El Dorado,
Rediscovered

The Sierra Madre Mountains have a fabled history of precious metals production spanning centuries.

Now — with a gold bull market in full throttle — Ridgestone Mining (RMI.V; RIGMF.OTC) is using modern exploration techniques to unlock the untapped potential of an historic project in the region.

Dear Fellow Investor,

Dreams of wealth have drawn prospectors to the Sierra Madre for centuries.

You’ll remember that Northwest Mexico’s section of this mountain chain was immortalized in the classic film “The Treasure of the Sierra Madre.”

In the movie, an old prospector convinces a down-on-his-luck Humphrey Bogart and his friend to join forces with the old man and head into the Sierras in search of gold.

They find it, of course, and spend many months building up their hoards using conventional placer methods.

Set in 1920s Mexico and released in the late 1940s, the movie is a reminder that small-scale mining in the Sierras was more common than larger, commercialized mining in this era.

Indeed, the country’s path from the Mexican Revolution, through World Wars I and II, the Great Depression (and then a period of nationalization) ensured it would be many decades before large-scale mining would return.

Now, a hundred years on, a combination of a roaring gold bull market and Mexico’s now-welcoming approach to foreign investment has drawn dozens of mining companies back to the region.

Their goal is simple: To tap the huge gold and silver resources that geologists believe lie at depth, well below the near-surface deposits that have largely been exhausted by small-scale miners like Bogey and crew. And that’s where Ridgestone Mining (RMI.V; RIGMF.OTC) comes in.

Thanks to the persistence of a pair of mining geologists who are now with Ridgestone, the company has cobbled together Rebeico, a gold-copper property with a chance to write its own chapter in the legendary history of the Sierra Madre.

Drilling Deep In The Heart Of The Sierra Madre

The best place to find gold is where you’ve already found it.

With that old mining cliché in the back of their heads, geologists Alfonso Daco and Francisco Navarro focused on the Rebeico region, near their multi-million-ounce La Colorada discovery.

In their search through the historic records of the area, they came across evidence of a small, but productive mine whose history dated to the 1940s.

The locally-owned operator at the time, Minera Alaska, had shipped ore to a smelter in El Paso with a bonanza average grade of 20.2 g/t gold.

Because Minera Alaska had long since sold off its interest in the Rebeico mines to various owners, Daco and Navarro had to track down the owners (and convince them to sell) to pull the project together.

They were successful, assembling a land package in the area that spans fully 35 square kilometers.

They then hit the ground with the same modern, surface exploration techniques that led to their discovery at La Colorada. In doing so, they identified not one but two gold-bearing zones — the New Year zone and the Alaska vein.

Drilling on the southern portion of the Alaska vein in 2018 returned bonanza-grade gold, with a hole that cut 36.1 g/t gold over 1.5 meters.

With this evidence in hand, they brought the project to mining entrepreneur and Ridgestone CEO Jonathan George, who promptly bought it.

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A Been-There, Done-That Management Team

George has had an illustrious career in mining that spans more than three decades.

Under his leadership, Creston Moly acquired the Creston project in Mexico and developed it into the country’s largest molybdenum deposit.

George and team advanced Creston through the prefeasibility stage in just two years and then sold the project for C$195 million.

He was also part of the group responsible for the Patterson Lake South uranium discovery, one of the most significant uranium finds in recent years in Saskatchewan’s Athabasca Basin.

George sees similar potential in Rebeico, as it shares characteristics with other mines in the area like Alamos Gold’s Mulatos mine (2.6 million ounces of measured and indicated gold) and Argonaut Gold’s La Colorada (645,000 ounces of indicated and inferred gold and 9.8 million ounces of indicated and inferred silver).

He sees a path to development at Rebeico in as little as four years.

First Results Already Hitting

Indeed, the company has wasted no time assessing the project’s potential — it recently completed a 1,674-meter drilling program on the New Year zone.

Ridgestone released assays from the first three holes of this effort in July, and the results were cause for excitement (and a reminder that Rebeico offers exposure to copper as well).

Hole 13D provided the highlight hole, cutting 16.2 meters of 2.1 g/t gold and 1.8% copper, including a higher-grade interval of 5.3 g/t gold and 1.5% copper over 4.4 meters.

Adding to the allure of these promising initial assays is the possibility of short-term cash flow via a recently signed toll-mining agreement with a nearby mill.

That agreement will see Ridgestone send up to 300 tonnes of material per day to the mill from historic dumps from the Alaska vein. The dump material targeted for processing contains up to 16.9 g/t gold and 2.7% copper.

In conjunction with this agreement, the company is also looking at hiring contractors to rehabilitate the Alaska vein’s underground workings, including the area that generated that high-grade gold and copper hit in 2018.

This Market Is Moving At Breakneck Speed — Act Now

With a plan to monetize Rebeico’s low-lying fruit underway and more assays due soon from the drilling on the New Year zone, Ridgestone Mining is well-positioned to vault higher from here.

Given Johnathan George’s track record of successful exits, chances are excellent that Ridgestone will be able to convert Rebeico into a takeout target.

The key is to get in now, before more extensive exploration uncovers the Sierra Madre’s riches at depth here. With a project that shows every sign of hosting high-grade gold (and significant copper optionality as well), Ridgestone is currently trading at bargain-basement levels.

But in the current environment, this is an opportunity that likely won’t last long.

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