Pacifico Minerals Releases Half Year Results; Advances Exploration Initiatives on Sorby Hills

Mineral exploration company, Pacifico Minerals Limited (ASX: PMY) has released its half year accounts for the six months ending 31 December 2019. The results depict that over the half-year the company was mostly focused on the exploration of its 75% owned Sorby Hills deposit - a large, near-surface Pb-Ag-Zn deposit in the Kimberley Region, Western Australia.

INTERESTING READ: Pacifico Minerals Delivers Positive Insights Concerning Sorby Hills Project

Milestones Achieved over the Half year

Phase II Drilling

The completion of Phase II drilling at the Sorby Hills was one of the first major tasks Pacifico accomplished over the half year period. The company reported compelling results from the drilling program which increased the value of the project from the exploration perspective.

Significant intercepts from B Deposit and Omega Deposit (CDEF) included:

• 8.0m at 13.7% Pb equivalent (12.4% Pb, 51 g/t Ag) and 0.3% Zn from 80m at Omega Deposit;
• 22.0m at 10.2% Pb equivalent (8.8% Pb, 52 g/t Ag) and 0.3% Zn from 68m at Omega Deposit;
• 6.0m at 11.4% Pb equivalent (10.5% Pb, 35 g/t Ag) and 0.1% Zn from 81m at Omega Deposit;
• 7.0m at 7.4% Pb equivalent (5.7% Pb, 67 g/t Ag) and 0.2% Zn from 80m at Omega Deposit; and
• 15.0m at 5.6% Pb equivalent (5.1% Pb, 18 g/t Ag) and 0.2% Zn from 15m at B Deposit.

Phase III Drilling

After the highly successful Phase II Drilling Program, the company commenced Phase III Drilling in October 2019, targeted on the conversion of Inferred Resources to Indicated Resource status, increase the Inferred Resource inventory, and follow up on historic intercepts. The campaign included ~ 3,265m of RC drilling across planned 49 drill holes. The Phase III Drilling was completed in December 2019, while the results were reported in January 2020.

Notable intercepts from both B Deposit and Omega deposit include:

• 18.0m at 5.08% Pb, 36 g/t Ag and 0.2% Zn from 10m – Omega Deposit;
• 10.0m at 7.16% Pb, 383 g/t Ag and 0.43% Zn from 110m – Omega Deposit;
• 6.0m at 9.53% Pb, 55 g/t Ag and 0.32% Zn from 47m – Omega Deposit; and
• 10.0m at 4.73% Pb, 34 g/t Ag and 0.46% Zn from 25m – B Deposit

ALSO READ: Pacifico Minerals Reaches Another Milestone; Completes Phase III Drilling At Sorby Hills

Mineral Resource Update

In late October 2019, Pacifico provided an updated Mineral Resource Estimate for the Sorby Hills Project, reporting 20% increase in Global Resource to 36 Mt at 4.7% Pb equivalent and 53% increase in total Indicated Resources to 16.6 Mt at 4.8% Pb equivalent.

The company also reported 63% increase in Indicated Resources in the Omega Deposit and a 165% increase in the B Deposit.

The company is of the view that the expansion in Indicated Resources may support an increase in mining rate to be used in the Optimised PreFeasibility Study, which is expected to be completed in the first quarter of 2020.

ALSO READ: Pacifico Minerals Appoints Mr Comb As Executive Chairman; Sorby Hills Project The Guiding Star

Financial Update

On financial front, the company reported a net loss of $1.95 million on account of $1.38 million exploration expenditure, majorly expensed on Sorby Hills Project demonstrating the company’s confidence in the Project’s potential.

Moreover, Pacifico was able to expand its cash balance from $2.29 million as at 31 December 2018 to $3.83 million as at 31 December 2019. In addition to this, the company’s trade and other receivables also increased over the half year period to $0.76 million. As a result, the company’s current assets stood at $4.66 million, significantly higher than the balance of $2.37 million in the previous half.

Over the half year period, the company has also been able to reduce its current liabilities slightly to ~$1 million. If compared to pcp, a significant improvement (50% dip) has been observed in the company’s basic and diluted loss per share which has now reduced to $0.07.

Forward Plan

In the second quarter of 2020, the company expected to report an Optimised PFS and Ore Reserve Estimate. Besides this, a strategic financing and Offtake Update is expected over the second quarter. In addition to this, the company also intends to conduct a Phase IV Expansion and Infill Drilling this year.

By AEDT 03:45 PM, PMY stock was trading at $0.003 on 13 March 2020.

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