Pacgold's latest drilling at the Vertigo deposit uncovers strong shallow oxide gold mineralisation, accelerating plans to restart mining at White Dam. An updated resource estimate is due early Q3 2026.
- Shallow oxide gold intercepts up to 13m at 1.3g/t Au
- Updated Mineral Resource Estimate underway for Vertigo
- Mine restart activities including pad expansion fast-tracked
- Drilling progressing at White Dam North and other prospects
- Regional exploration targeting deeper sulphide gold-copper systems planned
Shallow Oxide Gold Extends Vertigo Resource
Pacgold Limited (ASX:PGO) has delivered compelling new drilling results at its Vertigo deposit within the White Dam Gold Project, revealing significant shallow oxide gold mineralisation that promises to accelerate the mine’s restart. The latest infill and extension drilling, completed in May and June 2026, returned multiple intercepts near surface, including standout hits such as 13 metres at 1.3 grams per tonne (g/t) gold from 14 metres depth and 17 metres at 0.9 g/t from just 6 metres.
These shallow intervals, some commencing at surface, are particularly valuable for heap leach operations, offering low-cost, high-recovery ore feed. Pacgold’s Managing Director, Matthew Boyes, highlighted the importance of these findings, noting they could drastically reduce pre-strip costs and advance gold production timelines by bringing forward oxide ore processing on the existing pad and its planned expansion.
Resource Upgrade and Mine Planning in Motion
The drilling program, which included 102 holes for 2,904 metres focused on extensions north and west of the historic open pit, is supporting an updated Mineral Resource Estimate (MRE) for Vertigo, expected in early Q3 2026. This update aims to upgrade a substantial portion of the resource from Inferred to Indicated status, enhancing confidence ahead of mine design and cashflow modelling.
Mine design work, cashflow assessments, and permitting processes are being fast-tracked in tandem with the resource update, signalling Pacgold’s intent to restart Vertigo mining as soon as practicable. The company is also finalising the design for the heap leach pad expansion, with tendering for construction scheduled immediately after early August deliverables.
Ongoing Drilling Across White Dam Project
Drilling has shifted to the White Dam North deposit, targeting a 20,000-ounce resource to upgrade confidence levels, with completion expected by late July. Following this, the rig will move to the Rolling Prospect and Hannaford pit areas to infill and potentially extend their 2020 Mineral Resource Estimates. This phased approach ensures continuous evaluation and potential growth across the project’s key deposits.
Pacgold is also designing a regional geophysical program to explore underexplored structural corridors that may host deeper sulphide gold-copper mineralisation. These targets, including areas between Hannaford and Vertigo pits and White Dam East, remain largely untested below 40 metres depth and could offer significant upside in the current favourable gold and copper price environment.
Strategic Focus on Production and Exploration
The White Dam Gold Project, located 80 kilometres east of Broken Hill in South Australia’s Olary Province, is Pacgold’s flagship asset following the recent demerger of its North Queensland portfolio. With established open pits, heap leach facilities, and a fully operational gold extraction plant, White Dam positions Pacgold for near-term production and cash flow generation.
Recent operational milestones include the pouring of gold doré bars and ongoing heap leach pad expansion, all aligning with the company’s strategy to rapidly unlock value from White Dam while advancing exploration to extend resources and discover new deposits.
Bottom Line?
Pacgold’s strong shallow gold intercepts at Vertigo underpin a fast-tracked mine restart, but upcoming resource updates and mine plans will be critical to confirm economic viability and production timelines.
Questions in the middle?
- How will the updated Mineral Resource Estimate affect the overall economics of the Vertigo mine restart?
- What impact will the heap leach pad expansion have on processing capacity and production rates?
- Can the regional exploration targeting deeper sulphide zones translate into meaningful resource growth?