Riversgold Ltd (ASX:RGL) has reached an agreement to acquire prospecting licence P45/3135, adding a further 1.6 square kilometres of highly prospective ground to the company’s 108 square-kilometre Tambourah Lithium Project in Western Australia's Pilbara region.
The prospecting licence, known as Trafalgar Prospect, covers prospective greenstones with a minor section of Apec Basalt Suite in the centre and to the southwest.
Riversgold has completed a heritage survey over the northwest corner of the project, where the Bengal and Lion/Ragdoll prospects have been defined.
Moving forward, the company received approval for two programs of work, clearing the way for a maiden drilling program to start this quarter.
"Value-adding for company"
Riversgold CEO Julian Ford said: “We are pleased to continue the consolidation in and around Tambourah where it makes economic sense and is value-adding for the company.
“While the new prospecting licence was previously mined for gold, it sits within what is considered the ‘Goldilocks zone’ for large lithium-caesium-tantalum (LCT) systems.
“We already have an extensive geophysics and geochemical database for Tambourah and we are actively exploring the region, so this acquisition made strategic sense.”
Acquisition terms
As consideration for P45/3153, Riversgold has agreed to issue 1,111,111 fully paid ordinary shares to the vendor, Tristar Nominees Pty Ltd, an unrelated party to the company.
The shares will be issued under the company’s existing capacity under ASX Listing Rule 7.1.
Background
The historical Trafalgar Mine, comprising three small shafts, runs north to south in the centre of the tenement, while workings associated with the Pink Eye gold occurrence are also evident in the south.
The focus of the historical mining activity was narrow-vein quartz-hosted mineralisation.
In 2007/08, De Grey Mining carried out a wide-spaced geochemical survey targeting gold with the targets generated from this work yet to be followed up.
No work targeting lithium was carried out by De Grey or any other company since.