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Riverside Resources is a prospect generator/royalty generator focused on Canada and Mexico that generally attempts to use partners to fund drilling. In this discussion, CEO John-Mark Staude said the Blue Jay Gold spin-out will only list after it closes a financing to cover listing costs, initial work, and a much larger Yukon reclamation bond for the Skookum past-producer (historic high-grade ounces cited), which means no Blue Jay drilling this season. The near-term technical catalyst sits at Union (Sonora) where partner-funded 1,500 m of drilling is a proof-of-concept CRD test with assays targeted ~November. Treasury sits around C$4M with no immediate raise planned, though charity flow-through early next year is possible for B.C. The rerating lever, according to John-Mark is the royalty book (Fresnillo’s Tajitos, Capitan’s Cruz de Plata, Arizona Metals’ Sugarloaf), plus ongoing spin-out optionality.

TLTW

1. Blue Jay
   The Blue Jay Gold spin-out won’t trade until it completes a financing that covers the listing, initial exploration, and a materially higher Yukon reclamation bond tied to the Skookum past-producer. Management cited an historic ~C$70k bond now closer to ~C$2m post-Eagle context. They’ll aim to finance in September, file, and list by year-end/early next year. Skookum is being acquired for ~C$600k (in equity), road-accessible, with legacy site infrastructure. No drilling this season, as the focus is bonding, listing, handover.
2. Catalysts
   Near-term catalyst is Sonora CRD drilling, where the goal is proof-of-concept. Riverside/QuestCorp are drilling 1,500m (6 holes, ~250m each) at Union to test CRD and quartz-hosted gold below shallow historic workings. Success to them would mean hitting mineralization and vectors (carbonate alteration, sulfides, pathfinders), not necessarily mineable widths yet, according to Dr. Staude. The first hole is already done, and the second is underway. Assays ~three months from program start (guide: November). Permits/logistics solid (Caborca services, power/roads). Riverside receives 9.9% QuestCorp equity now and could step toward ~19.9% on milestones. Their intention is to hold for exposure longer term.
3. Money
   Riverside indicates ~C$4M in cash and no immediate raise required. Their spend priorities are building the royalty book and advancing the British Columbia project pipeline. If activity scales, they prefer charity flow-through early next year to capture the two-year spend window (tax-driven), not a dilutive market tap today. Capital discipline remains a stated pillar.
4. Royalties
   Royalty portfolio is the rerating lever. They have multiple operator-driven triggers, according to John-Mark. The key lines are
   – Tajitos (Fresnillo) where RRI has a 2% NSR. Management says it’s higher on Fresnillo’s internal development pyramid (no disclosed timeline).
   – Cruz de Plata (Capitan) where ~10,000m current drill program post-consolidation and the potential resource work could start valuing RRI ground explicitly.
   – Sugarloaf Peak (Arizona Metals) with a historic ~1.2Moz oxide at shallow depth. Riverside hints that possible spin-out or renewed drilling would revive it.
   – Ontario where the earlier-stage NSRs are aligned with Blue Jay’s portfolio.
   
   In one year, a Fresnillo-related milestone could clarify value; inbound interest in RRI royalties exists, but company prefers to bulk up first.
5. Spin-outs
   Riverside’s model is set to continue as before. Capitan (2020) and Blue Jay (2025) demonstrate spin-out value, according to John-Mark. Management is now prepping more assets and NI 43-101 updates in case a CEO and structure align. In the near-term, the expectations are for September drilling updates (Union), October potential Mexico transaction, November royalty news.

Riverside Resources CEO Interview With John-Mark Staude

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