Riversgold (ASX:RGL) has exercised its option to take an 80% stake in the Kalgoorlie Gold Project in Western Australia, after surpassing the minimum expenditure requirement.
In May 2023, the company entered into a binding heads of agreement with London-based Oracle Power (LON:ORCP) to earn up to 80% of the Kalgoorlie Gold Project by spending $600,000 on exploration by May 2025.
Riversgold has now taken ownership of the 80% interest and will be responsible for the day-to-day management and exploration spend on the tenement until a joint venture is formalised later this year.
Both companies have agreed to extend the time to complete the formal joint venture to the end of this year, to facilitate the conversion of the tenement to a mining lease.
Chairman David Lenigas says the company is looking forward to conducting further drilling, upgrading the tenement to a mining lease, and making plans to deliver value.
“With the new Black Cat Syndicate (ASX:BC8) 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,” Lenigas says.
“Our task now is to build a robust mineral resource estimate 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.”
The Kalgoorlie Gold Project sits in close proximity to major gold mining operations, including the Super Pit which is considered one of Australia’s largest open pit gold mines.
Oracle Power is an international project developer focused on projects in Pakistan and Australia.
Riversgold is a mineral explorer focused on copper and gold in Australia and Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Riversgold
