- Pacifico Minerals’ drilling program at Sorby Hills Project is underway, incorporating a total of 68 drill holes for 5,200m.
- The current drilling program supports project’s advancement towards a Definitive Feasibility Study (DFS) and explores opportunities to expand the Resource.
- Pacifico’s recently announced Pre-Feasibility Study (PFS) results demonstrated outstanding economic outcomes concerning the project.
- Pacifico holds a track record of increasing resources, validated by the successful results of the 2019-20 drilling program, leading to Mineral Resource Update at Sorby Hills.
Western Australia based explorer, Pacifico Minerals Limited (ASX: PMY) is advancing well on its exploration activities at 75% owned Sorby Hills Lead-Silver-Zinc Project. In a significant update on 9 September 2020, the Company confirmed that the drilling program is currently underway at Sorby Hills Project.
Following the key update, PMY shares settled the day’s trade at $0.020 on 9 September. Notably, PMY share price has increased by over 216% in the past three months.
The Sorby Hills project, stationed in the Kimberley Region of Western Australia, is the largest undeveloped, near-surface Lead-Silver-Zinc deposit in Australia. Pacifico’s recently announced Pre-Feasibility Study (PFS) results indicated outstanding economic outcomes concerning the project. The PFS was underpinned by the Company’s successful 2019-20 drilling program which saw a significant increase to the Mineral Resource Estimate (MRE) at Sorby Hills.
Further PFS Details Can Be Read At: Pacifico Minerals Sitting on a Sweet Spot with Outstanding Economic Outcomes from Sorby Hills Pre-Feasibility Study
The current drilling program encourages the advancement of the project toward a Definitive Feasibility Study (DFS). At the same time, it also explores opportunities to expand the resource base.
Lucrative Market Opportunity
Significantly, the project enjoys diversified growth potential, bolstered by the record-high silver prices and skyrocketing demand for lead. Notably, the project hosts Silver and lead, key commodities that support the global transition towards a clean energy economy.
Silver has industrial applications, particularly in emerging green industries and plays a pivotal role in the production of solar cells. Meanwhile, lead batteries with unrivalled sustainability credentials have significant usage in electric vehicles and electrification of bikes.
Drilling Program Summary
The ongoing drilling program at Sorby Hills will incorporate a total of 68 drill holes for 5,200m. The drilling will be undertaken using a combination of mud-rotary collars and HQ3 diamond core. Pacifico indicated that depending upon the positive results during the implementation; the program would be expanded.
Commenting on the ongoing drilling, Managing Director, Simon Noon stated that the Company is excited to commence directly to a DFS, which is supported by the current drilling program. Citing the success of the 2019-20 drilling program, he indicated that Pacifico holds a track record of increasing resources, with the Company’s 2019-2020 drilling program witnessing substantial increase to the Sorby Hills MRE, which further underpinned the recent Sorby Hills PFS.
He indicated that with the commencement of the drilling, the Company now looks forward to updating the market with its progress and success with expanding Pacifico’s Resources.
Kalkine Image (Data Source: PMY ASX Update, Dated 9 September 2020)
Lens through Sorby Hills Pre-Feasibility Study
The recently announced Sorby Hills PFS highlights the low-risk nature of the project with well-defined large-scale Mineral Resource, high metal recoveries, simple crush-mill-float processing circuit, and key approvals received.
The study indicated strong pre-tax economics delivered by the project, that can be brought into production for an estimated $183M of the pre-production expenditure.
The anticipated average annual production from the project includes 81 thousand dry tonnes of 62% Lead-Silver Concentrate, consisting of 1.5Moz recovered silver and 50kt of recovered lead per annum across an initial ten years mine life. Besides, low C1 cash costs position of US$0.40/lb payable Pb delivers an LoM operating margin of 40%.
The Sorby Hills Project supports a significant extensive, near-surface Pb-Ag-Zn deposit. The project hosts the Mineral Resource of 44.1Mt at 3.3% Pb, 38g/t Ag and 0.5% Zn and Proved and Probable Reserves of 13.6Mt at 3.6% Pb, and 40g/t Ag.
Source: PMY ASX Update, Dated 9 September 2020
Exploration at Tennent Creek
Pacifico Minerals has planned a first path assessment of its 100% owned Eight Mile Creek (E80/5317) tenement. The E80/5317 tenement covers 217 km2 to the northeast of Kununurra and south of the Sorby Hills Project. It adds 30 km of strike length of prospective exploration ground adjacent to the Sorby Hills deposit.
The first path assessment undertaken over the northern half of the property will include reconnaissance geological traverse mapping as well as ground gravity survey to build a structural interpretation of the Devonian-Carboniferous strata
Commenting on the exploration of tenement E80-5317 at Eight Mile Creek, Mr Noon commented that the Company is excited concerning the opportunities offered by the exploration of the area.