Pacgold (ASX:PGO) has poured its first gold and produced its first gold doré bar from the White Dam Gold Project, 80km east of Broken Hill in South Australia.
The first pour delivered a gold doré bar weighing around 3kg, containing an estimated 80 ounces of gold, from the western edge of the pad area only.
The first pour follows the company’s recent refurbishment and recommissioning of the existing plant and mine facilities for the White Dam heap leach operation. Pacgold notes that the delivery of the first gold doré bar comes five months after the acquisition of these facilities.
The gold doré bar has been shipped to the Perth Mint refinery for final refining and sale. According to the company, this first sale will complete its transition from explorer to producer and provide the cash flow to fund future growth activities.
Managing Director Matthew Boyes says that the first pour is a “transformative moment” for the company.
“This milestone marks our official transition from explorer to producer,” Boyes says.
“More importantly, this cash flow from the sale of the first doré provides us with our first non-dilutive capital since the company’s IPO, which greatly helps to de-risk the project and gives confidence in funding our ongoing growth initiatives.
“As we continue to ramp up production and optimise the heap leach circuits, we look forward to increasing the frequency and size of our gold pours in the coming months, with the return from the first 40,000 tonne parcel of re-crushed ore now expected within three weeks, and then a further 200,000 tonnes to go under irrigation by late May.
“We are very well financed, going forward, to deliver on our promised goals and will continue to deliver milestones as we grow.”
Production ramp-up underway
Now that the first gold has been poured, the team is focused on achieving gold production from previously uncrushed material. Pacgold is focused on its ramp-up of re-crushing and leaching to a targeted 90 kilotonnes per month.
Pacgold says that design work on the pad expansion area is ongoing and expected to be complete by late July, at which time the company will tender for the construction and liner installation.
Drilling at the Vertigo deposit is now complete, with the company awaiting final assays. Once received, these will be included as part of the planned expansion to full production in 2027.
Pacgold also notes that all reverse circulation drilling has been paused as the company awaits approvals and clarity on diesel delivery, availability, and price.
The company has submitted applications for drill permits and outlined key drill-ready targets, with drilling pending approval.
Pacgold is a mineral exploration company focused on projects in North Queensland and South Australia.
Write to Amy Rotman at Mining.com.au
Images: Pacgold
