Riversgold (ASX: RGL) is set to follow-up the probable continuation of a high-grade eastern mineralised zone after being granted the key P 25/2848 tenement in the Kalgoorlie East area in Western Australia.
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The strategic addition is immediately adjacent to and east of the company’s main Kalgoorlie gold project (Northern Zone) tenement.
Technical director, Ed Mead, said a program of work (PoW) for drilling in the new tenement has already been submitted to the WA Department of Mines, Petroleum and Exploration (DMPE).
“Things are falling into place nicely for our Kalgoorlie East gold project, as it moves towards breaking ground later this year with our production partners MEGA Resources,” Mr Mead said.
“It’s great news that this tenement has now been granted, as it is an integral part of our previously announced strategy of expanding our footprint in the Kalgoorlie East area, and the granted tenement also forms part of our mine plan.
“The increasing project footprint provides long-term security of tenure for the ultimate benefit of our shareholders and our partners in the development of Northern Zone, Oracle Power and MEGA Resources.”
Riversgold has identified the new area as being crucial for the location of key mining infrastructure with its location ideally for use as a transport corridor for the trucking of ore to third party processing plants.
The new area will now be incorporated into the broader mine development and closure plan (MDCP) with the granting of a mining lease (ML) over the Northern Zone gold project tenement well advanced and expected to be handed out in coming weeks.
Riversgold has already signed a right to mine and co-operation agreement with MEGA Resources (MEGA) for the Northern Zone gold project.
That company will provide all development and mining funding for Northern Zone on a 50/50 profit share.
RGL is steady at 1.9¢. Mkt cap $39.68M.
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