The value of the company’s South Australian pivot has likely gained an extra lift from the region’s heated gold scene. Its neighbour – Havilah Resources – recently sealed a $240 million earn-in pact with Sandfire Resources for its flagship Kalkaroo deposit, which lies immediately south of White Dam.
That deal hands Sandfire 80 per cent of Kalkaroo in return for $105 million in upfront cash and scrip, a further $105 million following a new prefeasibility study and an additional $30 million, earmarked for regional exploration. The prize is Kalkaroo’s whopping 100-million-tonne reserve grading in at 0.47 per cent copper and 0.44g/t gold.
Havilah shares surged 64 per cent on the news, underscoring the Curnamona Province’s draw as a dual-metal hub, which, until now has been starved of attention. With Sandfire’s muscle set to bring in new roads and new skills, potentially putting a spotlight on the region, the shine could easily spill north on to White Dam’s doorstep.
Pacgold’s move at White Dam now slots in ahead of its broader Queensland push, where its Alice River gold project hosts an 854,000-ounce resource across a 377-square-kilometre package.
Layering on top of Alice River is the company’s new St George gold-antimony play – a 100 per cent earn-in project spanning 905-square-kilometres in the Hodgkinson Province of far North Queensland. Recent rock chips at St George peaked as high as 52.7 per cent antimony and 10.2g/t gold, prompting a maiden drilling program on the prospect, which is now underway.
With gold holding at a mouthwatering $6400 per ounce, White Dam is gearing up to generate cashflow, which can then be used to fuel the company’s Queensland exploration engines.
Fresh from a $13 million capital raise, the current sky-high metal price may well fund Pacgold’s next leg of growth without the company having to tap the market for quite some time.
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