Pacgold Drilling Reveals Shallow Gold Zones at Vertigo Deposit

New Shallow Mineralisation at Vertigo Deposit

Pacgold Limited (ASX:PGO) has reported final assay results from its 2025-26 reverse circulation drilling campaign at the Vertigo deposit, part of the White Dam Gold Project in South Australia’s Olary Province. The drilling has revealed multiple zones of very shallow gold and copper mineralisation outside the existing 2020 Mineral Resource Estimate (MRE), with highlights including 28 metres at 0.9 g/t gold from just 2 metres depth (hole VRC157), and other intercepts showing consistent mineralisation near surface.

These shallow extensions were previously untested and provide a strong indication that the Vertigo resource could be materially expanded. This development is particularly significant as near-surface mineralisation typically translates into lower mining costs and improved project economics.

Infill Drilling Confirms Resource Confidence Upgrade

The program also included infill drilling designed to upgrade parts of the existing Inferred Resource to the higher confidence Indicated category. Assay results from holes such as VRC117 (12m at 2.5 g/t Au and 0.5% Cu) and VRC121 (16m at 3.9 g/t Au and 0.89% Cu) underpin this anticipated upgrade. These results reinforce the continuity and grade of mineralisation within the existing resource boundaries, supporting an improved block model.

Drilling was conducted on a tight grid spacing down to 12.5m x 12.5m, providing robust data for resource modelling. Assays were performed by ALS Laboratories using fire assay for gold and ICP-MS for copper, with quality control measures including blanks, standards, and duplicates ensuring data reliability.

This drilling progress builds on earlier milestones, such as the near completion of the Vertigo drilling program in March 2026, which had already indicated promising grades and resource potential. The current pause in drilling due to onsite diesel supply issues introduces some uncertainty on timing but does not diminish the significance of the results obtained so far.

Resource Update and Broader Project Drilling Plans

Pacgold plans to incorporate the new assay data into an updated Mineral Resource Estimate model, targeted for early in Q3 2026. This update will factor in both the expanded shallow zones and the upgraded confidence classifications. Following this, mine planning activities are scheduled to commence, aiming to leverage the enhanced resource base for production optimisation.

Further drilling is planned to test unclosed extensions around Vertigo, with follow-up campaigns at White Dam North and Hannaford Pit set for July and August respectively. The comprehensive drilling program, expected to conclude by the end of Q3, will underpin revised block models and resource estimates across the project’s key orebodies.

Pacgold’s Managing Director Matthew Boyes highlighted the potential for these shallow, oxidised ore zones to become "very low cost and highly profitable" feed for the operation, aligning with the company’s near-term production ambitions. This dovetails with recent operational progress, including Pacgold’s first gold production at White Dam and heap leach pad upgrades, which are steps toward establishing steady cash flow from the asset.

Technical Integrity and Historical Context

The White Dam Project’s resource history dates back to multiple exploration campaigns since 1985, with the current MRE based on JORC 2012 standards published in 2020 by GBM Resources. Pacgold acquired the project in 2025 and has since advanced exploration and resource definition. The project combines open-pit mines, heap leach facilities, and a gold extraction plant, providing a robust platform for production.

Drilling data is rigorously verified, with collar locations surveyed by RTK DGPS and downhole surveys ensuring spatial accuracy. Sampling techniques and assay protocols conform to industry standards, with no evidence of systematic bias or data quality issues. The deposit’s gold-copper mineralisation is structurally controlled and exhibits both weathered and fresh rock domains, influencing grade distribution and mining considerations.

Pacgold’s approach to expanding and upgrading the resource is methodical, with a clear pathway from exploration results to resource modelling and mine planning. This is a critical phase for the company as it transitions from exploration to production, leveraging the White Dam asset’s existing infrastructure and geological potential.

These developments come after Pacgold’s milestone of producing its maiden gold at White Dam earlier this year, marking a shift toward operational status. The integration of new drilling results with ongoing production enhancements positions Pacgold to capitalise on its South Australian portfolio while advancing its Queensland projects.