In a significant move for Australia's mining sector, Pacgold Limited is poised to reignite gold production at its White Dam operation in South Australia, setting its sights on a first gold pour in 2026. The company has cleared a crucial final hurdle, receiving the green light from the Department for Energy and Mining to resume full-scale operations.
Mobilising for Production
The restart centres on the project's heap leach facility, a proven method for extracting gold. Pacgold has now received approval to fill its newly relined gold-pregnant leach solution (PLS) pond, with irrigation systems ready for action. Work is already underway, with a heavyweight 120-tonne excavator deployed to turn over more than 500,000 tonnes of ore on the existing leach pad.
This pad turnover is a strategic, low-cost initiative designed to aerate the material and assess the potential for recovering remnant gold that may not have been fully extracted during previous operations. "Approximately 500kt of ore on the northern edge of the pad will be turned over and aerated as a trial," explained Pacgold managing director Matthew Boyes. The goal is to gauge the quantity of extractable gold remaining across the entire pad structure.
Drilling and Resource Expansion in Parallel
While leaching preparations advance, exploration efforts are intensifying nearby. The company's drill rig is actively turning at the Vertigo pit, with 2,700 metres of a planned 25,000-metre program already completed. Assay results from this campaign are anticipated in mid-January following the holiday break.
A key objective of this drilling is to upgrade a substantial portion of the project's inferred resources to the higher-confidence indicated category. Pacgold has slated 7,000 metres of drilling specifically for this resource upgrade, which is expected to refine mine plans for 2026 and potentially boost future production output.
A Proven Asset in a Booming Market
The White Dam project, located just 80 kilometres west of the iconic mining centre of Broken Hill, has a strong production pedigree. Between 2010 and 2018, the site yielded approximately 180,000 ounces of gold before being placed on care and maintenance. It still hosts a substantial resource of 4.6 million tonnes grading 0.7 grams per tonne gold, equating to 102,000 ounces, not including any residual gold in the leach pads slated for re-treatment.
Pacgold's restart strategy is capital-efficient, leveraging existing infrastructure and requiring only a modest capital outlay of around $600,000 to generate near-term cash flow. The timing appears opportune, with the gold price trading near record highs of almost A$6,600 per ounce.
Fueling a Multi-Project Exploration Drive
Cash flow from the South Australian operation is earmarked to bankroll Pacgold's aggressive exploration push in Queensland. The proceeds will primarily fund work at the company's 854,000-ounce Alice River gold project and its recently fast-tracked St George gold-antimony tenement.
Rock chip samples at St George have already returned spectacular results, including grades as high as 52.7% antimony and 10.2g/t gold, prompting a maiden drilling program now in progress. With irrigation set to recommence at White Dam and drill rods turning across its portfolio, Pacgold is positioning itself for a fully funded year of discovery in 2026. The company is currently in a trading halt pending the release of anticipated exploration results from its St George project.
