Pacgold (ASX:PGO) has completed the acquisition of the White Dam Gold Operation in South Australia from GBM Resources (ASX:GBZ).
To accelerate its transition to a producer, Pacgold has acquired the White Dam Gold Operation, which provides the company with established open-pit mines, a heap leach facility, and a fully operational gold extraction plant.
The company says this turnkey operation provides a clear pathway to generating near-term revenue and cash flow, funding future growth and exploration.
Following completion of the acquisition, Pacgold implemented a three-phase approach to restart operations at White Dam. Phase one first will focus on extraction of the remaining gold in the heap within two months. Pacgold intends to re-crush existing material to 4-6mm size and re-treat the final lift of the heap leach pad.
Drill outs and grade control of the existing resources will begin with an intensive near mine and infill drill programme to upgrade existing inferred resources and rerun mine optimisations and designs before submitting an updated Program for Environmental Protection Rehabilitation document (PEPR), a standard regulatory requirement in South Australia.
The next phase (one to four years) will focus on near mine exploration and expansion. Phase three (+36 months) will advance regional exploration targets and potential acquisitions to add mine life and resources to the existing mineral resources.
Full restart of operations
Post re-evaluation of existing resources, new schedules to be completed to produce best case cashflow scenario with minimum required working capital Initial scheduling completed on Vertigo, White Dam North and Hannaford Update PEPR and White Dam north ML application, start full scale mining
Re-lining of the leach ponds was completed on schedule with the circuit expected to be online and cyanide irrigation starting soon.
The estimate of required capital investment remains around $600,000 to be implemented in general maintenance and upgrades to the power generation systems at site. Pacgold notes the plant remains in good working order and will be upgraded in a staged process as the company moves towards a full restart of mining and treatment operations.
Managing Director Matthew Boyes says White Dam provides Pacgold with a clear pathway to near-term gold production while also offering substantial growth potential through its established Resource base and multiple exploration targets.
“This strengthens our broader strategy, generating short-term cash flow as we continue to advance our flagship Alice River and St George projects. It’s an exciting milestone for Pacgold and our shareholders,” says Boyes.
White Dam produced 180,000oz of gold from heap leaching 7.5Mt of ore at 0.94g/t gold. Production was from two pits, Hannaford and Vertigo, with the White Dam north resource remaining unmined to date.
The acquisition comes after in November 2025 Pacgold started a first-pass reverse circulation drilling program at the St George Gold-Antimony Project in northeast Queensland, as reported.
The program, comprising nine holes for 900m, will test the St George prospect, with the Fence and Ridgeline prospects slated for drilling in 2026.
Drilling is targeting high-grade gold-antimony zones that have been delineated via rock chips and mapping over a 10km strike length.
The company expects to complete drilling within two weeks, with assays to be received within six weeks.
Pacgold is an ASX-listed mineral exploration company with projects situated in North Queensland and South Australia. The core of Pacgold’s exploration efforts is centered in Queensland.
The flagship, 100% owned Alice River Gold Project is situated within a large, intrusion-related gold system that shows geological similarities to major international deposits.
Write to Adam Orlando at Mining.com.au
Images: Pacgold
