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It continues to be a very busy time for Pacifico Minerals Limited (ASX: PMY) as it builds on the success of its 2019 exploration program into 2020.
On the first trading day of the new year, PMY stock was trading at a price of $0.008, up by ~14.3% with a market cap of around $20.22 million.
Entering into 2020, the company expects the Phase III Drilling Results, Optimised PFS/Ore Reserve, Strategic Financing and Offtake Update by Q1 2020. In the next quarter, the company intends to commence Phase IV Expansion and Infill Drilling to support Definitive Feasibility Study (DFS). The DFS completion is anticipated by Q4 2020.
Pacifico Progressing Well at Sorby Hills Project
Over the last year, the company achieved several milestones in relation to the development of its 75% owned Sorby Hills Project - a large, near-surface, flat-lying lead-silver-zin. The deposit is located 50 km northeast of Kununurra in Western Australia with Global resource of around 36 Mt at 4.7% Pb equivalent (3.7% Pb, 39 g/t Ag) and 0.5% Zn.
In a span of just 13 months, the company has achieved considerably at this project, from acquiring it in October 2018 to completing the third Phase of the drilling program in November 2019.
The company’s strong expectation from the Sorby Hills Project is based on several positive attributes – a large global resource, mineable by open pit, great metallurgy, outstanding existing infrastructure, granted Mining Leases and Western Australian Environmental Protection Authority approval in place.
PMY Chairman Richard Monti Commented:
“What Pacifico brings to the project is just that – the dedication and conviction to make this deposit a profitable mine. To this end we have updated a pre-existing PFS in March 2019 and are now well into an optimised PFS study which will be completed by January 2020.”
Lens through Timeline of Events
Soon after the acquisition of the project, the Phase I drilling campaign completed in the year 2018 only.
Designed to provide angled and oriented diamond drill core into the B, C, CD link, D, F and I deposits, this campaign highlighted the coarse-grained nature of the galena and confirmed that C, DE, and F deposits are linked and can be referred to as a single deposit (CDEF).
Later in March 2019, the company completed an updated Mineral Resource Estimate based on analyses received from an initial 34 holes from the Phase I drilling program, resulting in 82% increase in the tonnage of the Global Resource and 123% increase in the tonnage of Indicated Resources.
In the month of March, the company also released the results of Updated Pre-Feasibility Study which indicated steady state annual production of concentrate containing approximately 31.125ktpa of lead and 1.17Mozpa of silver, while confirming highly robust financials (refer below image).
Following this, in May 2019, the company commenced the Phase II infill and extension drilling campaign with an intention to combine the updated MRE with latest metallurgical testwork results and progress mining studies while maintaining the focus on shallow mineralisation at the B and CDEF deposits above 100m depth, that may be mineable by open pit. This phase drilling reported impressive intersections from shallow depth.
Subsequent to the highly successful Phase II drilling campaign, Pacifico provided an updated Mineral Resource Estimate for the Sorby Hills Project wherein it reported 20% increase in Global Resource; 53% increase in total Indicated Resources; 63% increase in Indicated Resources in the Omega deposit (formerly CDEF) and 165% increase in the B deposit. The company is of the view that updated MRE will allow it to finalise its sample selection for a new phase of metallurgical testing.
Recently in December 2019, the company completed Phase III expansion and exploration drilling campaign, consisting of 49 reverse circulation drill holes for 3,265 m, conducted with an objective of increasing confidence, increasing Inferred resources while also converting existing Inferred resources to Indicated status, and following up on historic intercepts.
(Source: Company’s Report)
The year 2020 is to be closely monitored for the Pacifico’s developments on the Sorby Hills Project, with the company exploring right commodities, backed by significant project economics.
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