Pacifico Minerals Limited (ASX: PMY) provided an update on 7th March 2019 about the estimated mineral resources at Sorby Hills, which is a 75% owned Lead-Silver-Zinc project of the company, located 50Km northeast of Kununurra in Western Australia. The company’s MRE update is completed by the well-regarded resource specialist CSA Global, which resulted in a material upgrade of the existing mineral resources.
Post the Mineral Resource Estimate upgrade, the shares of the company soared by 20%, ending the day’s session at A$0.006.
The company completed an updated mineral resource estimate following the initial phase 1 drill campaign, which led to an increase in global resources by 82% and reported 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). As per the company, the increase in the global resource has also marked an increase in indicated resources by 123% and reported at 10.85Mt of 5.0% Pb equivalent (3.9% Pb, 46g/t Ag, and 0.4% Zn using a 1.0% Pb cut off).
The Sorby Hills mineral resource, measured at 29,980Kt with a grade of 3.7% Pb, 0.6% Zn and 43g/t Ag. The total resources are further classified as indicated and inferred, with indicated resources reported at 10,850Kt with a grade of 3.9% Pb, 0.4% Zn and 46g/t Ag and inferred resources reported at 19,130Kt with a grade of 3.6% Pb, 0.7% Zn and 42g/t Ag.
All resources reported by the company were against a Pb cut-off grade of 1.0% expect zinc deposit, which was reported using a Zn >1.0% cut-off grade. As per the company, tonnes and grade were rounded to reflect uncertainty in the estimates.
In the initial phase 1 drilling, the company received results from 34 to 52 drilled holes and announced the same on 14th February 2019.
Phase 1 drilling results:
The drill hole, which was identified as AI010 resulted in 6.6% Pb, 53g/t Ag and 0.9% Zn from 82m - (I) deposit. Further grade was as:
11.7m at 10.8% Pb, 105gg/t Ag and 0.4% Zn from 75.7m - (F) deposit in drill hole identified as AF005.
The drill hole, which was identified as ACD046 resulted 7.3% Pb, 56g/t Ag and 0.4% Zn from 11m (DE) deposit.
The drill hole, which was identified as AB033 resulted in 7.6% Pb, 32g/t Ag and 1.1% Zn from 37m (B) deposit.
The drill hole, which was identified as ACD019 resulted in 7.5% Pb, 68g/t Ag and 1.1% Zn from 76m – (CD) link.
The drilling results along with the updated mineral resources marked an increase in the global as well as an inferred resource for the company.
As per the company analyses results from a further 18 holes are yet to be received and combined with the Phase 2 drilling program planned to commence in April 2019, should further upgrade the mineral resource estimation.
During the time of writing this report the shares of the company were trading at A$ 0.006 (as on 7th March 2019), up by 20%.
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