Riversgold Ltd (ASX:RGL, FRA:RGV, OTC:RVSGF) has strengthened its ground position at the Kalgoorlie East Gold Project in Western Australia after being granted the strategic P25/2848 tenement, located 25 kilometres east of Kalgoorlie.
The newly granted tenement, which is 100%-owned by Riversgold, sits immediately east and contiguous to the company’s Northern Zone Project tenure. The Northern Zone Intrusive Hosted Gold Project is currently the focus of near-term development plans under a 50/50 profit-sharing joint venture with MEGA Resources, which is providing development and mining funding.
Kalgoorlie East Tenement Location Map.
Importantly, revised structural modelling indicates a probable continuation of the high-grade eastern mineralised zone into P25/2848, supporting the potential to expand the known footprint of gold mineralisation at Northern Zone. A Program of Work for drilling has already been submitted to the Department of Mines, Petroleum and Exploration, paving the way for follow-up exploration.
Extending mine planning and infrastructure options
Beyond its exploration upside, Riversgold said the new tenement would play a crucial role in mine development planning. The area is considered strategically positioned for key mining infrastructure and as a transport corridor for trucking ore to third-party processing facilities.
P25/2848 will be incorporated into the broader Mine Development and Closure Plan, with the company now seeking conversion of the tenure to a Mining Lease. Conversion of the Northern Zone tenement itself to a Mining Lease is well advanced and expected in the coming weeks.
The grant builds on Riversgold’s expansion of its Kalgoorlie East footprint, which has significantly increased its tenure in the region to support long-term development plans. The company recently reported encouraging drilling results from the Northern Zone, completing 31 new holes as part of its expanding campaign at the project.
Development timeline gathering pace
Technical director Ed Mead said the approval marked another step forward as the project advances towards first ground-breaking later this year.
“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,” 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.”
With permitting progressing and tenure consolidating around Northern Zone, Riversgold continues to position the Kalgoorlie East project for development in a well-established Western Australian gold district.
Northern Zone Project Map showing proximity to the Kalgoorlie "Super Pit".