Riversgold wraps Northern Zone drilling

Riversgold is now looking at its next steps towards production
Drilling campaign continued to expand a high-grade oxide zone
RGL neighbours show ore processing potential and large-scale, lower-grade operations

Special Report: Riversgold has wrapped up drilling and now looks towards an updated model and mining licence application for its Northern Zone project eastbound of Kalgoorlie.

The final assays delivered more high-grade returns to the ledger from a campaign which confirmed and enlarged shallow mineralisation and continued to expand a high-grade oxide zone which remains open to multiple ends.

Riversgold’s (ASX:RGL) Leapfrog geological software model will now be used to direct future drilling as the company matures the project, with a mining license application set to soon be sent off.

Riversgold chairman David Lenigas said the mineralisation envelope and footprint at the project continues to grow.

“The drilling which has been targeting higher-grade, shallow-gold mineralisation, may lead to these areas being the future focus of reverse circulation and diamond drilling below the higher-grade oxide gold mineralisation, to expedite the project towards a maiden mineral resource estimate,” Lenigas said.

“We remain 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 operations can be achieved with Northern Zone after we convert the tenement to a mining lease.”

Cross-section of 3D software model illustrating gold grade shells, derived from all the significant intercepts reported to the ASX to date. Pic: RGL

Lower-grade largesse

While the 0.4-0.6g/t grade portion of Riversgold’s 200-250Mt exploration target doesn’t jump off the page, it would hardly be the first operation to have success in that range.

Gold mines like Newcrest Mining’s (ASX:NCM) Telfer and Evolution Mining’s (ASX:EVN) Mt Rawdon both operated at grades significantly beneath the 1g/t mark, and the moniker of “grade is king” was an incomplete analysis.

Academic results have indicated the viewpoint, though prevalent among industry participants and investors, lacks strong factual support at a whole-of-industry level, and that multiple other factors may be equally or more important.

Nearology is another factor in mining, and Riversgold also has Saturn Metals (ASX:STN) and a preliminary economic assessment of its nearby 0.54g/t Apollo Hill project suggesting the potential for a sizeable heap leach operation.

But the RGL exploration target is large and will need some more proving up with the drill before the company looks at booking in its maiden resource.

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.