What's Happening?
Pacgold has successfully completed its second gold pour at the White Dam Gold Project in South Australia, producing a gold doré bar weighing approximately 100 ounces. This achievement follows the aeration of both the eastern and western margins on the pad.
The company has not returned any newly leached gold in leachate to the pad base since irrigation began on the re-crush material. Pacgold has re-crushed 20,000 tonnes of material from the existing heap leach pad for irrigation, with plans to place an additional 50,000 tonnes under irrigation by the end of June. The company is also conducting reverse circulation drilling at the Vertigo pit to potentially expand resources and expedite the restart of mining operations, initially planned for mid-2027 but possibly as early as late 2026. Entech has been contracted to update the resource estimate for Vertigo and undertake new pit optimizations, mine designs, and cashflow calculations.
Why It's Important?
The completion of the second gold pour at White Dam is a significant milestone for Pacgold, as it enhances the company's cash flow and validates its re-crush strategy. This development is crucial for Pacgold's plans to resume full-scale mining operations and access fresh ore, which could lead to increased production and profitability. The successful execution of the re-crush strategy and the ongoing drilling at Vertigo indicate a promising future for the project, potentially attracting more investment and boosting the company's market position. The updated resource model and mine design by Entech will provide a clearer path for Pacgold to restart operations, which is vital for meeting production targets and ensuring long-term sustainability.
What's Next?
Pacgold is set to continue its drilling program at White Dam North, with completion expected by mid-July. The company plans to map out a cost-effective strategy to restart the Vertigo pit and incorporate fresh oxide ore into its production profile. Results from the drilling and updated resource estimates are anticipated in the next two to three weeks, followed by permitting applications and contractor engagement. Pacgold's participation in the Noosa Mining Investor Conference in July will provide an opportunity to showcase its progress and attract potential investors.
