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The PFS estimated that the project could produce some 81 000 t/y of 62% lead/silver concentrate containing 50 000 t/y of recovered lead and 1.5-million ounces a year of recovered silver, across an initial ten-year mine life.

C1 costs for the project have been estimated at 40c/lb, with the study estimating a net present value of A$303-million and an internal rate of return of 46%.

The PFS is based on a mineral resource estimate of 44.1-million tonnes and a proven and probable reserve of 13.6-million tonnes, at 3.6% lead and 40 g/t silver.

“The outcome of the Sorby Hills PFS is a testament to the professionalism of our team and partnerships that reflects the significant opportunity for the project to be a low-cost operation with an attractive net present value and internal rate of return,” said Pacifico Minerals MD Simon Noon.

“With advanced permitting, we intend to move immediately to progress the definitive feasibility study (DFS), offtake, financing and approvals workstream,” he added.

The company will immediately start on a DFS, and will advance financing initiatives in parallel with the technical and approvals workstream, while progressing offtake discussions with its joint venture partner Yuguang, which is a wholly-owned subsidiary of China’s largest lead smelting and silver producer Henan Yuguang Gold and Lead Co.