Pacgold (ASX:PGO) plans to fast track resource growth having now delivered a maiden indicated and inferred resource for the Alice River Gold Project in Queensland.
The resource totals 12.2 million tonnes @ 1.2 grams per tonne for 474,000 ounces of gold, within a global resource of 26.7 million tonnes @ 1.01g/t for 854,000 ounces of gold.
Pacgold, which has a market capitalisation of $10.5 million, says the resource demonstrates the upside potential and near-term resource expansion and consolidation.
Managing Director Matthew Boyes says the maiden resource is a major milestone for the company and is the culmination of exploration conducted over the last four years.
“Having now confirmed the mineralisation style is robust, utilising an interpretation of broader more continuous gold zones, we have been able to demonstrate very large tonnages of gold mineralisation with approximately 500,000 ounces gold contained within the first 400m from surface, making a bulk tonnage open pit operation an obvious first option,” Boyes says.
“This is going to be the busiest year to date for Pacgold at Alice River and offers a compelling investment opportunity into what is fast becoming a major gold discovery.
“We still have an enormous area to explore with multiple high-priority targets waiting to be drilled tested all along the nearly 30km of the known Alice River Fault.”
Pacgold is conducting a reverse circulation drilling program at Alice River, with 2,000m of a planned 10,000m program now completed. The program is initially focusing on the Central target area, as well as expanding the known resource footprint.
The company intends to continue drilling on the other deposits in the resource including the Southern target and Posie, before moving to multiple regional targets including Jerry Dodds, The Shadows, and Victoria.
Geophysics crews will also be mobilising to Alice River to begin surveys later this month and an exploration activity notice for 12km of heritage surveys has been submitted for drilling clearance.
As part of the geophysical program, an induced polarisation and potentially further magnetics surveys will take place.
Once targeting is completed, Pacgold will be in a position to better define geochemical and drilling programs to test the anomalies.
Pacgold is an Australia-focused gold explorer working to grow its gold endowment at the Alice River Project in North Queensland.
The company will be attending the RIU Sydney Resources Round-up being held from 6-8 May. Pacgold is presenting on Thursday 8 May at 3.40pm.
Mining.com.au is an official media partner at this year’s event.
Write to Aaliyah Rogan at Mining.com.au
Images: Pacgold
