SYDNEY: Australian gold exploration and development company Pacgold Limited (ASX: PGO) plans to recommence gold production at the newly acquired White Dam Gold Project by the fourth quarter of 2025, according to a company investor presentation.
The acquisition of the South Australia-based project, located 50 kilometers west of Broken Hill, is central to Pacgold’s strategy of generating near-term cash flow. The company outlined a low-risk, phased plan to restart operations with an initial capital requirement of approximately A$800,000.
The first phase involves re-crushing and re-leaching the existing heap leach pad to recover remaining gold, a process the company states can generate cash flow within two months of mobilizing equipment. White Dam has a historical production of approximately 180,000 ounces of gold and holds a current JORC 2012 Resource of 102,000 ounces of gold.
Subsequent phases will focus on expanding production through drilling to upgrade existing resources at the Hannaford and Vertigo pits, and exploring near-mine and regional targets. The company highlighted the current high Australian dollar gold price of approximately A$5,500 per ounce as a key factor improving the project’s economics compared to its last operating campaign.
Pacgold’s management team, which includes executives with heap leach experience, estimates a total of A$12.88 million is required to fund the full restart and an extensive exploration program across its assets, which also include the Alice River Gold Project in Queensland.
The deal to acquire White Dam involved an upfront cash payment of A$1.2 million and the issuance of 15 million shares, with a secondary payment of A$2.2 million due upon achieving production of 5,000 ounces or more.