Riversgold Boosts Kalgoorlie Gold Project Area by 20% with New Tenement Buy
Riversgold has expanded its Kalgoorlie Gold Project by acquiring tenement P25/2850, adding 20% more land to its Northern Zone footprint. The purchase secures key infrastructure space and potential new gold targets near Kalgoorlie.
- Acquisition increases project area to 10.22 km2
- Tenement secures critical infrastructure and access routes
- Vendors retain limited prospecting rights and 2% royalty
- Strategic expansion supports future mining and exploration
- Joint benefits for partners Oracle Power and MEGA Resources
Strategic Land Grab Near Kalgoorlie Super Pit
Riversgold Limited (ASX:RGL) has secured a significant expansion of its Kalgoorlie Gold Project, snapping up the adjoining tenement P25/2850 to increase its project footprint by roughly 20% to 10.22 square kilometres. Located just 25 kilometres east of the iconic Kalgoorlie Super Pit, this move not only enlarges the company's landholding but also locks in vital space for future processing plants, waste dumps, and key access routes.
Infrastructure and Exploration Optionality
The newly acquired tenement borders the Northern Zone porphyry gold project to the north, a key area where Riversgold has been intensifying its exploration and development efforts. Technical Director Ed Mead highlighted the strategic value of the acquisition, noting it enhances optionality for future mining plans and offers fresh ground to identify additional gold targets. This follows a pattern of deliberate expansion, building on previous tenement purchases that have steadily increased the Northern Zone footprint. The acquisition complements ongoing activities such as the nine-day geotechnical diamond drilling program designed to support pit design and mining lease applications.
Deal Terms and Vendor Rights
Riversgold paid AUD 75,000 excluding GST for the tenement but agreed to allow the vendors to retain prospecting rights down to a depth of 10 metres. Minerals recovered by the vendors under this retained interest will be split 80/20 in their favour, while Riversgold must pay a 2% royalty on all minerals extracted from the tenement, excluding gold mined by the vendors under their retained rights. This arrangement introduces some complexity to the project's economics, though the company appears confident in the strategic value of the land.
Collaborative Benefits with Project Partners
The acquisition is expected to benefit Riversgold’s partners in the Northern Zone project, Oracle Power Plc and MEGA Resources, who have been instrumental in funding and developing the project. The Northern Zone itself has seen encouraging developments recently, including high-grade gold intercepts and progress toward mining lease conversion. The expanded tenement package adds to the project's scale and infrastructure options, potentially smoothing the path toward commercial production. This follows Riversgold’s earlier tenement purchase increasing project size to 8.36 km2, illustrating a clear growth trajectory in the Kalgoorlie region.
Bottom Line?
While the tenement acquisition broadens Riversgold’s landholdings and infrastructure options near Kalgoorlie, the retained vendor rights and royalties add a layer of complexity that will need careful management as exploration and development progress.
Questions in the middle?
- How will the retained prospecting rights affect Riversgold’s long-term mining plans on the new tenement?
- What exploration results will emerge from this expanded footprint in the coming months?
- Could the 2% royalty on non-gold minerals materially impact project economics if other minerals are discovered?
