High-Grade Results Strengthen Pacgold’s Tier-1 Gold Ambitions

Key Concepts

• White Lion Target: A distinct geological target at Alice River, differentiated by its size and circular anomaly, suggesting a potential intrusive body at depth.
• Circular Anomaly: A geophysical signature indicating a potential intrusive source, which could be a conduit for mineralizing fluids.
• Magnetic Anomaly: A deviation in the Earth's magnetic field, often associated with mineralized zones or geological structures.
• Magnetic Destruction: A disruption in magnetic readings, potentially indicating alteration zones within the mineralized body.
• IP Chargeability High: An increase in electrical chargeability, often indicative of the presence of sulfides or other metallic minerals.
• Resistivity High: An increase in electrical resistance, potentially suggesting the presence of silica, quartz, or fluid flooding within the rock.
• L3 Fault System: A major fault system at Alice River, with the White Lion target located in proximity to it.
• Maiden Discovery: The first discovery of mineralization at a particular target.
• Mineralized Structure: A geological feature containing valuable minerals.
• Hanging Wall Structures: Mineralized zones located above the main ore body, potentially hosting high-grade mineralization in lower tonnages.
• Bulk Tonnage: A large quantity of ore with a lower grade.
• High-Grade Interval: A section of drilled core showing a significantly higher concentration of valuable minerals.
• RC Drilling (Reverse Circulation Drilling): A drilling technique used to collect rock samples.
• Tier One Project: A large-scale, economically significant mining project.
• Alice River Fault Zone: The primary geological structure being explored at Alice River.

White Lion Target: A Distinctive Prospect

The White Lion target at Alice River is highlighted as being significantly different from other mineralization and targets due to its size and dimensions. It presents as a circular anomaly, which geophysically suggests the presence of an intrusive body at depth. This intrusive is theorized to be actively pumping fluids, indicating the potential for a large-scale deposit hosting high tonnage and high-grade gold.

Geophysical Signatures of White Lion

The White Lion target exhibits three coincident geophysical anomalies:

1. Magnetic Anomaly with Circular Feature: This points to a potential intrusive body.
2. Magnetic Destruction within the Anomaly: This suggests alteration zones, likely associated with the mineralization.
3. IP Chargeability High: This indicates the presence of sulfides or other metallic minerals in the ground.
4. Resistivity High over the Central Area: This is interpreted as potentially representing silicification, quartz presence, or fluid flooding within the material at depth.

These three main indicators, combined with the size of the anomaly, the type of mineralization, and its proximity to the main L3 fault system, make the White Lion target a high-priority prospect.

Impact of Discoveries and Future Drilling Plans

The discoveries at Alice River, particularly the White Lion target, are viewed as positively impacting the project's outlook, with expectations of adding more ounces. The company plans to follow up on high-grade intervals identified, especially since some areas, like the White Lion, have not been drilled before, representing a maiden discovery.

Multiple Mineralized Structures

The drilling at Alice River is demonstrating that there isn't just one mineralized structure but multiple. Each step-out drilling effort is encountering new mineralized zones. This suggests the potential for both low-grade, medium-grade bulk tonnage aspects and high-grade hanging wall structures that could host significant mineralization in lower tonnages. The speaker expresses confidence in adding additional ounces from the prospect, stating, "100,000 tons at an ounce is 100,000 ounces."

Drilling Progress and Results

As of the transcript's recording, approximately 12,000 meters of RC drilling have been completed, with plans to reach about 13,000 meters for the year. This drilling has covered all new targets identified from the previous year's air program. Approximately 60% of those results have been reported, with results from Victoria, Jerry Doss, and the White Lion target still pending. The current RC drilling program at Alice River is nearing completion, unless further follow-up drilling is deemed necessary around high-grade intervals to better define high-grade shoots.

Building a Tier One Project

The speaker emphasizes that building a tier one project requires both luck and success. The White Lion target is seen as having the potential to become a very, very large asset if it proves to be consistently mineralized. Every drill hole at Alice River contributes to the overall picture, with the project currently holding just under a million ounces.

Objectives for the Year

The primary objectives for the year were to drill off as much of the extent of the Alice River fault zone as possible and to test the White Lion asset, both of which have been accomplished. The future course of action will be results-based.

White Lion's Standalone Potential

The significant size of the White Lion anomaly is noted as being large enough to be a standalone mine by itself. The drilling program for White Lion has recently commenced and is expected to continue for another two weeks. Market updates are anticipated once the drilling is finished, with assay results expected within four to six weeks from the completion of drilling.