Pacifico Minerals Ltd [ASX:PMY] share price increased 33.33% today. The share price increased to $0.004 at time of writing, up from $0.003 yesterday.
Pacifico Minerals is a Western Australian exploration company with interests in Colombia and Australia.
The company’s focus is in the Sorby Hills Lead-Silver-Zinc Joint Venture Project located 50 km northeast from Kununurra, in Western Australia. Pacifico Minerals holds a 75% interest on this venture while Henan Yuguang Gold & Lead Co Ltd — a smelting and seller of gold and silver articles in China — holds the other 25%.
Why is Pacifico Minerals’ share price up today?
The company provided an update on their activity and cash flow for the first quarter of 2020.
Pacifico shared the results for their Phase III drilling results in Sorby Hills for both B and Omega deposits. According to the company, ‘returned robust intersections’ and ‘confirmed the potential for a new shallow deposit.’
Results for Omega include 18m at 5.08% Pb, 36 grams per tonne Ag and 0.2% Zn from 10m, 10m at 7.16% Pb, 383 grams per tonne Ag and 0.43% Zn from 110m and 6m at 9.53% Pb, 55g/t Ag and 0.32% Zn from 47m.
Results from B deposit include 9m at 4.26% Pb, 37 g/t Ag and 0.80% Zn from 36m.
Pacifico also confirmed they had a consolidated cash balance of $3.56 million at the end of the quarter and offered a COVID-19 update.
They assured investors staff and consultants are working remotely when possible at full capacity and that the company has met all the immediate challenges. Their venture partner, Henan Yuguang also confirmed they are operating at full capacity and have kept up production without suffering any major interruption.
What could happen next?
There have been some concerns over lead supply as some companies — like Sumimoto Corp — have had to halt operations and demand increases from China. Lead is mostly used for batteries but also cable sheathing and ammunition.
Silver prices have also seen an uptick recently. While silver depends on supply and demand, it also has an interesting relationship with gold. Gold has been moving higher, and if it keeps going, we could see silver follow.
Check out The Rum Rebellion’s editor Greg Canavan’s recent interview with author and gold expert Jim Rickards, where Jim explains why he expects gold prices could hit US$10,000 in the next few years.