Riversgold Limited has been granted a strategic tenement adjacent to its Northern Zone Gold Project near Kalgoorlie, setting the stage for imminent drilling and development alongside MEGA Resources.
- Granted tenement P25/2848 adjacent to Northern Zone Gold Project
- Revised modelling suggests extension of high-grade gold mineralisation
- Program of Work submitted for drilling approval
- Right to Mine and Co-Operation Agreement with MEGA Resources finalized
- Plans underway to convert tenement to Mining Lease and integrate into mine development
Strategic Expansion Near Kalgoorlie
Riversgold Limited (ASX: RGL) has taken a significant step forward in its Kalgoorlie East Gold Project by securing the P25/2848 tenement, located just 25 kilometres east of Kalgoorlie in Western Australia. This newly granted tenement sits contiguous to the company's Northern Zone Gold Project, an area already known for proven gold mineralisation.
The importance of this tenement lies not only in its proximity but also in the revised structural modelling which indicates a probable continuation of the high-grade eastern mineralised zone further eastwards into this new ground. This suggests that Riversgold’s resource base could expand, enhancing the project's long-term viability.
Advancing Towards Production
Riversgold has submitted a Program of Work to the Department of Mines, Petroleum and Exploration, signalling imminent drilling activities aimed at better defining the mineralisation within the new tenement. This drilling will be critical in confirming the extent and grade of the gold mineralisation, which will inform the next phases of development.
In parallel, the company is progressing the conversion of the tenement to a Mining Lease, integrating it into the broader Mine Development and Closure Plan. This formalisation is essential for moving from exploration to production and securing tenure for mining operations.
Partnership with MEGA Resources
Riversgold’s strategic partnership with MEGA Resources, formalised through a Right to Mine and Co-Operation Agreement, is a cornerstone of the project’s development. MEGA Resources will provide all funding for development and mining activities at Northern Zone, with profits shared equally between the two parties. This arrangement reduces capital risk for Riversgold while leveraging MEGA’s operational expertise.
Technical Director Ed Mead expressed optimism about the project’s trajectory, highlighting the granted tenement as integral to expanding the project footprint and securing long-term tenure. The collaboration with MEGA Resources is expected to facilitate the commencement of production later this year, marking a pivotal milestone for Riversgold.
Infrastructure and Logistics
Beyond mineralisation, the new tenement area is strategically important for infrastructure development. Its location is ideal for establishing key mining infrastructure and serves as a potential transport corridor for trucking ore to third-party processing plants. This logistical advantage could streamline operations and reduce costs, enhancing project economics.
As Riversgold integrates P25/2848 into its mine planning and advances regulatory approvals, the company is positioning itself to capitalise on the rich gold endowment of the Kalgoorlie region, one of Australia’s most prolific gold belts.
Bottom Line?
With tenement grants and partnerships aligning, Riversgold is poised to turn exploration promise into production reality.
Questions in the middle?
- When will drilling results from the new tenement be released, and what grades can be expected?
- How soon will the Mining Lease conversion be finalised, and what regulatory hurdles remain?
- What are the detailed financial terms of the MEGA Resources partnership beyond profit sharing?