Pacifico Minerals saw 20% increase in Global Resource
This is an extremely significant update of the MRE which came at the back of Pacifico’s second highly successful drilling program i.e., Phase II drilling, focused on Omega and B deposits with an aim to increase resources in the Indicated category.
As per Managing Director Mr. Simon Noon, the boost to Indicated resources from just 6,000 meters of infill drilling is exceptional.
Mineral Resource Reporting
The Mineral Resource is reported in accordance with the guidelines of the JORC Code (2012 Edition). The scope of work included:
- Update the previous Mineral Resource estimates for the B, Omega, I and Alpha deposits to include recent drilling results;
- Update geological and mineralisation models, based on revised interpretations provided by Pacifico technical team;
- Validation of the drill hole database;
- Review of quality control data;
- Statistical analyses of lead, silver, and zinc;
- Construction of a block model incorporating key geological, structural and mineralogical features;
- Grade interpolation, density calculation and block model validation;
- Classification of the Mineral Resource;
- Compilation of a Mineral Resource report including tabulation of results, methodologies, recommendations and JORC Table and
- Peer review of the Mineral Resource block model and Mineral Resource report.
The last Mineral Resource Estimate update, which was completed in March quarter, had witnessed 82% increase in the tonnage of the Global Resource and 123% increase in the tonnage of Indicated Resources.
Within a span of few months, the company has again completed a significant MRE update which has further increased the confidence in the Mineral Resource to underpin an increase in the mining rate and test the grade assumptions to be modelled in the upcoming Optimised PFS.
Two Additional Aspects of the Deposit
Pacifico believes that two additional aspects of the deposit, highlighted by the improved geological and analytical data, is likely to have a significant impact on the planned Optimised PFS.
- The infill drilling and the geological understanding through greater data density has shown that Inferred Resources have a high conversion rate to Indicated Resources through a tightening of the drill hole spacing. Besides, extension drilling also allows resources to be increased because of the predictable stratabound nature and geometry of the mineralisation.
- The tonnage/grade/metal content shows that the mineralisation is only marginally susceptible to a significant change in cut-off grade. At an increase of the cut-off grade for Pb to 2.5% Pb the resource retains nearly 85% of the metal content despite a drop in the tonnage by 35%. This demonstrates the excellent resilience of the Project.
- Pacifico intends to use the recent findings to further refine its targeting and exploration drilling to grow the high-grade zone of mineralisation which could improve the project economics.
- The updated MRE will allow the company to finalise its sample selection for a new phase of metallurgical testing.
- The company has recently commenced Phase III extensional and exploration drilling campaign which will include approximately 3,265m of RC drilling across planned 49 drill holes.
- Phase III drill program will follow up on historic intercepts through an exploration of new areas peripheral to the current Resource and is expected to be completed by November-end 2019 with ongoing laboratory work for geochemical analysis.
Major Metallurgy Highlights
Till now the exploration work conducted on the Sorby hills has revealed significant results and updates which has enhanced the metallurgy of the project.
- Metallurgical testwork has confirmed rougher flotation testing with sulphidisation up to 96% Pb and 95% Ag recovery on Fresh composites;
- Cleaner flotation testwork confirmed final concentrate grade of 65% Pb can be produced
- Simple lead sulphide mineralogy allows low cost beneficiation before grind and flotation
- Heavy liquid separation testwork (‘HLS’) to upgrade the ore returned outstanding results with minimal lead losses
- Soft ore: Work index (WI) of just 9.7kWh/t.
- Coarse galena with primary grind size of 75 -106mm
At market close on 31 October 2019, PMY stock was trading at $0.009. As on 30 October 2019, the stock has provided a return of 125% on a year-to-date basis.
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