Why Pacgold’s St George Deal Could Unlock Critical Mineral Riches in Queensland

Strategic Acquisition in a Critical Mineral Province

Pacgold Limited (ASX, PGO) has announced a significant farm-in agreement to acquire up to 100% interest in the St George Gold-Antimony Project, a sprawling 905 square kilometre tenement package in North Queensland's Hodgkinson Province. This region is historically known for gold and antimony mineralisation, with the St George site itself hosting a former artisanal antimony mine that produced high-grade ore but has seen no modern drilling.

The deal, structured over three stages, requires Pacgold to progressively invest in exploration and feasibility studies, with the potential to fully own the project by 2031. The vendor, Hardrock Mineral Exploration Pty Ltd, will receive cash, shares, and royalties on future production, aligning interests as Pacgold advances the asset.

High-Grade Antimony and Gold Confirmed

Due diligence rock chip sampling has revealed exceptionally high antimony grades, with assays up to 66.6% Sb and notable gold values reaching 10.1 grams per tonne. These samples come from structurally controlled quartz-stibnite veins at the St George Mine, which extends over at least 500 metres of strike and remains open for expansion. Additional regional prospects within the tenement, such as the Poppy Prospect, have reported gold assays as high as 112 g/t and antimony up to 17.5%, underscoring the project's exploration potential.

Antimony, A Critical Mineral with Rising Demand

Antimony is classified as a critical mineral due to its essential role in flame retardants, batteries, and other industrial applications, coupled with a supply chain heavily dominated by China. Global production has declined since 2011, pushing prices to historic highs near US$60,000 per tonne. This market dynamic has sparked renewed interest in antimony exploration worldwide, positioning Pacgold to capitalize on this trend through the St George Project.

Exploration Plans and Regional Context

Pacgold plans to commence immediate exploration activities, including detailed geological mapping, geophysical surveys, soil geochemistry, and drilling campaigns targeted for completion by the end of Q4 2025. Heritage clearances have been secured, facilitating access to drill-ready targets. The project lies within a mineral-rich province that hosts several multi-million-ounce gold deposits and past antimony production, providing a robust geological framework for discovery.

Managing Director Matthew Boyes emphasized the strategic fit of St George alongside Pacgold’s flagship Alice River Gold Project, highlighting the complementary nature of gold and critical mineral exposure in Queensland.

A Measured Approach with Clear Milestones

The farm-in agreement’s staged structure mitigates risk by linking ownership to exploration expenditure and feasibility outcomes. Pacgold must spend at least $1.5 million within two years to secure an initial 51% interest, followed by a feasibility study milestone to increase to 80%, and an option to acquire 100% thereafter. Royalties on antimony and gold production provide ongoing vendor incentives, with Pacgold retaining rights to buy back half of these royalties.

This measured approach allows Pacgold to balance aggressive exploration with prudent capital deployment, while positioning the company to benefit from the evolving critical minerals market.