Riversgold has dramatically expanded its Kalgoorlie Gold Project tenements by over 800%, positioning itself for long-term development with a new mining agreement that shares funding and profits with MEGA Resources.
- Tenement area increased from 0.8 km² to 6.75 km², an 820% expansion
- Northern Zone tenement conversion to Mining Lease nearing completion
- Right to Mine and Co-Operation Agreement signed with MEGA Resources
- MEGA Resources to fund development and mining on a 50/50 profit share basis
- Additional tenements applied for to support future project growth
Significant Expansion of Tenement Holdings
Riversgold Limited (ASX: RGL) has announced a substantial increase in its tenement holdings for the Kalgoorlie Gold Project, located just 25 kilometres east of Kalgoorlie in Western Australia. The company has expanded its footprint from an initial 0.8 square kilometres to 6.75 square kilometres, marking an 820% increase. This expansion is designed to accommodate the infrastructure demands of a porphyry hosted gold project, which typically requires extensive space for open pit mining, waste dumps, processing facilities, and other operational necessities.
Progress Towards Mining Lease and Strategic Partnerships
The Northern Zone tenement, central to the project, is in the advanced stages of conversion to a Mining Lease, expected imminently. This regulatory milestone is crucial for Riversgold to move from exploration towards development and production. Complementing this progress, Riversgold has entered into a Right to Mine and Co-Operation Agreement with MEGA Resources. Under this agreement, MEGA will provide all funding for development and mining activities at Northern Zone, with profits shared equally between the two companies. This partnership not only mitigates capital risk for Riversgold but also aligns incentives for efficient project advancement.
Strategic Land Acquisitions and Future Potential
In addition to the granted tenements, Riversgold has lodged applications for several contiguous parcels of land, further expanding its control over the region. These additional tenements offer the potential to incorporate more gold mineralisation zones into the main Mining Lease as ongoing drilling programs define new resources. The expanded land package addresses earlier concerns about the project's scale and infrastructure capacity, providing long-term security of tenure and flexibility for future growth.
Implications for Shareholders and the Kalgoorlie Region
For shareholders, this tenement expansion and strategic partnership represent a significant step forward in de-risking the project and enhancing its development prospects. The proximity of the Northern Zone to the famous Kalgoorlie "Super Pit" gold mine underscores the geological potential of the area. Riversgold’s proactive approach to securing land and funding partnerships positions it well to capitalise on this opportunity as it moves towards production.
Bottom Line?
Riversgold’s bold tenement expansion and funding deal set the stage for a pivotal phase in developing its Kalgoorlie Gold Project.
Questions in the middle?
- When exactly will the Northern Zone tenement conversion to Mining Lease be finalised?
- What impact will upcoming drilling results have on the scale and economics of the project?
- How will the profit-sharing arrangement with MEGA Resources influence project timelines and decision-making?