The invention provides a fixed cutter drill bit for drilling through unconsolidated, highly abrasive formations. The bit includes a bit body having a cutting face and a side portion. The bit body comprising carbide matrix material. A plurality of blades azimuthally spaced about the cutting face and a plurality of cutters disposed along the blades. At least one gage pad is disposed along a side of the bit body and includes wear resistant gage elements formed of a material more wear resistant than the matrix material forming a portion of the gage pad. The wear resistant elements have a rounded surface and are embedded in gage pad material proximal a leading edge of the gage pad to provide a rounded wear-resistant edge or surface proximal the leading edge.