Base metals: Pacifico Minerals is up 22pc after positive zinc-lead assay results
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Pacifico Minerals (ASX: PMY) jumped 22 per cent this morning after a market update which confirmed its confidence in its Sorby Hills base metals project.
Pacifico declared the campaign a success, and announced it recovered “significant amounts” of lead and zinc sulphite. The final assay results are due for release next month.
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The project has a JORC Indicated resource of 10.9MT of 5 per cent zinc equivalent. The company will update its Mineral Resource Estimate in September.
But its drilling campaign has obtained significant intersections in the drill cores. The picture below shows one sample which shows lead and zinc sulphide – particularly the former.
By the company’s admission, zinc is currently an afterthought in the project’s economics. However, the company noted the Inferred Resource and said it saw “great potential” for further zinc to be found. Final results of this campaign will be made in August.
The company’s pre-feasibility study estimated it would take $95.4 million to fund the mine. But this could be paid back in 16 months and the project has a pre-tax NPV of $243 million.
Shares jumped 22 per cent at the market open but have since settled at 11 per cent higher. The company’s share price stands 150 per cent higher than six months ago.
Metals X (ASX: MLX) has released its latest quarterly and has reported its tin division’s guidance. Metals X estimates production of 1,649 tonnes of tin and pre-tax earnings of $7.6 million, however only half of this will flow to them since the project is a joint venture. Managing director Damien Marantelli said he was pleased to see “solid progress against all workstreams”. However, the stock actually fell 10 per cent this morning.
September 16 is RTG Mining’s (ASX: RTG) day in court in the Philippines. RTG is taking its local contractor to court over a lack of progress by their joint venture over the Mabilo gold-copper project. It is accusing Galeo of bad faith and failing to meet its contractural obligations.
Ardea Resources (ASX: ARL) has commenced nickel-copper exploration at its Perrinvale project. The project lies in Australia’s latest nickel sulphide hot-spot, the Cathedrals Belt. Ardea recently received the tenement and CEO Andrew Penkenthman said the project is an “exceptional opportunity”.
White Rock Minerals (ASX: WRM) is drilling a new prospect at Red Mountain, its third at the project. Its two deposits have an inferred mineral resource of 9.1 million tonnes at 12.9 per cent zinc equivalent. But aeromagnetic surveys have led the company to drill at this third prospect.
Redstone Resources (ASX: RDS) has uncovered new electromagnetic targets at West Musgrave. The company is searching for nickel and copper at the project and told shareholders West Musgrave “has the right geological and structural setting for large magmatic Ni-Cu sulphide deposits”. It declared the survey had provided the next step forward for the company to assess further mineralisation potential.