Riversgold has submitted the mining lease application for its Northern Zone gold project near Kalgoorlie. Pic: Getty Images
Riversgold submits mining lease application to lock in Northern Zone gold tenure
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- Riversgold submits mining lease application over its Northern Zone gold project near Kalgoorlie
- Mining lease will grant company greater security with initial tenure of 21 years
- Nearby small cap success story Black Cat sets a template for future production
Special Report: Flush with success from a recent drilling program, Riversgold has submitted a mining lease application for its Northern Zone gold project just 25km east-southeast of Kalgoorlie.
In WA mining law that’s a major step that indicates Riversgold’s (ASX:RGL) setting the stage to become a future producer.
Aircore drilling confirmed a new high-grade zone on the eastern extensional area of the porphyry system and expanded the high-grade oxide zone within the main porphyry.
RGL’s mining licence application is based on all drill data at Northern Zone, which is conceptually similar to Saturn Metals’ (ASX:STN) Apollo Hill gold project, about 175km to the north.
While Apollo Hill is significantly ahead of Northern Zone on the development curve – being the subject of a preliminary economic assessment released in mid-August 2024 – its resource estimate of 105Mt at 0.54g/t gold for 1.84Moz of contained gold provides a benchmark for the company’s aspirations at the potentially larger Northern Zone.
Potential processing scenarios have been demonstrated by the recent success of Black Cat Syndicate’s (ASX:BC8) use of a turn-key funding, development and processing package at their Myhree/Boundary open pits about 7km north of Northern Zone.
“The lodgement of the Mining Lease application for the Northern Zone gold project is a great next step forward for this fast-growing project,” RGL exploration director Ed Mead said.
“We have drilled up some very significant gold intercepts under the Kalgoorlie landscape and we have a strong belief in this project to deliver very significant future value for Riversgold and Oracle Power.
“Conversion of the tenement status to the higher order Mining Lease increases security of tenure of the project to an initial 21 years and is a necessary important next step should we wish to develop NZ as a gold mine.
“We are highly encouraged by the recent success of Black Cat’s Myhree open pit operations only 7km up the road from Northern Zone and we are assessing if similar operational scenarios can be achieved with Northern Zone.”
More drilling to come
RGL adds that while the application can take more than 12 months to be granted, it allows for more drilling to be carried out on the underlying tenement.
This drilling will be guided by the 3D Leapfrog model of the Oracle and Riversgold drill holes, which is being used to refine areas for the next round of drilling.
Areas of high-grade mineralisation intersected by the recent drilling may also become the focus of future reverse circulation and diamond drilling below the higher-grade oxide gold mineralisation.
Gold mineralisation remains open in all direction and will required further modelling and drill testing ahead of proceeding with a resource estimate.
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.
