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5 Reasons Why Pacifico’s (ASX:PMY) Sorby Hills is Set for Excellent Achievements in 2021

Summary

  • Pacifico Minerals Limited (ASX:PMY)  jointly owned Sorby Hills Project has turned out to be Australia’s largest undeveloped, near-surface Lead-Silver-Zinc deposit.
  • The Company with cash reserves of A$15.5 million is fully funded through to a decision to mine.
  • Impressive project economics, significant Lead and Silver market opportunities, mine life upside and project location seem to be the secret sauce of Pacifico’s success.
  • Pacifico many undertake phase V drilling planned for Q2 2021 in the DFS.

Pacifico Minerals Limited (ASX:PMY) has been under the spotlight for displaying remarkable ability to steer exploration initiatives amid the pandemic. The Company is developing an open-pit Lead-Silver Sorby Hills project at WA’s Kimberly region.

Besides, the Company continued the legacy of solid exploration in September 2020 Quarter. To know more about the same, CLICK HERE. In view of this, Pacifico’s secret sauce of remarkable progress at Sorby Hills Project deserves closer attention.

Strong Financials with Impressive Project Economics

As of 7 December 2020, Pacifico holds the cash of A$15.5 million with no debt. Notably, the Company is fully funded through to a decision to mine. The current cash reserves well support the Resource expansion as well as Definitive Feasibility Study (DFS) which is underway at Sorby Hills Project. 

Additionally, Pacifico has engaged with an Australian Federal Government organisation, Northern Australia Infrastructure Facility (NAIF) for the Project financing. Sorby Hills is within NAIF’s Due Diligence Stage (Stage 3) of NAIF’s a four-stage assessment process. 

While the Company’s financials remain sturdy, the impressive project economics comes as an added bonus, boosting the viability and long-term outlook for Sorby Hills. Significantly, the PFS released in August this year speaks volumes concerning the impressive project economics. 

Extensive Resource Advantage 

Pacifico’s jointly owned Sorby Hills Project has turned out to be Australia’s largest undeveloped, near-surface Lead-Silver-Zinc deposit. Pacifico holds 75% ownership in Sorby Hills along with China’s largest Lead smelter and Silver producer, Henan Yuguang Gold and Lead Co. Ltd (25% interest).

The project consists of extensive shallow resources with Open Pit Reserves of 494kt Lead and 17.6Moz Silver, continuing to demonstrate significant growth potential. 

Meanwhile, the well-defined geology of the project is characterised by flat topography, easy free dig in first 18m, Life of Mine Strip Ratio of 8.0x and EPA approval for an open-pit mine and infrastructure.

ALSO READ: Pacifico Minerals (ASX: PMY) Walking Tall with Robust Assets and Diversified Potential

Strong Track Record of Value Addition

Pacifico has completed three phases of drilling. The resource size and confidence has increased efficiently at the Sorby Hills with each drilling program. While the total Resource tonnage increased by more than 50%, the contained metal approximately tripled. 

Furthermore, significant upside potential concerning scale-up and expansion of the project has not been incorporated in the PFS. 

The Company intends to seek opportunities for advancing options, thereby aiding in maximising the economic returns from the Sorby Hills development. 

Encouraging Market Opportunities 

Lead and silver play a critical role in the global transition towards a clean energy economy. The lead batteries find their applications in electric vehicles, e-bikes and 5G network base stations, all of which are witnessing high popularity. 

Silver, on the other hand, provides a supply-demand overlay to the traditional storage of wealth thematic. It is the best-known conductor of electricity and has been witnessing a significant increase in its usage in photovoltaic. 

The recent rise in the Silver price has been manifested in the PMY share price, typically highlighting the significance of the precious metal in the value of Sorby Hills.

 

Explorations Stepping up the Ladder

Phase IV Drilling recently concluded over 58 drill holes for 4,803m, with initial assay results indicating robust intercepts. Additional assay results from Phase IV drill program is expected through December and January, while the Resource Estimate update is planned during Q1 2021.

Subject to positive assay results from the recently completed drilling, Pacifico intends to undertake phase V drilling planned for Q2 2021 in the DFS. The focus would be supporting an increased mining rate as well as processing capacity. 

READ MORE: Pacifico Minerals (ASX:PMY) Chalks Out Another Victory with the Completion of Phase IV Drilling at Sorby Hills

Alongside, high-resolution gravity survey has been completed over the northern half of Eight Mile Creek (E80/5317), and the review of data is underway. The Company has planned soil sampling and stratigraphic drilling for 2021. 

Pacifico’s shares traded at $0.017 on 10 December 2020.


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