Prime Mining Corp. (the “
Company”) (
TSX.V:
PRYM)
(OTCQB: PRMNF) (
Frankfurt:
A2PRDW) reported today that results from the Company’s
ongoing surface sampling exploration program on the Los Reyes
project continue to show outcropping surface mineralization
consistent with the subsurface historic drilling results, this time
from Noche Buena.
Surface trench NB-4490N returned 42.0 metres
(“m”) at 1.93 grams per tonne (“gpt”) gold (“Au”) and 25.7 gpt
silver (“Ag”). Based on area mapping, trench NB-4490N has an
18.0 m estimated true width (“etw”). This trench included a 9.0 m
interval (4.0 m etw) with 7.46 gpt Au and 98.1 gpt Ag.
Sampling started in mineralization and crews are extending
the trench to ensure the full width of the zone is tested.
These results show that grades and widths of the mineralized
structure at the south end of Noche Buena are consistent with
subsurface historic drilling results. Noche Buena remains open
along southeast strike.
Prime Mining’s COO Gregory Liller said, “Our
initial resource estimate for Noche Buena did not have the benefit
of any surface trench sampling. The eight Los Reyes zones
contain historic drilling but, prior to our work, had little or no
outcrop surface sampling. Prime’s sampling program is
generating high-grade gold and silver results over potentially
mineable intervals inside the current pit-constrained resource
model boundaries. With these excellent results, we are
confident that the gold and silver mineralized material is already
expanding as we prepare for our drilling program in the coming
weeks.”
Noche Buena is currently modeled as an oxide
open-pit estimated to contain Measured and Indicated mineral
resources of 2,239,000 tonnes containing 62,000 ounces (“oz”) Au at
0.86 gpt and 1,554,000 oz Ag at 21.59 gpt, plus a pit-constrained
Inferred resource of 1,123,000 tonnes containing 26,000 oz Au at
0.73 gpt plus 626,000 oz Ag at 17.34 gpt. Noche Buena is one
of the eight areas that make up the current Los Reyes Measured and
Indicated pit-constrained mineral resource of 19,752,000 tonnes
containing 633,000 oz Au at 1.00 gpt Au, plus 16,604,000 oz Ag at
26.2 gpt an Inferred pit-constrained mineral resource of 7,094,000
tonnes with 179,000 oz Au at 0.78 gpt plus 6,831,000 oz Ag at 30.0
gpt. (See Prime’s April 2, 2020 news release).
Noche Buena is the southernmost zone along the
San Miguel West – San Miguel – Noche Buena trend. The
mineralized structure at Noche Buena strikes 140° and dips between
50°-60° to the southwest. The zone has a drill-tested strike length
of approximately 560 metres and a true width of between 10 and 40
metres within the current resource model. The zone has been
traced intermittently for approximately 1.1 kilometres between
Upper Sequence rhyolite in the southeast and its intersection with
the San Miguel vein in the northwest.
Sampling Highlights
Rock chip sampling at Noche Buena is confirming
the true area and grade of gold and silver mineralization
outcropping at surface and is expected to result in an increase in
the overall resource size. Surface trench NB-4490N cuts at an angle
across the structure and returned 42.0 m (18.0 m etw) at 1.93 gpt
Au and 25.7 gpt Ag, including a 9.0 m (4.0 m etw) interval with
7.46 gpt Au and 98.1 gpt Ag.
Other results include: Trench NB-4660N that
returned 52.5 m at 0.9 gpt Au and 13.4gpt Ag, including 1.5 m at
9.84 gpt Au and 18.4 gpt Ag as well as Trench NB-4700N that
returned 33.0 m at 1.0 gpt Au and 19.7 gpt Ag, including 1.5 m at
6.17 gpt Au and 81.1 gpt Ag.
Table 1 highlights results from the current
trench rock chip channel sampling program at Noche Buena.
Table 1 – Noche Buena Surface Trench Rock
Chip Sampling Results
Trench # |
From(m) |
To(m) |
Interval (m)(etw) |
Gold(g/t) |
Silver(g/t) |
NB-4490N |
0 |
42.0 |
42.0 (18.0) |
1.93 |
25.7 |
including |
0 |
9.0 |
9.0 (4.0) |
7.46 |
98.1 |
NB-4550N |
0 |
16.5 |
16.5 |
1.28 |
102.6 |
including |
0 |
3.0 |
3.0 |
4.74 |
489.5 |
NB-4550N |
43.5 |
45.0 |
3.0 |
6.28 |
54.9 |
NB-4550N |
52.5 |
54.0 |
3.0 |
1.28 |
28.53 |
NB-4575N |
0 |
16.5 |
16.5 |
0.89 |
14.2 |
including |
3.0 |
4.5 |
1.5 |
4.31 |
20.2 |
NB-4590N |
9.0 |
25.5 |
16.5 |
0.78 |
15.0 |
NB-4590N |
42.0 |
46.5 |
4.5 |
1.26 |
10.8 |
NB-4625N |
0 |
42.0 |
42.0 |
0.85 |
20.4 |
including |
22.5 |
25.5 |
3.0 |
4.64 |
103.0 |
NB-4660N |
1.5 |
54.0 |
52.5 |
0.9 |
13.4 |
including |
19.5 |
21.0 |
1.5 |
5.91 |
29.7 |
including |
49.5 |
51.0 |
1.5 |
9.84 |
18.4 |
NB-4675N |
0 |
16.5 |
16.5 |
0.51 |
23.6 |
NB-4675N |
22.0 |
44.5 |
22.5 |
0.46 |
5.8 |
NB-4700Na |
21.0 |
54.0 |
33.0 |
1.00 |
19.7 |
including |
33 |
34.5 |
1.5 |
6.17 |
81.1 |
NB-4700Nb |
0 |
12.0 |
12.0 |
0.43 |
21.5 |
NB-4750N |
6.0 |
10.5 |
4.5 |
0.52 |
2.0 |
NB-4750N |
18.0 |
22.5 |
4.5 |
0.64 |
4.6 |
NB-4750N |
30.0 |
40.5 |
10.5 |
0.82 |
11.4 |
NB-4950N |
10.5 |
12.0 |
1.5 |
1.04 |
8.4 |
NB-4950N |
16.5 |
19.5 |
3.0 |
0.31 |
0.1 |
NB-4950N |
28.5 |
39.0 |
10.5 |
2.01 |
6.7 |
including |
31.5 |
36.0 |
4.5 |
3.85 |
7.7 |
NB-5000N |
7.5 |
13.5 |
6.0 |
0.41 |
7.0 |
NB-5050N |
25.5 |
28.5 |
3.0 |
0.85 |
22.1 |
Several roadcut outcrop channel samples have
been collected at Noche Buena including along a road that is
parallel to the structure. Roadcut NB-RS-2 returned 24 m at 0.48
gpt Au and 24.5 gpt Ag, including 1.5 m at 15.2 gpt Au and 146.1
gpt Ag.
Table 2 summarizes roadcut outcrop rock chip
channel sample results at Noche Buena.
Table 2 – Noche Buena Roadcut Outcrop
Rock Chip Sampling Results
Road # |
From(m) |
To(m) |
Interval(m) |
Gold(g/t) |
Silver(g/t) |
NB-RS1 |
0 |
4.5 |
4.5 |
1.01 |
2.8 |
NB-RS2 |
12.0 |
21.0 |
9.0 |
0.49 |
7.1 |
NB-RS2 |
40.5 |
64.5 |
24.0 |
0.48 |
24.5 |
NB-RS2 |
78.0 |
81.0 |
3.0 |
1.08 |
13.4 |
including |
46.5 |
48.0 |
1.5 |
15.2 |
146.1 |
including |
60 |
61.5 |
1.5 |
6.98 |
14.1 |
NB-RS4 |
0 |
3.0 |
3.0 |
1.58 |
4.75 |
Readers are encouraged to refer to Los Reyes –
Surface Sampling Progress Figures 20, 21, 22, and 23 for all the
trench sample results and graphic representation of each trench
location at: https://primeminingcorp.ca/maps-technical-data. Photos
of the project area and current sampling operations are available
at https://primeminingcorp.ca/gallery.
The Los Reyes project is a low sulphidation,
gold-silver epithermal system with eight adjacent areas currently
included in the resource model. The surface bedrock sampling
program continues to provide additional valuable information for
planning expanded exploration and future mining. Presently, field
crews are continuing the collection of surface and subsurface
samples from several areas of the project. To date, 4,946 trench,
road-cut and underground samples have been submitted for assay.
Assay results range from below detection to 48.30 gpt Au and
1,250.0 gpt Ag. Composite intervals use a cut-off grade of 0.2 gpt
Au.
QA/QC Protocols and Sampling
Procedures
Surface 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 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. Estimated true widths of
mineralized zones have not been calculated from the surface
sampling program except where specified.
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 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. Bureau Veritas is an ISO/IEC accredited
laboratory.
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.
Los Reyes Gold and Silver
Project
The 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 2.5 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 100% owned Los Reyes gold and silver
project in Sinaloa, Mexico. Current Measured and Indicated
pit-constrained oxide mineral resources for the Property include
19.8 million tonnes containing 633,000 oz Au at 1.0 gram per tonne
and 16,604,000 oz Ag 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
OfficerFor 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) 428-6430Email: 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
Information
Information 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.
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