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Pacgold Limited managing director Matthew Boyes said: “White Dam offers both immediate production opportunity and significant growth potential through future resource development and exploration over a large tenement package with multiple drill ready targets. Importantly, this acquisition complements our existing portfolio, enabling us to generate short term cash flow while continuing to advance our flagship Alice River Gold Project and the St George Gold-Antimony Project in northeast Queensland.
The company has mapped out a three-phase plan to squeeze maximum value from its new prize. In the first 12 months, it will hit the ground running by re-crushing and retreating existing heap leach material to unlock quick ounces. This will run hand in hand with upgrading site infrastructure and drilling to convert inferred resources into more bankable categories.
Over the following one to four years, the focus will shift to growth, with near-mine exploration programs and potential expansions of the mine’s existing Vertigo, Hannaford and White Dam North pits to lift production potential.
Preliminary mine schedules have already been completed at all three pits and the company says it is in the process of updating its environmental documentation ahead of a full-scale restart.
Beyond the four-year mark, Pacgold will turn its attention to the broader region, targeting new discoveries and pursuing bolt-on acquisitions aimed at extending mine life and supercharging the project’s scale.
Initial capital requirements are modest, with just $800,000 needed to upgrade power systems and complete general maintenance at site. Notably, the project retains a $2 million environmental bond and comes with regulatory approvals already in place.
Sitting on a permitted leach pad with established infrastructure and production-ready gold, Pacgold has itself set for a rapid-fire transition to both explorer and producer across two states.
Pacgold’s Alice River gold project in Queensland packs some serious punch, with a 30-kilometre-long mineralised corridor that screams scale. It’s a big, bold intrusive gold system that’s already delivered plenty of hits and still has a lot of blue sky to chase. Bolting on a cash-flowing operation such as White Dam to then bankroll that drilling looks like a savvy play for the $21 million-capped explorer, setting it up to chase the prize without constantly rattling the tin.
With gold prices soaring to new record highs of US$3930 (A$5948) per ounce today, the company’s timing also looks to be bang on as it seeks to turn White Dam into a fast-tracked cash generator while keeping its longer-term Queensland growth story burning brightly.
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