Riversgold has lodged the Mine Development and Closure Proposal for its Northern Zone open-pit project near Kalgoorlie, moving the planned mine into its final major approval phase. The project remains conditional on regulatory sign-offs, but MEGA Resources is set to fund development under an extended cooperation agreement.
- Mine Development and Closure Proposal lodged with WA regulators
- Mining lease granted and haul road objections resolved
- Native vegetation clearing permit remains outstanding
- MEGA Resources to fund development under 50/50 agreement
- Cooperation agreement extended to 30 September 2027
Northern Zone reaches final major approval stage
Riversgold Limited (ASX:RGL) has lodged what it describes as the last major government approval required before mining can begin at its Northern Zone gold project, 25 kilometres east of Kalgoorlie. The Mine Development and Closure Proposal was submitted to Western Australia's Department of Mines, Petroleum and Exploration on 30 September, as scheduled.
The milestone is significant, but it is not a mining approval. The department must still assess the proposal and respond to any information requests, while the company also awaits a Native Vegetation Clearing Permit and the formal grant of two haul road licences.
Permitting advances beyond the mining lease
Northern Zone already has Mining Lease M25/389, granted in July 2026 for a 21-year term. Objections to haul road Miscellaneous Licences L25/75 and L25/77 have been resolved, although the licences themselves remain pending. Riversgold lodged the clearing permit application with the Department of Water and Environmental Regulation on 28 August.
The MDCP brings the operating and closure elements into one document. It covers the proposed open-pit dimensions and disturbance footprint, waste rock landform, run-of-mine pad, haul road access, water management and site infrastructure, alongside environmental, heritage and geotechnical studies.
MEGA funding removes stated upfront development requirement
Riversgold says the planned mine will be fully funded by MEGA Resources under the parties' 50/50 Right to Mine and Co-operation Agreement, meaning the company does not require upfront development funding for the project. The announcement does not quantify MEGA's funding commitment, nor does it provide capital costs, operating costs, production estimates or an economic forecast.
The agreement has been extended by 12 months to 30 September 2027. The extension is intended to allow time for the remaining government approvals and the start of mining, with site establishment and mobilisation by MEGA to follow once those approvals are in place.
Starter pit would use third-party processing
The proposed operation is a starter pit targeting the weathered and transition zones, with ore transported by road to third-party processing facilities in the Goldfields. Riversgold says drilling has identified near-surface gold mineralisation across widths approaching 600 metres, although further drilling is required to define the deposit's ultimate limits and the mineralisation remains open in all directions.
The immediate test is therefore regulatory rather than geological: whether DMPE accepts the submitted mine and closure plan, and whether the clearing and haul road approvals arrive within the extended agreement period. Until then, Northern Zone is closer to breaking ground, but not yet authorised to do so.
Bottom Line?
The filing clears a major paperwork hurdle, but mine timing still depends on three outstanding approval steps and an as-yet-unquantified funding commitment.
Questions in the middle?
- Will DMPE require material changes or additional information before approving the MDCP?
- When will the native vegetation clearing permit and haul road licences be granted?
- What production profile, capital requirement and funding terms will emerge before site mobilisation?