Kinross Gold Commences Drilling at Riley Gold's PWC Gold Project (Cortez District - Nevada)

Rhea-AI Summary

Riley Gold Corp. (TSXV: RLYG, OTCQB: RLYGF) announced the commencement of drilling at its Pipeline West/Clipper Gold Project (PWC) in Nevada's Cortez District. The drilling is managed and funded by Kinross Gold, which can earn up to a 75% stake in the project by investing at least $20 million. The PWC project, covering approx. 24.7 km², is located in a prolific gold-producing area. Kinross has also acquired a 9.9% equity interest in Riley Gold. The drilling will target previously unexplored areas with promising geological features. Paul Dobak, Riley Gold's technical committee member, brings extensive experience in Nevada's mineralization. Initial permits have been secured from the Bureau of Land Management.

Positive

• Kinross Gold is investing up to $20 million in Riley Gold's PWC project.
• Kinross Gold can earn up to a 75% stake in the PWC project.
• Kinross Gold has acquired a 9.9% equity interest in Riley Gold.
• Commencement of drilling targets promising, unexplored geological areas.
• Permits for initial drilling and work have been approved by the Bureau of Land Management.

Negative

• None

Vancouver, British Columbia--(Newsfile Corp. - July 10, 2024) - Riley Gold Corp. (TSXV: RLYG) (OTCQB: RLYGF) ("Riley Gold" or the "Company") is pleased to announce that drilling is underway at the Company's Pipeline West/Clipper Gold Project ("PWC") by Kinross Gold U.S.A., Inc. ("Kinross"), a wholly-owned subsidiary of Kinross Gold Corporation (TSX: K) (NYSE: KGC).

Riley Gold entered into an exploration and venture option agreement (the "Agreement") with Kinross on March 13, 2024. The Agreement grants Kinross the right to earn up to a 75% interest in Riley Gold's PWC project by spending a minimum of US$20 million (see news release dated March 14, 2024 for details). PWC is located in Lander County, Nevada and consists of approximately 24.7 km² in the heart of the significant gold producing Cortez District (Battle Mountain - Eureka Trend). Kinross is funding and operating PWC and has a strategic 9.9% (on a partially diluted basis) equity interest in the Company acquired through a private placement.

"We are excited to have partnered with Kinross and to have drilling underway at PWC. Technical meetings have identified exciting targets, based on geological and geophysical data interpretation, in areas that have never been drill tested. Having a partner 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. Our PWC project is within the Cortez District that has a significant history of gold production and current reserves. PWC adjoins Nevada Gold Mines LLC ("NGM"), a joint venture between Barrick Gold Corp. and Newmont Corporation, that has current production within their Cortez/Pipeline complex," commented Todd Hilditch, CEO of Riley Gold.

Technical Committee Formation - Mr. Paul Dobak Represents Riley Gold

The PWC project technical committee is led by Kinross and includes members from both Kinross and Riley Gold. The appointed lead Riley Gold technical committee member is Mr. Paul Dobak, who joined the Company on April 4, 2024 (see press release dated April 8 for his bio) as a member of Riley's technical advisory committee. Mr. Dobak has a wealth of experience in the mineral exploration field, particularly within the Cortez Trend where the PWC project is located and where he was involved in the discovery of the Goldrush and Fourmile gold deposits as Chief Geologist - North America for Barrick Gold. Mr. Dobak has additional direct practical experience in Nevada's style of mineralization and deposits having held positions of increasing responsibility with Barrick for 25 years and senior positions with other major mining companies for 15 years prior to that.

Recent Work, Drill Program and Cortez District Highlights

Drilling will target previously untested favourable lower plate carbonate host rocks of the Wenban and Roberts Mountains Formations at explorable depths. The Wenban Formation is the primary host to all the >5.0-million-ounce gold deposits in the Cortez District. Geologic work completed by Riley Gold and Kinross since the PWC acquisition includes: surface geologic mapping, soil geochemistry and controlled-source audio-frequency magnetotelluric ("CSAMT") surveys. In addition, re-interpretation of historic drill hole, gravity, magnetic and CSAMT data has been completed and used for developing 2024 drill targets. The primary target is a large, disseminated gold deposit peripheral to the Gold Acres stock, which is the geologic setting for the NGM Pipeline gold deposit. Permitting for the initial work and drilling was submitted by Kinross to the Bureau of Land Management and approved.

About PWC:

PWC constitutes a very prospective exploration property for Carlin-type, disseminated and replacement gold deposits. PWC consists of a land package totaling approximately 24.7 square kms of unpatented mining claims and patented fee lands adjoining NGM. PWC is situated along the Cortez Structural Zone of the exceptionally productive Cortez Trend within the Battle Mountain - Eureka Trend in north central Nevada (Figure 1). The Cortez and Pipeline complexes (adjoining Riley's PWC project boundary) are top producers within Nevada, a State that has consistently produced between 4-5 million ounces of gold a year.

Figure 1: PWC Location (project boundary approximate)

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10015/216010_43326f8064f8380c_002full.jpg

Qualified Person

This news release has been reviewed and approved by Richard DeLong, P.Geo., Director of Riley Gold and a 'qualified person', as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Riley Gold Corp.

Riley Gold is an exploration and development company focused in Nevada, USA, with assets that include the Pipeline West/Clipper Gold Project located in the Battle Mountain Eureka Trend (within the Cortez District) and the Tokop Gold Project located within the Walker Lane Trend. Riley Gold's founders and leadership team have a proven track record of maximizing shareholder value during each phase of the mining life cycle: exploration, development, and production.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Todd Hilditch
Chief Executive Officer
Tel: (604) 443-3831

Neither the 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.

Cautionary statement regarding forward-looking information

This press release contains statements which constitute "forward looking information" under applicable Canadian securities laws, including statements regarding plans, intentions, beliefs and current expectations of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking information. Although Riley Gold believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Riley Gold can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties and the Company's future business activities may differ materially from those in the forward-looking information as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions and the ability to obtain the requisite approvals of the TSX Venture Exchange when necessary. Investors are cautioned that any such forward-looking information is not a guarantee of future business activities and involves risks and uncertainties. Additional information on these and other factors that could affect Riley Gold operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216010

FAQ

What is the significance of the drilling commenced by Kinross Gold at Riley Gold's PWC project?

The drilling marks a major step in exploring the potential of Riley Gold's PWC project, targeting promising unexplored geological formations in Nevada's Cortez District.

How much is Kinross Gold investing in the PWC project to earn a stake?

Kinross Gold is investing a minimum of $20 million to earn up to a 75% interest in Riley Gold's PWC project.

What is the equity interest of Kinross Gold in Riley Gold?

Kinross Gold has acquired a 9.9% equity interest in Riley Gold.

What geological formations are being targeted in the PWC project drilling?

The drilling will target favorable lower plate carbonate host rocks of the Wenban and Roberts Mountains Formations.

When was the agreement between Riley Gold and Kinross Gold made?

The agreement between Riley Gold and Kinross Gold was made on March 13, 2024.

Where is Riley Gold's PWC project located?

Riley Gold's PWC project is located in the Cortez District, Lander County, Nevada.