How Will Pacgold’s White Dam Acquisition Accelerate Gold Production?

Transformational Acquisition at White Dam

Pacgold Limited (ASX, PGO) marked a significant milestone in the December 2025 quarter by completing the acquisition of the White Dam Gold Operation in South Australia. This move transitions the company from pure exploration towards near-term gold production and cash flow generation. White Dam, which previously produced approximately 180,000 ounces of gold from heap leaching, now offers Pacgold a platform to rapidly recommence operations.

Key infrastructure upgrades were completed, including the relining of the Pregnant Leach Solution (PLS) pond, which received regulatory approval for use. The company has begun irrigation of the heap leach dump, with around 250,000 tonnes of run-of-mine ore aerated and prepared for leaching. This low-cost initiative aims to extract residual gold from existing heaps, providing initial cash flow to support further development.

Resource Expansion and Operational Readiness

To underpin the production restart, Pacgold launched a 25,000-metre reverse circulation drilling program focused initially on the Vertigo pit. The goal is to upgrade inferred resources to indicated status, enabling updated mine planning and environmental approvals. The drilling is expected to take approximately three months, with results anticipated in the March quarter of 2026.

Supporting this operational push, the company appointed mining veteran Mike Nelson as Consulting Project Director. Nelson brings over 30 years of international experience in mineral processing and project leadership, including roles at major copper-gold projects globally. His expertise is expected to accelerate the recommencement of gold production at White Dam.

Exploration Success at Alice River and St George

Beyond White Dam, Pacgold’s exploration portfolio in North Queensland showed encouraging progress. At the Alice River Gold Project, shallow aircore drilling at the Kapok Prospect intersected broad zones of gold mineralisation, with assays up to 0.70 g/t gold over several metres. Additional drilling at Victoria, White Lion, and Jerry Dodds prospects extended known mineralised zones, highlighting the potential for a large-scale bulk tonnage system along the Alice River Fault Zone.

Meanwhile, the St George Gold-Antimony Project revealed high-grade antimony and gold mineralisation in structurally controlled veins over a strike length exceeding 5 kilometres. Initial reverse circulation drilling confirmed thick, continuous zones of antimony up to 11.9% Sb, accompanied by gold values. These results validate the project’s potential within a developing antimony province and set the stage for further drilling.

Strong Financial Position to Support Growth

Pacgold closed the quarter with a robust cash balance of $10 million, bolstered by a $13 million placement completed in late 2025. The capital raise was designed to fund the White Dam acquisition, plant refurbishment, and exploration activities across the company’s portfolio. The board also strengthened its financial leadership with the appointment of Yugi Gouw as Chief Financial Officer and Company Secretary, bringing extensive ASX-listed company experience.

With infrastructure in place and exploration momentum building, Pacgold is poised to deliver on its strategy of transitioning to gold production while unlocking value from its North Queensland assets. The company’s integrated approach balances near-term operational cash flow with longer-term resource growth potential.