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Riversgold focused on gold with Western Australia at the core of its strategy

The company will take an opportunistic approach to acquiring new exploration ground and small near-term production opportunities in the vicinity of the existing tenements to take advantage of strength in the gold price.

Riversgold Ltd - Rivers Gold to become focused gold play with WA at the core of its strategy
The company’s key tenements are highly prospective and near to existing processing facilities

Riversgold Ltd (ASX:RGL) has undertaken a comprehensive review resulting in the company becoming a geographically focused gold play with Western Australia at the core of the strategy.

Following a recent placement and rights issue, the company is in a position to progress key projects such as the Kurnalpi project in the Kalgoorlie-Boulder region and has identified several near-term targets.

These include Cutler, Queen Lapage, Cockeyed Bob North (CEB North) and Jaws with styles ranging from advanced targets ready for extensional drilling to existing large-scale targets undercover with established anomalies.

"Focused exploration strategy"

Executive director Justin Boylson said: “RGL is confident the new strategy will allow a more focused exploration strategy to deliver positive results over the next 12-months.

“We have a significant land package that sits within a known gold province but has been underexplored."

The new strategy follows a strategic review of all assets which identified intrinsic value in non-core exploration assets, these being Alaska and South Australia.

Alaska has demonstrated prospectivity, however, the cost and dislocation to operate means this asset is more suited to a dedicated North American explorer.

Recent discoveries in the vicinity of Riversgold’s South Australian tenements have created renewed interest in the area with several groups accumulating land packages in the area.

The company also remains hopeful of having tenement applications granted in Cambodia in 2020.

Capital raising

Riversgold recently completed a capital raising and rights issue.

The placement attracted strong interest in excess of the shares available for allocation by a combination of high net worth investors and family offices.

Boylson said, “We welcome new shareholders onto our register and thank them for their support.”

In line with the new strategy, the company is focusing on WA's Goldfields.

Cutler target

The existing drilling dataset at Cutler has been reviewed along with a compilation of historical soil sample geochemistry.

RC drilling completed by Riversgold has highlighted the prevalence of narrow high-grade gold mineralisation over about 500 metres of strike, with mineralisation open and plunging to the north.

A compilation of the soil sampling has highlighted the interference from alluvial sediments masking the geochemical response.

When this effect is considered, the Cutler anomaly can be seen to extend along strike to over 2.5 kilometres, far in excess of the current drill coverage with encouraging previous intersections.

Queen Lapage

The Queen Lapage drill dataset was compiled and reviewed alongside existing multi-client geophysical datasets.

A compilation of bottom-of-hole geology has highlighted a significant Archean gabbro unit within the host sediment and basalt host sequences.

These gabbro units form favourable hosts for gold mineralisation at several prominent gold deposits within the WA Goldfields.

The recent review has highlighted a 100ppb gold anomaly over around 2.5 kilometres within the gabbro unit, which is open to the south, as well as other significant 100ppb gold anomalies.

Further planning is underway with the next step being to conduct high-resolution geophysics in the new year in order to allow further exploration planning for the next round of drilling.

Cockeyed Bob North

The Cockeyed Bob North (CEB Nth) target is an interpreted faulted offset of the BIF unit hosting the Maxwells-Cockeyed Bob-Santa deposits (owned by Silver Lake Resources Ltd) to the south.

The target is completely covered by recent alluvial sediment and no significant exploration has been carried out on this conceptual target.

Jaws

Jaws target is interpreted as a continuation of the BIF unit that hosts the Maxwells-Cockeyed BobSanta deposits (owned by Silver Lake Resources Ltd) under the cover of Lake Lefroy.

The presence of the lake has resulted in this prospective unit being essentially unexplored.

Quick facts: Riversgold Ltd

Price: 0.045 AUD

ASX:RGL
Market: ASX
Market Cap: $17.63 m
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Riversgold MD draws comparisons between Queen Lapage and the Invincible deposit

Riversgold Ltd (ASX: RGL) managing director Allan Kelly talks Proactive Investors through the detail and significance of results from explorer's maiden aircore drilling program at the Queen Lapage target, which forms part of the large-scale Kurnalpi gold project in the Eastern Goldfields of...

on 28/2/19

4 min read