Pacgold (ASX:PGO) entered into a 50-50 profit share agreement with Grainger Gold to develop the Wadnaminga Project, located 80km southwest of the company's White Dam mine site.
The partnership focuses on the mining and re-treatment of historical tailings and heap leach material from several high-grade historical mining centres, including New Milo, Virginia, Lively Jack, and Great Eastern.
Historical records indicate that these sites were mined extensively during the late 1800s and early 1900s, producing approximately 20,000oz of gold at a remarkably high average grade of 37.88g/t Au.Despite this rich history, the asset has remained largely untested by modern exploration techniques.
Current surface stockpiles contain roughly 20,000 tonnes of material, which Pacgold intends to resample and test via LeachWELL analysis to determine recoverable gold levels.
The project offers significant short-term potential, with initial work programmes scheduled to commence in mid-March.
Beyond the immediate processing of surface material, Pacgold identifies a "walk-up" drill target consisting of approximately 700m of outcropping oxidised material.
Managing Director Matthew Boyes noted that the "old timers" historically focused only on "ounce grade dirt," leaving behind substantial sub-bonanza material and undeveloped lodes.
By applying modern systematic drilling and leveraging the proximity of the White Dam processing facility, Pacgold aims to quickly delineate new resources and fast-track the project toward active production.
At the time of reporting, Pacgold's share price was $0.16.