ASX-listed exploration company Riversgold (ASX:RGL) reports it has entered into a farm-in and joint venture (JV) agreement with London-listed mining and resource company Corcel (LON:CRCL).
As part of the deal, Riversgold can earn up to 70% interest in the Mt Weld Rare Earth Element (REE) Project, a granted mineral tenement (P34/4489) located 1.4km west-north-west of Lynas Rare Earths’ (ASX:LYC) Mt Weld REO Mine near Laverton in Western Australia.
The company will provide $500,000 during the first earning period (12 months) to earn a 50% interest in the project. Following this, Riversgold will be required to fund $1 million within another 12 month period to earn an additional 20% interest in the project.
Alternatively the company can also contribute expenditure in proportion to their respective interests of 50% each under a JV agreement.
“The rare earth global markets are very strong at present and as this tenement is already granted, we aim to be drilling Mt Weld this quarter”
Addressing the agreement, Riversgold Chief Executive Officer (CEO) Julian Ford says: “The rare earth global markets are very strong at present and as this tenement is already granted, we aim to be drilling Mt Weld this quarter.”
The Mt Weld Project covers 171 hectares and straddles the mine access road to Lynas’ Mt Weld Mine.
Riversgold reports the tenement is predominantly covered by recent transported sediments obscuring the underlying geology, with 4 discrete undrilled magnetic features (T1 to T4) which are interpreted to potentially represent carbonatite intrusives associated with the Mt Weld carbonatite intrusive complex located 1.5km to the east.
Riversgold is an ASX-listed exploration company with a lithium-focused strategy in the Pilbara and Yilgarn cratons in Western Australia. Last year, the company acquired a full suite of 4 lithium-prospective exploration tenement applications covering 164km-square in the Pilbara region.
The company reports its Tambourah Project is underexplored and has the potential to host a ‘major’ lithium-caesium-tantalum (LCT) system similar to the nearby Pilgangoora and Wodgina deposits.
Further to this, Riversgold has also acquired a tenement package of 301.2km-square prospective for lithium in the Southern Cross-Marvel Loch region of Western Australia, including a tenement immediately bordering the Mt Holland Lithium Project (189 million tonnes @ 1.5% Li20).
Riversgold also holds the Kurnalpi Gold Project near Kalgoorlie which comprises 10 exploration licences.
Images: Riversgold Ltd & iStock
