Pacific Resources (ASX: PXR) has secured full ownership of the Snowstorm Project in Victoria’s Eastern Goldfields for $400,000, gaining access to high-grade gold mineralisation and an approved underground bulk sampling program.
- Acquisition of Mines of Stirling and Snowstorm Project for $400,000
- Historic drilling includes grades up to 59.2g/t gold
- Approved underground bulk sampling of 3,000 tonnes planned
- Project geology analogous to Fosterville Gold Mine
- Enhances Pacific Resources’ footprint in Eastern Victorian Goldfields
Pacific Resources Completes Strategic Snowstorm Acquisition
Pacific Resources Limited (ASX:PXR) has executed a binding agreement to acquire 100% of Mines of Stirling Pty Ltd, the private company owning the Snowstorm Project (PL007319) in Victoria’s Eastern Goldfields, for a total consideration of $400,000. This move substantially bolsters Pacific Resources’ exploration footprint in one of Australia’s most prolific gold regions, complementing its existing option over the adjacent Eastern Victorian Goldfields Project.
The Snowstorm Project stands out for its impressive historic drilling record, comprising 2,838 metres of diamond core and 424 metres of rotary air blast drilling. Notably, previous operators First Au (ASX:FAU) reported exceptional high-grade intersections such as 0.2 metres at 59.2 grams per tonne (g/t) gold in 2022 and 0.2 metres at 49.3 g/t gold in 2021. Surface sampling by Mutiny Gold further highlighted the project’s potential, with rock chip assays reaching 123 g/t gold.
Approved Bulk Sampling Program to Unlock Geological Insights
Integral to the acquisition is an approved underground bulk sampling program under Work Plan PLN-001755, targeting extraction of up to 3,000 tonnes of mineralised material. Pacific Resources plans to reassess this program as a priority, aiming to enhance geological understanding, secure material for metallurgical testing, and access deeper mineralised zones beneath previously sampled high-grade areas.
The bulk sampling will focus on underground workings around drill intersections from FAU’s 2022 campaign, including holes SNDDH002, SNDDH2003, and SNDDH2004. Beyond this, the project offers significant up-dip exploration upside within the mineralised shear zone, presenting multiple avenues for discovery.
Geological Setting Mirrors Victoria’s Premier Gold Systems
Located in the East Gippsland region, the Snowstorm Project’s geology is considered highly prospective, sharing key structural and stratigraphic features with the world-class Fosterville Gold Mine. The project lies within the Lachlan Orogen, comprising folded Ordovician metasedimentary sequences intruded by Silurian to Devonian rocks and affected by multi-phase deformation linked to the Tabberabberan Orogeny.
Pacific Resources interprets the interplay of fold hinges, shear zones, dyke swarms, and late brittle reactivation at Snowstorm as favourable controls for orogenic gold mineralisation. Historical mining extracted approximately 98,000 ounces of gold at an estimated grade of 25.77 g/t from 118,412 tonnes of mineralised material, mostly limited to depths of 100 metres. The company intends to apply modern mining techniques to target mineralisation at greater depths.
Acquisition Terms and Next Steps
The acquisition consideration is structured over three payments: a $40,000 non-refundable deposit already paid, $160,000 due by 31 May 2026 for 50% ownership, and $200,000 due by 17 July 2026 for the remaining 50%. Upon completion, Pacific Resources will hold full ownership of the Snowstorm Project.
Looking ahead, the company plans to advance the underground bulk sampling program and pursue a mining licence. This will be supported by further structural logging, mapping, and sampling to refine drill targets and explore extensions along strike and at depth.
Pacific Resources CEO Andrew Fogg emphasised the strategic value of the acquisition, stating, "The Snowstorm Project represents an outstanding opportunity to grow the Company’s footprint in the highly sought-after Eastern Victorian Goldfields. We are delighted to have secured such a complementary and value accretive asset and look forward to rapidly advancing the Project."
This acquisition builds on Pacific Resources’ recent momentum in the region, following its option to acquire the Eastern Victorian Goldfields Project, as detailed in its earlier Eastern Victorian Goldfields due diligence and Snowstorm Acquisition announcements. The company’s growing Victorian portfolio positions it well to leverage the region’s renowned gold endowment.
Bottom Line?
Pacific Resources’ Snowstorm acquisition unlocks high-grade gold potential with an approved bulk sampling program, but execution on mining licence and deeper exploration will be critical to realise value.
Questions in the middle?
- Will the underground bulk sampling program confirm continuity and metallurgical suitability of the high-grade zones?
- How quickly can Pacific Resources progress from exploration to mining licence application and approval at Snowstorm?
- What are the implications of the Snowstorm acquisition on Pacific Resources’ broader Eastern Victorian Goldfields strategy?