Riversgold Ltd (ASX:RGL) has secured a binding option to acquire 100% of the Saint John high-grade antimony, gold, copper and silver project in New Brunswick, Canada — a tier-1 Canadian mining jurisdiction noted for antimony production.
The Saint John Project has seen multiple high-grade rock-chip results from verified work, featuring grades of up to 10.8% antimony, 17.6% copper, 70.4 g/t gold and 48 oz/t of silver, and comes with “excellent” infrastructure and access to the project area.
"Great opportunity"
Riversgold chair David Lenigas said: “This Saint John Project is a great opportunity for the company, offering multiple multi-metal targets over a ~25-kilometre zone.
“The project is also ideally located for near year-round exploration - being only 5 kilometres from the city of Saint John and 50 kilometres from the USA border.
“It also benefits from excellent access to mineral exploration technical staff, laboratories and drilling companies that are all locally sourced from the three southern New Brunswick cities of Fredericton, Moncton and Saint John.
“Apex Geoscience, already used by RGL in Australia, is based in Eastern Canada and contracting them here will allow us to seamlessly and quickly begin detailed exploration activities on site.
In the 1960s, 12 diamond drill holes were completed in the centre of the project area.
Subsequent to that drilling, significant assay results were taken from roadside quarry pits and exposures within the project area, and although easily accessible and well located to infrastructure, lacks any modern ground-disturbing exploration activities.
Riversgold believes it should focus on these areas.
Saint John Project location, tenure and rock chip results overlayed on infrastructure and Cadastral data.
“We are eager to visit the site, especially the roadside mineralisation and quarry pits, which have already revealed the significant antimony, copper, gold and silver mineralisation,” Lenigas said.
“We can build on this early rock-chip sampling work done to date and further assess the potential scale of this project, which spans an impressive 101 square kilometres and boasts excellent infrastructure.”
Planned activities
“We plan to be very active on the ground in the coming weeks, with senior management arriving to site this week to kick-off exploration.
“Our initial activities will include extensive outcrop rock-chip sampling programs, trenching and geochemical sampling.”
Capital raising
Riversgold has received firm commitments to raise A$1.2 million (before costs) in a placement to professional and sophisticated investors. It will issue 300 million shares at $0.004 each with a free attaching option exercisable at $0.01 each and expiring in three years.
The company will also seek shareholder approval to issue 40 million shares and 40 million free attaching options, on the same terms, to directors and management at its annual general meeting to raise an additional $160,000.
Funds raised are to be applied towards funding exploration and development of the company’s existing assets, including the Northern Zone Gold Project, as well as the newly acquired Saint John Project and for general working capital.
The company also advises that it received a R&D tax rebate of $479,000 this week.