Riversgold Secures 21-Year Mining Lease for Kalgoorlie Gold Project

Riversgold (ASX:RGL) secured a 21-year mining lease over the Northern Zone of its gold project near Kalgoorlie, Western Australia. The grant of lease M25/389, valid through July 1, 2047, removed the last major condition of the company's funding and development partnership with WA Goldfields contractor Mega Resources.

Under the September agreement, Mega Resources will provide full project funding and mining services. Haulage is included. The profit split gives 50% to Mega and 50% to the project owners – Riversgold (80%) and Oracle Power (20%). A 10% reinvestment into expansion drilling is also planned.

Drilling has identified a gold-mineralised porphyry roughly 600 metres wide and 500 metres deep. Riversgold is now submitting site clearance and vegetation permit applications this month. The company is also finalising a Mine Development and Closure Proposal, which would give operating approval to start mining.

David Lenigas, executive chair, called the lease “a tremendous result” after an 18-month process. “We are now much closer to turning dirt at Northern Zone,” he said.

The company has outlined performance rights for executives tied to share price targets and operational milestones. Proposed tranches vest at a 20-day volume-weighted average price of $0.03 or $0.05, and upon breaking ground and first gold production at any company project. Further milestones include cumulative output of 50,000 ounces.