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- Pacgold successfully completes first gold pour from White Dam, in a significant milestone for company’s phase one restart strategy.
- Bar shipped to Perth Mint refinery for completion of final refining, subsequent sale.
- First cash to confirm Pacgold’s transition to ranks of listed producers.
Pacgold (ASX:PGO) has achieved a major milestone early in May with the first gold pour and maiden gold doré bar produced from the White Dam project, 80 kilometres east of Broken Hill in South Australia.
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Following Pacgold’s successful refurbishment and recommissioning of the existing plant and mine facilities for the White Dam heap leach operation, production has successfully recommenced with the company delivering its first gold doré within five months of acquisition.
The maiden gold doré bar weighed approximately three kilograms for an estimated 80 ounces of gold, which has been shipped to the Perth Mint Refinery for completion of final refining and subsequent sale.
Pacgold’s MD, Matthew Boyes, said the achievement represents a significant breakthrough in Pacgold’s execution of its phase one restart strategy for the project.
The company chief also said the first cash flow from the gold sale will effectively complete Pacgold’s transition from explorer to producer and provide the company with cash flow to fund growth activities on site.
“The first gold pour of many to come at White Dam is a transformative moment for Pacgold. Delivering our maiden gold doré bar just five months after acquisition is a testament to the dedication of our operations team and the efficiency of our phase one restart strategy,” Mr Boyes explained today.
“This milestone marks our official transition from explorer to producer. More importantly, this cash flow from the sale of the first dore’ provides us with our first non-dilutive capital since the company IPO, which greatly helps to de-risk the project and gives confidence in funding our ongoing growth initiatives.”
Pacgold continues to ramp up production and optimise the heap leach circuits as it increases the frequency and size of its 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,” he said.
Design work is ongoing on a proposed pad expansion area, with highly experienced North American group Newfields carrying out the design work. The Australian company expects this work to be completed by late July, after which the company will tender for the construction and liner installation works.
Meanwhile, Vertigo deposit resource drilling is now complete, with final assays awaited and scheduled to arrive over the coming week.
Once all data is collated, an updated resource and mine design will be completed as part of the planned expansion to full production in CY27.
PGO is up +13% to 13¢. Mkt cap $49.78M.
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