Pacifico Minerals on track to become a significant lead-silver-zinc producer in Western Australia

Summary

• Pacifico’s near-surface flat topography enables low-cost mining operations which aligns with robust financials of Pre-Feasibility Study (PFS).
• The substantial enhancement in Mineral Resource Estimate (MRE) is expected to provide a positive impact on upcoming Optimised PFS.
• The solid financials backed by resource expansion would allow Pacifico to leverage the growing sustainable lead-based market.

Making great strides with the right approach, Perth-based Pacifico Minerals Limited (ASX:PMY) is relishing the momentum building around its Sorby Hills Lead-Silver-Zinc Project. Significant project dynamics exhibited by the project is expected to boost the outcomes of key catalysts- Optimised PFS and Ore Reserve, which is due for completion in July 2020.

Relatively unaffected by COVID-19, Pacifico Minerals is making substantial progress concerning Optimised Pre-Feasibility Study of Sorby Hills Joint Venture Project, with resource upgrade underpinning 50% increase in plant throughput from 1.0Mtpa to 1.5Mtpa.

Significantly, Mineral Resource Update in June 2020, following the integration of Phase III drilling and a comprehensive review of its geological and analytical data base, sits well with the exploration objectives of the company.

Pacifico Positioned Well to Leverage Growing Prospects

The transition to low carbon economy along with increasing adoption of Electric Vehicles has stimulated the demand for lead. The rising demand for lead as against supply constraints create huge market prospects for Western Australia based Sorby Hills Project.

Besides, the project has rare exposure to Silver in a strong market for precious metals.

Forging the path for future amidst the flourishing market opportunities, the Pre-Feasibility Study in March 2019 highlighted compelling economics, which included modest CAPEX and fast payback. Sorby Hills possesses significant potential to become a long life, high margin lead and silver producer, backed by simple and well-understood geology and metallurgy, along with outstanding exploration upside.

The remarkable progress concerning Sorby Hills exploration is backed by tremendous support from experienced board and management with proven track record in exploration and development.

Notably, Sorby Hills, which involves 25% partnership with China’s largest lead smelting and silver producer, Henan Yuguang, has secured key approvals and mining tenements along with robust infrastructure and location.

Drilling Success and Exploration Upside Fostering Project’s Growth

The drilling at Sorby Hills Project has materially enhanced the confidence in ore body geometry, grade and continuity resulting, in Omega and Norton deposits which have a combined strike length of more than 4 kilometres.

Key intercepts include:

• 22.0m at 8.8% Pb, 52g/t Ag, 0.3% Zn from 68m (ACD082)
• 20.0m at 7.3% Pb, 56g/t Ag, 0.4% Zn from 11m (ACD046)
• 11.7m at 10.8% Pb, 105 g/t Ag, 0.4% Zn from 75.7m (AF005)
• 14.0m at 13.0% Pb, 89g/t Ag, 1.0% Zn from 24m (ACD080)
• 21.0m at 5.0% Pb, 21g/t Ag, 0.5% Zn from 23m (ACD056)
• 23.0m at 9.0% Pb, 88g/t Ag, 1.2% Zn from 59m (ACD071)
• 21.0m at 5.0% Pb, 21g/t Ag, 0.5% Zn from 23m (ACD056)
• 10.0m at 7.16% Pb, 383g/t Ag, 0.43% Zn from 110m (SHPDA31)
• 10.0m at 6.6% Pb, 53g/t, Ag 0.9% Zn from 92m (Norton - AI010)
• 12.3m at 5.5% Pb, 42g/t, Ag 0.2% Zn from 90m (Norton - AI011)

Meanwhile, the exploration upside substantially lays the foundation for long-term potential of project. All unrestricted exploration property surrounding the Pincombe Inlier is held by Pacifico, with an additional 30 km strike length of the near-surface prospective horizon.

Gravity, providing the best vectors, has identified several high priority targets for extension of mineralisation, which correlates with the transition from linear gravity lows to gravity highs.

Consistently Rising Mineral Resource Estimate (MRE)

Notably, every drilling program of Pacifico has contributed towards a substantial increase in the resource size and confidence level. Adding another notch to the company’s belt, updated MRE increased Measured & Indicated (M & I) resource category of contained lead by 20% to 20.8 million tonnes at 4.9 % Pb equivalent (3.6% Pb, 40g/t Ag) over the previous MRE.

The project hosts Global Resource of 44.1 Mt @ 4.5% Pb equivalent (3.3% Pb, 38g/t Ag) and 0.5% Zn from 20 m below surface and open along strike and down dip.

Way Ahead

• Planned drilling expected to confirm continuity between Norton and Omega deposits.
• Gravity survey extension for covering full tenement package including recently acquired E80/5317.
• Four recent wildcat drill holes confirmed continuity of shallow mineralisation which is a priority target for follow up diamond drilling – possible link to Norton.
• Offtake and financing discussions underway.

By the end of the trading session on 11 June 2020, PMY stock closed at $0.006 per share. Notably, the stock has generated 20% return in the past three-months.