Riversgold Limited reports encouraging shallow gold intersections at its Northern Zone Gold Project near Kalgoorlie, supported by a $2.15 million capital raise with MEGA Resources as a key investor. The drilling results and strategic partnership set the stage for advancing mining plans in 2026.
- Shallow gold mineralisation confirmed at Northern Zone near Kalgoorlie
- Strong $2.15 million capital raise at 1 cent per share, MEGA Resources subscribes for 100 million shares
- Significant drill intercepts include 8m at 5.81 g/t Au and 7m at 3.48 g/t Au
- Further assay results from 16 drillholes pending, drill rig booked for February 2026
- Progress on mining lease conversion and environmental assessments underway
Riversgold’s Northern Zone Drilling Delivers Promising Gold Intersections
Riversgold Limited (ASX, RGL) has released a fresh batch of assay results from its Northern Zone Gold Project, located just 25 kilometres east of Kalgoorlie in Western Australia. The latest drilling campaign continues to reveal shallow gold mineralisation, expanding the known footprint of the deposit within a porphyry-hosted system. Noteworthy intercepts include an 8-metre section grading 5.81 grams per tonne gold and a 7-metre interval at 3.48 grams per tonne, underscoring the potential for near-surface oxide gold resources.
Strategic Capital Raise Strengthens Development Partnership
In tandem with these encouraging exploration results, Riversgold successfully raised $2.15 million through a placement priced at one cent per share. MEGA Resources, the company’s joint venture partner responsible for mining operations, subscribed for 100 million shares, reinforcing their commitment to fund 100% of the Northern Zone development costs. This capital injection is earmarked to advance the Mine Development Closure Plan, progress environmental assessments, and support ongoing exploration activities, including the upcoming drilling program scheduled for February 2026.
Advancing Towards Mining and Resource Definition
Exploration Director Ed Mead highlighted the expanding gold footprint, particularly in the northeast and the saddle area linking previously identified east and west zones. The mineralisation appears to form a broad, approximately 600-metre-wide zone of shallow oxide gold overlaying the Northern Zone porphyry system. The company awaits assay results from an additional 16 drillholes, which are expected to refine the geological model and support a maiden Mineral Resource Estimate in due course. Riversgold’s Executive Chairman David Lenigas expressed optimism about moving towards gold production later this year, leveraging MEGA Resources’ financial backing.
Regulatory and Environmental Progress
Significant progress has also been made on the regulatory front, with the recent signing of a Heritage Agreement marking a key milestone in the conversion of exploration tenure to a mining lease. Riversgold has commenced the Mine Development and Closure Plan alongside environmental assessments in collaboration with Resource WA, essential steps for securing operational approvals. The company’s methodical approach to drilling, sampling, and assay quality control aligns with industry standards, providing confidence in the reported results.
Looking Ahead
With a drill rig booked for early February and a strong capital position secured, Riversgold is well positioned to continue expanding its gold footprint and advance the Northern Zone project towards production. The partnership with MEGA Resources not only provides financial muscle but also operational expertise, potentially accelerating the timeline to first gold sales. Investors will be watching closely as pending assay results and regulatory milestones unfold in the coming months.
Bottom Line?
Riversgold’s expanding gold footprint and strategic JV funding set the stage for a pivotal year ahead at Northern Zone.
Questions in the middle?
- How will the pending assay results from 16 drillholes impact the upcoming Mineral Resource Estimate?
- What is the timeline and likelihood for successful mining lease conversion and environmental approvals?
- How will MEGA Resources’ full funding commitment influence project development pace and shareholder value?