Riversgold adding to Kalgoorlie landholding; prepares for Northern Zone drilling

• Riversgold expands Kalgoorlie gold project footprint by 170% after acquiring P25/2540 tenement
• The company has also applied for P25/2848 east of the existing P25/2651 tenement
• Grade control drilling to start in three weeks targeting Northern Zone

Special Report: Riversgold has increased the footprint of its Kalgoorlie gold project in Western Australia by 170% with the acquisition of a granted tenement and another pending.

As the company picks up the pace in the area, Riversgold has also booked a rig for grade control drilling.

The company has signed a binding agreement to acquire P25/2540 from unrelated private company Goldblade Corporation for upfront consideration of $75,000.

Goldblade will retain the right to prospect for minerals to a depth of 10m, though it will split any recovered minerals 80:20 with Riversgold (ASX:RGL).

All minerals recovered by RGL outside of these rights will be subject to a 2% royalty payable to Goldblade.

P25/2540 sits about 500m north of the company’s Kalgoorlie gold project, which is in turn 25km west of Kalgoorlie itself.

Additionally, the company has applied for P25/2848, immediately contiguous to the east of its existing P25/2651 tenement.

“These tenements are very strategic and important for our future gold production development plans, especially with respect to the deal announced by RGL with MEGA Resources on 30 September,” RGL technical director Ed Mead said.

Grade control drilling

RGL has also booked grade control drilling with Australian Surface Drilling – a preferred services provider of MEGA Resources, with whom the company is working to fast track mining the Northern Zone intrusive; part of the broader Kalgoorlie gold project.

Drilling will focus on the area between the known west and east mineralisation where multiple gold mineralised intercepts were reported previously.

This program is expected to start in three weeks.

“The grade control rig is the next step in refining what MEGA Resources will target for our gold production development plans with respect to our deal announced with MEGA Resources on 30 September,” Mead added.

Under the agreement, MEGA will pay for 100% of the costs to develop and mine at Northern Zone, including paying for all ancillary activities – which incorporates haulage of material to the point of sale, maintenance of haul roads and processing costs.

MEGA will also provide geological and engineering services and manage project approvals.

In return, any profit generated will be split 50% to MEGA and 50% to the project owners Riversgold and Oracle Power Plc (20%).

On a 50/50 basis, 10% of monthly profits generated will be reinvested back into expansion grade control and step-out drilling.

This article was developed in collaboration with Riversgold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.