units priced at 15 cents each.

Each Kinross investment unit consisted of one common share of the company and one share purchase warrant. Each warrant will entitle Kinross to purchase (for a period of 60 months) one additional common share at an exercise price of 25 cents.

If, at any time, during the warrant term, Kinross terminates the agreement, any unexercised Kinross warrants shall immediately expire and terminate concurrently with the termination of the agreement.

Riley said results and interpretations have provided Kinross with a better understanding of the property and have aided in decision making for the next round of planned drilling.

Under the first earn-in right, Kinross can earn an initial 60% interest in PWC by incurring a minimum of US$10 million in qualifying work expenditures within five years. It can raise its stake to 75% by spending another US$10 million.

Riley Gold shares were unchanged Monday at 12.5 cents and trade in a 52-week range of 27 cents and 10.5 cents.