SOURCE: Pacifica Resources Ltd.

February 06, 2007 08:15 ET

Pacifica Resources Plans $25 Million 2007 Exploration and Development Program

VANCOUVER, BC -- (MARKET WIRE) -- February 6, 2007 -- Pacifica Resources Ltd. (TSX-V: PAX) is pleased to inform investors of its exploration plans for the Selwyn Project for 2007. The 2007 program is estimated to cost approximately $25 million and include at least 40,000 metres of diamond drilling and extensive environmental and engineering studies. This program is focused on providing detailed information for completion of a detailed prefeasibility study and to support a permitting application in early 2008.

The 2006 program was very successful with the completion of more than 40,000 metres of drilling that resulted in the confirmation of near surface mineralization in Don Valley opening up a new 8 kilometre long trend for possible open pit development. The drilling also traced the mineralized Active Member an additional 9 kilometres to the northwest with discovery of the Pelly North and OP West zones; extending mineralization in the Active Member to 37.5 kilometres (see January 29, 2007 news release). However, perhaps the most important new development was the discovery of higher grade mineralization at depth in the XY, HC West, Don and Anniv Central zones (see January 24 and February 5, 2007 news releases). Exploration expenditures in 2006 totalled approximately $20 million and included significant infrastructure investment.

The Preliminary Assessment of the development alternatives and project economics, completed in January 2007, indicated that the Selwyn Project has the potential to provide large operating cash flows and an attractive return on investment (see January 18, 2007 news release). The economic evaluation study was based on the resource inventory completed in February 2006 and indicated annual production of approximately 278,000 tonnes of zinc in concentrate and 93,000 tonnes of lead in concentrate that would make it the fourth largest zinc mine in the world. A new resource model is in progress for all of the various zones drilled in 2006 and when completed will be included in an updated economic evaluation that will provide additional focus to the 2007 program activities.

The drilling plan for 2007 has two prime objectives; first, is in-fill drilling to upgrade resources in the open pits targeted for initial development; and second, to determine the extent and continuity of high grade mineralization in the various zones over the 21 kilometres separating the XY and Anniv Central zones. Drilling of these deeper targets has the potential to define substantial resources supporting early development of a bulk tonnage underground mine, complementing the open pit production, and providing a significant boost to overall planned production.

The collection of baseline environmental information began in 2006 and will be continued in 2007, with a goal of completing the acquiring of information necessary for filing an environmental assessment report in early 2008. The large Selwyn Project is expected to take 3 to 4 years to permit. The ores and host rocks are generally not acid generating, simplifying water management issues. Preliminary evaluation of the development plan suggests that the project can be developed without significant environmental impacts. Pacifica is initiating socio-economic impact discussions with affected First Nations towards completion of a socio-economic participation agreement at the earliest possible opportunity.

The 2007 program will advance the Selwyn Project as a major new zinc-lead development program. The Selwyn Project exploration and development program is supervised by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo. The onsite activities for the Selwyn Project are directed by Exploration Manager, John J. O'Donnell, P.Geo. Both Mr. Dunning and Mr. O'Donnell are Qualified Persons within the meaning of National Instrument 43-101. Mr. Brian Chandler, P.Eng. is Project Manager for engineering and the environmental and permitting activities are under the leadership of Mr. Justin Himmelright, Vice President of Environment and Community Affairs.

Pacifica's main focus is the exploration of its Selwyn Project in eastern Yukon and Northwest Territories. The Selwyn Project hosts very large tonnages of zinc-lead mineralization that have the potential for large scale production of zinc and lead, at a time when the World's zinc mine supply is in deficit and there are few large new zinc-lead mines under development. Pacifica announced its plan to undertake a reorganization of its assets and create a new exploration company, positioning Pacifica to focus on the development of the Selwyn Project under a new name Selwyn Resources Ltd. (see January 29, 2007 news release).

This press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. Additional drilling is required to confirm the potential of the new discovery areas and expansions of the current resource areas and the extension of the higher grade deep mineralization to depth. Furthermore, there is no assurance that the resources being defined can be developed as an economically attractive mine, and there are many uncertainties associated with permitting and other factors that could delay such development.


Contact Information

  • For more information contact:
    Dr. Harlan Meade
    President and CEO
    Jasmin TamDoo
    Manager of Investor Communications
    Telephone: (604) 682-5474
    Toll-free: 1-877-682-5474
    International Toll-free: 800-8682-5474
    Facsimile: (604) 682-5404
    Email Contact

    Pacifica Resources Ltd.
    #701 - 475 Howe Street
    Vancouver, British Columbia
    Canada V6C 2B3