Pacific Resources (ASX: PXR) has secured 100% ownership of the Snowstorm Project, a high-grade gold asset in Victoria’s Eastern Goldfields, for $400,000. The acquisition complements its existing foothold in the region and sets the stage for underground bulk sampling and deeper exploration.
- Acquisition of Snowstorm Project for $400,000
- Historic drilling shows grades up to 59.2g/t gold
- Bulk sampling program to extract 3,000 tonnes planned
- Project geology analogous to Fosterville Gold Mine
- Enhances Pacific Resources’ Eastern Victorian Goldfields footprint
Strategic Acquisition in a Proven Gold District
Pacific Resources (ASX:PXR) has taken a significant step in bolstering its Victorian gold portfolio by agreeing to acquire Mines of Stirling Pty Ltd, the owner of the Snowstorm Project, for a total consideration of $400,000. This move not only secures a high-grade gold asset but also deepens its presence in the Eastern Victorian Goldfields, a region renowned for its rich mineral endowment.
The Snowstorm Project boasts an extensive drilling history, including 3,197 metres of diamond core and 424 metres of rotary air blast drilling, revealing exceptional gold grades up to 59.2 grams per tonne (g/t) and surface samples as high as 123g/t. These figures underscore the project's potential to host economically viable mineralisation, a prospect that excites Pacific Resources as it looks to expand its exploration footprint.
Bulk Sampling to Unlock Geological Insights
Central to Pacific Resources’ immediate plans is the reassessment of an approved underground bulk sampling program designed to extract 3,000 tonnes of ore. This initiative aims to enhance geological understanding, provide material for metallurgical test work, and enable testing of deeper targets beneath previously identified high-grade zones. The bulk sampling could pave the way for a mining licence application, marking a pivotal progression from exploration to potential production.
The project’s mineralised shear zones remain open at depth and along strike, indicating substantial discovery upside. Pacific Resources also notes significant up-dip potential outside the bulk sample target area, suggesting further exploration opportunities within the licence boundary.
Geological Parallels with Fosterville Highlight Exploration Upside
Geologically, Snowstorm is considered analogous to the world-class Fosterville Gold Mine, which has produced approximately 4.6 million ounces of gold since 2005. Historical mining in the Snowstorm area extracted around 98,000 ounces at an impressive average grade of 25.77g/t, albeit limited to shallow depths of about 100 metres. Pacific Resources intends to apply modern mining techniques to explore at greater depths, potentially unlocking new mineralised zones.
This acquisition complements the company’s option to acquire the adjacent Eastern Victorian Goldfields Project from First Au Ltd, which is currently under due diligence. The combined footprint positions Pacific Resources well within a prolific gold district with multiple exploration targets. The company's recent progress in the region, including the ongoing due diligence on the Eastern Victorian Goldfields Project, has been documented with a conceptual 6,000 to 25,000-ounce gold target at Ernestine and ongoing fieldwork programs Eastern Victorian Goldfields due diligence underway.
Acquisition Terms and Next Steps
The acquisition consideration is structured in three payments: a $40,000 non-refundable deposit already paid, $160,000 due by 31 May 2026 for 50% ownership transfer, and a final $200,000 due by 17 July 2026 to complete the 100% acquisition. Upon completion, Pacific Resources will fully control the Snowstorm Project and will prioritise the reassessment of the bulk sampling program.
CEO Andrew Fogg emphasised the strategic value of Snowstorm, highlighting its high-grade drilling database and approved work plan for underground sampling. The company sees this as a value-accretive addition that will accelerate its exploration efforts in the Eastern Victorian Goldfields, building on prior milestones such as securing the option for the Eastern Victorian Goldfields Project and advancing Tasmanian exploration initiatives Option for Eastern Victorian Goldfields.
Bottom Line?
Pacific Resources’ Snowstorm acquisition sharpens its focus on high-grade gold in a proven Victorian district, but the success of bulk sampling and mining licence progress will be critical to unlocking value.
Questions in the middle?
- Will the bulk sampling confirm the continuity of high-grade gold at depth?
- How will the acquisition influence Pacific Resources’ valuation and capital allocation?
- What timeline can investors expect for a potential mining licence application?