Riversgold Secures 21-Year Mining Lease and Expands Kalgoorlie Gold Footprint
Riversgold has been granted a 21-year mining lease at its Northern Zone near Kalgoorlie, boosting its project area by 20% and reporting high-grade gold assays. Meanwhile, its Canadian partner AIS Resources delivers promising multi-element results at the Saint John Project.
- Mining lease M25/389 granted for 21 years at Kalgoorlie
- Kalgoorlie project area expanded by 20% to 10.2 km2
- Drilling confirms shallow, high-grade gold mineralisation
- Canadian partner AIS Resources reports elevated copper, gold, silver assays
- Exploration expenditure of $641k with $1.2 million cash reserves
Mining Lease Granted, Clearing Path to Production
Riversgold Ltd (ASX:RGL) achieved a significant milestone with the granting of mining lease M25/389 for an initial 21-year term at its Northern Zone, part of the Kalgoorlie Gold Project located just 25km east of the Kalgoorlie Super Pit. This lease grant, effective 3 July, unlocks full funding from MEGA Resources under a binding Right to Mine and Co-Operation Agreement, where MEGA covers 100% of development and mining costs in exchange for a 50/50 profit split with project owners.
The Northern Zone sits within a tonalite-trondhjemite intrusion hosting horizontal gold mineralisation associated with the Canon Shear fault zone. Recent drilling continues to expand this footprint, with assays returning individual metre grades up to 71 g/t gold, reinforcing the prospect’s shallow high-grade potential. The absence of water in drilling to 60 metres depth also supports the viability of Riversgold’s drilling techniques and future mining operations.
Project Expansion and Environmental Approvals Progress
Over the past nine months, Riversgold has boosted its Kalgoorlie project footprint by 20%, acquiring tenement P25/2850 and increasing the total area to 10.2 km2. This expansion secures space for critical infrastructure, waste dumps, processing facilities, and transport links, providing long-term tenure security for development.
Meanwhile, the company is advancing its Mine Development and Closure Plan (MDCP), now approximately 60% complete, alongside applications for Native Vegetation Clearing Permits. Consultants have delivered positive geotechnical, hydrological, and environmental assessments. Notably, waste rock characterisation indicates minimal acid mine drainage risk, while groundwater studies show a water table at 37 metres with low permeability, suggesting limited operational or geotechnical risk.
Canadian Partner Reports Multi-Element Assay Highlights
Across the globe, Riversgold’s earn-in partner A.I.S. Resources Limited (AIS) continues to advance exploration at the Saint John Copper/Gold/Silver/Antimony Project in New Brunswick, Canada. Recent rock chip sampling has yielded elevated assay values, with six samples exceeding 1% copper, two surpassing 5 g/t gold, and multiple samples reporting high silver, antimony, lead, molybdenum, cobalt, and rhenium concentrations.
These encouraging multi-element results support the project's interpretation as prospective for IOCG-style and structurally controlled mineralisation. AIS is preparing for an upcoming drill program, having contracted a local driller, with ongoing geological mapping and sampling feeding into target refinement.
Additional Projects and Financial Position
Riversgold is also progressing exploration at its Tambourah gold-copper project near Port Hedland and the Wodgina East iron ore project adjacent to the Wodgina Lithium mine in the Pilbara. The Tambourah program awaits heritage survey completion before drilling can commence, while Wodgina East reconnaissance work has identified channel iron deposits with high-grade rock chip samples.
On the financial front, Riversgold spent approximately $641,000 on exploration and evaluation during the quarter, primarily on drilling, assays, and consultancy. The company ended the quarter with $1.205 million in cash and has plans to raise up to $150,000 through a placement subject to shareholder approval, alongside available placement capacity under ASX rules. Operating cash outflows are expected to reduce as drilling concludes and permit applications near submission.
Bottom Line?
Riversgold’s mining lease grant and project expansion mark a pivotal step towards production, but the timing of permit approvals and funding raises will be key to watch.
Questions in the middle?
- How soon will Riversgold secure all necessary permits to commence mining at Northern Zone?
- Will upcoming drilling at Kalgoorlie and Saint John projects confirm the extent of high-grade mineralisation?
- How will Riversgold balance exploration expenditure with its modest cash reserves and planned capital raising?
