Heap Leach Start at White Dam: Can Pacgold Deliver on Cash Flow Promise?
Pacgold has initiated cyanide irrigation on 250,000 tonnes of ore at its White Dam Gold Project, setting the stage for imminent gold production and initial cash flow. This milestone marks a pivotal step in the company’s transition from explorer to producer.
- Cyanide irrigation commenced on heap leach pad at White Dam
- Up to 250,000 tonnes of run of mine ore under treatment by mid-January
- Initial gold production and cash flow expected within weeks
- Exploration drilling to resume shortly at multiple targets
- Plans underway to expand leach pad capacity and restart full-scale mining
Heap Leach Irrigation Kicks Off at White Dam
Pacgold Limited (ASX, PGO) has taken a significant stride towards gold production with the commencement of cyanide irrigation on the heap leach pad at its White Dam Gold Project in South Australia. Approximately 250,000 tonnes of run of mine ore have been aerated and are set to be fully irrigated by mid-January 2026, leveraging existing processing infrastructure and a recently relined Pregnant Leach Solution pond.
Near-Term Production and Cash Flow in Sight
The heap leach operation is expected to run for around five to six weeks, during which gold will be extracted and processed for sale. This initial phase is designed not only to generate early cash flow but also to serve as a large-scale metallurgical test, providing valuable data on recovery rates from the existing ore stockpile. Managing Director Matthew Boyes emphasised the low-cost, low-risk nature of this step, highlighting its importance in unlocking value from the 7.5 million tonnes of ore already on the leach pad.
Exploration and Expansion Plans Underway
Alongside heap leach activities, Pacgold is mobilising its exploration team to resume drilling at key targets including Vertigo, Hannaford, and White Dam North. These efforts aim to update resource estimates and support mining studies scheduled for mid-2026. Concurrently, an engineering study will commence to expand the heap leach pad base, potentially adding around 4 million tonnes of additional leaching capacity in preparation for a full mining restart and production ramp-up.
Strategic Transition to Producer
Pacgold’s acquisition of the White Dam operation provides a clear pathway from exploration to production, a transition that is now visibly underway. The company’s broader portfolio, including projects in Queensland, complements this move, but the immediate focus is on capitalising on the existing heap leach infrastructure to generate revenue and fund further growth. The timing is particularly favourable given the current high gold price environment, which could enhance the financial benefits of near-term production.
Bottom Line?
Pacgold’s heap leach irrigation launch at White Dam signals a promising start to production, with market watchers keenly awaiting recovery results and cash flow updates.
Questions in the middle?
- What gold recovery rates will the initial heap leach phase achieve?
- How quickly can Pacgold scale up heap leach capacity and restart full mining?
- What impact will exploration drilling results have on resource estimates and project valuation?
