Pacific Rim boosts resource

The size of the Oculto silver-gold deposit in northwestern Argentina has expanded, reports Pacific Rim Mining (PFG-T).

Reno, Nev.-based Mine Development Associates estimates that the deposit contains an inferred resource of 49.5 million tonnes averaging 68.3 grams silver and 0.42 gram gold per tonne. A cutoff grade of 0.4 gram gold-equivalent per tonne was used.

The updated resource is equivalent to 108.8 million oz. silver and 664,000 oz. gold — an increase of 19% and 132%, respectively, over the previous estimate.

When a gold-equivalent cutoff of 0.8 gram is used, the resource estimate shrinks to 30.7 million tonnes averaging 92.7 grams silver and 0.62 gram gold per tonne, or 91.5 million oz. silver and 595,000 oz. gold.

For all calucations, a gold and silver price of US$300 and US$5 per oz., respectively, were used.

Pacific Rim says development of the Oculto deposit will depend on the discovery of additional ounces southwest of Oculto, on the Diablillos property and within Pacific Rim’s contiguous Fantasma property.

Barrick Gold (ABX-T) holds a 70% interest in the Diablillos project and has spent US$10.5 million on exploration.