Pacgold (ASX:PGO) has reported shallow oxide gold mineralisation outside the existing resource model at its Vertigo deposit, part of the White Dam Gold Project in South Australia.
The company completed 102 reverse circulation (RC) holes totalling 2,904m during May and June to test extensions identified during earlier infill drilling.
Results include 13m @ 1.3 grams per tonne gold (Au) from 14m in hole VRC181, including 2m @ 4.1g/t Au from 15m, and 17m @ 0.9g/t Au from 6m in VRC203, including 1m @ 3.1g/t Au from 13m.
Hole VRC260 returned 4m @ 3.1g/t Au from surface, including 1m @ 7.2g/t Au from 1m, while VRC268 intersected 6m @ 2.2g/t Au from surface, including 3m @ 3.7g/t Au from 2m.
Another result from VRC278 returned 11m @ 1.2g/t Au from surface, including 3m @ 3g/t Au from 4m.
The extension campaign followed 178 holes totalling 10,526m completed in March to support an upgrade of the Vertigo resource from the inferred to indicated category.
Vertigo currently hosts a JORC 2012 mineral resource estimate (MRE) of 1.7 million tonnes @ 0.7g/t Au for 38,300 ounces. Around 75% of the contained gold is classified as inferred.
Managing Director Matthew Boyes says Pacgold expects the newly identified shallow oxide mineralisation to reduce pre-strip costs and working capital requirements under its proposed restart plan.
“These excellent shallow oxide intervals represent a very material win for PGO in respect to fast-tracking the restart of the Vertigo mine and getting shallow low-cost oxide dirt onto the old pad while extending the ore leaching capacity with the new pad expansion,” Boyes says.
An updated MRE is scheduled for completion in August, after which Pacgold plans to undertake new open-pit optimisations and mine designs.
Design work for an expansion of the project’s heap-leach pad is also scheduled for completion in early August, with construction tendering expected to follow.
The company notes that drilling has moved to White Dam North and is scheduled to continue at the Rolling prospect and Hannaford pit during the September quarter.
Pacgold is a mineral exploration company focused on projects in North Queensland and South Australia.
Write to France Pinzon at Mining.com.au
Images: Pacgold
