Riversgold Ltd (ASX:RGL, FRA:RGV, OTC:RVSGF) has reached a major development milestone at its Northern Zone Gold Project in Western Australia, with Mining Lease M25/389 now granted for an initial 21-year term.
The lease covers Northern Zone, part of the company’s Kalgoorlie Gold Project, which sits 25 kilometres east of Kalgoorlie in one of Australia’s most established gold districts. The mining lease has been granted through to July 1, 2047, and can be renewed.
The approval is an important step toward advancing Northern Zone from exploration toward potential mining, giving Riversgold the ability to progress key permitting submissions.
Site clearance permit and National Vegetation Clearing Permit applications are due for submission this month, while work is now focused on completing inputs for the Mine Development and Closure Proposal ahead of submission to government.
Riversgold chairman David Lenigas said the formal grant of the mining lease was a “great milestone” for the project after an 18-month process, adding that the company was now “much closer to turning dirt at Northern Zone”.
“The formal grant of the Mining Lease is a great milestone for this very exciting gold project so close to Kalgoorlie. To have this mining lease granted after an 18-month process is a tremendous result for the Company, our JV partners, Oracle Power in the UK, and our funding and production partner - Mega Resources.
"Not only does the granting of the mining lease secure long term tenure, but it also gives us the ability to submit the NVCP and MDCP. The MDCP team, that includes Resources WA and Mega Resources, have been working in parallel to the grant of M25/389 to progress all the inputs required for the submission of the proposal which will then provide the operating permit for the start of mining operations.
"A significant number of the inputs have already been completed, such as flora and fauna surveys, hydrogeological wells and testing, heritage surveys, with the last of the inputs currently being finalised.
“As of today, we are now much closer to turning dirt at Northern Zone and I look forward to updating shareholders on progress with the MDCP very soon.”
Mega Resources funding condition met
The lease grant is also significant for Riversgold’s development partnership with Mega Resources, satisfying a key condition precedent under the mining and co-operation agreement announced in September 2025.
Under that agreement, Mega Resources will fully fund operations, provide mining and haulage services, deliver geological and engineering support and manage project approvals.
The Northern Zone Gold Project is owned 80% by Riversgold and 20% by Oracle Power PLC (AIM:ORCP), with no upfront funding required from the project owners. Profits from operations will be shared equally between Mega Resources and the project owners, while 10% of monthly project profits will be reinvested into expansion, grade control and step-out drilling.
Northern Zone scale outlined
Northern Zone has already been defined by drilling as a gold-mineralised porphyry system around 600 metres wide and around 500 metres deep, highlighting the scale potential of the asset near Kalgoorlie.
The project’s location is a key part of its appeal, with the map in the announcement showing Northern Zone’s proximity to Kalgoorlie, the Super Pit and established regional gold infrastructure.