Pacgold Limited (ASX: PGO) has announced a significant discovery of high-grade gold and copper sulphide mineralisation at its White Dam North deposit in South Australia’s Curnamona Province, located 80km east of Broken Hill. The discovery was made during infill drilling designed to upgrade the company’s existing 102,000-ounce gold mineral resource estimate, with drilling intersecting thick zones of sulphide mineralisation beneath the shallow oxide gold deposit. The announcement highlights substantial exploration upside potential across multiple untested magnetic anomalies on the 100% owned White Dam Gold Project.
Key Points
- Pacgold Limited (ASX: PGO), a gold and copper explorer operating the White Dam Gold Project in South Australia
- High-grade gold and copper sulphide mineralisation discovered beneath the oxide deposit at White Dam North, coincident with a magnetic anomaly
- Significant drill intersections include WNRC006: 20m @ 2.5g/t Au and 0.5% Cu from 58m (including 3m @ 12.5g/t Au and 1.8% Cu), and WNRC010: 10m @ 3.4g/t Au and 0.7% Cu from 54m
- Assay results pending for most significant downhole intersections, with 8 of 10 RC holes extended to date intersecting visible copper sulphides in downhole widths up to 59m
- Drilling continues with mineralisation open in all directions; multiple additional magnetic anomalies remain untested across the project
Historic Oxide-Focused Drilling Missed Deeper Sulphide Potential at White Dam
The White Dam North deposit has been historically explored and developed with a primary focus on shallow oxide gold and subsidiary copper mineralisation located approximately 10m to 45m below surface. Previous drilling at the site was dominantly vertical and concentrated on oxide material, with historical operators limiting exploration to the transition zone between oxidised and fresh basement rock. This restricted drilling approach meant that the deeper sulphide mineralisation hosted in fresh basement rock was never systematically tested, despite indications of its presence in a limited number of historical drillholes beneath other oxide pits such as Vertigo and Hannaford on the project.
Pacgold’s current exploration strategy represents a departure from this historical approach. Since acquiring the White Dam Gold Project in late 2025, the company has been conducting systematic infill drilling designed to upgrade the predominantly Inferred Resource to Indicated category. The company has completed 71 holes totalling 4,158 metres to date, with several holes in the current program specifically designed to drill past the transition zone into fresh basement to provide a geological “buffer” of unmineralised rock to assist with orebody modelling. This methodical approach has proved successful, with three holes (WNRC006, WNRC009 and WNRC010) intersecting appreciable disseminated visible copper sulphides hosted in strongly magnetite-pyrite altered metasediments approximately 5m to 15m vertically below the oxide gold-copper mineralisation.
Significant Gold and Copper Intervals Confirm High-Grade Sulphide Zone
The company has reported assay results from three holes that have confirmed high-grade gold and copper mineralisation within the newly discovered sulphide alteration zone. Drillhole WNRC006 has delivered the most impressive interval to date, with assays confirming 20 metres grading 2.5g/t gold and 0.5% copper from 58 metres depth. Within this broader interval, a 6-metre section grading 7.5g/t gold and 1.2% copper was intersected, with an even more impressive 3-metre sub-interval grading 12.5g/t gold and 1.8% copper from 68 metres depth. The company did not disclose the true width versus downhole width for this intersection.
Drillhole WNRC010 has also returned significant results, with 10 metres grading 3.4g/t gold and 0.7% copper from 54 metres depth, including a 5-metre interval grading 5.0g/t gold and 1.0% copper from 56 metres. Drillhole WNRC009 reported mineralisation in two separate zones: an upper zone of 6 metres grading 0.8g/t gold and 0.5% copper from 45 metres, and a lower zone of 5 metres grading 0.5g/t gold and 0.2% copper from 61 metres to end of hole. All results have been analysed by fire assay for gold and 4-acid digest and ICP-AES for copper, according to the company. These results establish that the sulphide mineralisation is not merely a visual observation but contains genuinely economic gold and copper grades.
Extensive Visible Copper Mineralisation Awaiting Laboratory Confirmation
Beyond the three holes with assay results, the drilling program has identified extensive visible copper sulphide mineralisation in additional holes that have not yet been assayed. Eight of the 10 RC holes extended to date have intersected visible chalcopyrite (copper sulphide) in line with holes WNRC006 and WNRC010, with significant downhole widths observed. Drillhole WNRC007 intersected 59 metres of sulphide mineralisation from 58 metres depth, representing the thickest continuous interval observed to date. Drillhole WNRC016 intersected 38 metres of sulphide mineralisation from 68 metres, while WNRC009 intersected 26 metres from 67 metres. Additional holes WNRC005 and WNRC011 intersected 25 metres and 24 metres of sulphide mineralisation respectively.
The company has submitted samples for the intervals of visual mineralisation not yet assayed to Bureau Veritas Laboratory in Adelaide, with results expected within 4 to 6 weeks from the announcement date of 23 July 2026. The company has included a cautionary statement noting that visual estimates of mineral abundance should never be considered a substitute for laboratory analyses where concentrations or grades are the principal factor of economic interest. The wide distribution of these visual intervals across multiple drillholes suggests the sulphide zone has substantial lateral and vertical extent, though assay confirmation remains essential before any resource estimate upgrade can be considered.
Magnetic Anomaly Correlation Points to Large-Scale Exploration Potential
The newly discovered sulphide mineralisation is coincident with a magnetic anomaly that extends for up to 1 kilometre in strike length associated with folded stratigraphy. The company notes that only limited deep drilling has ever been carried out over this magnetic anomaly, making the discovery particularly significant. All holes extended into the magnetic anomaly have intersected sulphide mineralisation, indicating a strong geophysical-geological correlation. This systematic relationship between the magnetic signature and the presence of mineralised zones provides a powerful tool for delineating the extent of the deposit and identifying additional drill targets along strike.
The coincidence of the sulphide mineralisation with the magnetic anomaly is consistent with the magnetite-pyrite alteration assemblage observed in the drill core, where magnetite is a ferrous iron oxide mineral that produces strong magnetic signatures. The company’s geological interpretation suggests that the sulphide mineralisation may be part of a folded stratigraphic package that could extend well beyond the currently tested area. This interpretation is supported by the observation that the alteration zone is open in all directions and at depth, with drilling continuing to test the potential extent and tenor of the new sulphide gold-copper zone.
Multiple Untested Magnetic Anomalies Across Rolling, White Dam East and Hannaford West
Beyond White Dam North, the White Dam Gold Project contains multiple additional prospective areas that exhibit similar structural settings and coincident magnetic anomalies but have not been tested with deep drilling. Rolling, White Dam East and Hannaford West are identified as prospects with similar geological characteristics to White Dam North, suggesting they may host analogous sulphide-hosted gold-copper mineralisation. The fact that these areas have not been systematically explored to depth for sulphide material represents significant exploration upside for Pacgold. The company’s discovery at White Dam North provides a geological model and exploration framework that can be applied to these untested areas.
The identification of these additional prospective areas is particularly important given the Curnamona Province’s classification as an Iron-Oxide-Copper-Gold (IOCG) terrain with the potential to form very large mineral deposits. The company has highlighted that similar sulphide-hosted orebodies of significant size occur in the immediate region, including the Kalkaroo Project located 40 kilometres north of White Dam and the Portia Project located 75 kilometres north of White Dam. This regional context suggests that the discovery at White Dam North may represent a discovery of a new style of mineralisation for the company rather than an isolated geological feature.
Curnamona Province’s IOCG Classification Supports Large Deposit Potential
The White Dam Gold Project is situated within the Curnamona Province, an extensive geological terrain spanning north-eastern South Australia and western New South Wales. Mineralisation within this province is classified as Iron-Oxide-Copper-Gold (IOCG) style, a deposit type recognised globally for forming very large mineral deposits. The evidence for this deposit potential is clearly demonstrated by nearby projects within the same province. The Kalkaroo Project, located 40 kilometres north of White Dam, represents a significant IOCG system in the region. The Portia Project, located 75 kilometres north of White Dam, provides another example of the large-scale mineralisation potential within the Curnamona Province.
The discovery of sulphide-hosted primary gold-copper mineralisation at White Dam, combined with the deposit’s location within an established IOCG province, suggests the potential for significantly larger mineralisation than previously envisaged at the site. Previous exploration and mine development at White Dam focused exclusively on the definition and exploitation of shallow oxide gold, with gold production historically constrained to heap leach extraction and processing plant treatment. The deeper sulphide mineralisation was never previously assessed as a viable exploration strategy, despite the occurrence of similar sulphide-hosted orebodies of significant size occurring in the immediate region. This represents a meaningful shift in the company’s understanding of the project’s potential.
Drilling Extension Program Confirms Continued Mineralisation Beyond Initial Termination Points
The company’s decision to extend drillholes beyond the initial termination depths has proven highly effective in confirming the extent of the sulphide zone. Drillhole WNRC009 was initially terminated at 66 metres depth in mineralisation and has been extended to 102 metres. The extension intersected strong magnetite-pyrite alteration with visible chalcopyrite from 66 metres to 93 metres downhole, confirming the presence of significant sulphide mineralisation to depth. Drillhole WNRC006, which was initially terminated at 78 metres depth in mineralisation, will also be extended to further define the downhole extent of the mineralisation.
The extension drilling demonstrates that the mineralisation at White Dam North remains open at depth, providing confidence that further drilling will continue to define the true boundaries and extent of the mineralised zone. The company’s stated intention to continue RC drilling to test the potential extent and tenor of the sulphide gold-copper zone indicates an aggressive approach to definition drilling. The fact that several holes have intersected considerable downhole widths of chalcopyrite within a broad zone of magnetite-pyrite alteration, with this alteration zone remaining open in all directions and at depth, suggests substantial additional drilling will be required to properly define the mineralised zone. The announcement does not provide details on planned drilling meters or timing for the completion of the current phase of drilling.
Resource Estimate Upgrade Potential and Strategic Implications
Pacgold’s original objective in undertaking the current drilling program at White Dam North was to upgrade the predominantly Inferred Resource component of the 2020 Mineral Resource Estimate (MRE) of 102,000 ounces of gold to Indicated category status. The discovery of the deeper sulphide mineralisation significantly changes the scope and potential outcome of this drilling program. The company will now need to incorporate the sulphide mineralisation into an updated resource model, which will require completion of the remaining assay results and definition of the spatial extent of the sulphide zone through continued drilling.
The company’s announcement indicates that once the current drilling program is completed, the company intends to complete an updated Resource model and open pit optimisation studies. The company did not disclose a timeline for these studies or any indication of the expected resource size or grade range for the updated MRE. The inclusion of the sulphide mineralisation in a revised resource model could materially alter the company’s assessment of the project’s economic potential and development pathway. The discovery of significant in-situ sulphide ore may support different processing methodologies compared to the historical heap leach approach used for oxide material, potentially affecting future development economics and project timeline considerations.
Cautionary Notes on Visual Mineralisation and Pending Assay Results
The company has appropriately included cautionary statements regarding the visual estimates of mineralisation that remain pending laboratory confirmation. The company notes that visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the principal factor of economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. These caveats are particularly important given that eight of the ten holes extended to date have identified visible copper sulphides but only three holes have received laboratory assay confirmation.
While the assay results received to date from WNRC006, WNRC009 and WNRC010 have confirmed high grades within the visually identified mineralisation, there is no certainty that the remaining intervals with visible mineralisation will assay at similar grades. Factors such as grain size, distribution of mineralisation, and the presence of deleterious elements could affect the ultimate economic viability of any additional zones identified. The company has submitted samples to Bureau Veritas Laboratory in Adelaide with results expected within 4 to 6 weeks from the announcement date. Investors should await these results before drawing firm conclusions regarding the full extent and quality of the sulphide mineralisation at White Dam North.