Australian explorer, Pacifico Minerals Limited (ASX: PMY) is rapidly progressing the development of its 75% owned Sorby Hills Joint Venture Project, a large, near-surface, flat-lying, Lead-Silver-Zinc deposit located 50 km northeast of Kununurra in Western Australia. Sorby Hills is a large global resource, mineable by open pit with great metallurgy and outstanding existing infrastructure.
As announced on 28 October 2019, Pacifico Minerals has commenced its Phase III extensional and exploration drilling campaign at its Sorby Hills Project, following the highly successful Phase II drilling program completed in July 2019. This drilling program is a result of Pacifico’s drilling success and its recently secured funding wherein it completed a $4.6 million capital raising.
Commencement of Phase III Drilling Program
From its Phase III drilling program, the company intends to increase confidence and allow for the conversion of Inferred Resources to Indicated Resource status, increase the Inferred Resource inventory and follow up on historic intercepts. To achieve these targets, Pacifico will implement the following strategy:
- B Deposit, extension of northern and southern deposit limits;
- CDEF Deposit, eastward extension of the southern deposit limit and extension of northern deposit limit;
- CDEF Deposit, westward and slight eastward extension and infill of the central portion of the deposit;
- Exploratory extensions to the northwest of currently defined CDEF deposit limits based on historic intercepts; and
- Wildcat exploration in the extreme west of the tenement as follow up on historic test results.
Sorby Hills Background
Pacifico Minerals has already conducted a Phase I and Phase II drilling programs at the project, with the project development since its acquisition in 2018, explained below:
The company’s belief in the Sorby Hills Project is based on its 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.
The Phase II drilling program (consisting of 31 RC holes including 11 RC pre-collars drilled holes and diamond tails, and 44 HQ cored diamond holes for a total of 5,959m) was focused on shallow mineralisation above 100m depth that may be mineable by open pit at B and CDEF deposits. Conducted from May to July 2019, the Phase II drilling program provided data for geotechnical (pit wall stability) studies for pit designs and samples for ongoing metallurgical test work.
Till now, the company has recorded various significant drill intercepts from B and CDEF deposits, including:
- 8.0m at 13.7% Pb equivalent (12.4% Pb, 51g/t Ag) and 0.3% Zn from 80m – drill hole ACD058 at CDEF deposit;
- 22.0m at 10.2% Pb equivalent (8.8% Pb, 52g/t Ag) and 0.3% Zn from 68m – drill hole ACD082 at CDEF deposit;
- 23.0m at 11.3% Pb equivalent (9.0% Pb, 88g/t Ag) and 1.2% Zn from 59m at drill hole ACD071;
- 14.0m at 15.3% Pb equivalent (13.0% Pb, 89g/t Ag) and 1.0% Zn from 24m at drill hole ACD080;
- 21.0m at 5.6% Pb equivalent (5.0% Pb, 21g/t Ag) and 0.5% Zn from 23m at drill hole ACD056;
- 15.0m at 5.6% Pb equivalent (5.1% Pb, 18g/t Ag) and 0.2% Zn from 15m – drill hole AB052 at B deposit;
- 11.0m at 7.6% Pb equivalent (6.9% Pb, 26g/t Ag) and 0.1% Zn from 29m at drill hole AB050 at B deposit; and
- 11.0m at 6.1% Pb equivalent (5.3% Pb, 31g/t Ag) and 0.4% Zn from 25m at drill hole AB051 at B deposit.
Final laboratory analyses from Phase II revealed geological continuity of the mineralisation at the CDEF deposit, while the results from the B Deposit indicated major shallow (from 10m) extensions of the Indicated Resource area which remains open to the north and south and is considered likely to link up with A Deposit.
Pacifico Minerals is well supported by its JV partner, Henan Yuguang Gold and Lead Co. Ltd. (25% owner of Sorby Hills) – China’s largest silver producer, controlling nation’s largest Lead smelting capacity.
Pacifico’s Forward Plan
Via its Phase III program, Pacifico will follow up on historic intercepts through exploration of new areas peripheral to the current Resource aiming to increase the global Resource inventory. It is expected that the Phase III drilling will be completed by end-November 2019.
Pacifico believes that it is well positioned to execute ongoing extensional and exploration drilling in parallel with delivering an Optimised Pre-feasibility Q1 2020 with >$5M in cash reserves.
As at 25 October 2019, PMY’s stock has provided a return of 125% on a YTD basis. The stock closed the day’s trading session at a price of $0.009 with a market cap of $25.99 million on 28 October 2019.
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