Riversgold Secures Full Funding Deal for Northern Zone Gold Project Near Kalgoorlie
Riversgold Ltd (ASX: RGL) has made a significant advancement in its growth strategy by signing a binding Right to Mine and Co-Operation Agreement with Western Australian mining services provider MEGA Resources for its Northern Zone Gold Project. The deal eliminates the need for upfront capital from Riversgold while positioning the company to potentially advance toward production in early 2026.
Game-Changing Agreement Unlocks Path to Production
In a strategic move that could significantly accelerate the development timeline for its flagship asset, Riversgold has secured a mining and cooperation agreement that will see MEGA Resources fully fund all aspects of the Northern Zone Gold Project's development. Located just 25km from Kalgoorlie's Super Pit, this project has already demonstrated promising gold mineralisation through extensive drilling.
Under the terms of the agreement, MEGA Resources will:
- Provide 100% of development and operating costs
- Deliver full mining and haulage services
- Manage all geological and engineering requirements
- Handle project approvals and regulatory compliance
In exchange, profit from the operations will be split equally, with 50% going to the Project Owners (Riversgold 80%, Oracle Power 20%) and 50% to MEGA Resources. Importantly, 10% of monthly project profits will be reinvested into expansion drilling to potentially increase the resource base.
"An extensive amount of drilling has occurred at Northern Zone since RGL took over the exploration efforts on the Project in 2023 and these results have all been reported to shareholders through multiple announcements on the ASX. This transaction with MEGA Resources, after a thorough due diligence process by them, will now move this gold project along significantly. We will be aiming to see MEGA's mining equipment on site early next year," commented David Lenigas, Chairman of Riversgold.
Northern Zone's Impressive Gold Potential
The Northern Zone Gold Project has demonstrated significant gold mineralisation across multiple drilling campaigns. The project is hosted within a porphyry unit with high background gold and horizontal gold mineralised units. Recent metallurgical test work has shown excellent gold recoveries between 90.64% and 94.7%, with an average recovery of 92.56%.
Drilling highlights include:
| Hole ID | Intersection | Depth |
|---|---|---|
| NZRC001 | 18m @ 4.14g/t Au | from 36m |
| NZAC127 | 10m @ 8.89g/t Au | from 46m |
| NZAC033 | 16m @ 4.69g/t Au | from 30m |
| NZAC090 | 8m @ 4.86g/t Au | from 34m |
| NZAC062 | 5m @ 12.27g/t Au | from 32m |
The geological model suggests an Exploration Target of 200-250 million tonnes at 0.4-0.6 g/t Au, potentially containing between 2.5-4.8 million ounces of gold. This positions Northern Zone as a potentially significant gold project in the region.
Understanding Exploration Targets: What Investors Should Know
An Exploration Target is a geological concept based on existing drill results and interpretation of available datasets. It represents the potential size and grade of a mineral deposit but differs from a Mineral Resource in that it is conceptual in nature.
For investors, it's important to understand that an Exploration Target indicates the scale of potential mineralisation but requires additional exploration to confirm. The Northern Zone Gold Project suggests substantial gold potential, but further drilling will be needed to convert this to a formal resource estimate.
Riversgold has drawn comparisons between Northern Zone and Saturn Metals' Apollo Hill Project (175km north), which has a resource estimate of 118Mt at 0.53g/t gold for 2.03Moz. The company believes Northern Zone may have even larger potential.
Development Timeline and Next Steps
According to the announcement, MEGA Resources is targeting to break ground during the January quarter of 2026, subject to several conditions:
- Obtaining all final tenement permissions
- Securing mining approvals
- Signing a binding ore purchase agreement with a third-party processing mill
In the meantime, Riversgold plans to continue drilling efforts focused on the shallower (surface to 60-meter depth) gold mineralisation to expand on the zones already identified.
Capital Raising to Support Continued Exploration
Alongside the MEGA Resources agreement, Riversgold has secured $1.8 million through a placement to sophisticated investors at $0.0045 per share. These funds will be used to:
- Continue exploration at the Northern Zone Gold Project
- Advance the Tambourah Copper-Gold Project
- Support business development activities
- Provide general working capital
The placement will be completed via a single tranche issue of 400 million shares under the company's existing capacity.
Why Investors Should Track Riversgold's Progress
Riversgold presents a compelling investment case for several reasons:
-
Zero capital requirement for development – The MEGA Resources agreement eliminates the need for Riversgold to raise capital for mine development, removing a significant hurdle many junior miners face
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Substantial exploration potential – With an Exploration Target suggesting up to 4.8 million ounces of gold, Northern Zone could become a significant gold project in the Kalgoorlie region
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Accelerated development timeline – With MEGA targeting commencement in early 2026, the project could move from exploration to production significantly faster than typical mining developments
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Strategic location – Being just 25km from Kalgoorlie provides infrastructure advantages and potential processing options
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Strong metallurgical results – The +90% gold recovery rates from initial testing suggest the ore is amenable to conventional processing methods
For investors interested in emerging gold developers, Riversgold offers exposure to a potentially significant gold project with a clear path to development and without the typical funding concerns that often delay junior mining projects.
Want to Invest in Riversgold's Zero-Capital Gold Development?
Discover how Riversgold's strategic funding deal could transform its Northern Zone Gold Project into a profitable mining operation by early 2026, with no upfront capital required. With an exploration target suggesting up to 4.8 million ounces of gold just 25km from Kalgoorlie, Riversgold presents a compelling investment opportunity in the gold sector. To learn more about this ASX-listed company's projects and investment potential, visit Riversgold's website for detailed information and latest updates.
