Pacgold Limited (ASX: PGO) (“Pacgold” or “the Company”) has revealed a major geophysical breakthrough at the White Lion Prospect. This site lies within its 100%-owned Alice River Gold Project, located 300km northwest of Cairns in North Queensland.
Discovery of a Major Magnetic Anomaly
Pacgold has identified a doughnut-shaped magnetic anomaly over 1km in diameter. The anomaly shows a non-magnetic core, which may result from intense phyllic alteration. This feature mirrors the magnetite destruction found at the Mt Leyshon deposit, which produced 5 million ounces of gold.
“This anomaly clearly demonstrates how much potential this project holds for the discovery of a multimillion-ounce tier 1 gold asset,” said Pacgold’s Managing Director, Matthew Boyes.
The anomaly sits just 500m south of the Alice River Fault Zone (ARFZ), a known structure with outcropping quartz breccia. Historical shallow drilling here intersected gold from surface, including 20m at 0.4g/t Au in drillhole ARAT244.
Figure 1: IP chargeability and magnetic surveys at White Lion reveal reprocessed magnetic inversion 200m deep, aligned with surface gold anomalies.
Coinciding Anomalies Strengthen the Target
The magnetic anomaly also overlaps with a potassium radiometric high. It lies on the edge of a defined IP chargeability feature. This combination points to a highly prospective exploration target.
“This year is a pivotal year for Pacgold and the more targets we develop with the drilling season about to commence, the greater our pipeline of potential success becomes,” Mr Boyes added.
Pacgold has already submitted a heritage clearance application. Drilling is expected to start in early Q4 this year.
Similarities to Mt Leyshon
The Mt Leyshon deposit is a known breccia-hosted gold system. It features magnetic lows and chargeability highs due to pyrite alteration. White Lion shares several of these geophysical traits.
Experts believe the non-magnetic core at White Lion could also signal magnetite destruction from phyllic alteration. This alteration style often accompanies gold mineralisation.
A large magnetic low lies just south of the Mt Leyshon breccia complex. This feature resembles the anomaly now seen at White Lion, strengthening its potential.
Upcoming Geophysics Programmes
Pacgold will carry out new geophysical surveys in May. These include Gradient Array and Pole-Dipole IP surveys, covering the full extent of the anomaly.
A drone magnetic survey will also fly over White Lion to deliver high-definition magnetic data. This will help in refining drill targets.
Reprocessed magnetic data played a key role in this discovery. Consultant Geophysicist Terry Hoschke completed a 3D inversion that revealed the 50nT circular magnetic structure.
Prior Surveys Support the Discovery
In 2022, Pacgold completed a one-square-kilometre orientation IP survey just north of the anomaly. While this survey did not extend over the magnetic feature, it revealed a chargeability increase toward the south. This feature edges closer to the magnetic anomaly and adds weight to its importance.
“The reprocessing of airborne magnetic data has developed a very interesting large-scale target with obvious similarities to the world-class Mt Leyshon deposit,” Mr Boyes noted.
Path to Drilling
With geophysics planned and clearance applications submitted, Pacgold is on track for drilling in Q4. An Exploration Activity Notice for 12km of heritage surveys has already been lodged.
Once the surveys are complete, Pacgold will define drill targets more precisely. The goal is to test the anomalies through geochemical work and follow-up drilling.
About Pacgold and the Alice River Project
Pacgold is a Queensland-focused gold explorer. The Alice River Gold Project spans 377km² and includes 30km of gold-prospective targets. It sits in the rich North East Queensland Mineral Province. This region hosts other major deposits like Pajingo, Kidston, Mt Leyshon, and Ravenswood.
The project shares geological similarities with global gold systems such as Fort Knox in the USA and Hemi in Western Australia. Pacgold believes this strengthens the case for a significant discovery at White Lion.
Figure 2: Location of the Alice River Gold Project
End Note
White Lion presents one of Pacgold’s most promising targets to date. The combination of geophysical anomalies, surface gold, and structural position creates a compelling case.
As geophysics crews prepare to mobilise in May, all eyes will be on the upcoming survey results. These results will shape Pacgold’s exploration push through the remainder of the year.
“This anomaly clearly demonstrates how much potential this project holds,” Mr Boyes repeated. With a large, underexplored target and drilling around the corner, Pacgold’s 2025 season is shaping up to be a game-changer.
Gold Price Outlook
The gold price continues to surge, recently hitting USD 3,246 per ounce, up 0.05% today. Over the past year, gold has delivered a 37.53% increase, climbing USD 885.90/oz.
Shorter-term performance also shows strong momentum:
- 1 Week: +8.19% (+$245.70)
- 1 Month: +8.43% (+$252.50)
- 3 Months: +21.19% (+$567.50)
- 6 Months: +21.77% (+$580.40)
This consistent upward trend reflects growing investor interest in gold as a safe-haven asset amid global uncertainty.
For gold explorers like Pacgold, this environment creates a favourable backdrop. Rising gold prices can improve the economics of discoveries, increase investor appetite, and drive sector-wide interest.
With gold at all-time highs and exploration season approaching, companies like Pacgold could benefit from renewed attention in the market.
Investor’s Outlook
Pacgold Limited (ASX: PGO) is currently trading at A$0.062, marking a 3.33% increase today (as of 14 April, 2024). The Company holds a market capitalisation of $7.88 million with 131.45 million shares on issue.
The stock has traded between $0.053 and $0.185 over the past 52 weeks. In the last month, it has shown modest momentum with a +1.64% gain.
The recent geophysical announcement at White Lion may provide a strong catalyst for future movement. With drilling planned for Q4 and significant similarities to the 5Moz Mt Leyshon deposit, investor interest could rise.
If upcoming surveys confirm the anomaly’s potential, the market may re-rate Pacgold’s valuation. The Company’s small market cap also leaves room for significant upside on exploration success.
For investors seeking early-stage gold exploration exposure in a proven mineral province, Pacgold’s White Lion Prospect offers compelling speculative potential.
