PC Gold Accelerates Spring Hill Drilling with $1M Drill-for-Equity Deal
PC Gold has entered a $1 million Drill for Equity agreement with DDH1 to advance diamond drilling at its Spring Hill Gold Project, aiming to upgrade resources and push towards production milestones.
- Drill for Equity deal worth $1 million signed with DDH1
- Shares issued at 5-day VWAP with voluntary 6-month escrow
- 34,000m drilling program underway targeting resource upgrade
- Focus on infill drilling to convert inferred resources to indicated
- Exploration extends to new Macau Extension and Northern Target zones
Strategic Partnership to Fuel Drilling Momentum
PC Gold Limited has formalised a $1 million Drill for Equity (DFE) agreement with DDH1 Drilling Pty Ltd, its trusted diamond drilling contractor at the Spring Hill Gold Project in the Northern Territory. This innovative arrangement allows PC Gold to pay half of its drilling invoices in equity shares, priced at the five-day volume weighted average price (VWAP) of its stock, subject to a floor price and company discretion. The shares issued will be voluntarily escrowed for six months, balancing capital management with shareholder interests.
Advancing a Robust Drilling Campaign
The agreement comes as PC Gold intensifies its exploration efforts with a comprehensive 34,000-metre drilling program initiated in June 2025. Currently, three rigs are active on site, including two diamond drill rigs focusing on a 27-hole infill program within the existing 821,000-ounce gold Mineral Resource Estimate (MRE). The primary goal is to upgrade resource classification from inferred to indicated, a critical step towards delivering maiden Ore Reserves expected in early 2026.
Beyond infill drilling, PC Gold is targeting resource expansion through a 46-hole program at the Northern Target zone, an area geologically akin to the Macau and Hong Kong zones. This extensional drilling aims to unlock additional open-pit accessible mineralisation, potentially enhancing the project's scale and economic viability.
Building on Encouraging Exploration Results
Recent assay results from the initial phase of drilling, announced on 3 November 2025, have reinforced the potential of the Macau Extension and Eastern Extension zones, justifying further drilling investment. The strategic partnership with DDH1, equipped with modern, terrain-suited diamond rigs, is positioned to maintain drilling continuity even through the challenging Northern Territory wet season.
Pathway to Production and Market Implications
PC Gold’s methodical approach combines resource upgrading with aggressive exploration, supported by environmental approvals and granted mining leases that pave the way for swift development. The Drill for Equity deal not only conserves cash but also aligns contractor incentives with project success, a savvy move in the capital-intensive mining sector.
Investors will be watching closely as assay results and resource reclassification unfold, which will directly influence the company’s valuation and readiness to transition Spring Hill towards production. The equity issuance mechanism introduces potential dilution, but the strategic benefits and operational momentum may well justify this trade-off.
Bottom Line?
PC Gold’s Drill for Equity deal with DDH1 marks a pivotal step in advancing Spring Hill’s resource confidence and production prospects.
Questions in the middle?
- How will upcoming assay results impact the timing and scale of Ore Reserve declaration?
- What are the potential dilution effects on existing shareholders from the equity issuance?
- Could the Northern Target zone drilling reveal a significant resource extension beyond current estimates?
