Australia’s largest undeveloped near-surface lead-silver-zinc deposit in PMY’s sights
West Australian junior explorer, Pacifico Minerals (ASX:PMY) is in the process of completing the acquisition of a 75% interest in Australia’s largest undeveloped near-surface lead-silver-zinc deposit, the Sorby Hills Project in WA.
The company today released a presentation to the market outlining the highlights of Sorby Hills and details of the acquisition.
Sorby Hills has drawn favourable comparisons to Galena Mining’s (ASX:G1A) world-class Abra Base Metals Project. Like PMY, Galena intends to develop its own Western Australian lead-silver-zinc project, Abra, as a high-grade, high-margin mining operation. And like Sorby Hills, the Abra deposit was discovered decades ago now looks increasingly attractive in today’s pricing environment.
One key advantage that PMY has over Galena is that the Abra Project is underground, whereas Sorby Hills is only 20m from surface. Sorby Hills is also further advanced, with a pre-feasibility study completed December 2012.
That said, Galena’s market cap is currently significantly above that of PMY, at around $41.6 million compared to just $7.9 million for PMY, at a 0.5 cent share price.
In late August, PMY completed a share placement, raising $1.28 million to fund the acquisition of Sorby Hills and undertake an accelerated exploration program, as well as for general working capital purposes.
In addition to Sorby Hills, today’s presentation also touched on its wider asset portfolio that spans Australia, plus North and South America. This included an overview of the Violin gold-copper project and information on the Coaxtlahuacan prospect, where a diamond drilling program is planned for October-November.
PMY secured an option to purchase a 100% interest in the Violin Project, located in the Guerrero Gold Belt of Mexico, earlier this year.
The Guerrero Gold Belt is home to several pre-existing multi-million-ounce gold mines and developing projects of this style of mineralisation.
Two of these — the Los Filos and El Bermejal open pit mines, owned by $560 million-capped Leagold Mining Corp (TSE:LMC) — are some of Latin America’s largest gold mines. Like these, the Violin Project area offers outstanding potential for a large and significant gold-copper deposit.
Within the Violin Project, the Coaxtlahuacan Gold-Copper prospect is the most advanced prospect, and has demonstrated strong similarities to the Los Filos/ Bermaja style and scale of deposit.
As for the company’s Colombian operations, PMY recently flagged that it is in negotiations with several major miners and developers regarding a potential acquisition or joint venture of its Colombian copper gold projects.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.