Riversgold (ASX:RGL) has reported encouraging assay results from its Northern Zone Gold Project, part of the broader Kalgoorlie Gold Project located just 25km east of Kalgoorlie, Western Australia.
The company's latest drilling continues to intersect shallow gold mineralisation, expanding the project's footprint in both the northeast area and the "saddle" zone connecting previously identified east and west zones.
Highlighted results include 8m at 5.81 g/t Au from 46m (NZAC179), 7m at 3.48 g/t Au from 48m (NZAC181), and 5m at 3.13 g/t Au from 41m (NZAC170), with further assays from 16 drillholes expected in the coming weeks.
Riversgold has booked a drill rig for Feb. 10 to continue expanding the oxide gold mineralisation.
The company is also advancing the conversion of the project to a mining lease, having recently signed a heritage agreement, and has commenced the mine development and closure plan alongside environmental assessments with Resource WA.
The positive results coincide with a strongly supported capital raising of $2.2 million at $0.01 per share, with production joint venture partner MEGA Resources subscribing for 100 million shares, funding 100% of development costs.
Executive Chairman David Lenigas emphasised the partnership with MEGA Resources as key to progressing the project toward gold production in 2026, while Exploration Director Ed Mead highlighted the continued expansion of the shallow oxide zone, potentially spanning 600m in width.
At the time of reporting, Riversgold's share price was $0.013.