Pacgold has restarted drilling at its Vertigo deposit and begun irrigating 100,000 tonnes of re-crushed material at White Dam, aiming to accelerate production restart and resource growth.
- 3,000m RC drilling planned at Vertigo deposit
- 100,000 tonnes of re-crushed material under irrigation
- Permits secured for White Dam North and Rolling drilling
- Mineral Resource Estimate update contracted to Entech
- Heap leach pad expansion design half complete
Drilling Resumes to Expand Vertigo Resource
Pacgold Limited (ASX:PGO) has reignited its drilling campaign at the Vertigo deposit within the White Dam Gold Project, targeting extensions to its current Mineral Resource Estimate (MRE). The company plans a 3,000-metre Reverse Circulation (RC) drilling program focused on shallow, high-grade gold zones that sit outside the existing resource, aiming to fast-track a restart of open pit mining operations. This move builds on earlier successes where drilling uncovered promising mineralisation beyond the initial resource boundaries, supporting a potential resource upgrade. The recommencement follows a pause driven by diesel price instability, which has since stabilised, allowing operations to proceed more economically. This drilling effort is a clear step in Pacgold's low-risk, three-phase growth strategy to return White Dam to full-scale production.
Heap Leach Irrigation Scaled Up for Early Cash Flow
Complementing the drilling, Pacgold has commenced irrigation of approximately 100,000 tonnes of newly re-crushed ore material on the existing heap leach pad at White Dam. This operational ramp-up aims to generate early cash flow to fund ongoing growth initiatives. The irrigation of this material follows the company’s milestone of pouring its first gold bar from initial heap leach operations, a significant operational achievement signalling tangible progress toward production. This step is part of a broader effort to optimise resource extraction while advancing infrastructure upgrades.
Permits Secured for Additional Drilling at White Dam North and Rolling
With permits now in hand for drilling at White Dam North and Rolling, Pacgold plans to commence these campaigns once the Vertigo drilling concludes. The White Dam North program is designed to infill and upgrade the existing resource estimate, involving 123 drillholes over 6,600 metres, while Rolling will see 16 drillholes across 1,500 metres. These efforts will feed into a comprehensive mine restart plan that integrates Vertigo, Hannaford, and White Dam North resources. However, the White Dam North area requires a Mining Lease before earthworks can begin, and while the application process has started, no timeline for approval has been announced. The company’s strategy to sequence drilling and approvals reflects a methodical approach to de-risking the project’s development phases.
Resource Update and Infrastructure Expansion Underway
Pacgold has contracted Entech to update the Mineral Resource Estimate incorporating the latest drilling results, alongside new mine optimisations and designs. This update is critical for refining the project’s economics and guiding the restart plan. Meanwhile, the design for expanding the heap leach pad is about 50% complete, with final submissions for regulatory approval expected in the third quarter of 2026. These infrastructure enhancements are vital to support increased throughput and sustained production beyond the initial restart phase.
Exploration Pipeline Extends Beyond White Dam
Beyond White Dam, Pacgold is advancing exploration drilling applications for nearby projects, including Wadnaminga, Wilkins, Green and Gold, and the Mary Mine Prospect, all within a 50-kilometre radius. This regional focus underscores the company’s ambition to build a broader resource base in South Australia, complementing its core Queensland assets. The drilling recommencement at Vertigo and the planned campaigns at White Dam North and Rolling align with this growth trajectory, positioning Pacgold to leverage both near-term production and longer-term exploration upside.
Pacgold’s recent operational progress, including the heap leach irrigation scale-up and drilling recommencement, follows a series of milestones such as the initial gold pour and resource infill drilling that signal a transition from explorer to producer. The company’s ability to maintain momentum amid commodity price fluctuations and operational challenges will be pivotal as it seeks to convert resource potential into cash flow and shareholder value. Observers will be watching closely how assay results from the new drilling programs influence resource estimates and mine planning in the coming months, alongside regulatory progress on mining leases and infrastructure approvals.
These developments build on the company’s earlier shallow gold zones discovery at Vertigo and the maiden gold pour milestone that marked Pacgold’s entry into production, underscoring a steady advance toward operational scale-up.
Bottom Line?
Pacgold’s coordinated drilling and heap leach expansion mark tangible steps toward production restart, but resource growth and regulatory approvals remain key hurdles ahead.
Questions in the middle?
- Will assay results from the new Vertigo drilling substantiate a meaningful resource upgrade?
- How swiftly can Pacgold secure the Mining Lease for White Dam North to enable earthworks?
- What impact will diesel price fluctuations have on the planned drilling and production ramp-up?