Pacgold Limited is powering ahead with plans to restart gold production at its wholly-owned White Dam heap leach operation in South Australia, with the first gold pour now firmly in its sights for early 2026.
Site Prepared for Leaching as Major Drill Program Kicks Off
The company has completed the acquisition of the project and finished relining the crucial pregnant leach solution (PLS) ponds at the site, located 80 kilometres west of Broken Hill. This key preparatory work clears the path for leaching activities to commence, with gold-bearing solutions expected to flow before the end of this year.
In a parallel and ambitious move, Pacgold has launched a substantial 25,000-metre reverse circulation (RC) drilling campaign. The initial 7,000 metres will focus on the project's core Vertigo pit, aiming to upgrade inferred mineral resources to the indicated category. This data will feed into an updated mineral resource estimate and a refined production plan for 2026.
The remaining 18,000 metres of drilling will test multiple high-priority gold targets across the extensive land package, including infill work at the Hannaford and White Dam North prospects. This exploration blitz is scheduled for completion within three months, with the first assay results anticipated early next year.
Leveraging Existing Infrastructure for Low-Cost Restart
A significant advantage for Pacgold is the existing gold inventory sitting on the heap leach pads, ready for reprocessing. White Dam is a proven operation, having produced approximately 180,000 ounces of gold between 2010 and 2018. It hosts a current resource of 4.6 million tonnes at 0.7 grams per tonne gold for 102,000 ounces.
The company is executing a capital-efficient restart, pegging the cost at just $600,000 by leveraging the mine's established infrastructure. This strategy is designed to generate early cash flow without the burden of a full-scale mine ramp-up, mirroring the efficiency of other successful Australian heap leach operations.
"Restart activities at White Dam are advancing at pace, and we are very encouraged by the progress on site," said Pacgold Managing Director Matthew Boyes. "With the PLS pond relining completed, key infrastructure is now ready for leaching to begin and the pathway back to gold production is now clearly in sight."
Riding a Wave of Regional Interest and High Gold Prices
Pacgold's South Australian pivot is well-timed, benefiting from both a robust gold price near $6,400 per ounce and heightened corporate activity in the Curnamona Province. The region's potential was recently underscored by a major $240 million deal between Havilah Resources and Sandfire Resources for the nearby Kalkaroo copper-gold deposit, immediately south of White Dam.
This transaction has spotlighted the province as a emerging dual-metal hub, with new investment expected to bring improved infrastructure and skills to the area—potential benefits that could spill over to Pacgold's doorstep.
The cash flow generated from White Dam's low-cost restart is earmarked to fuel the company's aggressive exploration programs in Queensland. These include the Alice River gold project, with an 854,000-ounce resource, and the promising St George gold-antimony project, where recent rock chip samples returned grades as high as 52.7% antimony and 10.2g/t gold.
Bolstered by a recent $13 million capital raise, Pacgold is positioned to fund its next phase of growth from operational cash flow, potentially avoiding the need to return to equity markets in the near term.
