Riversgold’s Kalgoorlie Drilling Push Raises Stakes for Gold Production Plans

Riversgold Sets Stage for Next Phase at Kalgoorlie

Riversgold Limited (ASX, RGL) has taken a significant step forward in advancing its Northern Zone Kalgoorlie Gold Project by booking a grade control drill rig from Australian Surface Drilling. Scheduled to begin operations in approximately three weeks, this drilling program is designed to expand the known gold mineralisation footprint between the previously identified west and east zones.

The Northern Zone project, situated roughly 25 kilometres east of the famed Kalgoorlie Super Pit in Western Australia, has shown promising gold intercepts in earlier drilling campaigns. The upcoming drilling will focus on shallower mineralisation, a strategic move that could enhance the understanding of the deposit’s extent and quality.

Strategic Partnership with MEGA Resources

This drilling initiative aligns closely with Riversgold’s recent collaboration with MEGA Resources, announced at the end of September. According to Ed Mead, Technical Director at Riversgold, the deployment of the grade control rig is a critical step in refining MEGA Resources’ target areas for potential gold production development. This partnership underscores the company’s commitment to progressing the project towards production readiness.

While specific drilling targets and resource estimates remain under wraps, the focus on the corridor between the west and east mineralised zones suggests an intent to delineate a more continuous and economically viable gold system. The use of a grade control rig, typically employed to define ore boundaries for mining, indicates a shift from pure exploration towards development planning.

Implications for Investors and the Market

For investors, this announcement signals momentum in Riversgold’s project pipeline, potentially enhancing the company’s valuation if the drilling results confirm an expanded gold resource. The proximity to the Kalgoorlie Super Pit, one of Australia’s most prolific gold mining areas, adds strategic value to the Northern Zone project.

However, uncertainties remain regarding the scale of mineralisation expansion and the timeline for transitioning from exploration to production. Market watchers will be keenly awaiting assay results and further updates on the MEGA Resources partnership terms to better gauge the project’s commercial prospects.