Prime Mining Corp. (TSX.V:PRYM) (OTCQB: PRMNF)
(Frankfurt:A2PRDW) (“
Prime” or the
“
Company”) announced today that results from the
Company’s ongoing surface exploration program continue to show
significant mineralization at surface on the Los Reyes project,
this time from the Tahonitas deposit, one of eight currently known
adjacent gold-silver deposits. The Los Reyes mineralized zones are
characterized by a low sulphide epithermal system containing silica
stockwork veins that are generally formed in felsic subaerial
complexes in extensional strike slip structural settings. Low
sulphidation gold deposits are associated with magmas where ore
deposition occurs several kilometres above the intrusion, and
display certain alteration assemblages.
Tahonitas is the southernmost deposit along the
Mariposa-El Zapote-Tahonitas trend. The mineralized structure at
Tahonitas strikes 350° and dips between 45° and 60° to the
southwest. Tahonitas is hosted by andesite of the Lower Volcanic
Sequence and is capped to the east by rhyolite and aplitic dikes of
the Upper Volcanic Sequence. Mineralization occurs in silicified
host rock and veins and has a sharp footwall contact with some
veining to the hanging wall.
The current Tahonitas deposit is modeled as part
of a conceptual open pit that includes the Zapote South deposit.
The Zapote North, Zapote South and Tahonitas deposits are estimated
to include 10,198,000 tonnes Measured and Indicated containing
311,000 ounces (“oz”) gold (“Au”) at 0.95 grams per tonne (“gpt”)
and 5,637,000 oz silver (“Ag”) at 17.2 gpt. There are 2,407,000
tonnes Inferred containing 70,000 oz Au at 0.91 gpt plus 1,329,000
oz Ag at 17.2 gpt. See Prime’s April 2, 2020 news release for
complete details of the current mineral resource estimate.
The Tahonitas gold-silver deposit has a
drill-tested strike length of approximately 700 metres (“m”) and a
width of between 10 and 35 m within the current resource model.
Surface rock chip sampling at Tahonitas is designed to map the
surface expression of mineralization. Surface trench TA-TR-3b,
positioned oblique to the mineralized structure, returned 1.78 gpt
Au and 71.0 gpt Ag over 63.0 m (24.1 m true width) including two
high-grade intervals: 11.68 gpt Au and 333.9 gpt Ag over 4.5 m and
5.70 gpt Au and 292.0 g/t Ag over 6.0 m. This trench channel ended
in mineralization. About 60 m south of TR-3b, trench channel TR-2
returned 0.72 gpt Au and 18.5 gpt Ag over 30.0 m, including 1.86
gpt Au and 46.5 gpt Ag over 7.5 m.
In addition, two historic adits were sampled in
the southernmost extension of Tahonitas. In Adit 13, two contiguous
1.5 m channel samples were collected along an underground crosscut
that returned 11.5 gpt Au and 66.2 gpt Ag over 3.0 m. In Adit 10,
which is located about 50 m further southeast of adit 13, channel
samples were collected near the entrance of the adit that returned
4.5 m at 0.42 gpt Au and 66.2 gpt Ag These adit sampling results
demonstrate that at Tahonitas significant mineralization is still
open along strike and occurs beyond the current limits of the pit
constrained resource.
Table 1 – Tahonitas South Channel
Sampling Results
Trench # |
From (m) |
To (m) |
Interval (m) |
Gold (g/t) |
Silver (g/t) |
TR-1 |
12.0 |
22.5 |
10.5 |
3.24 |
46.0 |
including |
18.0 |
21.0 |
3.0 |
8.37 |
55.2 |
TR-2 |
0.0 |
30.0 |
30.0 |
0.72 |
18.5 |
including |
0.0 |
7.5 |
7.5 |
1.86 |
17.7 |
TR-3b |
21.0 |
84.0 |
63.0 |
1.78 |
71.0 |
including |
30.0 |
34.5 |
4.5 |
11.68 |
333.9 |
including |
64.5 |
70.5 |
6.0 |
5.70 |
292.0 |
TA-Adit 10 |
0.0 |
4.5 |
4.5 |
0.42 |
25.3 |
TA-Adit 13 |
0.0 |
3.0 |
3.0 |
11.5 |
66.2 |
Readers are encouraged to refer to Los Reyes –
Surface Sampling Progress Figure 9a for graphic representation at:
https://primeminingcorp.ca/maps-technical-data. Figures 1, 2 and 3
include photographs of activities included in the bedrock chip
trench sampling program. Photos of the project area and current
sampling operations are available at
https://primeminingcorp.ca/gallery.
Prime Mining’s COO Greg Liller noted, “Using low
cost trench sampling, this work aims to elevate near surface
Inferred resource to Measured and Indicated status and to expand
the known mineralization footprint at surface. Tahonitas remains
open along strike and down dip. Additional surface sampling from
trenches will be included in ongoing activities.”
The surface bedrock sampling program continues
to provide valuable information for planning expanded exploration
and future mining. Presently, field crews are collecting surface
and subsurface samples from several areas of the project. To date,
3,920 trench, road-cut and underground samples of a planned 3,500
samples have been submitted for assay. Assay results range from
below detection to 48.30 gpt Au and 1,875.0 gpt Ag. Composite
intervals use a cut-off of 0.2 gpt Au.
QA/QC Protocols and Sampling
ProceduresSurface sampling is targeting wide outcropping
zones of hard quartz bearing altered bedrock. In hand dug trenches,
local shallow overburden is removed to expose the mineralized
bedrock material. Sample collection consists of crews, using
hammers and chisels, chipping continuous 1.5 m channels to produce
approximately 8 to 10 kilograms of material for each 1.5 m sample
interval. The larger rocks within the collected material is then
broken with a hammer to homogenize them to a standard size. On a
canvas mat the collected material was mixed, divided and bagged.
The bagged samples are then trucked to a lab for prep and assay.
Similar samples are also collected from exposed road cuts and from
open underground adit areas across mapped and unmapped
structures.
Quality control of the sampling program includes
the insertion of reference standards and blanks as well as reject
duplicate analysis to monitor the integrity of all assay results.
All samples are stored until picked up by Bureau Veritas Minerals
and transported to its laboratory in Durango, Mexico. Samples are
then dried, crushed, split and pulp samples are prepared for
analysis. Gold is determined by fire assay with an atomic
absorption spectroscopy (AAS) finish, and silver plus 34 other
elements by multi-acid digestion and ICP finish, over-limits by
fire assay and gravimetric finish.
Bruce Kienlen, P.Geo. Vice President of
Exploration, a qualified person for the purposes of National
Instrument 43-101, has reviewed and approved the technical content
in this news release.
Incentive Stock Option
Grant
Prime also announces that, pursuant to its Stock
Option Plan, it has granted stock options to certain management and
consultants to purchase an aggregate of 750,000 common shares of
the Company at a price of $1.30 per share for a period of 5 years
from the grant date. The options will vest 1/3 immediately as of
the date of grant; 1/3 six months after the date of the grant; and
1/3 twelve months after the date of the grant. This stock option
grant is subject to acceptance by the TSX Venture Exchange.
Los Reyes Gold and Silver
ProjectThe Los Reyes Gold-Silver Project is district scale
epithermal gold-silver project in a prolific mining region of
Mexico. Mineralization in the Los Reyes area is typical of low
sulfidation epithermal gold/silver systems. Over $20 million in
exploration and engineering has already been spent on the project
over 2 1/2 decades. Previous operators completed various
prefeasibility studies and plans yet held back from development due
to declining gold prices. While work completed has provided
sufficient understanding of resources to fast-track Los Reyes to
production, the bulk of work at Los Reyes has been conducted over
less than 40% of the known structures leaving significant
opportunity to expand known resources.
About Prime Mining Corp (TSX.V:
PRYM) (OTCQB: PRMNF)Prime is an ideal mix of successful capital
markets and mining executives and experienced local exploration
personnel who are expanding the exploration initiative at the
historically productive Los Reyes gold and silver project in
Sinaloa, Mexico with a current Measured and Indicated in-pit oxide
mineral resource for the Property of 19.8 million tonnes containing
633,000 gold ounces at 1.0 gram per tonne and 16,604,000 silver
ounces at 26.2 grams per tonne. Los Reyes holds substantial
resource upside based on open extensions of known resources, ten
kilometres of undrilled strike length and at least eight additional
exploration targets. Prime Mining has a well-planned capital
structure with significant management and insider ownership.
For more information please visit
www.primeminingcorp.ca and follow us on Twitter, Facebook or
LinkedIn. ON BEHALF OF THE BOARD OF DIRECTORS Daniel
KunzChief Executive Officer
For further information, please contact:
Daniel KunzChief Executive
Officer and DirectorPrime Mining Corp.1307 S. Colorado Ave.Boise,
Idaho 83706Telephone: 1-208-926-6379 officeemail:
dan@dkunzassoc.com
Andrew BoweringExecutive Vice
President and DirectorPrime Mining Corp.1507 – 1030 West Georgia
StreetVancouver, BC, V6E 2Y3Telephone: (604) 428-6128Facsimile:
(604) 428-6430E: andy@primeminingcorp.ca
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward Looking
InformationInformation set forth in this document may
include forward-looking statements. While these statements reflect
management's current plans, projections and intents, by their
nature, forward-looking statements are subject to numerous risks
and uncertainties, some of which are beyond the control of the
Company. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on these forward-looking
statements. There is no assurance the transactions noted above will
be completed on the terms as contemplated, or at all. The Company’s
actual results, programs, activities and financial position could
differ materially from those expressed in or implied by these
forward-looking statements.
Photos accompanying this announcement are
available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/9fd1a82e-6982-4d6c-973c-c675986136e0
https://www.globenewswire.com/NewsRoom/AttachmentNg/70c9d5b6-440f-419c-9d17-51959f58c69d
https://www.globenewswire.com/NewsRoom/AttachmentNg/8d65a161-cc73-4c17-a428-ff276f6460a4
https://www.globenewswire.com/NewsRoom/AttachmentNg/8628d463-50da-4538-9af5-56ef05aaea05
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