Pacgold has transitioned from explorer to producer with first gold output at White Dam, while advancing drilling and exploration across its South Australian and Queensland projects.
- Maiden gold production achieved at White Dam
- 25,000m RC drilling nearing completion for resource upgrade
- Profit share agreement secured for Wadnaminga tailings re-treatment
- St George project reveals 30km gold-antimony mineralised corridor
- Strong cash position of $6.47 million supports growth
Maiden Gold Production Marks New Chapter
Pacgold Limited (ASX:PGO) has crossed a significant threshold, producing its first gold from the White Dam Gold Project in South Australia. The company reported recovering approximately 60 ounces of calcined gold product from the first 14 days of heap leach stripping following plant recommissioning, a milestone that formally ushers Pacgold into the ranks of listed gold producers. This production follows the commissioning of a Metso screen and cone crusher, enabling re-crushing of heap leach material to ramp up irrigation and gold recovery.
With the crushing circuit now operational and targeted throughput scaling to 90,000 tonnes per month, Pacgold is positioning White Dam for consistent, high-margin cash flow. The company plans to complete three more strip cycles before shipping its first Doré product, expected by late April. The plant refurbishment, including four carbon-in-column tanks operating above 95% efficiency, has been a key enabler of this production restart, with further expansion design work underway with North American engineers.
Pacgold’s Managing Director Matthew Boyes highlighted the operational momentum, noting the transition from explorer to producer as a defining moment for the company. This achievement builds on the company’s earlier progress, including heap leach re-crushing commissioning and ongoing drilling to underpin resource upgrades.
Drilling Campaign Targets Resource Upgrade at Vertigo
Central to Pacgold’s growth strategy is a 25,000-metre reverse circulation drilling program at White Dam’s Vertigo deposit, now 95% complete. This program aims to upgrade predominantly inferred resources to the indicated category, supporting updated mine designs and optimisations planned for the second half of 2026. Early assay results have been encouraging, confirming strong shallow gold and copper mineralisation, including notable intercepts such as 15m at 1.6 g/t Au and 0.48% Cu from 56m.
Several drill holes have intersected mineralisation above the current Mineral Resource Estimate (MRE) model, suggesting potential for additional tonnes in the upcoming resource update. These include near-surface hits like 14m at 0.7 g/t Au from surface and 8m at 1.0 g/t Au, which were not previously defined or mined. The final assay results are expected imminently, with resource and mine design updates to follow.
This drilling progress is consistent with Pacgold’s earlier reporting on the Vertigo program, which has steadily delivered results aligned with or exceeding expectations, as detailed in the company’s Vertigo Drilling Completion update.
Wadnaminga Profit Share Agreement Adds Low-Cost Production
Pacgold secured a 50-50 profit share agreement with Grainger Gold Pty Ltd over the Wadnaminga Project, located 80km southwest of White Dam. This historic gold field produced nearly 20,000 ounces from high-grade, narrow veins in the late 19th and early 20th centuries. The agreement focuses on mining and retreating historical tailings and heap leach material, offering a near-term, low-cost production source.
Initial work was delayed due to pending regulatory approvals, but the company plans to sample and test heap leach dumps and tailings before commencing a first-pass RC drilling program targeting unmined extensions of the New Milo and Great Eastern mining centres. This strategic move complements Pacgold’s production ramp-up at White Dam and diversifies its operational base.
The profit share deal and project development were previously outlined in Pacgold’s Wadnaminga Profit Share announcement, underscoring the company’s intent to unlock value from legacy assets.
St George Project Unveils Extensive Gold-Antimony Corridor
Exploration at the St George Gold-Antimony Project in North Queensland continues to yield promising results. Final assays from the maiden RC drilling program confirmed high-grade antimony and gold mineralisation within a limited 200m strike tested around the historic open pit mine. Highlights include 1m at 12.8% Sb and 8m at 0.7 g/t Au, confirming downdip extensions of mineralised quartz veins.
More broadly, soil and rock chip sampling have extended the gold-antimony anomalism along the Fence Structural Zone to over 30km of strike, revealing multiple targets including Big Watson South and Limestone prospects. Rock chip samples at Limestone returned impressive gold grades up to 18.5 g/t, pointing to substantial exploration upside. Follow-up drilling is planned after the wet season to test these high-priority targets.
These findings align with the company’s earlier reports on the project’s mineralised corridor, as detailed in the 30km Gold-Antimony Corridor release, highlighting the scale and potential of the St George tenure.
Financial Position and Outlook
Pacgold closed the quarter with a robust cash balance of $6.47 million, strengthened by $643,000 from in-the-money option exercises. Operating and exploration expenditures remain elevated as the company invests in production ramp-up and resource definition, with exploration and evaluation spend at $1.67 million for the quarter.
The company’s cash runway is estimated at just under two quarters at current expenditure levels, but management expects this to improve significantly as gold production generates revenue in coming months. Capital works such as pad expansion and pond relining are underway but not critical to immediate production, allowing steady operational progress.
Pacgold’s transition into production, combined with advancing exploration across multiple projects, positions it at a pivotal juncture. The company’s next key milestones include finalising the Vertigo resource upgrade, commencing production shipments, and unlocking value at Wadnaminga and St George.
Bottom Line?
Pacgold’s maiden gold production and resource drilling progress signal a critical pivot from exploration to production, but sustaining momentum will hinge on timely resource upgrades and operational scale-up.
Questions in the middle?
- How will the final Vertigo resource upgrade impact Pacgold’s mine planning and valuation?
- What timelines and regulatory hurdles remain before Wadnaminga’s profit share production can commence?
- Can Pacgold leverage the extensive St George corridor to diversify its production pipeline beyond White Dam?