PMY: Borroloola West Joint Venture NT update

CORPORATE DIRECTORY

Managing Director

Simon Noon

Directors

Richard Monti (Chairman) Peter Harold (Non-exec.) Andrew Parker (Non-exec.)

Company Secretary

Patrick Holywell

Registered office

Level 10, 553 Hay St

Perth WA 6000

Telephone:

+61 8 6266 8642

Facsimile:

+61 8 9421 1008

Email:

info@pacificominerals.com.au

Borroloola West Joint Venture Project - Copper/Zinc/Lead/Cobalt/Silver

• Diamond drilling at Coppermine Creek, Mariner and Berjaya Prospects, designed to test for major primary copper and zinc-lead mineralisation completed and analyses received.

• Model of a potentially extensive stratiform, shallow, flat to gently dipping, zone of copper mineralisation confirmed at Coppermine Creek.

• A previously unknown package containing pyritic black carbonaceous shales intersected at Mariner interpreted as Barney Creek Formation and favourable host for zinc-lead mineralisation.

• Leach testwork underway on oxide copper mineralisation from the Lorella prospect with results expected within two weeks.

• Aircore program (2000m) at Lorella is planned for late October to test strike extensions of previously intersected oxide copper mineralisation and for indications of significant down-dip primary sulphide mineralisation.

The Borroloola West Joint Venture consists of 12 exploration licences and 1 mining licence (1,817 km2). The parties to the BWJV are 51% Pacifico Minerals Limited ("Pacifico" or "Company") (ASX code: PMY) and 49% Sandfire Resources NL ("Sandfire Resources") (ASX code: SFR).

A diamond drilling program of 5 holes for a total of 1403m was completed. Analyses results have now been received.

Coppermine Creek

Two holes were drilled at Coppermine Creek, and both intersected visible copper mineralisation over significant widths.

The analyses summarised in Table 1, confirm Pacifico's mineralisation model, developed from previous exploration drilling and ground EM survey conductivity profiles, that the copper mineralisation is extensive, stratabound, gently dipping and that there are large areas where the depths of this layer are at only 50m to 250m depth.

Table 1: Summary of copper analyses from diamond drill holes CCD09 and CCD10 at Coppermine Creek

All the copper mineralisation is hosted by the Amelia Dolomite which consists typically of finely bedded dolomite with carbonaceous laminae. It is concentrated within the evaporite rich (now dolomitised) part of the sequence, and often with zones of abundant carbonaceous laminae or crenulated carbonaceous algal mats. The copper mineralisation is present as chalcopyrite and minor bornite which forms disseminations, blebs and lenses throughout the mineralised zones.

Table 2 summarizes previous drilling results and demonstrates that both thick and significant copper intersections have been obtained in oxidised and primary copper mineralisation at Coppermine Creek. There remains major potential in the undrilled extension towards the south and east (30km2) of the copper mineralisation (Figures 1 & 2). The next stage of exploration planned at Coppermine Creek will include detailed mapping and rock chip geochemistry over the prospective area to define targets for large economic concentrations of copper mineralisation which could be defined adjacent to major north-south or north-westerly trending faults running through the area (Figure 1).

Table 2: Coppermine Creek - summary of significant previous drill intersections of Pacifico and by other companies

1Pacifico Minerals Ltd - drill hole intersections previously reported with different copper grade cut-offs - ASX announcements of 6 Aug 2015 and 23 Nov 2016 2Mount Carrington Mines Ltd - Northern Territory Geological Survey open file report, January 1994. Eupene Exploration Enterprises for Mount Carrington Mines Ltd.

3Sandfire Resources NL - Northern Territory Geological Survey, September 2005 Annual Report, EL10121 including MLN624

Figure 1: Geology and drilling, including location of recently drilled diamond holes CCD09 and CCD10 at Coppermine Creek, also showing a significant area potentially underlain by a gently dipping mineralised horizon

Figure 2: Section through diamond holes CCD09 and CCD10 at Coppermine Creek

Mariner

Two diamond drill holes, MND05 and MND06, were completed at the Mariner prospect.

MND05 passed from Roper Group sediments, through a fault breccia zone, and into moderately fractured dolomite interpreted as being part of the Mara Formation. The fractures were often oxidised and contained limonite and cerussite (lead carbonate).

MND06 drilled through a sequence of black carbonaceous, very pyritic shale and dolomite to 204m depth where the hole passed into coarse sandstone and grits. The carbonaceous black shales in MND06 fit stratigraphically to be part of the Barney Creek Formation, lying beneath the Roper Group sediments, and above a dolomite that could be regarded as the Mara or Teena Dolomite.

Table 3: Summary of analyses of anomalous geochemistry from diamond drill holes MND05 and MND06 at Coppermine Creek

The Barney Creek Formation is host to the world class McArthur River zinc-lead deposit and therefore of potential for the discovery of further zinc-lead deposits. It has never been previously recognised or mapped in the Mariner prospect area. A growth fault is indicated by the coarse sandstone unit which is only developed on the western side of the fault intersected in MND05 (figures 3 and 4). Also, the observed lead mineralisation in MND05, supported by the geochemistry in Table 3, supports the prospectivity of this Barney Creek Formation sub-basin, that could extend to the north of the Mariner Prospect beneath the younger Roper Formation.

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