How Pacgold’s White Dam Buy Could Unlock Near-Term Gold Production

Transformational Acquisition at White Dam

Pacgold Limited has taken a decisive step forward by acquiring 100% of the White Dam Gold Operation in South Australia from GBM Resources Ltd. This asset, operational between 2010 and 2018, has historically produced approximately 180,000 ounces of gold through heap leaching. The acquisition includes open pit mines, a heap leach pad, a fully operational gold extraction plant, and supporting infrastructure, positioning Pacgold to rapidly recommence production with minimal capital expenditure.

The company plans a phased approach to restart operations, beginning with retreatment and re-crushing of existing heap leach material to unlock near-term cash flow. This strategy leverages the remaining gold in the heap and an existing mineral resource estimate of 4.6 million tonnes at 0.7 grams per tonne gold, equating to roughly 102,000 ounces. The project benefits from proximity to established mining services and a skilled workforce near Broken Hill.

Exploration Momentum at Alice River

Meanwhile, Pacgold’s flagship Alice River Gold Project in northeast Queensland continues to deliver promising results. Recent drilling at the Posie Prospect has intersected high-grade visible gold, including standout assays such as 1.46 meters at 25.2 grams per tonne gold, with a portion grading 42.3 grams per tonne. These results confirm the potential to expand the existing mineral resource estimate, which currently stands at 12.2 million tonnes at 1.2 grams per tonne for 474,000 ounces of gold.

Additional drilling at the Southern and Central Targets has extended zones of mineralisation, with broad intercepts such as 54 meters at 0.5 grams per tonne and higher-grade intervals up to 18.5 grams per tonne. The company has also initiated maiden drilling at the White Lion prospect, targeting a compelling geophysical anomaly that could represent a significant new gold discovery.

Expanding Footprint with St George Farm-In

Pacgold has further broadened its exploration pipeline by signing a farm-in agreement to earn up to 100% interest in the St George Gold-Antimony Project, located 70 kilometers west of Mt Carbine in northeast Queensland. The project covers a substantial 905 square kilometers within a developing antimony province. Initial reconnaissance has identified extensive surface antimony mineralisation, and exploration programs including soil geochemistry and geophysics are underway ahead of planned drilling.

Financial Position and Capital Raising

At the end of the September quarter, Pacgold held $1.75 million in cash. Following the quarter, the company secured firm commitments for a $13 million placement to fund the White Dam acquisition, plant refurbishment, and exploration activities at Alice River and St George. This capital injection strengthens Pacgold’s balance sheet, enabling it to pursue near-term production while advancing multiple exploration fronts.

Pacgold’s Managing Director, Matthew Boyes, emphasised the strategic significance of these developments, highlighting the company’s transition towards becoming a near-term gold producer supported by a robust exploration pipeline.