Pacifico secures Option for Mexican gold-copper project

Published at Mar 15, 2018, in Mining

Pacifico Minerals (ASX:PMY) has entered into a Binding Option and Terms to Purchase agreement to acquire all issued capital in Minera GS S.S. de C.V., a private gold mining and exploration company incorporated in Mexico.

As a result of the agreement, PMY will acquire the rights to the highly prospective Violin project, which is situated within the Mexican Guerrero gold belt (below).

mexico gold mining

The project contains several gold deposits and mines. Mineralisation in the region is related to gold bearing iron skarn porphyries and occur within faults and around the igneous intrusions. Exploration at the Violin project to date includes in-depth geochemistry via 10,649 soil samples, which covers most of the licence area.

The Guerrero Gold Belt contains tertiary tonalite, granodiorite and monzodiorite porphyries intruded into Cretaceous limestones and sandstones. Skarn zones exist between the igneous intrusions and the carbonate-rich country rock, and within them iron minerals dominate – including magnetite, hematite and pyrite as well as quartz, sericite, clays, gold and copper sulphide minerals.

It should be noted here that PMY remains a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.

The Coaxlahuacan prospect

The Coaxlahuacan prospect is the most advanced prospect within the Violin project and holds the most interest for PMY moving forward, with the company indicating that it will explore drill targets as soon as possible. While undertaking the due diligence process, PMY’s geological team noted extensive copper mineralisation in the form of chalcocite and malachite at Coaxlahuacan.

Past work at the site has included an IP and ground magnetic survey, with five check channel samples returning an average of 0.4g/t gold and 0.70% copper. Visible observed surface indications of extensive copper gold mineralisation occur over an area of 500 x 100m in the lower lying anomalous area. Pre-erosion weathering and leaching of the copper has resulted in the copper being detected in gullies only. The soils over this zone, which are open to the south, show an anomalous area of 500m x 300m that contains soil sample values of >100ppb gold.

A gold only anomaly to the north and east of the above area lies within an area of saprolite cover. Within this zone, returns exceeding 50ppb gold are found over an area of 1.6kmx1.3km.

While the company’s due diligence site visit centred on the Coaxlahuacan prospect, it has considerable interest in the Fortuna and Espinazo zinc, lead, and silver prospects (within the same tenement) with investigations at both sites indicating sedex-style mineralisation. At Fortuna, the average value of 10 dump and rock chip samples previously collected is 5.2% zinc, 4.5% lead and 220g/t silver.

pacifico coaxlahuacana tenement

Pacifico plans to rapidly confirm drill targets and commence drilling as soon as practical, in order to advance towards establishing resources.

Agreement terms

In consideration of a payment of US$50,000 in cash and 10,000,000 fully paid ordinary shares in the issued capital of PMY, the company is granted the sole and exclusive option for a period of nine months to purchase all the issued capital in Minera GS free from any debts, liens, charges, encumbrances or other adverse interests.

PMY must also meet the minimum expenditure requirements for the project for CY2018, which is 871,353 Mexican Pesos (approximately US$47,000). During the period, PMY will have full access to the project and may complete all forms of exploration, including drilling.

If PMY chooses to exercise the Option, it will pay a total of US$250,000 and 20,000,000 of its fully paid ordinary shares. Should the gold price on the LME hit US$1,500/ounce on or before the Option is exercised, PMY will be required to issue an additional 10,000,000 fully paid ordinary shares at the time of exercise of the option.

Further, Minera GS will be entitled to a A$1,000,000 cash payment upon the delineation of a JORC 500,000 ounces of gold (or equivalent) Indicated Resource of economically mineable material at the project. Should a Bankable Feasibility Study be completed and confirm more than 1 million ounces, PMY will be required to pay A$3,000,000 in cash to Minera GS.

View Our Investment Portfolios



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.

Publishers Notice

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.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!