Pacifico set for a defining Q2 2020
Published 19-FEB-2020 17:03 P.M.
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3 minute read
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Pacific Minerals (ASX:PMY) has spent the last couple of days at Western Australia’s RTIU Explorer’s Conference, a major Australian forum for the junior resources sector.
The idea is mineral exploration companies and emerging new miners attract an ever-growing group of brokers, fund managers and investors to hear their presentations.
To coincide with the event, Pacifico released an updated presentation that highlights its achievements at its Sorby Hills lead, silver, zinc project located ~50 kilometres north east from Kununara.
For those unfamiliar with the story, Pacifico is progressing Australia’s largest undeveloped near-surface lead-silver-zinc deposit.
This is a near-surface lead-silver-zinc deposit held within a series of structures referred to as ‘Mississippi Valley’ deposits which can be prolific producers of base metals such as zinc and lead.
Sorby Hills is a potentially highly economic base metal deposit with shallow open-pittable mineralisation from 20 metres to 100 metres in depth, simple mineralogy allowing for low-cost beneficiation before plant treatment, robust metal recoveries, high silver credits and existing sealed roads to the nearby Wyndham Port.
For Pacifico’s Sorby Hills Project, all roads lead to fast tracked production.
Pacifico has a 75% stake in Sorby Hills. The other 25% is owned by Henan Yuguang, China’s largest lead smelting and silver producer.
Pacifico investors should note that Henan Yuguang is contributing 25% of all project expenditure and during discussions with MD Simon Noon last year made clear its intentions of securing supply of mineral concentrate to feed into its operations.
Lead is important in this equation, particularly as demand continues to increase on the back of rising energy storage solutions.
However, stock of short-term refined lead is close to record lows, with a deficit for mined lead without new supply predicted to hit in 2023.
Lead is also required for Start-Stop technology (SSV), which contains 25% more lead. Forecasts show approximately 50% of all new vehicles will be SSVs by the end of 2020.
The project
The deposit size at Sorby Hills is expected to grow significantly as extensions and other targets outside of the main defined deposits are drilled and added to the resource base.
Pacifico is working towards an optimised PFS in the second quarter 2020 and is targeting a substantial increase in mining rate following highly successful drilling and a resource inventory and classification increase in 2019.
You can read about the latest drilling results in our previous article:
Read: Pacifico’s Phase 111 drilling returns robust results
The company holds a Global Resource of [email protected]%Pb equivalent (3.7%Pb,39g/tAg) and 0.5% Zn from 20 metres below surface and open along strike and down dip.
The Resource size and confidence level is substantially increasing with each drilling program.
Looking forward
Pacifico expects to make excellent headway in 2020. And is on track to produce a Definitive Feasibility Study (DFS) in 2021.
The following graphic is what investors can expect from Pacifico moving into Q2 2020.
The next few months should offer up some defining moments for the company as it continues its hard work at Sorby Hills.
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