Riversgold has added a significant porphyry-hosted gold project to its portfolio with a farm-in to the Northern Zone gold project just 25km east of Kalgoorlie.

Northern Zone is a sub-surface Intrusion Related Gold System (IRGS) with greater than 100m wide gold mineralisation, which is promising given that IRGS deposits can host significant gold resources.

Notable examples include the Boddington Goldmine in Western Australia, Fort Knox in Alaska and Dublin Gulch in Yukon.

Previous drilling has returned results such as 154m grading 0.58 grams per tonne (g/t) gold from 98m including 4m at 5.39g/t gold from 182m, 142m at 0.42g/t gold from 62m and 330m at 0.49g/t gold from 30m including 54.79m at 1.15g/t gold from 213m.

The drilling by vendor UK-listed Oracle Power validated historical work and allowed it to generate an Exploration Target of between 200Mt and 250Mt grading 0.4g/t to 0.6g/t gold for 2.5Moz to 4.8Moz of contained gold.

Riversgold (ASX:RGL), which is earning up to 80% in the project from Oracle, had also carried out preliminary metallurgical test work in June 2022 that indicated good gold recoveries averaging 92.9% could be achieved from bottle roll tests after 24 hours.

The design for its planned diamond and reverse circulation drilling to define a maiden Inferred JORC resource will be finalised in the coming weeks.

Real size potential

Chairman David Lenigas says the blind stacked porphyry-hosted gold system at the Northern Zone project, which sits about 30m below surface, has “real size potential”.

“With the latest drilling confirming mineralised widths of over 100m and with the porphyry appearing to be very clean metallurgically and amenable to simple cyanidation, Northern Zone looks to be a compelling exploration target at an Australian Dollar gold price of over $3,000/ounce,” he added.

“We also see potential to extend the potential strike (currently at 350m) and depth (currently at 250m) within the tenement.

“This tenement also complements our large tenement package at Kurnalpi just to the east.”

Northern Zone farm-in

Under the binding heads of agreement, Riversgold has the exclusive right to earn 80% of the project by paying $50,000 within five days of signing the agreement.

The company can then earn the interest by spending $600,000 in exploration expenditure on the tenement within the next two years.

Once Riversgold achieves 80% ownership, Oracle will be required to contribute pro-rata or dilute its remaining interest.

 

 

 

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.

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