Gold explorer Pacgold Limited (ASX: PGO) (‘Pacgold’ or ‘the Company’) has delivered a standout quarterly update that reinforces the significant potential of its Alice River Gold Project in North Queensland, with exceptional drilling results continuing to validate and extend the Company’s maiden mineral resource estimate.
The Company’s Q2 2025 results showcase what management describes as a “large continuous bulk tonnage system” along the Alice River Fault Zone, with recent reverse circulation drilling consistently delivering broad, high-grade mineralised zones that point to a substantial gold endowment. Located 300km northwest of Cairns in proven gold country, Alice River is shaping up as one of the more promising exploration stories in the junior gold space, with Pacgold systematically proving up a significant resource base while identifying multiple high-priority regional targets.
Figure 1 Local geology and recorded mineralisation sites along the Alice River Fault Zone
Outstanding drilling results validate resource potential
Pacgold’s ongoing reverse circulation (RC) drilling program has been consistently delivering impressive results, with the latest batch from the Central Target area including several standout intersections that demonstrate both the grade and scale potential of the system:
- ARDH098: 48m @ 2.1g/t Au including 15m @ 5g/t Au and 2m @ 29g/t Au from 76m
- ARDH106: 13m @ 2.0g/t Au from 51m
- ARDH107: 26m @ 1.1g/t Au including 11m @ 1.6g/t Au from 47m
- ARDH101: 50m @ 1.0g/t Au including 3m @ 6.8g/t Au and 1m @ 13.7g/t Au from surface
- ARDH110: 35m @ 0.9g/t Au including 17m @ 1.5g/t Au from 10m
- ARDH102: 59m @ 0.6g/t Au including 10m @ 1.7g/t Au from 73m
- ARDH097: 19m @ 1.3g/t Au including 4m @ 2.9g/t Au from 65m
- ARDH099: 74m @ 0.8g/t Au including 16m @ 1.3g/t Au and 13m @ 1.3g/t Au from 75m
Figure 2: Cross-section showing gold grade distribution across the central resource area
These results represent just the first 19 holes from a comprehensive 10,000-metre RC program designed to upgrade and significantly expand the company’s maiden resource estimate. Importantly, the drilling has been focused on infill work to upgrade resource confidence levels, with step-out drilling set to test extensions of the known mineralisation. The consistency of broad, mineralised intersections from surface demonstrates the bulk tonnage nature of the Alice River system, while the presence of higher-grade zones within the broader mineralised envelope suggests potential for selective mining approaches.
Substantial maiden resource establishes Alice River credentials
In May 2025, Pacgold delivered its maiden JORC-compliant Mineral Resource Estimate that immediately established Alice River as a significant gold project. The initial resource comprises 12.2Mt @ 1.2g/t Au for 474,000oz within A$5,000 per ounce optimised pit shells, sitting within a much larger global resource estimate of 26.7Mt @ 1.01g/t Au for 854,000oz. The resource breakdown shows encouraging grade and confidence distribution:
Open Pit Resources (within pit shells):
- Central Target: 5.1Mt @ 1.4g/t Au for 223,000oz
- Southern Target: 4.8Mt @ 0.9g/t Au for 145,000oz
- Northern Target: 0.7Mt @ 1.5g/t Au for 36,000oz
Underground Potential:
- Bulk Zone (F1A Lode): 1.5Mt @ 1.4g/t Au for 71,000oz to -300m depth
Significantly, the resource includes 5.6Mt @ 1.4g/t Au for 250,000oz in the higher-confidence Indicated category, providing a solid foundation for future development studies. Management has identified the upgrade of Inferred resource ounces as a key priority for the current drilling campaign.
The resource remains open in multiple directions, with the global estimate extending to just 500m vertical depth, suggesting significant potential for resource growth both along strike and at depth.
White Lion emerges as game-changing regional target
Beyond the established resource areas, Pacgold has identified what could prove to be a game-changing regional target at the White Lion Prospect through sophisticated reprocessing of existing magnetic data.
The White Lion magnetic anomaly presents as a compelling circular feature over 1km in diameter with a distinctive non-magnetic core, a geophysical signature remarkably similar to Newmont’s former Mt Leyshon deposit, which produced approximately 3.5 million ounces of gold between 1987 and 2002.
Located in an ideal structural position just 500m south of the major northwest-southeast trending Alice River fault, White Lion sits beneath outcropping quartz breccia that extends over 250m of strike length and contains strongly anomalous surface gold mineralisation.
Historical shallow drilling in the 1980s returned encouraging results, including ARAT244 which intersected 20m @ 0.4g/t Au from surface. Critically, no drilling has been completed within the main magnetic target area, leaving this high-priority target essentially untested.
The company has commenced an extensive Induced Polarisation (IP) geophysics program covering 8km of strike from Victoria southeast to White Lion, with results expected to provide detailed targeting information for drilling scheduled in Q4 2025.
Well-funded exploration pipeline accelerates development
Pacgold’s financial position has been significantly strengthened through a successful $5.6 million capital raising completed in May, with the placement priced at A$0.06 per share and including attractive one-for-two free attaching options.
While the company ended June with $1.2 million cash on hand, the completion of the second placement tranche on July 28 for $4.3 million has provided substantial funding for an aggressive exploration program through 2025 and beyond.
The placement funds are specifically allocated toward:
- 12,000 metres of reverse circulation drilling
- 3,000 metres of diamond drilling for metallurgical and structural studies
- 5,000 metres of aircore drilling for regional exploration
- Comprehensive geophysical and geochemical programs across the broader project area
- General working capital requirements
This funding level represents a significant step-up in exploration intensity and positions Pacgold to simultaneously advance resource upgrade drilling while testing multiple high-priority regional targets.
Aggressive multi-rig program targets resource growth
Looking ahead, Pacgold has outlined an ambitious multi-rig exploration program designed to rapidly advance Alice River across multiple fronts. The Company is currently operating with reverse circulation drilling ongoing, with assay results from the Southern Target expected imminently.
A diamond drilling rig arrived on site in July to commence a program focused on collecting metallurgical samples and gathering detailed structural information to support future mining studies. This represents an important evolution from pure exploration drilling toward development-oriented work.
An aircore drilling program is also scheduled to test southern extensions of the Alice River Fault Zone, targeting regional geochemical anomalies identified through previous work programs.
The comprehensive approach reflects management’s confidence in the scale potential of the Alice River system and their strategy to rapidly define a substantial resource base while maintaining exploration momentum across the broader project area.
Strategic position in proven North Queensland gold province
Alice River’s location in North Queensland places it within one of Australia’s most prolific gold provinces, with excellent infrastructure access and proximity to established mining operations and processing facilities. The project benefits from year-round access via sealed roads, proximity to power infrastructure, and access to experienced mining contractors and suppliers based in the Cairns region. The structural setting along the Alice River Fault Zone places the project within a well-understood geological framework that has hosted numerous significant gold discoveries throughout North Queensland.
Investment thesis
Pacgold’s systematic approach to developing Alice River continues to deliver results that validate the investment thesis. The combination of a substantial maiden resource, consistent drilling success, high-priority regional targets, and strong financial backing positions the Company well for continued growth.
The key near-term catalysts include assay results from Southern Target drilling, completion of the IP geophysics program, and commencement of diamond drilling for metallurgical work. Longer-term, the testing of White Lion and other regional targets could significantly expand the project’s resource potential.
With exploration momentum building and multiple drill rigs operational, Pacgold appears well-positioned to continue delivering news flow that supports the Alice River development story.
The focus on upgrading resource confidence levels while simultaneously testing exploration upside demonstrates a balanced approach that should appeal to both growth-oriented and development-focused investors in the gold space.Rising gold prices will further support the project’s economic fundamentals and enhance the potential returns from Alice River’s substantial resource base.
Pacgold shares last traded at A$0.064 on 25th July, 2025.
