Pacgold strikes broad zones of shallow gold in Queensland

Pacgold Limited has unveiled new assays from its 13,000-metre drilling program at the company’s Alice River gold project. The results show broad zones of shallow mineralisation across multiple targets. Credit: File

ASX-listed gold explorer Pacgold Limited (ASX: PGO) continues to hit paydirt at its Alice River project in north Queensland, with fresh assay results from its second batch of 45 reverse circulation drill holes outlining thick gold intersections, including some eye-catching high-grade surprises.

The company is also gearing up for a full-scale drilling assault on its White Lion prospect that bears all the trademark features of a Mount Leyshon-style pressure pipe, which is one of Queensland’s most celebrated gold systems.

Since late April, Pacgold has been in the thick of a drilling blitz across a 30-kilometre-long fault zone dotted with multiple deposits. The company has already chalked up a global resource of 854,000 gold ounces grading 1.01 grams per tonne (g/t).

The project’s geology suggests it sits within a big intrusion-related gold system, showing strong structural and geochemical similarities to world-class finds, such as the Fort Knox mine in the United States and DeGrey Mining’s Hemi discovery in Western Australia.

At the heart of the resource lies the aptly named Central Target, which sits midway along a pair of north–south trending faults. Central Target accounts for a hefty 470,000 ounces in the indicated and inferred categories. The Southern Target is close behind with 317,000 inferred ounces, while the Northern Target chips in a further 68,000 inferred ounces.

The rigs have already cranked out more than 10,900m of a 13,000m reverse circulation campaign – well above Pacgold’s original 10,000m plan to probe extensions and depth of known mineralisation. The call to keep drilling looks to be paying dividends, with fresh results stretching the existing gold lodes and teasing the potential for new discoveries.

At the Southern Target, one hole returned a thumping 54m running at 0.5 grams per tonne (g/t) gold from just 21m, including richer sections of 4m grading 2.7g/t and 2m going at 2.7g/t. Another hole produced a standout 15m intercept grading 1.5g/t gold from 101m, including a stellar 1m slice running at 18.5g/t gold.

Two further broad, lower-grade sections, including 20m at 0.5g/t from 96m and 18m at 0.7g/t from 42m, were picked up towards the northern part of the Southern Target. The company says these hits are significant given they hint at the very real prospect of northern extensions outside the current resource envelope, in an area that has never seen a drill rod.

The Central Target - 2.5km north of the Southern Target - also chipped in with solid assays, including 10m grading 0.8g/t gold from 121m, 2m running at 4.2g/t from 55m and 17m at 0.3g/t from 76m. Together, the results confirm broad areas of shallow mineralisation, with bonus high-grade lodes.

Outside its core targets, Pacgold has been busy chasing opportunities across a string of regional prospects. Assays from its Posie prospect, near the northern edge of the tenements, are still in the lab, while results from The Shadows in the south are being pieced together. In the meantime, the rigs are hard at work on Victoria and Jerry Dodds - also in the south - chasing down extensions of last year’s promising air core anomalies.

Pacgold also drilled four diamond holes for a total of 617m - two at Central and two at Posie. The core is already proving useful for understanding the structure and for future testing. Notably, the Posie holes delivered the first fresh core ever taken from the area and could be the key to understanding its geology.

With the current round of drilling nearing completion, Pacgold will move its rigs further south to kick off a maiden drilling program at the company’s White Lion target – described by management as one of its most exciting targets in its entire project area.

White Lion is the most compelling target I have seen developed to date with a chargeable body measuring up to 1.2km in strike and 500m in width some 50-80m below surface.

Pacgold Limited Managing Director Matthew Boyes

Pacgold has also wrapped up its regional air core program, completing 432 holes for 4608m. Those assays, due within weeks, are expected to serve up yet another batch of fresh targets for the drill bit later this year.

With broad mineralised zones, juicy high-grade lodes and a looming crack at White Lion, Pacgold looks set to keep the market on edge as Alice River continues to show its golden hand.

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