Pacgold (ASX:PGO) has identified new zones of shallow gold mineralisation from drilling at the White Dam Project in South Australia’s Olary province.
The company has returned the final batch of assays from the Vertigo resource drilling campaign.
Intercepts include 28m @ 0.9 grams per tonne gold and 0.07% copper from 2m, including 3m @ 4.1g/t gold and 0.09% copper from 12m; 12m @ 1.1g/t gold and 0.03% copper from 6m; and 24m @ 0.6g/t gold and 0.05% copper from 1m.
Pacgold says the campaign indicates potential to expand the Vertigo resource estimate by drilling an interpreted shallow extension of the resource model, intersecting consistent mineralisation that has not been drilled previously.
The company also conducted infill drilling of a 2020 inferred resource estimate area, with intercepts including 12m @ 2.5g/t gold and 0.50% copper from 65m; 16m @ 3.9g/t gold and 0.89% copper from 60m; and 3m @ 7.3g/t gold and 0.96% copper from 47m.
The drilling was designed to upgrade the existing inferred resource to the indicated category and to test for shallow extensions to the resource estimate model.
Managing Director Matthew Boyes says the exploration teams have continued to deliver “strongly”, demonstrating White Dam’s potential to delineate multiple zones of shallow oxidised ore close to the resource area.
“In time, these will become very low-cost and highly profitable ore that we can bring forward in our eventual mine-planning phase,” Boyes says.
“I’m really keen to now follow up on these results and get the drilling rig back in there to test the new structures we have drilled and get started on modelling the numbers on Vertigo, which, at current gold prices, should generate significant revenue and free cash flow when mined.”
Trading Economics reports the price of gold as US$4,705 ($6,496) per ounce as of 7 May, representing a 39.18% increase year-over-year.
Pacgold is a mineral exploration company focused on projects in North Queensland and South Australia.
Write to Maddison Elliott at Mining.com.au
Images: Pacgold
