Riversgold Ltd (ASX:RGL, FRA:RGV, OTC:RVSGF) has strengthened its land position at the Kalgoorlie Gold Project in Western Australia through a binding agreement to acquire 100% of granted tenement P25/2850.
The acquisition increases the project area by 20% to 10.22 square kilometres from 8.36 square kilometres, adding ground immediately north of the company’s Northern Zone porphyry gold project.
Northern Zone Project Outline Map, illustrating the existing gold project and the new tenement purchase.
“It is great to secure this additional tenure, and it provides us with further strategic optionality for the potential future gold mining plans for our Northern Zone Gold Project. This deal, like our previous deal announced on 20th April, continues to increase our overall tenement footprint in the immediate Northern Zone Project area. We also feel there is excellent potential to identify additional gold targets on this new ground, and we look forward to exploring the tenement in the coming months,” Riversgold technical director Ed Mead said.
Adds strategic ground near known mineralisation
The Kalgoorlie Gold Project is 25 kilometres east of Kalgoorlie, one of Australia’s most established gold mining districts.
Riversgold said the new tenement was contiguous with its existing Northern Zone project area and would add valuable acreage close to known gold mineralisation.
Northern Zone Project Map showing proximity to the Kalgoorlie “Super Pit”.
The ground also has strategic importance beyond exploration, providing additional space for future site infrastructure, waste dump placement and potential processing-related facilities.
The acquisition is expected to help secure future access routes to processing plants and improve links to established transport infrastructure in the district.
Riversgold said the transaction would benefit its Northern Zone partners, Oracle Power PLC and MEGA Resources, by expanding the broader project footprint and improving development flexibility.
Acquisition terms
Under the agreement, Riversgold will pay A$75,000 excluding GST for the tenement.
The vendors will retain the right to prospect for minerals to a depth of 10 metres, with any minerals recovered under that retained interest to be split 80/20 between the vendors and Riversgold.
A 2% royalty will also apply to minerals extracted from the tenement by Riversgold, or another party on its behalf, excluding gold recovered by the vendors under the retained interest.