Riversgold is raising $1.85m through a placement of shares to professional and sophisticated investors
Proceeds will be used to accelerate drilling aimed at defining a maiden resource at the Northern Zone gold project
Further resource growth to be achieved through step-out drilling
Special Report: Riversgold is raising $1.85m through a share placement to fund a drilling program to define a maiden resource at its Northern Zone gold project in Kalgoorlie, WA.
Northern Zone is a sub-surface intrusion related gold system (IRGS), which typically have the potential to host significant quantities of gold.
Notable IRGS examples are Boddington in WA, Fort Knox in Alaska, and Dublin Gulch in Yukon.
In May last year, Riversgold (ASX:RGL) executed an agreement with London listed Oracle Power to earn an 80% interest in Northern Zone, which has an exploration target of 200-250Mt grading 0.4-0.6g/t gold for 2.5-4.8Moz of contained gold.
Diamond drilling carried out by the company in 2023 confirmed the original mineralisation model, style, widths and grades.
Importantly, Northern Zone is potentially larger than Saturn Metals’ (ASX:STN) Apollo Hill project 175km to the north, which has a resource of 105Mt at 0.54g/t gold, or 1.84Moz of contained gold.
Placement to deliver gold resource
The company has now received firm commitments from professional and sophisticated investors for the subscription of shares priced at 0.55c to raise $1.85m.
Proceeds will be used to accelerate the next phase of exploration drilling at Northern Zone to define resources.
“This strategic funding puts RGL into a solid cash position going forward and allows the company to start finalising fast track drilling plans for the Northern Zone gold project, located just to the east of Kalgoorlie,” chairman David Lenigas said.
“As announced on 16 April 2024, we have a very large gold exploration target here, centred around a large porphyry gold system and we have been putting plans together to get drilling here in earnest.
“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.”
This article was developed in collaboration with Riversgold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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