Pacifico Minerals Ltd (ASX:PMY) jumped 36% on strong volume of 31 million on news of being granted an exploration licence in the Northern Territory prospective for zinc-lead.
The company is a leading ASX gainer, trading at 1.5 cents, just short of the 12-month high of 1.6 cents reached last month.
READ: Pacifico Minerals a leading ASX gainer after executing drilling contract at copper prospect
Pacifico has received notice from the Northern Territory Department of Primary Industry and Resources that EL 31354 has been granted.
The 100%-owned tenement is north of the Coppermine Creek prospect and south of the Lorella prospect, both of which are part of the Borroloola West Joint Venture.
The company has a 51% interest in this JV with Sandfire Resources NL (ASX:SFR) holding the remainder.
McArthur River mine nearby
EL 31354 is about 85 kilometres northwest of Glencore PLC’s (LON:GLEN) McArthur River zinc-lead mine, a world-class tier 1 deposit.
A zinc-lead gossan with 600 metres of strike and of several metres in thickness lies within the new tenement.
Gossan discovered
The gossan, which is open to the southwest and northeast under shallow cover, was discovered by company geologists during reconnaissance geology and portable X-Ray Fluorescence (pXRF) geochemistry.
It contains consistently high pXRF values of up to 0.61% lead and up to 0.44% zinc.
This geochemistry is supported by rock chip samples, analysed by ALS Laboratories, which contain up to 2.0% lead and 0.49% zinc.
These values are considered significant as a surface indication of primary zinc-lead mineralisation.
Drill testing planned
Pacifico plans to undertake drill testing of the gossan following additional mapping and reconnaissance geochemistry over the possible northern extension of mineralisation.
The company will apply for the Northern Territory Geophysics and Drilling Collaboration program which would fund 50% of direct drilling costs if successful.