Riversgold Secures Strategic Funding to Test Large Porphyry Gold System Near Kalgoorlie

Riversgold Ltd (ASX: RGL) is gearing up to commence a drilling program in the Tier-1 mining district around Kalgoorlie in Western Australia.

The company has now received firm commitments to raise $1.85 million, before costs, via a two-tranche placement at $0.0055 per share.

Use of funds

Funding will support a drill program designed to build JORC Resources at the Northern Zone Gold Project.

Riversgold is earning 80% of the project from Oracle Power Plc (LON: ORCP).

Gold is hosted in a diamond drill confirmed plus 100-meter-wide porphyry.

The previously outlined exploration target is 200 to 250 million tonnes at 0.4 g/t to 0.6 g/t gold, for an exploration target of 2.5 to 4.8 million gold ounces.

Drilling highlights include:

  • 330 metres at 0.49g/t gold from 30 metres;
  • 110 metres at 0.60g/t gold from 208 metres; and
  • 154 metres at 0.58g/t gold from 98 metres.

Drill ready

David Lenigas, chairman, commented:

“The project is now drill ready and we are hoping to have drills turning on the project in the coming weeks.

“Our prime exploration objective here is to publish maiden JORC gold numbers and build on those numbers with follow-up step out drilling.”

Potential

Riversgold, conceptually, sees similarities between the Northern Zone and Saturn Metals Ltd’s (ASX: STN) Apollo Hill project, based on the potential for a large low grade heap leach operation.

Apollo Hill currently hosts a resource of 105 million tonnes at 0.54g/t gold for 1.839 million ounces.

 

 

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