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Pacgold Reports Promising Drill Results at Alice River, Eyes Bigger Gold Discovery

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Pacgold Limited (ASX: PGO) (“Pacgold” or “the Company”), a Queensland-focused gold explorer, has delivered an encouraging update from its ongoing 2025 exploration campaign at the Alice River Gold Project, located 300 km northwest of Cairns. The Company announced impressive high-grade gold intersections from the initial phase of its 10,000-metre Reverse Circulation (RC) drilling program, highlighting the project’s untapped potential in the heart of North Queensland’s mineral-rich corridor.

Location of the Alice River Gold Project [Pacgold Limited]

Strong Initial Results from Central Target

The drilling campaign kicked off in April and has already delivered promising results from the Central Target. Assay results from the first 19 RC holes reveal significant shallow gold mineralisation, bolstering both the bulk tonnage and high-grade development case for the project.

Among the standout intercepts:

  • ARDH098: 48m @ 2.1 g/t Au including 15m @ 5 g/t Au and 2m @ 29 g/t Au from 76m
  • ARDH101: 50m @ 1.0 g/t Au including 3m @ 6.8 g/t Au from surface
  • ARDH099: 74m @ 0.8 g/t Au including 13m @ 1.3 g/t Au from 75m
  • ARDH110: 35 m @ 0.9 g/t Au including 17m @ 1.5 g/t Au from 10m

These results have come from infill drilling designed to upgrade confidence within the existing Mineral Resource Estimate (MRE) defined in May 2025.

CEO’s Take on the Breakthrough

Pacgold Managing Director Matthew Boyes expressed his optimism:

“The first drillholes in the 2025 drilling programme from the Central Target area continue to demonstrate both the shallow bulk tonnage and high-grade potential of the Alice River Gold Project. Drilling is now focused on the regional prospects including The Shadows, Posie, Jerry Dodds and Victoria targets, including new targets generated through last season’s extensive aircore programme.”

Boyes added that the Company is “fully funded to continue through the entire drill season until late December,” following a recent $5.6 million capital raise that brings Pacgold’s cash position above $6.5 million.

Long section illustrating gold grade metre contours across the central resource zone, featuring recent infill RC drilling, historical Pacgold intercepts, and the AUD $5000 Mineral Resource Estimate pit shell. [Pacgold Limited]

A Comprehensive Exploration Strategy

With 5,838 metres of drilling completed so far across 44 holes, the campaign is roughly halfway through its planned scope. While the results announced are all from the Central Target, the RC rig has now moved on to test key regional prospects — The Shadows, Posie, Jerry Dodds, and Victoria.

In addition to RC drilling, two more rigs will be mobilised early in Q3:

  • A diamond drill rig will collect samples for structural and metallurgical analysis.
  • An aircore rig will commence a regional geochemical programme targeting southern extensions of the Alice River Fault Zone.

An extensive Induced Polarisation (IP) geophysics program is also underway, covering the southern strike extent from Victoria to White Lion. Preliminary results are expected later this month, with field drilling to continue through to early August.

Map of the Alice River Gold Project showing 2025 aircore drilling areas, geochemical anomalies, fault zones, priority prospects, and planned RC and diamond drill holes across the 12km corridor from Posie to Jerry Dodds SE. [Pacgold Limited]

Market Backdrop: Gold Prices Rallying

The timing of this discovery couldn’t be better. Gold prices have surged amid global geopolitical tensions, with spot gold currently sitting at USD 3,441.41/oz, up 0.30% in a day and more than 6% over the past month. Over the last year, gold has soared by nearly 48%, as investors flock to safe-haven assets.

Gold price performance in USD over multiple timeframes, showing strong gains including a 47.82% rise over the past year and 684.18% over 20 years. [Goldprice.org]

This macroeconomic backdrop enhances the appeal of junior gold explorers like Pacgold, especially those advancing high-grade projects in tier-one jurisdictions like Australia.

Investor’s Outlook: PGO Share Price Gains Traction

In light of the announcement, Pacgold Limited’s (ASX: PGO) share price has responded positively. On the ASX, the stock reached $0.073, up 12.31% at midday, June 16th, 2025. Performance over the last week shows a gain of 8.96%, while it is up 2.82% over the past month.

This positions the stock near the higher end of its 52-week range of $0.053 – $0.175. With 152.9 million shares on issue and a rising interest in gold exploration plays, investors appear to be warming to PGO’s upside potential.

What’s Next?

The remainder of 2025 will be critical for Pacgold. The Company’s aggressive drilling campaign is set to test more than 70 holes across multiple targets. With two additional rigs being brought in and the IP survey nearing completion, data flow is expected to accelerate significantly from July onwards.

This will not only refine the geological understanding of the Alice River mineral system but could also expand the project’s resource base significantly — a vital step before any future development studies.

Conclusion

Pacgold is emerging as a serious contender in Australia’s gold exploration sector. Backed by strong early drilling results, a well-capitalised treasury, and favourable market conditions, the Company is on track to unlock the full potential of the Alice River Gold Project. For investors, the combination of shallow, high-grade hits and the strategic location of the project offers a compelling story.

As Matthew Boyes summed up:

“Our prime objective this field season is to cover as much of the Alice River Fault zone as practicable to determine the potential scale of this asset.”

With gold shining brighter than ever and exploration momentum building, all eyes are now on Pacgold’s next round of assays.

Frequently Asked Questions

1.What were the latest drill highlights from the Alice River Project?

The latest drill highlights from the initial phase of the 2025 Reverse Circulation (RC) drilling program at the Central Target include:

  • ARDH098: 48m @ 2.1 g/t Au including 15m @ 5 g/t Au and 2m @ 29 g/t Au from 76m
  • ARDH101: 50m @ 1.0 g/t Au including 3m @ 6.8 g/t Au from surface
  • ARDH099: 74m @ 0.8 g/t Au including 13m @ 1.3 g/t Au from 75m
  • ARDH110: 35 m @ 0.9 g/t Au including 17m @ 1.5 g/t Au from 10m

2.Where is the most promising gold zone at Alice River?

The Central Target is identified as the most promising gold zone, demonstrating both shallow bulk tonnage and high-grade potential. The Southern Target is also noted as a high-priority area, showing strong similarities to the Central Target and indicating potential for a second extensive discovery.

3.How extensive is the Alice River gold system?

The Alice River gold system is pervasive, with anomalous gold mineralisation defined over an interpreted strike length of 30 km. Less than 5% of this structure has been tested to date. The project’s land package encompasses 30 km of prospective gold targets across more than 300 square kilometres. Gold mineralisation at the Central Target extends from the surface down to a depth of 500m, and high-grade zones are defined over a vertical extent of 520 m, remaining open at depth.

4.What’s the drill plan for 2025?

The drill plan for 2025 includes:

  • An initial 10,000-metre Reverse Circulation (RC) drilling program, with 5,838 metres completed across 44 holes so far.
  • RC drilling initially focused on the Central Target for infill drilling. It has now moved on to test key regional prospects: The Shadows, Posie, Jerry Dodds, and Victoria. Approximately 70 holes are planned to be completed with the RC rig.
  • Two additional rigs will be mobilised early in Q3 (July onwards):
    • A diamond drill rig will collect samples for structural and metallurgical analysis.
    • An aircore rig will commence a regional geochemical programme targeting southern extensions of the Alice River Fault Zone.
  • Field drilling is planned to continue through early August, with the overall campaign expected to conclude by late December.

5.What geophysical methods are being used to discover new gold?

An extensive Induced Polarisation (IP) geophysics program is currently underway. This program covers the southern strike extent from Victoria to White Lion. This method is used to identify resistivity lows, which define mineralised fault zones.

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