Pacgold Strikes 50-50 Profit Share on Historic Wadnaminga Gold Project

Historic Gold Meets Modern Ambition

Pacgold Limited (ASX: PGO) has entered a strategic profit share agreement with Grainger Gold Pty Ltd to jointly develop the Wadnaminga Project, located 80 kilometres southwest of its White Dam mine site in South Australia. This move marks a significant step in Pacgold’s expansion within the Broken Hill region, leveraging historical high-grade gold resources that have remained largely untouched by modern exploration techniques.

The Wadnaminga Project encompasses several historic mines, including New Milo, Great Eastern, Golden Point, and Virginia, which collectively produced nearly 20,000 ounces of gold at an exceptional average grade of 37.88 grams per tonne during the early 1900s. These mines were developed to depths of up to 146 metres, yet substantial portions of the lodes remain undeveloped, presenting a promising opportunity for resource delineation and expansion.

Unlocking Value from Surface Stockpiles

In addition to underground potential, the project site hosts approximately 20,000 tonnes of historical tailings and heap leach material stockpiled at surface. Pacgold plans to resample and drill these stockpiles, applying modern LeachWELL testing to assess the recoverable gold content. Should these tests prove economically viable, the material will be transported to the White Dam facility for crushing and retreatment, potentially providing a near-term source of revenue and cash flow.

Pacgold’s Managing Director, Matthew Boyes, emphasised the strategic value of the agreement: "The old timers focused on the highest-grade veins, leaving behind sub-bonanza grade material that modern methods can now exploit. This is a real opportunity to quickly delineate a resource and fast track mining operations."

Operational and Regulatory Framework

The profit share agreement outlines clear responsibilities: Grainger Gold will maintain the mining leases and cover statutory costs, while Pacgold will manage all development, processing, and operational expenditures. Pacgold will also handle regulatory approvals and compliance, including mining proposals and rehabilitation plans. Profits from gold sales will be split evenly, with quarterly payments and transparent reporting to Grainger Gold.

Fieldwork is slated to commence in March 2026, beginning with sampling and drilling to evaluate the remaining gold resource in the heap leach pads and tailings, alongside exploration drilling targeting unmined extensions of the known lodes. The project’s granted mining leases cover 28.6 hectares, providing a solid tenure base for development.

Strategic Fit and Future Prospects

This agreement complements Pacgold’s broader strategy to accelerate its transition to producer status. Alongside its flagship Alice River Gold Project in Queensland and the St George Gold-Antimony Project, the Wadnaminga Project offers a pathway to near-term production and cash flow generation through the White Dam Gold Operation’s existing processing infrastructure.

While the historical data is encouraging, the economic viability hinges on upcoming test results and drilling outcomes. The absence of prior systematic exploration means Pacgold is effectively pioneering a new chapter for this historic goldfield, with the potential to uncover thicker, lower-grade zones that were previously overlooked.