Riversgold Hits Over 90% Gold Recovery and Strong Drilling Near Kalgoorlie
Riversgold Limited reports metallurgical tests confirming over 90% gold recovery at its Northern Zone project near Kalgoorlie, alongside promising drilling results that pave the way for a maiden resource estimate.
- Average gold recovery of 92.56% from oxide samples
- Final assays confirm significant shallow gold mineralisation
- Drilling suggests potential to link west and east mineralised zones
- Mining lease application progressing with updates expected soon
- Structural modelling by Xirlatem to guide future drilling and resource estimation
Metallurgical Success Bolsters Project Potential
Riversgold Limited (ASX: RGL) has announced encouraging metallurgical results from its Northern Zone project, located just 25 kilometres east of Kalgoorlie in Western Australia. Recent cyanide bottle roll tests on oxide samples have demonstrated an average gold recovery rate of 92.56%, reaffirming earlier positive outcomes from 2023. Such high recovery rates are a strong indicator of the project's potential economic viability, especially for oxide ore processing.
Drilling Results Expand Mineralisation Footprint
The company has also received final assay results from its recent reverse circulation (RC) and aircore (AC) drilling programs. These results reveal significant shallow gold intercepts, including notable grades such as 7 metres at 3.62 grams per tonne and 10 metres at 8.89 grams per tonne. Importantly, the drilling has highlighted the possibility of connecting the western and eastern mineralised zones, which could substantially increase the resource footprint.
Towards a Maiden Mineral Resource Estimate
Riversgold is advancing towards a maiden Mineral Resource Estimate (MRE) for the Northern Zone, supported by ongoing structural and geological modelling conducted by specialist firm Xirlatem. This modelling is expected to refine targeting and improve the understanding of the deposit’s geometry, which remains partly uncertain, particularly regarding the true width of mineralisation.
Strategic Positioning and Next Steps
The project’s proximity to established operations such as BlackCat Syndicate’s Myhree mine offers a conceptual framework for potential toll treatment options, leveraging existing infrastructure. Additionally, comparisons with Saturn Metals’ Apollo Hill project suggest the Northern Zone could support a sizeable low-grade heap leach operation, though further studies are needed to confirm this potential.
Meanwhile, Riversgold’s mining lease application is progressing through regulatory channels, with updates anticipated shortly. The company plans further drilling to expand oxide mineralisation and to better define the resource, while formalising joint venture arrangements with Oracle Gold (WA) Pty Ltd by year-end.
Bottom Line?
As Riversgold moves closer to defining a maiden resource, the market will watch closely for mining lease approvals and further drilling outcomes that could unlock the Northern Zone’s full potential.
Questions in the middle?
- How will the maiden Mineral Resource Estimate quantify the size and grade continuity of the deposit?
- What are the timelines and prospects for mining lease approval and JV formalisation with Oracle Gold?
- Could toll treatment or heap leach processing models prove economically viable for Northern Zone oxide ore?
