Riversgold secures 21-year mining lease near Kalgoorlie

• Riversgold has been granted a critical mining lease over the Northern Zone of its Kalgoorlie Gold Project.
• The announcement triggered a 20% rise in the company's share price.
• The approval satisfies a major condition for a full funding and development partnership with Mega Resources.

Riversgold (ASX:RGL) has secured mining lease M25/389 for a renewable 21-year term over the Northern Zone of its Kalgoorlie Gold Project in Western Australia.

This regulatory approval satisfies a primary condition attached to the company's exploration funding and development partnership with local mining contractor Mega Resources.

"To have this mining lease granted after an 18-month process is a tremendous result for the company, our JV partners, Oracle Power in the UK, and our funding and production partner Mega Resources," said Riversgold Executive Chair David Lenigas.

The company stated that drilling at the Northern Zone has identified a gold-mineralised porphyry approximately 600m wide and 500m deep.

Following the announcement, the Riversgold share price was up at $0.012.

Under the partnership agreement executed in September, Mega Resources is expected to provide all geological services, operational funding, and project approval management.

The Northern Zone project is owned 80% by Riversgold and 20% by Oracle Power, with both owners sharing operating profits equally with Mega Resources.