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It continues to be a very busy year for junior resource company Pacifico Minerals Limited (ASX: PMY) as it builds on the success of its drilling campaigns conducted at its 75% owned Sorby Hills Lead-Silver-Zinc Development Project.
Each drilling program conducted till now over the project has significantly increased the projectâs resource size and confidence.
Increase in Resource Base
At the 2019 Annual General Meeting held on 29 November 2019, Pacifico highlighted that since October 2018, the Global Lead Resource has increased by 35% to 36Mt at 3.7% Pb, 39 g/t Ag and 0.5% Zn.
Also, there has been a 123% growth in the Indicated Lead Resources to 16.6Mt at 3.8% Pb, 39 g/t Ag and 0.4% Zn.
Significant updated MRE
The expansion in resource base is attributable to the recently announced updated Mineral Resource Estimate following the highly successful Phase II drilling program.
Major Highlights of the Updated MRE:
- 20% increase in Global Resource to 36 Mt at 4.7% Pb equivalent;
- 63% increase in Indicated Resources in the Omega deposit (formerly CDEF) and 165% increase in the B deposit
- 53% increase in total Indicated Resources to 16.6 Mt at 4.8% Pb equivalent (3.8% Pb, 39g/t Ag) and 0.4% Zn through the conversion of Inferred Resources.
Summary of activities conducted since 2018 AGM
Ever since the company has acquired Sorby Hills, it has conducted and completed several important activities which has helped in expanding the resource base at the project.
Stronger Financial Position
Over the year, the company has also put itself in a stronger financial position than it was at the time of last AGM. Most notably, the company has witnessed a growth of 82% in cash at bank since 2018 AGM.
The company has also strengthened its balance sheet by successfully reducing its debt by 100%. Since 2018 AGM, there has been a 41% increase in top 5 ownership, suggesting increased confidence from shareholders.
Lucrative Lead Market Opportunity
Considering the rising Lead market opportunity , it can be inferred that Pacifico is exploring the right commodities at the right time. Pacifico considers the continuous growth in global lead market demand, is expected at a CAGR of 6.74% between 2018 and 2022 (source- Business wire).
Increasing use of lead batteries is one of the major reason behinds the growing market opportunity. Lead batteries provide 75% of worldwide rechargeable energy storage and they are a key element in the transition to a low carbon economy, with unrivalled sustainability credentials.
The recent rise in the prices of lead and silver is further making a strong case for Pacifico (refer below image).
Near-Term NewsFlow
- Phase III Drilling Update in Q4 2019;
- Phase III Drilling Results, Optimised PFS/Ore Reserve, Strategic Financing and Offtake Update in Q1 2020;
- Phase IV Expansion and Infill Drilling to support Definitive Feasibility Study in Q2 2020;
- Definitive Feasibility Study completion in Q4 2020.
The activities conducted by Pacifico during this year have paved the way for the company to have an existing year ahead.
PMY Management commented:
âIt has been another tough year for junior resource companies but one of significant progress and success for Pacifico. We expect 2020 to be an exciting year for the company.â
Notably, PMY stock has soared by 87.50% on a year-till-date basis. The stock last traded at a price of $0.007 with a market cap of $20.22 million on 25 November 2019.
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