Pacifico Minerals Limited (ASX: PMY) is an exploration company incorporated in Australia and listed on ASX in the year 2004. This junior explorer is focused on the exploration of mineral tenements in Australia and Latin America.
During the last financial year i.e., FY19 (year ending 30 June 2019), this exploration company witnessed challenging market sentiment and an uncertain global political and economic environment. However, despite the challenges, Pacifico Minerals was able to make significant progress during the year.
Significant Achievements in FY19
- Acquisition of Sorby Hills Joint Venture Project
- Completion Phase I Drilling Campaign
- Completed Updated Mineral Resource Estimate MRE
- Pre-Feasibility Study Results Released
- Phase II Drilling Campaign
Acquisition of Sorby Hills Joint Venture Project
Last year in October 2018, the company acquired the 75% interest in the Sorby Hills Lead Silver-Zinc Mine Development Project while the remaining 25% of the project is held by a very supportive Joint Venture partner – Henan Yuguang Gold and Lead Co. Ltd – which controls China’s largest lead smelting capacity and is the country’s largest silver producer.
Upsides of Sorby Hills Project:
- Large global resource – Global Resource to 29.98Mt of 4.7%Pb equivalent including 10.85Mt of 5.0%Pb equivalent in Indicated Resources;
- Outstanding existing infrastructure – Existing sealed road to transport concentrate from site to the facilities at Wyndham Port, 150km away;
- Great metallurgy– Recent metallurgical testwork confirmed rougher flotation testing with sulphidisation up to 96% Pb (lead) and 95% Ag (Silver) recovery on Fresh composites;
- Granted Mining Leases and Western Australian Environmental Protection Authority approval in place;
- Key Government Approvals Secured– The WA Environmental Protection Authority (EPA) believes that the Project can be managed in a manner that avoids significant or unacceptable environmental impacts and risks.
The company is rapidly progressing with the development of the Sorby Hills Joint Venture Project and has completed key tasks involved in the Development.
Completion of Phase I Drilling Campaign
Soon after the acquisition, in 2018, the company completed the Phase I drilling campaign at the project.
Notable drill intercepts from Phase I drilling include:
- 9.0m at 8.3% Pb equivalent (7.6%Pb, 32 g/t Ag) and 1.1%Zn from 37m – B Deposit hole AB033;
- 9.7m at 9.1% Pb equivalent (7.5%Pb, 68 g/t Ag) and 1.1%Zn from 76m – CDEF Deposit hole ACD019;
- 20.0m at 8.6% Pb equivalent (7.3%Pb, 56 g/t Ag) and 0.4%Zn from 11m – CDEF Deposit hole ACD046;
- 11.7m at 13.2% Pb equivalent (10.8%Pb, 105 g/t Ag) and 0.4%Zn from 75.7m – CDEF Deposit hole AF005;
- 12.3m at 6.5% Pb equivalent (5.5%Pb, 42g/t Ag) and 0.23%Zn from 90m – I Deposit hole AI011;
- 10.0m at 7.8% Pb equivalent (6.6%Pb, 53 g/t Ag) and 0.9%Zn from 82m – I Deposit hole AI010;
Final assay results for Phase I Confirmed that C, DE, and F deposits are linked and can be referred to as a single deposit (CDEF) with a strike length of 1.7km and which may be minable with a single open cut.
The results from the Phase I metallurgical testwork program conducted by ALS Metallurgical Services (under management by Simulus), confirmed the potential for the Project to produce a high quality lead concentrate containing appreciable silver credits with flotation testwork confirming final concentrate grade of 65% Pb.
Completed Updated Mineral Resource Estimate MRE
During 2019 March quarter, the company completed an updated Mineral Resource Estimate MRE, results of which, witnessed an 82% increase in the tonnage of the Global Resource with Total MRE now standing at 29.97Mt of 4.7% Pb equivalent ((3.7% Pb, 43g/t Ag) and 0.6% Zn using a 1.0% Pb cut off).
Pre-Feasibility Study Results Released
The company has released the results of an updated Pre-Feasibility Study which indicated steady state annual production of concentrate containing around 31.125ktpa of lead and 1.17Mozpa of silver.
Phase II Drilling Campaign
Recently in the month of May 2019, the company commenced the Phase II drilling campaign which was focused on shallow mineralisation at the B and CDEF deposits above 100 metres depth.
Notable results from Phase II drilling Program
- 14.0m at 15.3% Pb equivalent (13.0%Pb, 89g/t Ag) and 1.0%Zn from 24m – CDEF Deposit drill hole ACD080;
- 23.0m at 11.3% Pb equivalent (9.0%Pb, 88g/t Ag) and 1.2%Zn from 59m – CDEF Deposit drill hole ACD071;
- 21.0m at 5.6% Pb equivalent (5.0%Pb, 21g/t Ag) and 0.5%Zn from 23m – CDEF Deposit drill hole ACD056;
- 11.0m at 7.6% Pb equivalent (6.9%Pb, 26g/t Ag) and 0.1%Zn from 29m – B Deposit drill hole AB050;
- 22.0m 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) – CDEF Deposit in drill hole ACD082;
- 8.0m at 13.7% Pb equivalent (12.4% Pb, 51g/t Ag) and 0.3% Zn from 80m – CDEF Deposit in drill hole ACD058.
It can be said that the acquisition of Sorby Hills has come at the right time, as prices for lead and silver in subsequent few months have witnessed a positive momentum, as depicted in the graph below.
Forward Plan of PMY
- The phase III drilling program to commence in October 2019;
- Progressing offtake and strategic investment discussions;
- The company is planning to complete an Optimised PFS Study and Ore Reserve Estimate by January 2020.
On a year to date basis, PMY’s stock has provided a return of 150% as on 30 September 2019. At market close on 1 October 2019, PMY’s stock was trading at a price of $0.010 with a market capitalisation of circa $28.88 million.
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