Riversgold Surpasses $600K Spend to Own Majority of Kalgoorlie Gold Project
Riversgold Ltd has exercised its option to acquire an 80% interest in the Kalgoorlie Gold Project after surpassing the minimum expenditure threshold, setting the stage for expanded drilling and potential mining lease conversion.
- Riversgold exceeds $600,000 exploration spend to secure 80% ownership
- Confirmed blind porphyry gold system with mineralisation up to 600m wide
- Gold mineralisation extends beyond 400m depth with promising grades from 30m
- Initial gold recovery rates average 92.9% from bottle roll tests
- Drill rig booked to commence 2025 exploration program
Strategic Acquisition of Majority Stake
Riversgold Ltd (ASX: RGL) has officially exercised its option to acquire an 80% interest in the Kalgoorlie Gold Project's Northern Zone, located 25 kilometres east of Kalgoorlie, Western Australia. This milestone follows Riversgold surpassing the minimum exploration expenditure commitment of $600,000, as stipulated in the binding Heads of Agreement with Oracle Gold Pty Ltd, a subsidiary of London-based Oracle Power Plc.
The move consolidates Riversgold's position as the primary operator responsible for ongoing exploration and management of the tenement, with plans to formalise a joint venture agreement by the end of 2025. The company has also agreed with Oracle to extend the timeline for this formalisation to facilitate the tenement's conversion to a mining lease, a critical step towards commercial production.
Robust Geological Indicators
Exploration results to date have been encouraging. Riversgold's drilling has confirmed a blind porphyry gold system with widths reaching up to 600 metres, alongside gold mineralisation extending to depths exceeding 400 metres. Notably, recent shallow drilling has identified gold grades commencing from approximately 30 metres below surface, suggesting potential for an economic starter pit.
Complementing these findings, initial metallurgical testing via 24-hour bottle roll extraction has yielded an average gold recovery rate of 92.9%, underscoring the project's processing potential. These technical indicators align with the project's proximity to established gold operations such as the Black Cat Syndicate's Myaree Gold Mine, which employs contract mining and toll milling methodologies.
Looking Ahead: Drilling and Development Plans
Riversgold has secured a drill rig to commence its 2025 drilling program, aiming to expand the mineral resource estimate (MRE) particularly in the upper sections of the porphyry. Executive Chairman David Lenigas emphasized the company's focus on building a robust MRE to evaluate the feasibility of an economic starter pit, leveraging the current gold price environment exceeding $4,500 per ounce.
The company’s strategy includes upgrading the tenement status to a mining lease and advancing towards production readiness. The proximity to existing infrastructure and major gold projects in the Kalgoorlie region enhances the project's attractiveness for potential contract mining and toll milling operations, which could accelerate development timelines and reduce capital intensity.
Implications for Shareholders and Market Position
By securing majority ownership and demonstrating promising exploration results, Riversgold is positioning itself to unlock significant value for shareholders. The project’s scale, combined with encouraging metallurgical recoveries and geological continuity, suggests a compelling opportunity within one of Australia's most prolific gold regions.
However, the path forward hinges on the outcomes of the upcoming drilling campaign and the successful negotiation of the joint venture agreement with Oracle. These factors will be critical in defining the project's economic viability and shaping Riversgold’s growth trajectory in 2025 and beyond.
Bottom Line?
Riversgold’s decisive step to own 80% of Kalgoorlie’s Northern Zone sets the stage for a pivotal drilling year and potential mining lease conversion.
Questions in the middle?
- What will the updated mineral resource estimate reveal about the project's scale and grade?
- How will the joint venture agreement terms influence project financing and development timelines?
- Can Riversgold leverage contract mining and toll milling to fast-track production and reduce upfront costs?
