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(Sharecast News) - Oracle Power updated the market on the progress of the farm-in agreement by Riversgold for the Northern Zone intrusive-hosted gold project, 25 kilometres east of Kalgoorlie in Western Australia, on Thursday.
The AIM-traded firm said the ASX-listed Riversgold had invested AUD 0.27m thus far in exploratory activities following the farm-in deal.
It said a heritage survey assessment is nearing completion, and a programme of works was set to be submitted shortly, marking significant progress in advancing the project.
Further plans included additional reverse circulation drilling to expand the target cross-section, with the aim of achieving a maiden mineral resource estimate for the project in 2024.
Despite having the option to withdraw, Riversgold was not expected to do so, Oracle said.
It said the upcoming programme of works would propel Riversgold towards the aggregate AUD 0.6m expenditure threshold, which would activate the intended 80-20 joint venture structure between Riversgold and Oracle, known as the proposed joint venture.
On establishing the joint venture, Oracle Power said it intended to fund its share of exploration and development costs to maintain a 20% interest in the prospective venture.
Notably, the previously-announced exploration target for the project was 200 million to 250 million tonnes at a grade of 0.4 grams to 0.6 grams of gold per tonne, representing a potential exploration target of 2.5 million to 4.8 million ounces of gold.
"Riversgold continues to push exploration efforts forward at Northern Zone with the target of declaring a maiden mineral resource estimate (MRE) this year," said chief executive officer Naheed Memon.
"The impressive size and scale of the Northern Zone has been demonstrated through the previously declared exploration target of 2.5 million to 4.8 million ounces of gold, and we are eager to see Riversgold begin to prove this up, whilst retaining our 20% interest in the project.
"Riversgold has now invested approximately AUD 0.275m in drilling and associated exploration activities to date, meaning that the upcoming MRE drilling campaign will be largely, or entirely, funded by Riversgold, as we advance towards a confirmed resource."
Memon described it as a "highly exciting" prospect, adding that Oracle's development strategy exemplified its project development generator strategy.
"We aim to provide investors exposure to multiple potential high value assets, thereby eliminating single-asset risk, and an opportunity to participate in the potentially significant upside that can be delivered to shareholders through the exploration."
At 1552 GMT, shares in Oracle Power were up 5.26% at 0.03p.
Reporting by Josh White for Sharecast.com.
