Pacgold Limited's exploration campaign in northern Queensland is delivering impressive results, with fresh gold discoveries expanding the potential of its Alice River gold project significantly. The company has reported promising findings from both its White Lion prospect and a substantial new mineralised zone at Jerry Dodds.
White Lion Prospect Reveals New Gold Corridor
The initial drilling program at White Lion represented Pacgold's first attempt to test the geophysical target that had shown exciting potential earlier this year. The area displayed coincident induced polarisation and magnetic anomalies that initially suggested a Mount Leyshon-style pressure pipe system - one of Queensland's most celebrated gold deposit types.
Four reverse circulation holes were drilled directly into the heart of the chargeability high, encountering sulphide-rich rocks containing pyrite, pyrrhotite and some diorite. While the anomaly turned out to be caused by a sulphide-loaded rock sequence rather than the expected hydrothermal alteration from a major intrusion-related gold system, the story took a more promising turn when drilling shifted to the adjacent Alice River fault zone.
Three holes targeted the fault zone where previous rock chip sampling had already detected strong gold indications across a 250-metre section of quartz veins and altered breccia. This time, the system delivered concrete results with two holes intersecting wide zones of quartz veining in granite adjacent to a neighbouring dyke.
The standout intercept included 8 metres grading 0.6 grams per tonne gold from 44 metres depth, including a higher-grade section of 2 metres at 2.1 grams per tonne gold. A second hole returned 15 metres at 0.2 grams per tonne gold from 148 metres depth.
Jerry Dodds Prospect Confirms Major Scale
While White Lion showed promise, it was the Jerry Dodds prospect southwest of the Southern target that delivered the most compelling evidence of large-scale mineralisation. Located on a major regional structure parallel to the Alice River Fault Zone approximately 400 metres southwest of Pacgold's Southern Target, this area has now revealed a 1.5-kilometre mineralised corridor that remains open in both directions and at depth.
Historical evidence pointed to the area's potential, with early 1900s small-scale workings and Cyprus exploration in the 1980s that sampled rock chips up to 17 grams per tonne gold. Shallow RAB drilling over a 400-metre section had previously returned an impressive 4 metres at 12 grams per tonne from just 12 metres depth.
Pacgold's systematic rock chip sampling in 2023 identified a two-kilometre-long trend, including a standout sample of 47.4 grams per tonne gold. Initial RC drilling at the northwestern end confirmed shallow mineralisation with results including 16 metres at 0.6 grams per tonne from 16 metres depth, including 1 metre at 2.6 grams per tonne, and 4 metres at 1.3 grams per tonne from 26 metres depth.
The latest campaign has significantly expanded the known mineralisation with eight RC holes drilled along a 1.2-kilometre section on the southeastern side of the prospect. Five of these holes successfully intersected shallow gold mineralisation, confirming the 1.5-kilometre corridor that remains open along strike and at depth.
Notable results from this recent drilling include 4 metres grading 0.6 grams per tonne gold from 5 metres depth, 8 metres at 0.2 grams per tonne gold from 29 metres depth, and a substantial 24 metres at 0.3 grams per tonne from 45 metres depth including 1 metre at 2.4 grams per tonne gold.
Broader Strategy and Future Plans
Pacgold Managing Director Matthew Boyes commented on the significance of these results, stating: "With these results, we are building a strong foundation for continued discovery at both the Alice River Gold and St George gold-antimony projects in Queensland, while concurrently advancing our phase one production restart at the White Dam project in South Australia."
The company has expanded beyond its Queensland operations through the recent acquisition of the historic White Dam heap-leach gold operation in South Australia. The $3.3 million deal, comprising cash and 15 million shares, delivers Pacgold a fully operational site located just 80 kilometres southwest of Broken Hill that has previously produced approximately 180,000 ounces of gold.
The acquisition includes processing infrastructure, accommodation facilities, leach pads and all supporting equipment, plus a JORC resource of 4.6 million tonnes at 0.7 grams per tonne for 102,000 ounces. The company plans to recommence gold production as early as February 2024 by re-crushing and retreating material from the existing leach pads, providing near-term cash flow.
Looking ahead, Pacgold has identified a remarkable 15-kilometre trend of gold-arsenic-antimony anomalism along the Alice River Fault Zone, representing a significant exploration corridor filled with targets and resource growth potential. Drilling is scheduled to resume in March 2024 following the wet season, with both White Lion and Jerry Dodds positioned as priority targets for further investigation.
The company's strategic approach combines systematic exploration of promising new discoveries in Queensland with near-term production potential in South Australia, creating a balanced portfolio that offers both growth opportunities and early cash flow generation.
