Pacgold (ASX:PGO) is expecting the results from its initial phase of drilling planned at the Alice River Project, to lead further drilling opportunities across several other prospects.
Speaking to Mining.com.au, Pacgold Managing Director Tony Schreck says the drilling phase is the first step in a broader exploration strategy to ‘open up’ the district scale opportunity.
“Our success in defining a gold deposit on the Central Target is not just a ‘one-off’, and that multiple high-grade gold prospects do exist along the Alice River fault zone. The results from this drilling are anticipated to lead to further drilling on a number of the current prospects.”
The $14 million market capitalisation company’s initial phase of drilling is planned to begin in early October this year, with the aim of targeting ‘high priority’ targets across several prospects along the 30km fault zone.
“The results from this drilling are anticipated to lead to further drilling on a number of the current prospects“
Drilling planned includes 2,500m of reverse circulation (RC) drilling and 1,500m of aircore drilling.
The company recently completed an additional induced polarisation (IP) geophysical survey along the fault zone, alongside a regional mapping and rock chip sampling program, which is still ongoing. Results are expected to be returned in October.
Schreck says Pacgold expects the regional data will continue generating new district scale targets, as well as lead to an expanded regional drilling program planned for 2024.
The company’s comments come after Pacgold received firm commitments to raise $3.2 million through an underwritten placement to accelerate exploration activities at the Alice River project.
Pacgold reports 16.7 million new fully paid ordinary shares will be issued at an offer price of $0.19 per share to institutional and sophisticated investors.
Argonaut Securities acted as lead manager of the placement and Argonaut PCF acted as underwriter of the placement.
A 9.5% discount is represented for the offer price to the last closing price of $0.21 and a 11.3% discount to the 5-day volume weighted average price (VWAP) of $0.214 on 19 September.
Pacgold notes 1 free attaching option will be issued for every 2 placement shares subscribed for and issued. The placement options are exercisable at $0.30 and will expire on 30 September 2026.
Commenting on the placement, Schreck adds: “Achieving an oversubscribed placement with strong support from existing and new institutions is an outstanding outcome and endorsement for the Alice River Project.
Recent drilling success targeting IP geophysics now provides Pacgold with superior confidence in identifying new priority targets concealed by shallow cover, along the prospective 30km Alice River fault zone.
While Pacgold’s drilling focus to date has been on step-out drilling to expand the high-grade gold systems at both the Central and Southern targets, our forward strategy will concentrate on the district-scale potential with high-priority targets identified and drilling set to recommence in early October.”
Pacgold is a gold-focused exploration company, working to unlock an entire gold corridor at the Alice River project. The Alice River project comprises 30km of prospective gold targets, within 377km-square of granted exploration permits and 8 granted mining leases.
Write to Aaliyah Rogan at Mining.com.au