Western Australian based exploration and development company, Pacifico Minerals Limited (ASX: PMY) has now obtained the funding to complete the phase III drilling program at its 75% owned Lead-Silver- Zinc Sorby Hills Project, acquired in late 2018. The phase III exploration campaign is expected to commence in next two weeks.
In an announcement dated 9 September 2019, the company confirmed that it has completed the $4.6 million share placement, issuing 575 million shares at a price of $0.008 per share.
Besides completing the phase III drilling program at the Sorby Hills Project, the funding will also be utilised to complete the Pre–Feasibility Study, advance the Definitive Feasibility Study and for general working capital purposes.
The encouraging results reported by the company during Phase I drill program as well as Phase II infill and extension drilling program at the Sorby Hills Project, have confirmed the potential of the project to produce high quality Lead concentrate containing appreciable silver credits. It is expected that the results of the Phase II drilling program will materially increase Indicated Resources within the next MRE, which is planned for September 2019. The remaining results from Phase II drilling are expected within the next two weeks.
As per Pacifico Minerals’ Managing Director, Mr Simon Noon, this funding will enable the company to complete an additional infill and expansion drilling program this year, just prior to the release of the optimised PFS ahead of the Definitive Feasibility Study (DFS) to be delivered next year.
The Placement was managed by Euroz Securities Limited which received 6% fee on the funds raised under the Placement. The total dilution as a result of the shares issued pursuant to ASX Listing Rule 7.1A was 7.9%.
Rising Lead Market Opportunity
The Project’s potential to produce high-quality Lead concentrate is allowing Pacifico Minerals to take advantage of the rising Lead market opportunity. The increasing application in different sectors is currently driving the demand for Lead in the market.
Lead is largely used in the manufacturing of Lead-Acid batteries which is used for both automotive and industrial applications. Due to the rising demand for electric vehicles, the Lead-Acid batteries market is expected to expand significantly in the near future. With its 75% owned Sorby Hills Lead Silver-Zinc Mine Development Project, Pacifico is well positioned to take advantage of the rising Lead market Opportunity.
Results of Phase I and Phase II Drilling Programs
The Phase I drill program significantly increased the size and confidence in the global MRE (Mineral Resource Estimate) and now the results of Phase II drilling program is expected to increase Indicated Resources within the next MRE planned for September 2019.
Significant drill intercepts from Phase I drilling include:
- 0m at 8.3% Pb equivalent (7.6%Pb, 32 g/t Ag) and 1.1%Zn from 37m – B Deposit hole AB033;
- 7m at 9.1% Pb equivalent (7.5%Pb, 68 g/t Ag) and 1.1%Zn from 76m – CDEF Deposit hole ACD019;
- 0m at 8.6% Pb equivalent (7.3%Pb, 56 g/t Ag) and 0.4%Zn from 11m – CDEF Deposit hole ACD046;
- 6m at 19.5% Pb equivalent (15.3%Pb, 175g/t Ag) and 0.65%Zn from 108.5m – CDEF Deposit hole AF047;
- 7m at 13.2% Pb equivalent (10.8%Pb, 105 g/t Ag) and 0.4%Zn from 75.7m – CDEF Deposit hole AF005;
- 3m at 5.8% Pb equivalent (4.1%Pb, 70g/t Ag) and 0.02%Zn from 110.7m – CDEF Deposit hole AF048;
- 3m at 6.5% Pb equivalent (5.5%Pb, 42g/t Ag) and 0.23%Zn from 90m – I Deposit hole AI011;
- 0m at 7.8% Pb equivalent (6.6%Pb, 53 g/t Ag) and 0.9%Zn from 82m – I Deposit hole AI010
Significant drill intercepts from Phase II drilling include:
- 14m at 15.3% Pb equivalent (13.0%Pb, 89g/t Ag) and 1.0%Zn from 24m – CDEF Deposit drill hole ACD080;
- 23m at 11.3% Pb equivalent (9.0%Pb, 88g/t Ag) and 1.2%Zn from 59m – CDEF Deposit drill hole ACD071;
- 21m at 5.6% Pb equivalent (5.0%Pb, 21g/t Ag) and 0.5%Zn from 23m – CDEF Deposit drill hole ACD056;
- 110m at 7.6% Pb equivalent (6.9%Pb, 26g/t Ag) and 0.1%Zn from 29m – B Deposit drill hole AB050.
The company believes that the Sorby Hills MRE of 29.98Mt of 4.7%Pb equivalent, has excellent potential to grow as extensions and targets outside of the main defined deposits are drilled.
Board and Management Team
Under the guidance of its well experienced Board and management team, Pacifico is strongly progressing towards the development of Sorby Hills. The company’s Board and Management Team includes:
- Richard Monti (Chairman)– Geologist with over 30 years’ experience in technical, commercial, marketing and finance within the exploration and mining industry;
- Simon Noon (Managing Director)– Mining Executive with substantial experience in management, marketing and finance within the exploration and mining industry;
- Andrew Parker (Non-Executive Director) – Lawyer with extensive experience in the exploration and mining industry;
- Peter Harold (Non-Executive Director)- Process Engineer with over 30 years’ experience in the minerals industry;
- Aaron King (Project Manager)– Metallurgist with more than 25 years’ experience in the mining and resources sector.
Notably, in the last six months, the company’s stock has provided a return of 100% as on 6 September 2019. At market close on 9 September 2019, PMY’s stock was trading at a price of $0.010 with a market capitalisation of $23.13 million. It is to be noted that PMY’s stock is trading near to its 52 weeks high price of $0.011.
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