Riversgold Advances Northern Zone with Critical Geotech Drilling Ahead of Mining Lease

Geotechnical Drilling Targets Pit Stability Data

Riversgold (ASX:RGL) has commenced a brief but crucial diamond drilling program at its Northern Zone Gold Project, situated just 25 kilometres east of Kalgoorlie in Western Australia. The nine-day campaign aims to collect whole core samples from fresh rock zones within the porphyry intrusion, providing the rock strength and structural data necessary to inform pit slope stability and optimise open pit design.

The program involves four drill holes reaching depths between 100 and 150 metres, with samples being structurally logged and photographed onsite before selected cores are sent for laboratory testing in Perth. These tests include Unconfined Compressive Strength and Direct Shear analyses, which are critical inputs for the Mine Development and Closure Plan (MDCP) that Riversgold is advancing.

Mining Lease Conversion and Funding Partnership Progress

The drilling initiative coincides with the near-finalisation of the tenement conversion to a Mining Lease, a regulatory milestone that will secure long-term tenure for the project. This step is expected within weeks and is pivotal for advancing development plans.

Funding for the Northern Zone’s development and mining phases will be provided by MEGA Resources under a Right to Mine and Co-Operation Agreement, where profits will be shared equally. MEGA will cover all development and mining costs, effectively de-risking Riversgold’s capital exposure while aligning incentives for project success.

This partnership builds on Riversgold’s recent strategic moves, including the expansion of its Kalgoorlie project footprint and securing key tenements adjacent to Northern Zone. These moves have set the stage for the current drilling and future development activities, reinforcing the project’s potential within a prolific gold region.

Implications for Project Development and Shareholders

Chairman David Lenigas emphasised the importance of the drilling program, noting that the rock strength data will underpin stable pit slope designs essential for safe and efficient mining operations. The imminent grant of the Mining Lease and the maturation of the MDCP are positioned to provide security and clarity for all stakeholders involved.

With MEGA Resources onboard as a funding partner, Riversgold can focus on advancing technical studies and regulatory approvals without the immediate burden of capital expenditure. This arrangement could accelerate project timelines and enhance shareholder value if subsequent drilling and planning confirm the project’s viability.

Riversgold’s Northern Zone lies in proximity to the renowned Kalgoorlie "Super Pit" and the Golden Mile, underscoring the strategic significance of the project location. The current drilling program complements earlier high-grade intercepts reported from the area, which have bolstered confidence in the prospect’s potential.

As Riversgold progresses through these development stages, the market will be watching for the release of geotechnical results and confirmation of the Mining Lease, which together will shape the next phase of project advancement.

These developments follow Riversgold’s recent expansion of Kalgoorlie project footprint and build on the momentum from the exceptional gold intercepts at Northern Zone that have underpinned the project’s growing appeal.