Pacifico’s Sorby Hills Project continues to deliver strong results

By Jonathan Jackson. Published at Sep 12, 2019, in Mining

Pacifico Minerals Limited (ASX:PMY) today updated the market on its Phase 11 drilling program at its 75%-owned Sorby Hills Lead-Silver-Zinc Mine Development Project (the remaining 25% interest is held by Henan Yuguang Gold & Lead Co. Ltd.).

The company has again released string results, showing impressive intersections.

Significant new drill intercepts from B Deposit and CDEF deposits include:

  • 8.0m at 13.7% Pb equivalent (12.4% Pb, 51g/t Ag) and 0.3% Zn from 80m – CDEF Deposit in drill hole ACD058;
  • 22.0m at 10.2% Pb equivalent (8.8% Pb, 52g/t Ag) and 0.3% Zn from 68m (including 16m at 13.5%Pb equivalent (11.7% Pb, 68g/t Ag) and 0.37% Zn from 63m) – CDEF Deposit in drill hole ACD082;
  • 6.0m at 11.4% Pb equivalent (10.5% Pb, 35g/t Ag) and 0.1% Zn from 81m – CDEF Deposit in drill hole AF058;
  • 7m at 7.4% Pb equivalent (5.7%Pb, 67g/t Ag) and 0.2% Zn from 80m – CDEF Deposit in drill hole ACD087; and
  • 15.0m at 5.6% Pb equivalent (5.1% Pb, 18g/t Ag) and 0.2% Zn from 15m – B Deposit in drill hole AB052.

Here’s a look at Deposit B:

Interpreted geology section 8289750N, B Deposit. Note that all mineralisation on this section lies above 50m depth from surface.

The following illustration shows results from the CDEF deposit:

These results are expected to materially increase Indicated Resources within the next Mineral Resource Estimate (MRE), which is already underway and on track to be completed in October 2019.

The MRE will underpin the upcoming Optimised Pre-Feasibility Study (PFS).

Existing PFS already points to strong mine development

Following the completion of the Phase 1 drill program, Pacifico released highly pleasing results.

The Phase I program significantly increased the size and confidence in the global MRE (29.97Mt of 4.8% Pb equivalent (3.7% Pb, 43g/t Ag) and 0.6% Zn1) and underpinned the already completed PFS – which was developed in H1 this year.

The PFS estimated a CAPEX of A$95.4 million to develop the mine, with a 16-month payback and a pre-tax NPV8of A$243 million. Importantly the PFS only considered resources in the indicated category (10.85Mt of Indicated Resources with a grade of 5.1% Pb equivalent (3.9% Pb, 46g/t Ag) and 0.4% Zn).

The completion of this latest drill program, conducted between May and July, consisted of 20 reverse circulation (RC) holes, 10holes drilled with RC pre-collars and diamond tails, and 45HQ cored diamond holes for a total of 5,959 metres.

The current program has delivered an updated MRE and improved metallurgical testwork results. Furthermore, new mining studies will aim to enhance the economics and improve confidence in the upcoming Optimised PFS.

For the technical details, please see today’s ASX announcement, however one of the main takeaways is that the high-grade mineralisation determined from the limited number of step out drill holes, forms variable size lenses of mineralisation within a laterally extensive blanket of mineralisation that is yet to be drill tested beyond its currently known perimeter.

In other words, PMY could further extend the ground it is covering.

Phase 111 campaign imminent

Success in phases one and two, mean that Pacifico can quickly start its Phase 111 drill campaign.

As reported by Finfeed on 2 September in the article Capital raising to take Pacifico through to 2020 PFS, the company is well funded to conduct its programs.

Pacifico raised $4.6 million to fund its Western Australia campaign. The money will be used to help expand the Indicated Resource of the B and CDEF deposits, and convert Inferred Resources at the A, H, I, Alpha and Beta deposits to Indicated Resources.

Further drilling targets include extensions to the zinc dominant mineralisation at the Alpha Zinc Deposit and targets outside the defined deposits for both lead and zinc (also silver).

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.

Investors can expect to see a revised MRE in October, ahead of the updated and optimised PFS.

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