Prime Mining Corp. Provides Exploration Strategy Update Major Exploration Program Underway at Los Reyes
July 16 2020 - 8:00AM
Prime Mining Corp. (
TSX.V: PRYM)
(OTCQB:
PRMNF) (
Frankfurt: A2PRDW)
(“
Prime” or the “
Company”) is
pleased to provide an update regarding the initial phase of
exploration planned for its Los Reyes gold and silver project in
Sinaloa, Mexico ( “
Los Reyes”). The program is
expected to cost approximately $6 million and has a targeted
completion date of late Q1/2021.
The Phase 1 program is focused on: upgrading and
expanding the current mineral resource; testing identified zones of
high-grade gold and silver potential; and advancing our
understanding of the geology and structural controls of the known
deposits on the property. Los Reyes has well established estimated
Measured and Indicated resources of 19.8 million tonnes containing
633,000 gold ounces at 1.0 gram per tonne (“gpt”) and 16,604,000
silver ounces at 26.2 gpt. There is a significant opportunity to
expand this resource by drilling deeper within the known deposits
and exploring the structures between and beyond the eight known
deposits. Resources at Los Reyes are limited by the depth of
drilling, where historic drilling has not exceeded about 200 meters
below surface, and by the lack of systematic exploration on some
60% of the known mineralized structures.
Additional details regarding this exploration
program are in the Company’s presentation online at
https://bit.ly/2WmktD2 *
Surface Trench Sampling and
DrillingPrime is executing a planned 10,000-meter drilling
and surface trench sampling program employing a three-pronged
approached:
- Increase current mineral resource confidence:
Upgrade 7.1 million tonnes of Inferred mineral resources to the
Measured and Indicated category, which currently contains 19.75
million tonnes at 1.0 gpt gold and 26.2 gpt silver:
- 2,000 meters of surface rock chip sampling in trenches
- 1,500 meters of drilling in 12 to 15 shallow drill holes
- Focus areas include Noche Buena, Tahonitas, and Zapote
including surface rock chip sampling in trenches at San Miguel East
and San Miguel West
- Expand resource immediately: Add gold and
silver ounces by drilling along strike and down dip in areas
adjacent to the existing 8 open pit-constrained mineral resource
areas:
- 1,500 meters of surface rock chip sampling in trenches
- 3,500 meters of drilling with some holes reaching a depth of
200 meters
- Focus areas include the mineralized structures at Zapote, San
Miguel East, and south-east extensions to Noche Buena and
Tahonitas
- Add future targets: Define the potential the
add new gold and silver ounces in unexplored areas where existing
data and new mapping information confirm mineral potential:
- 3,500 meters of surface rock chip sampling in trenches
- 5,000 meters of drilling with some holes reaching a depth of
350 meters
- Focus areas include potential mineralized structures extending
between San Miguel East, Guadalupe East, and Las Primas, and
between Guadalupe West and the Zapote/Mariposa trend. A structural
re-interpretation indicates new northwest trending structures
parallel to the Zapote trend may exist.
Mapping and SamplingThe Company
is currently undertaking the first-ever comprehensive modern
geologic mapping effort for the entire ~6,300-hectare Los Reyes
concession area. Up to four teams are mapping the rock types,
alternations, geologic structures, and other physical features.
The Los Reyes project has had several previous
operators, so Prime will also be undertaking a comprehensive
re-logging program to improve the understanding of the geological
model. Some 13,000 meters of core from 89 historic drill holes
currently stored in Prime’s core building in Hermosillo will be
re-logged and analyzed to confirm the reported rock type,
alteration, and mineralization data. In addition, historic reverse
circulation drill reject samples stored on-site will be recovered,
re-bagged and re-logged based on the new interpretation parameters,
if and where possible. Additionally, new regional soil and rock
chip sampling and assaying will be completed with a view to
generate grass roots targets across the rest of the 6,300-hectare
concession.
Metallurgical Test WorkAll new
drill and surface rock chip sampling material sent to the assay lab
will also be analyzed for cyanide solubility using bottle roll
tests to build a strong database of metal recovery data across the
project. Prior metallurgical test work has confirmed heap leach and
mill gold and silver recovery are viable alternatives.
Execution TimelineThis first
phase of exploration will continue through the upcoming rainy
season. Surface rock chip sampling in trenches has been ongoing
since October 2019 and will continue through during Phase 1. To
date, 4,501 samples have been collected from 6,076 meters of
surface outcrop, including 2,533 trench channel samples and 1,979
roadcut channel samples. Of these, 2,282 samples have been
reported, leaving 1,650 samples to be reported. Assay results will
be released as available.
The new field mapping and core re-logging
activity has begun and is expected to be completed by September
2020. Drilling will begin shortly after the completion of these
activities, and as soon work can be safely undertaken after the end
of the rainy season.
After the rainy season and mapping work,
drilling can begin in areas with existing roads, areas where the
local ejido needs access roads for its own purposes and in areas
where portable drills can be utilized. Drilling activities in new
areas, where no land disturbance currently exists, will require
permits for land disturbance and construction of new roads. Such
environmental permit applications were submitted in March 2020 but
due to government office closures during the Covid-19 shutdown, a
recent amended application for 100 drill holes into these new areas
has been filed. Initial drill results are expected in November
2020.
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.
About Prime Mining Corp.Prime’s
management team has an ideal mix of successful capital markets and
mining executives and experienced local exploration personnel.
Prime is actively exploring the historic Los Reyes gold and silver
project in Sinaloa, Mexico. Los Reyes has 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 gpt and
16,604,000 silver ounces at 26.2 gpt. 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 Kunz
Chief Executive
Officer and Director
Prime
Mining Corp.
1307
S. Colorado Ave.
Boise, Idaho
83706
Telephone: 1-208-926-6379
office
email:
dan@dkunzassoc.com |
Andrew
Bowering Executive Vice President and DirectorPrime Mining
Corp.1507 – 1030 West Georgia StreetVancouver, BC, V6E
2Y3Telephone: 1-604-428-6128Facsimile:
1-604-428-6430email: andy@primeminingcorp.ca |
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the 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.
*Source presentation URL:
https://primeminingcorp.ca/wp-content/uploads/2020/07/Prime-Investor-Presentation-July-2020.pdf
Prime Mining (TSXV:PRYM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Prime Mining (TSXV:PRYM)
Historical Stock Chart
From Apr 2023 to Apr 2024