Prime Mining Corp. (“Prime” or the
“Company”) (TSX-V: PRYM, OTCQB: PRMNF, Frankfurt:
04V3) announces additional assays from its expanded Phase 2
step-out and infill drilling program at Los Reyes now planned to
70,000 metres. The project hosts an existing multi-million-ounce
gold and silver resource located in the mining friendly
jurisdiction of Sinaloa, Mexico. Today’s results are from 20
step-out drill holes into the Tahonitas deposit located on the
western side of the project and one of eight known gold-silver
deposits that comprise the resource (see Figures 1 and 2).
Chief Executive Officer, Daniel Kunz comments,
“We are highly encouraged by the continuing high-grade intercepts
of open pit and underground gold-silver mineralization being
encountered in our first two formal drill campaigns at Los Reyes.
Today’s results further support the significance of the Z-T
Structure at the western end of Los Reyes, from Mariposa to
Tahonitas, which is now delineated over a strike length of 3
kilometres, a vertical extent of 200 to 300 metres and average
thickness of 5 to 30 metres. Importantly, our drilling at both the
western and eastern deposits continues to intersect multiple veins
down-hole and is improving our overall confidence in the continuity
of the veins at depth and along strike. The remainder of the Phase
2 program will continue to step-out along strike and at depth and
will target under-drilled areas within the growing resource.”
Highlight Drill Intercepts
Tahonitas
- 6.08 grams per tonne (“gpt’) gold
(“Au”) and 103.5 gpt silver (“Ag”) over 3.4 metres (‘m”) (2.9 m
estimated true width (“etw”)) including 13.5 gpt Au and 123.1 gpt
Ag over 1.3 m (1.1 m etw) (22TA-18);
- 3.12 gpt Au and 24.5 gpt Ag over
4.5 m (3.1 m etw) including 7.67 gpt Au and 34.4 gpt Ag over 1.5 m
(1.4 m etw) (22TA-23);
- 1.37 gpt Au and 11.4 gpt Ag over
10.5 m (6.7 m etw) (22TA-29);
- 0.86 gpt Au and 51.1 gpt Ag over
13.5 m (9.5 etw), including 4.36 gpt Au and 228.0 gpt Ag over 1.5 m
(1.1m etw) (22TA-17);
- 0.92 gpt Au and 104.4 gpt Ag over
4.5 m (3.9 m etw) including 1.97 gpt Au and 244.0 gpt Ag over 1.5 m
(1.3 m etw) (22TA-27).
- 0.99 gpt Au and 41.4 gpt Ag over
4.5 m (2.2 m etw) including 2.28 gpt Au and 37.7 gpt Ag over 1.5 m
(0.8 m etw) and 1.59 gpt Au and 2.20 gpt Ag over 1.5 m (0.8 m etw)
(22TA-31).
To date, Prime has drilled approximately 81,000
metres and completed 310 holes at Los Reyes. The Phase 2 program
has now completed 54,466 metres, with drilling planned to continue
until the end of October. To date, 188 Phase 2 drill holes have
been completed and 5 drills continue to operate. Including the
drilling results herein, 216 drill holes have been released and 94
are pending.
Tahonitas
Limited drilling was completed in Phase 1 at
Tahonitas due to difficult access. For Phase 2, access was
improved, and current drilling has continued to successfully
identify shallow near surface mineralization as well as deeper
mineralization down to 450 metres above sea level (“masl”) as in
22TA-31 where the deepest intercept was over 200 m below the
previously reported pit-constrained resource. Drilling has
continued to test the mineralized structure to connect the
pit-constrained resource of Tahonitas to the north with Zapote
South, as well as further testing of Tahonitas at depth and assays
are pending and further holes are planned. Additional road access
is planned to be completed after the current rain season as
drilling will continue to step out to the southeast following along
strike the structure and open mineralization encountered to date
(See Figures 2 and 3).
Link 1- PDF
FiguresLink 2 – PDF Drill Hole
Table
Advisory Agreement Renewed
The Company also announces it has renewed the
engagement with an arms-length financial advisory firm (the
“Advisor”) to assist the Company in various strategic and capital
markets initiatives. The Advisor has been engaged for an additional
term of twenty-four months. In connection with the engagement, the
Advisor has received a one-time fee of 1,000,000 Warrants. Each
share purchase warrant is exercisable to acquire a common share of
the Company at a price of $3.00 per share for a period of
thirty-six (36) months from the date of issuance.
QA/QC Protocols and Sampling
Procedures
Drill core at the Los Reyes project is drilled
in predominately HQ size (63.5 millimetre “mm”), reducing to NQ or
BQ size ranges (47.6 mm and 36.5 mm respectively) when required.
Drill core samples are generally 1.50 m long along the core axis
with allowance for shorter or longer intervals if required to suit
geological constraints. Each entire hole is split, and one half is
submitted for assay. RC drilling returns rock chips and fines from
a 133.35 mm diametre tricone bit. The returns are homogenized and
split into 2 halves, one submitted for analysis and the other
stored.
Sample QA/QC measures of unmarked certified
reference materials, blanks, and field duplicates as well as
preparation duplicates are inserted into the sample sequence and
make up approximately 8% of the samples submitted to the lab for
each drill hole.
Samples are picked up from the Project by the
laboratory personnel and transported to their facilities in Durango
or Hermosillo Mexico, for sample preparation. Sample analysis is
carried out by Bureau Veritas and ALS Labs, with fire assay,
including over limits fire assay reanalysis, completed at their
respective Hermosillo, Mexico laboratories and multi-element
analysis in North Vancouver, British Columbia, Canada. Drill core
sample preparation includes fine crushing of the sample to at least
70% passing less than 2 mm, sample splitting using a riffle
splitter, and pulverizing a 250-gram split to at least 85% passing
75 microns.
Gold in diamond drill core is analyzed by fire
assay and atomic absorption spectroscopy of a 30 g sample (code
FA430 or Au-AA23). Multi-element chemistry is analyzed by 4-Acid
digestion of a 0.25-gram sample split (code MA300 or ME-ICP61) with
detection by inductively coupled plasma emission spectrometer for a
full suite of elements.
Gold assay techniques FA430 and Au-AA23 have an
upper detection limit of 10 ppm. Any sample that produces an
over-limit gold value via the initial assay technique is sent for
gravimetric finish via method FA-530 or Au-GRA21. Silver analyses
by MA300 and ME-ICP61 have an upper limit of 200 ppm and 100 ppm,
respectively. Samples with over-limit silver values are reanalyzed
by fire assay with gravimetric finish FA530 or Au-GRA21.
Both Bureau Veritas and ALS Labs are ISO/IEC
accredited assay laboratories. Drill core assay results range from
below detection to 200 gpt gold and 4,955.0 gpt silver. Composite
intervals use a cut-off grade of 0.20 gpt gold.
Qualified Person
Scott Smith, P.Geo., Executive Vice President of
Exploration, is a qualified person for the purposes of National
Instrument 43-101 and has reviewed and approved the technical
content in this news release.
Los Reyes Gold and Silver
Project
Los Reyes is a rapidly evolving high-grade, low
sulphidation epithermal gold-silver project located in Sinaloa,
Mexico, within the prolific Sierra Madre mining region. Historic
operating results indicate that an estimated 1 million ounces of
gold and 60 million ounces of silver were recovered from five
separate operations at Los Reyes between 1770 and 1990. Prior to
Prime’s acquisition, recent operators of Los Reyes had spent
approximately USD 20 million on exploration, engineering, and
prefeasibility studies. The Project remains underexplored as only
40% of the known structures have been systematically drilled,
leaving 10 kilometres of untested strike length. Los Reyes holds
potential for additional discovery and resource expansion.
Los Reyes hosts a pit-constrained measured and
indicated resource of 0.63 million gold and 16.6 million silver
ounces plus inferred resources of 0.18 million gold and 6.8 million
silver ounces inferred across the west (Z-T Structure), central,
and east (Guadalupe) deposits. Additional prospects exist for
property-wide underground resources and for open pit resources in
the central zone at Las Primas and Fresnillo and further east at
Orito and Mina.
Prime Mining acquired Los Reyes in 2019,
completed initial data compilation that included 51,000 metres of
historical drilling, field mapping and trenching in 2020, and in
2021, executed a Phase 1 exploration program that included 25,650
metres of drilling. Results suggest the eight known deposits are
much larger than previously reported and potential exists for new
discoveries outside of current defined resource areas. The Company
is currently undertaking an expanded 70,000 metre Phase 2
exploration program.
About Prime Mining
Prime Mining is an ideal mix of successful
mining executives, strong capital markets personnel, and
experienced local operators focused on unlocking the full potential
of the high-grade Los Reyes Gold-Silver Project in Mexico. Prime
Mining has a well-planned capital structure with significant team
and insider ownership.
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:
daniel@primeminingcorp.ca
Andrew BoweringExecutive Vice
President and DirectorPrime Mining Corp.710 – 1030 West Georgia
StreetVancouver, BC, V6E 2Y3Telephone: (604) 428-6128email:
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
This news release contains certain
“forward-looking information” and “forward-looking statements”
within the meaning of Canadian securities legislation as may be
amended from time to time, including, without limitation,
statements regarding the perceived merit of the Company’s
properties, including additional exploration potential of Los
Reyes, potential quantity and/or grade of minerals, the potential
size of the mineralized zone, metallurgical recoveries, the timing
and results of permitting and the Company’s exploration and
development plans in Mexico and expectations on the potential
extension of the expired mineral concessions and granting of new
mineral concessions with respect to El Rey. Forward-looking
statements are statements that are not historical facts which
address events, results, outcomes, or developments that the Company
expects to occur. Forward-looking statements are based on the
beliefs, estimates and opinions of the Company’s management on the
date the statements are made, and they involve several risks and
uncertainties. Certain material assumptions regarding such
forward-looking statements were made, including without limitation,
assumptions regarding the price of gold, silver and copper; the
accuracy of mineral resource estimations; that there will be no
material adverse change affecting the Company or its properties;
that all required approvals will be obtained, including concession
renewals and permitting; that political and legal developments will
be consistent with current expectations; that currency and exchange
rates will be consistent with current levels; and that there will
be no significant disruptions affecting the Company or its
properties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements involve significant known
and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated. These risks
include, but are not limited to: risks related to uncertainties
inherent in the preparation of mineral resource estimates,
including but not limited to changes to the cost assumptions,
variations in quantity of mineralized material, grade or recovery
rates, changes to geotechnical or hydrogeological considerations,
failure of plant, equipment or processes, changes to availability
of power or the power rates, ability to maintain social license,
changes to interest or tax rates, changes in project parameters,
delays and costs inherent to consulting and accommodating rights of
local communities, environmental risks, title risks, including
concession renewal, commodity price and exchange rate fluctuations,
risks relating to COVID-19, delays in or failure to receive access
agreements or amended permits, risks inherent in the estimation of
mineral resources; and risks associated with executing the
Company’s objectives and strategies, including costs and expenses,
as well as those risk factors discussed in the Company's most
recently filed management's discussion and analysis, as well as its
annual information form dated August 31, 2021, available on
www.sedar.com. Except as required by the securities disclosure laws
and regulations applicable to the Company, the Company undertakes
no obligation to update these forward-looking statements if
management’s beliefs, estimates or opinions, or other factors,
should change.
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