Riversgold Limited (ASX:RGL) Exercises Option to Own 80% of Kalgoorlie Gold Project
Ownership of Kalgoorlie Gold Project
Riversgold Limited has exercised its option to own 80% of the Kalgoorlie Gold Project’s Northern Zone, exceeding the minimum expenditure commitment required under its agreement with Oracle Power Plc. The project, located 25 km east of Kalgoorlie, now has RGL as the 80% owner, responsible for day-to-day management and exploration spending.
Operational Plans
RGL plans to proceed with further drilling, upgrading the tenement status to a mining lease, and exploring contract mining, trucking, and toll milling operations. The company aims to build a robust Mineral Resource Estimate (MRE) and commence drilling in early 2025.
Executive Comments
David Lenigas, RGL Chairman, commented, “We have spent more than the minimum dollar commitment required to exercise our exclusive option to acquire 80% of the Kalgoorlie Gold – Northern Zone Project – and therefore we have now taken steps to formally notify Oracle that the 80% expenditure hurdle has been exceeded and we have exercised our option. We are now looking forward to getting on with further drilling, upgrading the tenement status to a mining lease and making plans to deliver significant value for shareholders. With the new Black Cat Syndicate Myaree Gold Mine and the methodology they used to put that into production, just to the north of the Northern Zone porphyry, and with the +$4,500 gold price, this Project is also looking a potential candidate for a contract mining, trucking and toll milling operation. Our task now is to build a robust MRE in the upper section of the porphyry to see if we can get an economic starter pit and I look forward to getting the drills turning again in the coming weeks.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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