Riversgold has raised AU$2.15 million as it continues to expand its gold footprint at its Northern Zone gold project near Kalgoorlie in Western Australia.
The company reported assay results from a further 21 drill holes at its Northern Zone gold project, with the latest results confirming shallow gold mineralisation.
Key results from the latest batch include 8 metres at 5.81 grams per tonne (g/t) gold from 46 metres and 7 metres at 3.48 g/t gold from 48 metres.
The latest results continue to intersect the mineralised host porphyry over an increasing footprint and validate the company’s mineralisation model.
Gold mineralisation has been intersected in the northeast area, with a section of drill holes to the north, expanding the gold mineralisation footprint.
Ed Mead, Exploration Director of Riversgold, said: “It is great to follow on from previous releases and continue to expand and intersect gold grades in the northeast area and also in the important saddle area that joins the east and west zones previously identified on the project.
“Our modelling suggests that this could constitute part of a 600-metre-wide zone of shallow oxide mineralisation overlying the Northern Zone porphyry system.
“We are still awaiting results from 16 drillholes from last year’s drill program, expected in the coming weeks, and we are looking forward to reporting these before we start the next phase of expansion drilling due to start on the 10th.”
Riversgold raised AU$2.15 million from a share placement, priced at 1 cent per share. The first tranche of the placement will comprise an issue of 200 million shares and a second tranche of 15 million shares.
The funds raised in the placement will be used to continue the development of the Northern Zone gold project with MEGA Resources, with the next priority item being the mine development closure plan.
Riversgold will also use part of the funds to advance its Tambourah copper-gold project and for business development and general working capital.
David Lenigas, Executive Chairman of Riversgold, said: “I’m very pleased to welcome MEGA Resources, our Kalgoorlie gold project’s development partner, on as a Riversgold shareholder having subscribed for 100 million shares in this placing.
“We are looking forward to moving our Northern gold zone project towards gold sales later this year with MEGA Resources funding 100 per cent of the development costs.”