Pacgold is set to transition from developer to producer after acquiring the White Dam heap leach operation in South Australia. The company has begun pond re-lining and plant maintenance, with first gold leaching targeted for late November.
The low-capital restart involves an initial spend of $800,000 to bring the fully permitted operation online. Pregnant gold solutions are expected to flow before the end of the year, targeting residual ounces on the leach pads to generate working capital.
White Dam produced approximately 180,000 ounces of gold between 2010 and 2018 from 7.5 million tonnes of ore grading 0.94 grams per tonne (g/t) gold. The resource includes 4.6 million tonnes grading 0.7 g/t gold for 102,000 ounces, with additional gold still locked in the pads.
Phase 1 production involves re-crushing and turning over existing western-edge material, with an initial 100,000-tonne parcel to be crushed and stacked early next year. A 25,000-metre reverse circulation drilling program will begin this month to infill resources and test near-mine targets.
The company has secured all reagents and consigned crushing equipment. First pregnant solutions are anticipated from the leach pad to the plant by mid-December, with early cashflow expected by February next year.
White Dam anchors Pacgold's pivot to cashflow, funded by a recent $13 million capital raise. The operation will support continued drilling at the Alice River and St George projects in Queensland, while gold prices remain favourable at approximately US$4,000 per ounce.
