Next Investors logo grey

Australia’s largest undeveloped near-surface lead-silver-zinc deposit in PMY’s sights

Published 21-SEP-2018 15:42 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.