Australian exploration company, Pacifico Minerals Limited (ASX: PMY) is rapidly progressing to develop a large near-surface flat-lying Lead-Silver-Zinc deposit in Western Australia. In the past few months, the company has come up with several impressive drilling results in relation to its 75% owned Sorby Hills Lead Silver-Zinc Mine Development Project, that confirmed the project’s potential to produce high-quality Lead concentrate containing appreciable silver credits.
The company recently completed a $4.6 million capital raising, the proceeds of which will be used towards phase III drilling program of Sorby Hills; completing the PFS; advancing the DFS work program; and for general working capital requirements.
Strong Drilling Results
On 12 September 2019, the company has revealed strong drilling results with further impressive intersections from all 75 holes of the Phase II drilling campaign at the Sorby Hills Deposit.
Notable intersections of different deposits to-date from Pacifico’s Phase I and II drilling campaigns can be viewed in the below figure.
Highlights of intersections to date from Pacifico’s Phase I and II drilling campaigns (Source: Company’s Report)
In today’s release, the company has provided some new updates in relation to its B and CDEF deposits.
“The B Deposit is interpreted to be divided into four fault-bound segments by northerly trending faults. The fault displacement is collectively up to 40m to the east. The westernmost compartment of the deposit is particularly shallow and commences from 9m below surface, and mostly lies above 50m depth. The B Deposit is open to the south and north and is probable to link up with A Deposit to the south and possibly also with the CDEF Deposit to the north.”
The new results received for B deposits include:
- 0m at 5.6% Pb equivalent (5.1% Pb, 18g/t Ag) and 0.2% Zn from 15m – drill hole AB052; and
- 0m at 4.5% Pb equivalent (4.1% Pb, 16g/t Ag) and 0.1% Zn from 52m–drill hole AB034
Oblique view of B and CDEF Deposit (Source: Company’s Report)
As per the company, the additional infill and step-out drill holes in CDEF Deposits have contributed to the robustness of the mineralisation model, and in some places, have led to extensions and additional mineralization.
A major, steeply east dipping, NNW-trending fault is interpreted to transect the deposit and is considered a control to mineralisation. The fault may have fractured and veined the more brittle Sorby Dolomite, depositing sulphides by replacement in the overlying slump breccia zone. The fault displaces the mineralised horizon up to 50m downwards, east of the fault zone.
It is expected that the additional data will support an upward revision of the Indicated Resources at the northern end of the CDEF deposit as a result of the infill and extensional drilling.
Recent results from the CDEF Deposit include:
- 0m at 13.7% Pb equivalent (12.4% Pb, 51g/t Ag) and 0.3% Zn from 80m –drill hole ACD058;
- 0m at 10.2% Pb equivalent (8.8% Pb, 52g/t Ag) and 0.3% Zn from 68m (including 16m at 13.5%Pb equivalent (11.7% Pb, 68g/t Ag) and 0.37% Zn from 63m) –drill hole ACD082;
- 0m at 11.4% Pb equivalent (10.5% Pb, 35g/t Ag) and 0.1% Zn from 81m – drill hole AF058; and
- 7m at 7.4% Pb equivalent (5.7% Pb, 67g/t Ag) and 0.2% Zn from 80m –drill hole ACD087.
As per Pacifico, results are suggesting that further resources will be obtained with 50m spaced drilling targeting shallow extensions.
- Results of Phase II drilling program is expected to materially increase Indicated Resources within the next Mineral Resource Estimate (MRE);
- The revised MRE is expected to be completed in October 2019, ahead of an updated and Optimised PFS.
- Pacifico will commence its phase III (3000m RC) drilling program at Sorby Hills Project in around 3 weeks;
- The Phase III program will aim to continue adding to shallow Indicated Resources, and to increase the Inferred Resource inventory;
- Pacifico intends to conduct additional drilling in 2019 and 2020 to expand the Indicated Resource of the B and CDEF deposits;
- The company also intends to convert Inferred Resources at the A, H, I, Alpha and Beta deposits to Indicated Resources;
- The company expects the deposit size at Sorby Hills will continue to grow significantly as extensions and other targets outside of the main defined deposits, based on both historical and Pacifico drill programs, are drilled and added to the resource base.
Sorby Hills Project Merits
- Sorby Hills Project has an excellent infrastructure which includes an airport at Kununurra, sealed roads to the project gate, bulk loading and container port at Wyndham, readily available water.
- Project is located in a mining region with access to skilled staff, services and equipment.
- Sorby Hills has MRE of 29.97Mt of 4.8% Pb equivalent (3.7% Pb, 43g/t Ag) and 0.6% Zn;
- The PFS completed in 1H 2019 demonstrated a CAPEX of A$95.4 million to develop the mine, with a 16-month payback and a pre-tax NPV8 of A$243 million;
Strong Stock Performance
On a year-to-date basis, PMY’s stock has gained 150% as on 11 September. In the last six months, the stock has provided a return of 100%. At market close on 12 September, the stock was trading at a price of $0.010 with a market capitalisation of circa $28.88 million.
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