Riversgold in mining agreement for Northern Zone gold, raises $1.8m

• RGL signs right to mine and cooperation with MEGA Resources for Northern Zone project
• MEGA Resources will fully fund operations and share profits equally
• Company raises $1.8m in single tranche placement to sophisticated investors

Special Report: Riversgold has paved the way for mining at the 80%-owned Northern Zone gold project near Kalgoorlie in WA on signing a binding right to mine and cooperation agreement with MEGA Resources.

The project is just 25km from the Kalgoorlie Super Pit and has an exploration target of 2.5-4.8Moz.

Previous drilling returned up to 12.27g/t and metallurgical testwork averaged 92.56% gold recoveries.

Riversgold (ASX:RGL) sees similarities with Saturn Metals’ Apollo Hill project for a sizeable low-grade heap leach operation – but says Northern Zone could be even larger.

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.

Mining to commence in the new year

MEGA aims to break ground during the January quarter of 2026, subject to the partnership gaining all final tenement permissions, mining approvals and the signing of a binding ore purchase agreement with a third-party processing mill.

In addition, RGL has received firm commitments to raise $1.8m via a single tranche placement to sophisticated investors.

This will allow RGL to continue exploration programs across its projects, including at the Northern Zone where drill planning is underway to test extensions of known gold mineralisation.

“An extensive amount of drilling has occurred at Northern Zone since RGL took over the exploration efforts on the project in 2023,” chairman David Lenigas said.

“This transaction with MEGA Resources, after a thorough due diligence process by them, will now move this gold project along significantly.

“We will be aiming to see MEGA’s mining equipment on site early next year. Further details of the partnership’s plans will be made available to shareholders closer to breaking ground.

“RGL plans to continue its drilling efforts in the meantime on the shallower (surface to 60 metre depth) gold mineralisation in the interim to expand on the gold mineralisation zones already drilled to date.”

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.