UPDATE: In a significant breakthrough, Pacgold Limited has announced the discovery of shallow, high-grade gold at its White Dam project in South Australia. This development comes as the company ramps up efforts to restart production at the site, with first gold expected in the coming months.
The latest drilling results reveal a promising mineral resource, aligning with the current block model from 2020. The reverse circulation (RC) drilling campaign at the Vertigo open pit has already completed 123 holes over 8,003 meters, showcasing standout assays including a 4-meter section grading 2.9 grams per tonne (g/t) gold and 0.79% copper at a depth of 56 meters. This is just one of several promising finds as drilling continues.
With drilling set to conclude later this week, the focus will shift towards the Hannaford and White Dam North resources. The Vertigo orebody, measuring between 5 to 25 meters in width, has shown extensive potential, with another hole revealing 15 meters grading 1.6g/t gold from a depth of 60 meters.
Pacgold’s Managing Director, Matthew Boyes, emphasized the importance of identifying shallow, low-cost ore. He stated, “By bringing this ore forward in our mine optimisation and schedules, we can help reduce early working capital requirements.”
The White Dam project, located 80 kilometers west of Broken Hill, encompasses 877 square kilometers of mining lease and exploration tenure. The site includes a proven heap-leach operation, fully operational gold extraction plant, and essential infrastructure. Between 2010 and 2018, the mine successfully produced 180,000 ounces of gold.
The current resource at White Dam stands at 4.6 million tonnes, grading 0.7g/t gold, equating to 102,000 ounces. Additionally, Pacgold plans to re-crush a significant portion of the remaining material on the heap leach pads, with up to 750,000 tonnes available for processing beyond the initial 250,000-tonne campaign.
As Pacgold continues to drill and model its resources, the company appears poised for a significant resurgence in gold production at White Dam. If the upcoming drilling confirms more shallow, mineable ounces, it could lead to an increased resource estimate and potential expansion of operations.
As developments unfold, industry experts and investors are urged to watch closely for updates on Pacgold’s progress, particularly regarding the imminent restart of production at White Dam. The implications of these findings could reshape the future of the company and its stakeholders in the competitive gold mining sector.
