Pacgold Accelerates Mine Restart After Defining Significant Shallow Gold Extensions at Vertigo Deposit

Extension Drilling Yields Strong Shallow Oxide Gold Results at Vertigo Deposit

Pacgold Limited announced the completion of an extension drilling program at its Vertigo gold deposit, part of the White Dam Gold Project in South Australia's Olary Province. The initial phase, comprising 178 holes totaling 10,526 metres, was completed in March with results reported in May. This phase aimed to upgrade the existing Inferred Resource, which constitutes 75% of Vertigo’s resource, to the Indicated category by infilling previous drilling by former owners.

During this initial campaign, several holes intercepted shallow gold mineralisation on the northern and eastern edges of the historic open pit, which were not included in the 2020 Mineral Resource Estimate. To better define these extensions and support their inclusion in the updated resource model, Pacgold completed an additional 102 holes for 2,904 metres in May and June. All results reported in the latest update derive from this extension program and were analysed using gold fire assay methods.

Outstanding Assay Results Highlight Oxide Mineralisation Across Nine Drill Holes

The extension drilling returned multiple high-grade intercepts in nine representative holes at Vertigo. Notable results include VRC181 with 13 metres at 1.3 g/t Au from 14 metres depth, including 2 metres at 4.1 g/t Au from 15 metres and 1 metre at 2.7 g/t Au from 19 metres. VRC203 intersected 17 metres at 0.9 g/t Au from 6 metres depth, featuring 1 metre at 3.1 g/t Au from 13 metres and 2 metres at 2.1 g/t Au from 16 metres. VRC260 delivered 4 metres at 3.1 g/t Au from surface, including 1 metre at 7.2 g/t Au from 1 metre depth.

Additional significant results include VRC268 with 6 metres at 2.2 g/t Au from surface, including 3 metres at 3.7 g/t Au from 2 metres depth; VRC278 intersecting 11 metres at 1.2 g/t Au from surface, including 3 metres at 3.0 g/t Au from 4 metres depth; VRC243 with 9 metres at 1.3 g/t Au from 3 metres depth, including 2 metres at 2.7 g/t Au from 4 metres; VRC257 returning 7 metres at 0.9 g/t Au from 4 metres depth, including 3 metres at 1.4 g/t Au from 6 metres; VRC263 intersecting 13 metres at 1.0 g/t Au from 5 metres depth, including 6 metres at 1.9 g/t Au from 7 metres; and VRC277 with 8 metres at 1.0 g/t Au from surface, including 4 metres at 1.7 g/t Au from 3 metres depth. The shallow depth of these intercepts is significant for mine economics by reducing pre-stripping costs.

Updated Mineral Resource Estimate Expected by Early September Quarter

Pacgold is currently working with external consultants to deliver an updated Mineral Resource Estimate for Vertigo, expected in August. Following this, new open pit optimisations and mine designs will be developed. This remodelling will incorporate the newly identified shallow oxide extensions, providing a clearer economic framework for resuming production.

The 2020 Mineral Resource Estimate by GBM Resources reported Measured resources at zero tonnes, Indicated resources of 300,000 tonnes at 1.0 g/t Au (9,400 ounces), and Inferred resources of 1,400,000 tonnes at 0.6 g/t Au (29,000 ounces), totaling 1,700,000 tonnes at 0.7 g/t Au containing approximately 38,300 ounces. The new shallow extensions are expected to increase both resource size and economic viability.

Mine Restart Accelerated with Focus on Design, Cashflow, and Permitting

Pacgold is accelerating the Vertigo mine restart, fast-tracking mine design, cashflow modelling, and permitting to recommence production as soon as possible. Updates on restart timing are planned for early Q3, reflecting management’s confidence based on positive drilling outcomes.

The discovery of excellent shallow oxide mineralisation north and west of the historic pit is viewed as a material advantage for fast-tracking restart. These shallow, low-cost oxide ores will enable early placement of production-ready ore onto the existing leach pad while expanding ore processing capacity through a planned pad expansion. This strategy aims to reduce pre-strip costs and improve working capital efficiency and mining timelines.

Pad Expansion Design Nears Completion Ahead of Construction Tender

Design work for the White Dam leach pad expansion is nearing completion, with final deliverables due in the first week of August. After design completion, Pacgold will initiate the construction tender process. The expansion is critical to increasing ore processing throughput, enabling treatment of additional oxide ore from the newly defined shallow extensions at Vertigo. This expanded capacity is key to fast-tracking Vertigo’s restart and future production from other White Dam deposits.

The coordinated timing of pad expansion design, resource estimation, and mine design reflects Pacgold’s commitment to rapid development once financing and permits are secured. The early August deadline underscores management’s focus on accelerating production restart.

White Dam North and Regional Exploration Progressing Across Multiple Deposits

Drilling at White Dam North shallow Mineral Resource Estimate is underway, with completion expected in late July. Previously, White Dam North was estimated to hold 200,000 tonnes of Indicated resource at 0.5 g/t Au (2,800 ounces) and 1,000,000 tonnes of Inferred resource at 0.6 g/t Au (17,600 ounces), totaling 1,200,000 tonnes at 0.5 g/t Au containing 20,300 ounces. The current drilling aims to upgrade resource confidence under JORC 2012 standards. Afterward, the rig will move to Rolling pit and Hannaford pit Mineral Resource Estimate areas.

Vertigo is the first of three 2020 Mineral Resource Estimate zones being drilled under Pacgold’s exploration and resource development strategy. Historical exploration at White Dam focused on near-surface oxide mineralisation suitable for heap leach processing. Recent reviews of geochemical, geophysical, drilling, and structural data have identified underexplored corridors with potential for both near-surface oxide and deeper sulphide mineralisation. These corridors are adjacent to existing mines and prospects including Hannaford (estimated 200,000+ ounces), Vertigo (100,000+ ounces), and White Dam North (20,000 ounces). The regional exploration program is anticipated to drive further value creation across the White Dam project.

Structural Controls and Deeper Exploration Potential Within White Dam Mining Leases

Pacgold’s analysis indicates that all White Dam deposits and prospects are structurally controlled by two conjugate structural corridors and associated splays. This interpretation has identified several deeper geophysical targets with limited prior drilling, including a large underexplored area between Hannaford and Vertigo pits, north of Hannaford at White Dam North, and at White Dam East prospect. These deeper targets may host sulphide gold-copper extensions to the existing oxide mineralisation.

The exploration strategy employs a dual approach: rapidly developing near-surface oxide deposits for near-term production via heap leach facilities, while exploring deeper sulphide targets for longer-term development. Limited drilling below 40 metres vertical depth suggests significant upside potential from deeper exploration.

Company Overview and White Dam Project Asset Portfolio

Pacgold Limited is an Australian gold exploration and development company focused on the White Dam Gold Project, located 80 kilometres east of Broken Hill in South Australia’s Olary Province. The company holds 100% ownership of the project, which includes multiple mineralised deposits and prospects within contiguous Mining Leases. The White Dam Gold Project’s published Mineral Resource Estimate as of August 2020 totals 4,600,000 tonnes at 0.7 g/t Au, containing approximately 101,900 ounces of gold. This resource is distributed across four main deposits: White Dam (101,900 ounces), Hannaford (43,300 ounces), Vertigo (38,300 ounces), and White Dam North (20,300 ounces).

Project infrastructure includes existing heap leach processing facilities with prior operational history. The project benefits from established mining and processing infrastructure, permitting frameworks, and proximity to the Broken Hill mining hub. Pacgold’s strategy involves sequentially advancing resource estimation, mine design, and development across major deposits, starting with Vertigo’s restart. Recent drilling and exploration aim to upgrade resource confidence and identify new mineralisation to extend production life and improve project economics.

Managing Director Highlights Strategic Importance of Shallow Extensions

Pacgold Managing Director Matthew Boyes emphasized the strategic value of recent shallow oxide drilling results. He described the excellent shallow oxide intervals as a material win for fast-tracking Vertigo’s mine restart and achieving early gold production. The shallow, low-cost oxide ore discovered north and east of the historic pit is expected to significantly reduce pre-stripping costs and accelerate production timelines. Combined with the planned pad expansion to increase leaching capacity, these factors should lower working capital requirements for mining the full Vertigo resource.

Boyes expressed optimism about the updated resource model expected in early Q3 and subsequent mine design and cashflow modelling, viewing these as foundational steps to restart the first White Dam asset into full production. He also highlighted the parallel objective to expand White Dam North and Hannaford resources while initiating the company’s regional exploration program across the broader project area. This commentary underscores management’s confidence in Vertigo’s economic restart potential and the broader White Dam project’s capacity to deliver extended production from multiple deposits.