Nov 19, 2024

Riversgold Hits 7m @ 4.07 g/t Au at Northern Zone Project, Near Kalgoorlie

Introduction:

Riversgold Limited (ASX: RGL) has reported significant gold intercepts from aircore drilling at its Northern Zone Project, located 25km east of Kalgoorlie in Western Australia, highlighted by 7m @ 4.07 g/t Au from 48m.

Drill Results:

7m @ 4.07 g/t Au from 48m (including 4m @ 6.72 g/t Au from 48m) (NZAC107)
8m @ 2.07 g/t Au from 48m (including 4m @ 3.46 g/t Au from 51m) (NZAC108)
4m @ 7.47 g/t Au from 49m (including 2m @ 12.36 g/t Au from 51m) (NZAC113)
7m @ 1.16 g/t Au from 41m to EOH (including 1m @ 4.13 g/t Au and 4m @ 1.5 g/t Au) (NZAC095)
1m @ 1.84 g/t Au from 48m (NZAC112)

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Project Overview:

The Northern Zone Project comprises one granted prospecting licence (P25/2651) covering an area of 82 hectares. Riversgold is farming into the tenement and has committed to spend $600,000 in exploration expenditure within the next two years to earn an 80% ownership.

The project is located in a tier 1 jurisdiction, just 25km east of Kalgoorlie, Western Australia, with excellent access to infrastructure and established mining services.

Program Details:

The recent aircore drilling program consisted of 26 holes for a total of 1,545m, bringing the total drilling at Northern Zone this year to 8,971m of aircore and 1,363m of reverse circulation drilling. The program targeted shallow gold mineralization associated with the Northern Zone porphyry system. A new high-grade zone on the eastern extensional area of the 600m wide porphyry system has been confirmed.

Understanding These Results:

The reported intercepts represent significant shallow gold mineralization over good widths, expanding the known mineralized footprint of the porphyry system. The results are from the first ten holes of the program, with assays for the remaining 16 holes expected within the next week.

These initial eastern exploratory holes have exceeded grade expectations and continue to confirm and expand the shallow gold mineralization associated with the Northern Zone porphyry. The results validate the geological model for the previously announced Exploration Target of 200-250 million tonnes at 0.4-0.6 g/t Au for 2.5-4.8 million ounces of gold.

Management Commentary:

David Lenigas, Chairman of Riversgold:

"These are some of the best gold results seen for the shallow parts of the Northern Zone Gold Project to date. They demonstrate excellent grade at relatively shallow depths over good widths and expand the mineralisation to the far eastern side of the 600m wide porphyry. As indicated before, the Project continues to deliver highly material and significant mineralised intercepts over an increasing porphyry footprint."

Next Steps & Catalysts:

Riversgold is awaiting assay results for the final 16 holes of the program, expected within the next week. A mineralisation report required to apply for a Mining Licence is expected by the end of the month.

The company plans to submit a Mining Lease application as soon as the mineralisation report is received. Further drilling is planned to test lateral extensions and continue expanding the known mineralized footprint of the project.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,612/oz (November 19, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold continues to maintain its status as a safe-haven asset. The Northern Zone Project's location in the prolific Kalgoorlie region of Western Australia positions it well to capitalize on the established mining infrastructure and expertise in the area. The project's potential for a large, low-grade heap leach operation draws parallels to other successful projects in the region.

Conclusion:

The latest results from Northern Zone demonstrate potential for a intrusion-related gold system near Kalgoorlie. With mineralization remaining open in multiple directions and a new high-grade zone identified, the project continues to demonstrate characteristics of a gold system with growth potential. Upcoming catalysts include additional assay results, completion of the mineralisation report, and the submission of a Mining Lease application.

Sources:

RGL Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Jan 16, 2022