- Pacifico Minerals marked significant progress during the June Quarter including Updated MRE, advanced PFS and strategic expansion south of Sorby Hills Project.
- Mineral Resource Upgrade increases geological and resource model confidence, underpinning the mining assumptions in the Optimised PFS.
- Upgraded MRE is expected to have a material and positive impact on the Optimised PFS, slated for finalisation by late July 2020.
- As the Company proceeds with its ongoing technical developments, onboarding BurnVoir Corporate Finance for funding for further support the progress of the project.
Exhibiting buoyant exploration potential characterised by noteworthy achievements, Pacifico Minerals Limited (ASX: PMY) has paved the way for encouraging prospects surrounding its 75% owned Sorby Hills Joint Venture Project. In a significant update on activity and cash flow reports for the June 2020 quarter, Pacifico indicated key undertakings and robust outcomes, fostering the accomplishment of substantial milestones.
Notably, PMY stock has soared by 175% in the past three months, closing at $0.011 on 13 July 2020.
Sorby Hills Project, sitting ~50 kilometres to Kununurra’s northeast in the most lucrative mining jurisdiction of WA, is a significant lead/silver project with resources above 4mt at an average lead equivalent grade of 4.5%. The near-surface project with close existing infrastructure enjoys approval from the WA Environmental Protection Authority (EPA) for an open mining operation, which allows for fast track production.
Commenting on the impressive quarterly performance for June, Pacifico Minerals MD, Mr Simon Noon stated that Mineral Resource Upgrade enhances confidence in geological and Resource model, underpinning the mining assumptions in Optimised PFS. He indicated that the inclusion of BurnVoir would further allow Pacifico to advance its project funding options along with the ongoing technical work.
With this backdrop, let us explore the strategic endeavours of Pacifico Minerals which, together with the project’s upside exploration potential, is assisting the Company in leveraging the burgeoning opportunities for Lead.
Upgrade of the Mineral Resource Estimate
Pacifico released an updated JORC 2012 Mineral Resource Estimate (MRE) following the integration of Phase III drilling results along with a comprehensive review of geological and analytical databases.
Kalkine Image (Data Source: PMY ASX update)
Pacifico envisages that the upgraded MRE would bear a positive and material impact on the Optimised Pre-Feasibility Study (PFS), which is expected to be finalised by late July 2020. It is anticipated that the updated Resource will enable the conversion of a substantial portion of the Measured and Indicated Resources (M&I) to Probable and Proven Reserves, with new interpretation resulting in an ore body geometry which is simpler and more continuous.
The metal content in the M&I categories has only marginal susceptibility to a significant cut-off grade change, pinpointing remarkable robustness of the project.
Optimised Pre-Feasibility Study Progress
Optimised PFS, targeting an increased mining rate and processing capacity, and seeking to further de-risk the project via additional testwork, is currently being completed by Pacifico in conjunction with its consultants Entech (mining) and DRA Global (engineering).
Strategic Expansion South of Sorby Hills
Pacifico’s strategic landholding incorporating the acquisition of tenement E80/5317 ‘Eight Mile Creek’ has the potential to become a new mining district, with Pacifico setting the stage for long-term future within the region.
Notably, Pacifico’s 100% owned Eight Mile Creek covering 217km2 adds further strike length of 30 kilometres of the prospective near-surface horizon for exploration adjacent the Sorby Hills deposit.
Pacifico currently holding all unrestricted Pincombe Imlier’s surrounding exploration property that provides extension potential to the mineralisation corridor of the Sorby Hills.
The native title and mineral exploration agreement executed during the quarter for the tenement not only lays the foundation for a collaborative and productive relationship with the traditional owner.s but also offers employment and economic prospects.
Pacifico reported a consolidated cash balance of $3 million at the end of the quarter.
On account of receiving keen interest from various parties concerning potential offtake and debt financing, Pacifico has appointed a leading independent finance advisory group BurnVoir Corporate Finance for assisting in securing an attractive and flexible funding package for Sorby Hills Project development.
Under the term of the employment contract, a total of 13 million performance rights was issued to the Executive Chairman, Mr Gary Comb. During the period, he also purchased 5 million shares for a total of $30,000 in the Company. Meanwhile, Pacifico Minerals paid $57,000 to the related parties including salaries and directors’ fees to Directors of the Company, on normal commercial terms.
Concerning the upcoming key event, market participants seem to be closely eyeing the progress at Optimised PFS, anticipated to be completed by this month end.