Pacgold Ltd
- ASX Code: PGO
- Market Cap: $74,154,675
- Shares On Issue (SOI): 436,203,970
Pacgold Hits Its Stride: First Gold Pours, White Dam Drilling Success and Demerger Sharpen Focus
Pacgold Limited (ASX: PGO) used its Q2 2026 quarterly activities report to outline a quarter defined by first production at White Dam, continuing resource growth drilling, a new high-grade sulphide discovery, and a demerger plan aimed at simplifying the company into a South Australia-focused gold producer and developer.
According to the quarterly update, Pacgold completed its first two gold pours at the White Dam Gold Project, continued heap leach ramp-up, advanced a 25,000 metre RC drilling program, and signed a binding term sheet to demerge its North Queensland assets into Manda Resources Ltd. The company ended the quarter with $3.8 million in cash, then announced a $13 million placement after quarter end.
For investors, the report matters because it shows Pacgold moving from exploration into production while also pursuing near-mine growth and corporate simplification.
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From Explorer to Producer: First Gold Pours at White Dam
The most visible milestone in the quarterly report was the successful completion of Pacgold's first two gold pours from White Dam. In the report, the company said this marked a key step in its Phase 1 restart strategy and confirmed its transition into production.
The maiden gold doré bar weighed about 3kg and contained 59.58oz of gold and 24.26oz of silver. It was shipped to the Perth Mint Refinery for final refining and sale.
A second gold pour was completed in late June, producing a doré bar containing 56.80oz of gold and 35.21oz of silver. According to the quarterly update, this metal came from gold leached from the initial aerated eastern and western margins of the pad.
The timing is also relevant. Pacgold reported that first gold was produced within five months of acquiring White Dam, indicating that the site restart and refurbishment program moved quickly.
What Did the Managing Director Say?
"With our initial gold pours successfully completed, irrigation ramping up, and strong drilling results to expand our resource model, Pacgold is exceptionally well-positioned to fast-track an early restart at Vertigo and drive sustained, long-term cash generation," said Matthew Boyes, Managing Director.
White Dam Operations: Ramp-Up Continues Through Q2 2026
Beyond the headline gold pours, the quarterly report outlined continued progress across the operating side of White Dam.
Pacgold said 120,000 tonnes of re-crushed material is now under irrigation, with a further 50,000 tonnes planned to be placed under irrigation in early Q3 2026. The report also noted that an additional 70,000 tonnes of material had been placed under irrigation during the quarter, with crushed material assayed daily.
The heap leach pad expansion design is also moving forward. The company said final design work is expected in early Q3, with Newfields Engineers completing the design work.
Importantly, Pacgold also stated the existing pad has about 800,000 tonnes of spare capacity available for fresh ore before additional capital is required for pad expansion. That matters because it suggests White Dam can continue ramping up without immediate major pad expansion spending. A full reconciliation of the first crushed material is expected after leaching is completed in late Q3.
White Dam Existing JORC Resource Base
| Deposit | Tonnes | Grade | Contained Gold |
|---|---|---|---|
| Hannaford | 1,700,000t | 0.8 g/t Au | 43,300oz |
| Vertigo | 1,700,000t | 0.7 g/t Au | 38,300oz |
| White Dam North | 1,200,000t | 0.5 g/t Au | 20,300oz |
| Total | 4,600,000t | 0.7 g/t Au | 101,900oz |
The reported resource provides Pacgold with a defined oxide gold base at White Dam, while the company continues drilling programs intended to improve confidence and potentially increase the inventory.
Vertigo Drilling Supports Potential MRE Upgrade and Earlier Restart
In the quarterly report, Pacgold said additional drilling at Vertigo continued to support an updated Mineral Resource Estimate (MRE) and may also support an earlier mining restart than originally planned.
A total of 178 holes for 10,526 metres has now been completed at Vertigo. This drilling was carried out on a nominal grid of 25m x 25m, tightening to 12.5m x 12.5m in places, with the aim of improving confidence in the geological model and existing resource.
The report highlighted results from shallow extensions of mineralisation that were not previously included in the MRE. Furthermore, infill drilling results are said to support confidence in an upgraded block model.
Selected Shallow Extension Results at Vertigo
| Hole | Interval | Grade Au | Grade Cu | From |
|---|---|---|---|---|
| VRC157 | 28m | 0.9 g/t | 0.07% | 2m |
| including | 3m | 4.1 g/t | 0.09% | 12m |
| VRC160 | 12m | 1.1 g/t | 0.03% | 6m |
| including | 1m | 2.8 g/t | 0.03% | 9m |
| VRC154 | 24m | 0.6 g/t | 0.05% | 1m |
| including | 11m | 0.8 g/t | 0.03% | 14m |
Selected Infill Results at Vertigo
| Hole | Interval | Grade Au | Grade Cu | From |
|---|---|---|---|---|
| VRC117 | 12m | 2.5 g/t | 0.50% | 65m |
| including | 2m | 9.8 g/t | 1.03% | 66m |
| VRC121 | 16m | 3.9 g/t | 0.89% | 60m |
| including | 10m | 5.8 g/t | 1.27% | 62m |
| VRC127 | 3m | 7.3 g/t | 0.96% | 47m |
| including | 1m | 19.6 g/t | 2.40% | 48m |
Pacgold said Entech Pty Ltd has commenced work on the Vertigo MRE update, followed by new pit optimisations, mine designs and cashflow calculations. The company is also evaluating a possible late 2026 restart of the Vertigo pit, around six months earlier than originally planned, to access fresh oxide ore on the pit's northern and eastern margins.
For investors, an earlier restart could improve the timeline to additional ore feed and production, although the quarterly report frames this as an evaluation rather than a confirmed decision.
White Dam North Sulphide Discovery Draws Attention
One of the more important exploration updates in the quarterly report came from White Dam North, where deeper drilling intersected high-grade gold and copper sulphide mineralisation beneath the existing shallow oxide resource.
Pacgold completed 31 holes for 2,084 metres at White Dam North during the quarter. Some holes were drilled below the oxide-fresh rock transition to assist geological modelling, and three of those holes intersected visible copper sulphides, identified as chalcopyrite, within altered metasedimentary rocks.
According to the quarterly report, these sulphide intersections occur about 5 to 15 metres vertically below the existing oxide gold-copper mineralisation and are coincident with a magnetic anomaly. In addition, assays remain pending for some of the thickest intervals, meaning the current results may not yet capture the full extent of the discovery.
White Dam North Sulphide Intercepts Reported to Date
| Hole | Interval | Grade Au | Grade Cu | From |
|---|---|---|---|---|
| WNRC006 | 20m | 2.5 g/t | 0.5% | 58m |
| including | 6m | 7.5 g/t | 1.2% | 68m |
| including | 3m | 12.5 g/t | 1.8% | 68m |
| WNRC010 | 10m | 3.4 g/t | 0.7% | 54m |
| including | 5m | 5.0 g/t | 1.0% | 56m |
| WNRC009 | 6m | 0.8 g/t | 0.5% | 45m |
| lower zone | 5m | 0.5 g/t | 0.2% | 61m to EOH |
"The recent discovery of significant sulphide mineralisation at White Dam North could turn out to be a real game changer for the future of this asset and adds huge potential upside to what is becoming a very successful story for Pacgold," said Matthew Boyes, Managing Director.
The company also noted that White Dam North will require a Mining Lease before earthworks can begin, and it has started work on the application process. However, Pacgold stated it is not currently in a position to publish a timetable for the grant process.
What Does Sulphide Mineralisation Mean in Plain Terms?
Understanding the White Dam North result requires a basic distinction between oxide and sulphide mineralisation.
Near the surface, rocks are often weathered by air and water, creating oxide mineralisation that is generally simpler to process in a heap leach operation. White Dam's current production restart is based on this style of ore.
At greater depth, rocks can remain relatively fresh, with metals still locked inside sulphide minerals. In the White Dam North drilling, Pacgold identified chalcopyrite, a copper-bearing sulphide mineral, together with gold. The presence of stronger gold and copper grades below the oxide resource may point to a broader mineralised system than previously recognised, though further drilling and metallurgical work would be needed to confirm this.
Key Terms Explained
| Term | Meaning |
|---|---|
| Sulphide mineralisation | Gold or copper hosted in sulphide minerals within fresh rock, usually deeper than oxidised material |
| Oxide ore | Weathered near-surface rock that can often be processed more simply |
| Heap leach | A processing method where solution is applied to stacked ore to dissolve and recover gold |
| MRE | Mineral Resource Estimate, a formal estimate of the amount and grade of mineralisation |
| RC drilling | Reverse Circulation drilling, a common and relatively fast drilling method used to collect rock samples |
Demerger to Manda Narrows Pacgold's Corporate Focus
The quarterly report also set out a major corporate change. Pacgold signed a binding term sheet to demerge its Alice River Gold Project and St George Gold-Antimony Project in North Queensland into Manda Resources Ltd.
According to the update, Manda also intends to acquire Territory Minerals Ltd, adding the Tregoora, Northcote, Atric and Reedy Gold Projects across 632km² in the Hodgkinson Basin.
Key Transaction Terms
The key transaction terms outlined in the report include:
- Pacgold will transfer 100% of Alice River and its earn-in rights at St George to Manda.
- Manda will acquire Territory Minerals Ltd.
- Manda completed a $9 million pre-IPO seed raising before costs.
- Emerald Resources NL (ASX: EMR) invested about $6.4 million in that raising.
- Subject to shareholder approval, eligible Pacgold shareholders in Australia and New Zealand will receive an in-specie distribution of 64 million Manda shares.
- Pacgold is to receive $650,000 in cash on Manda's ASX admission, subject to the conditions set out in the announcement.
The quarterly report said the combined Manda portfolio would hold 1.33 million ounces of JORC-compliant gold resources, made up of 854,000oz at Alice River and 480,000oz from the Territory assets.
For Pacgold investors, the rationale is straightforward. If approved, the demerger would leave Pacgold focused on White Dam in South Australia, while still giving eligible shareholders direct exposure to the North Queensland portfolio through Manda shares.
Cash Position and Post-Quarter Placement
Pacgold ended the quarter with $3.838 million in cash, down from $6.472 million at the start of the period.
Q2 2026 Cash Flow Summary
| Item | Amount |
|---|---|
| Cash at start of quarter | $6.472M |
| Receipts from customers | $720,000 |
| Production expenditure | ($1.849M) |
| Staff costs | ($243,000) |
| Admin and corporate costs | ($425,000) |
| Net operating cash flow | ($1.708M) |
| Net investing cash flow | ($1.252M) |
| Net financing cash flow | $326,000 |
| Cash at end of quarter | $3.838M |
After quarter end, Pacgold announced firm commitments for a $13 million two-tranche placement through the issue of about 86.67 million new shares at $0.15 each. The company said proceeds are to be used for:
- Follow-up drilling at the White Dam North sulphide discovery
- Ongoing oxide resource drilling within the Mining Lease
- White Dam production ramp-up and expansion
- Mine design, optimisation studies and heap leach pad expansion
- Regional exploration and general working capital
Directors indicated an intention to subscribe for a combined $515,000, subject to shareholder approval at the AGM expected in late November 2026.
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What Investors May Watch Next
The quarterly report points to several near-term milestones that could shape Pacgold's next updates. Key items include:
- Final heap leach pad expansion design in early Q3 2026
- Completion of the remaining White Dam North oxide drilling in Q3 2026
- Leach reconciliation for the first crushed material in late Q3 2026
- Ongoing Vertigo MRE update work by Entech
- Potential decision on an earlier Vertigo restart targeting late 2026
- Follow-up sulphide drilling at White Dam North after placement funding
- Shareholder approvals tied to the demerger and director placement participation
Pacgold's Q2 2026 quarterly activities report presents a company balancing three parallel tasks: ramping up production at White Dam, improving and extending its resource base, and simplifying its asset portfolio. The first gold pours provide evidence of operational progress, while drilling at Vertigo and White Dam North may influence future mine planning and project scale if follow-up work confirms the current interpretation.
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