Borroloola West Project Group Annual Mineral Exploration Report GR121-13 Report period 11 April 2017 to 10 April 2018

Abstract

This annual report for the period 11 April 2016 to 10 April 2017 covers the mineral exploration completed by Pacifico Minerals Ltd ('Pacifico') on twelve granted Exploration Licences (1784km2) of the Borroloola West Project Group, Report Number GR121-13. The Borroloola West Project, which is under a joint-venture agreement between Sandfire and Pacifico (formerly West Rock Resources Ltd), also includes the Exploration Licence Application ELA 26599, and granted Mining Lease MLN 624 at Coppermine Creek which lies within EL 26938. EL 28659 was reduced during the year from 20 blocks to 10 blocks (now 32.9km2). The project area lies within the Batten Trough of the Middle Proterozoic sediments and minor volcanics of the Tawallah, McArthur and Roper Groups of the McArthur Basin, with Cretaceous and Tertiary cover sediments. During the reporting period in 2017, Pacifico carried out prospect scale geological mapping, and portable X-Ray fluorescence instrument ('pXRF') geochemical reconnaissance and rock chip sampling. A ground EM survey was completed at the Coppermine Creek Prospect. Diamond drilling (total 5 holes, 1403m) was completed at Coppermine Creek (2 holes for 553m), Mariner (2 holes for 550m), and Berjaya (1 hole for 300m) which was designed to test for major primary copper and zinc-lead mineralisation. Metallurgical testwork was completed on drill samples of oxide copper mineralisation from Coppermine Creek and Lorella. At Coppermine Creek two diamond holes were drilled (CCD09 and CCD10). The previous RC and diamond drilling completed during 2015 and 2016 had shown the potential regional importance of stratabound copper mineralisation associated with an evaporite bed within the Amelia Dolomite. A ground EM survey over MLN 624 and part of the prospective area of EL 26938 did not show new conductive anomalies. The objective of the diamond drilling program was to test for stratiform copper mineralisation of Mount Isa or Nifty style, within the McArthur Group sediment and carbonate sequence. The two diamond holes drilled confirmed the model of an extensive, relatively shallow, stratabound, copper mineralised zone at Coppermine Creek, within which there is potential for the development of a copper orebody with economic parameters. Glycine and acid leach testwork on oxidized copper mineralisation in RC hole CCR08, shows that the oxidized near surface copper mineralisation at Coppermine Creek is not economically treatable by leaching. At Mariner two diamond holes were drilled (MND05 and MND06). The objective of the diamond drilling program was to test for SHMS zinc-lead mineralisation within the McArthur Group, where it is covered unconformably by Roper Group sediments. Very strong lead (+ zinc, tellurium, antimony) geochemistry had been obtained during Pacifico's 2016 RC drilling at the base of the Roper Group and top of the McArthur Group sediments in the area. A previously unknown package containing pyritic black carbonaceous shales was intersected in MND06. The close association with observed lead and zinc mineralisation confirms potential for sediment hosted zinc-lead mineralisation. The pyritic black shales intersected by MND06 are probably part of the Barney Creek package, and that the thick underlying dolomite is Mara Dolomite. The shales are anomalous in copper (100's of ppm Cu) indicating that the newly discovered sub-basin may contain significant base metal mineralisation. At Berjaya diamond drill hole BJD04 did not intersect the Barney Creek Formation as planned. The objective was to test for SHMS zinc-lead mineralisation within the Barney Creek Formation of the McArthur Group. Previous shallow RC drilling by Pacifico had intersected oxidized Barney Creek Formation up-dip of the proposed diamond drill hole. The diamond drill hole target was a zone of relatively high VTEM conductivity that corresponded to the apparently underlying gently dipping Barney Creek Formation. No significant base metal values were obtained. The hole passed through Cretaceous sediments with coal fragments into the Hot Springs Formation and was still in hanging wall Hot Springs Formation sediments at 300.2m when the hole terminated. It is concluded that the Barney Creek Formation is dipping more steeply than anticipated, and that the conductivity in the VTEM is reflecting wet clayey sediments of the overlying Hot Springs Formation. Potential for oxide copper mineralisation was identified at the Lorella Prospect, using Sandfire's historical drill data, which sub-outcrops beneath 20m to 30m of alluvium. Acid leach testwork on the oxide copper mineralisation from the Lorella prospect indicates that the material could be economically treatable with >90% recoveries and low net acid consumption. An aircore drill program to test for the possibility of significant tonnage was planned to commence in April 2018.