Pacgold Secures Profit-Sharing Agreement to Revive High-Grade Gold Mining in South Australia
Pacgold Limited has finalized a strategic partnership in South Australia, paving the way for gold production from its Wadnaminga project. This collaboration involves reprocessing old waste dumps located near the company's flagship White Dam heap leach operation, marking a significant step in its regional expansion efforts.
Details of the Partnership and Operational Roles
The agreement with private owner Grainger Gold establishes a 50-50 split of profits from future mining or gold retreating activities at the New Milo and Great Eastern hard rock mine sites within the Wadnaminga project. Under this arrangement, Grainger Gold will manage lease maintenance, payments, and access rights, while Pacgold will oversee approvals, operations, costs, gold sales, and quarterly profit distributions.
Positioned just 80 kilometers southwest of White Dam, the project benefits from existing on-site infrastructure, facilitating efficient operations. Historical data indicates that small-scale mining at Wadnaminga during the late 1800s and early 1900s yielded nearly 20,000 ounces of gold at an average grade of 37.88 grams per tonne. These operations targeted narrow, high-grade gold veins that extended up to 140 meters underground, but Pacgold believes substantial gold remains in waste dumps, estimated to contain 20,000 tonnes of old tailings.
Exploration and Processing Plans for Enhanced Gold Recovery
Pacgold plans to resample and test this material, potentially through drilling, to assess the remaining gold content. If economically viable, the material will be transported to the White Dam heap leach operation for re-crushing and processing, reactivating gold production after a 20-year hiatus. The company notes that the Wadnaminga project has not undergone modern exploration, leaving an undeveloped vein system stretching approximately 700 meters along strike, with high-grade oxidised material ready for initial drill targeting.
This unexplored ground presents a prime opportunity for Pacgold to outline a resource and move swiftly toward extraction. Surface heaps and pads will be evaluated first, and if they prove economically feasible, they will be processed at White Dam. This approach aligns with Pacgold's strategy to expand its footprint in the Broken Hill region and secure short-term ore sources for leaching at the White Dam facility.
Strategic Implications and Future Prospects for Pacgold
Acquired last year, Pacgold's White Dam project features open pits, a heap leach facility, and a processing plant, providing a straightforward path to cash generation. By trucking material from nearby sites like Wadnaminga, the company aims to supply low-risk feed to the operation, extending its lifespan and funding exploration elsewhere. Fieldwork at Wadnaminga is scheduled to commence in mid-March, involving sampling, drilling of stockpiles and extensions, and permit applications for broader evaluation.
Drilling efforts will focus on identifying wider, lower-grade zones that could add volume beyond known records. In a market supported by firm gold prices amid economic shifts, Pacgold's emphasis on near-term leaching and disciplined spending is expected to deliver value and cash flow quickly. Generated funds will be allocated to explore across its broader portfolio, including the promising Alice River gold project and the St George gold-antimony play in Northern Queensland.
With Wadnaminga now integrated into its operations, Pacgold has fresh ground to test its heap leach approach, potentially transforming historical remnants into modern returns as the company advances its initiatives in 2026.
