Riversgold Reports High-Grade Gold Results from Little Gold Prospect; Stock Up 18%


Riversgold Limited (ASX: RGL) is an Australia-based company whose operations revolves around the exploration of gold. The Gawler Craton of South Australia and the Tintina Gold Belt in southwest Alaska, USA are some of the important projects of the company.

The company today, on 16th May 2019, announced that it has received several new high-grade gold results, up to 1m @ 4.84g/t Au, from its Little gold prospect, in which it has 80% stake.

The Chairman of the company, Mr Rod Webster, said that with the new results from Little gold prospect, the company now has intersected zones of anomalous mineralisation over a 2.5-kilometre-long corridor. The Farr-Jones project demonstrated a potential to host several gold deposits adjacent to the Randall Fault.

As per the company plans, it will continue subsequent drilling at both the Farr-Jones and Cutler projects, where a high-grade drill intersection of 1m @ 62.9g/t gold at the northern end of the Cutler project has not yet been followed up.

In the recent past, RGL in its quarterly report updated a summary of activities for the quarter ending 31 March 2019. The company has a portfolio of highly prospective gold exploration projects in two world-class gold terranes, namely the Eastern Goldfields of Western Australia and the Tintina Gold Province in southwest Alaska, USA. And RGL is also exploring the Olympic Copper-Gold Province in South Australia for a large Iron-Oxide Copper-Gold deposit.

Moreover, the company completed the first aircore drilling program at its 80% owned Farr-Jones Project during the quarter. Significant gold results have been exhibited from several holes, including from the first holes drilled at the new “Eales” and “Little” Targets.

The aircore intersections at the Farr-Jones and Eales prospects were upgraded by the follow-up resampling of 1-meter samples and analysis by fire assay. The new assays exhibit the potential for the Farr-Jones project to host economic grades of gold mineralisation over at least for the 1.5 kilometres strike length between the Farr-Jones and Eales prospects.

Location of Farr Jones Key Targets (Source: Company Report)

On the cash flow front, the company reported cash outflow from operating activities of ~$0.770 million during the quarter ended 31 March 2019. The cash outflow from financing activities stood at ~$0.017 million for the March quarter 2019. The cash and cash equivalents at the end of the quarter stood at ~$0.348 million as compared to ~$1.135 million in the previous quarter.

On the price-performance front, at the time of writing on 16th May 2019, AEST 02:15 PM, the stock of RGL was trading at $0.026 up by 18.18% as compared to its previous day’s close, with a market capitalisation of $2.01 million. The stock has yielded a negative YTD return of 70.67% and exhibited negative returns of 72.15%, 60.71% and 18.52% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $0.160 with a 52-week low price of $0.022 and an average trading volume of 329,292. The stock is trading at a PE multiple of 1.830x.


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