How close is Riversgold (ASX:RGL) to mining gold at Northern Zone near Kalgoorlie?

Sonal Goyal

03 November 2026 11:10 PM AEDT

How close is Riversgold (ASX:RGL) to mining gold at Northern Zone near Kalgoorlie?

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Key highlights

• Riversgold has moved its Northern Zone Gold Project, about 25 kilometres east of Kalgoorlie-Boulder, closer to development.

• The September quarter report, lodged with the ASX on 30 October, set out a development model without upfront capital.

• This update covers geology, open potential, other projects and the caveats to the development case.

Riversgold (ASX:RGL) has moved its Northern Zone Gold Project, about 25 kilometres east of Kalgoorlie-Boulder in Western Australia, closer to development. In its September quarter report, lodged with the ASX on 30 October, the company said it had submitted the Mine Development and Closure Proposal to the state's Department of Mines, Petroleum and Exploration on 30 September.

That proposal is described as the final major government approval needed before Mining can begin at the Northern Zone open pit. It follows the grant of Mining Lease M25/389 in July and the lodgement of a Native Vegetation Clearing Permit application in August.

So how close is it?

Closer, but not there yet. The proposal and clearing permit still need to be approved, and objections relating to haul road licences L25/75 and L25/77 have been resolved with formal grant pending. Approval timelines are set by regulators, not the company, so a start date cannot be assumed. Once approvals arrive, MEGA Resources is expected to begin site establishment and mobilisation.

A development model without upfront capital

The most distinctive element is the funding structure. Under a Right to Mine and Co-operation Agreement, MEGA Resources will fund 100% of mining costs in return for a 50/50 profit share. Riversgold therefore does not need to contribute upfront development capital.

The agreement has been extended by 12 months to 30 September 2027 to allow time for approvals and the start of mining. The commercial terms remain unchanged. The trade-off is clear: Riversgold gives up half of any profit in exchange for avoiding development funding and dilution. Profitability will depend on grades achieved, gold prices, costs and processing arrangements, none of which have been confirmed in the material reviewed.

Geology and open potential

Gold at Northern Zone is hosted in a blind tonalite-trondhjemite intrusion within the Cannon Shear Zone, with elevated background gold and several flat-lying higher-grade quartz zones. Riversgold says vertical drilling intersects these zones close to true width, and drilling suggests the host unit is dry to at least 60 metres depth. A dry pit could simplify early mining, although that observation applies only to drilling to date.

The company says mineralisation remains open in all directions, so the ultimate size of the system is unknown.

Other projects

At the Saint John Copper-Gold-Silver-Antimony Project in New Brunswick, Canada, earn-in partner A.I.S. Resources completed a maiden Phase 1 diamond programme at the Little Lepreau and Prince of Wales prospects. Samples were sent to ALS and AGAT laboratories and assays are pending.

Riversgold also advanced its wholly owned Tambourah Project in Western Australia, where a sampling programme has been designed to test gold targets along strike from ground held by Tambourah Metals. The company also planned exploration across a 12-kilometre gold-copper trend there.

Why it matters

For a micro-cap explorer, a profit-share mining arrangement can offer a relatively low-cost route to early cash flow. It also concentrates risk on approvals and on MEGA's execution. Investors should watch whether the remaining permits are granted, when MEGA mobilises and whether Riversgold provides any production or grade guidance.

Caveats

Riversgold also lodged its Annual Report on 30 October, which contains audited financial information that investors may wish to read. The Kalgoorlie region has abundant processing capacity and contractors, which can help small projects, but it also means competition for mills and labour. How MEGA plans to process ore from Northern Zone has not been detailed in the material reviewed, and that will be an important Factor in profitability. The terms of MEGA's own commitments elsewhere could also influence the timing.

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