Prime Mining Corp. (“Prime” or the
“Company”) (TSX-V: PRYM, OTCQB: PRMNF, Frankfurt:
04V3) announces additional assays from the Phase 2 step-out and
infill drilling program at Los Reyes. The project hosts an existing
multi-million-ounce gold and silver resource and is located in the
mining friendly jurisdiction of Sinaloa, Mexico. Today’s results
are from 8 drill holes at the San Miguel East deposit located in
the western part of Los Reyes targeting mineralization below the
current resource. San Miguel East is one of eight known gold-silver
deposits that comprise the resource at Los Reyes (see Figure 1).
Chief Executive Officer, Daniel Kunz commented,
“Our ongoing Phase 2 drilling of step out holes at San Miguel East
has made discoveries of both mill and heap leach grade
mineralization that are expanding the potential resource at this
deposit. Once again, our drilling continues to intersect multiple
veins down-hole that increase the resource potential. We also
expect that the deposit will grow along strike to the southeast
eventually connecting with the nearby Noche Buena deposit.”
Highlight Drill Intercepts
San Miguel
East
- 2.72 grams per tonne (“gpt”) gold
(“Au”) and 129.8 gpt silver (“Ag”) over 18.0 metres (“m”) (16.9 m
estimated true width (“etw”)) and 1.24 gpt Au and 14.0 gpt Ag over
3.0 m (2.6 m etw) and 1.12 gpt Au and 4.2 gpt Ag over 3.0 m (2.3 m
etw) (22SME-11);
- 4.86 gpt Au and 151.5 gpt Ag over
6.1 m etw and 3.96 gpt Au and 2.0 gpt Ag over 1.2 m etw and 1.51
gpt Au and 5.3 gpt Ag over 1.8 m etw
(22SME-13);
- 1.88 gpt Au and 283.7 gpt Ag over
2.9 m (2.6 m etw) (22SME-10);
- 1.25 gpt Au and 67.2 gpt Ag over
6.0 m (5.4 m etw) (22SME-14).
To date, Prime has drilled approximately 83,235
metres and completed 323 holes at Los Reyes. The Phase 2 program
has now completed 57,585 metres, with drilling planned to continue
until the end of October. To date, 201 Phase 2 drill holes have
been completed and 6 drills continue to operate. Including the
drilling results herein, 224 drill holes have been released and 99
are pending.
San Miguel East
The 8 drill holes at San Miguel East were
drilled down dip of the known structure at depth. All 8 encountered
mineralization with 7 of the 8 extending mineralization beyond the
current historic resource. The southernmost hole, 22SME-11, with an
18-metre intercept listed above, was at 560 metres above sea level.
South of this hole is open along strike with potential to expand
the San Miguel East deposit and connect it with the nearby Noche
Buena deposit.
Mineralization at San Miguel East consists
primarily of white to grey crystalline to chalcedonic quartz,
quartz breccia and stockwork exploiting 45-degree southwest dipping
fault structures within or along the margins of rhyolite dykes that
intrude both andesitic tuffs and rhyolite. Quartz is
massive-to-crustiform, locally displaying colliform to bladed
replacement textures. Higher-grade intervals are marked by finely
banded green adularia. Gold distribution appears to be zoned within
the quartz bearing structure. Computer 3D modelling of grades is
suggesting a steep south-southeast rake of the higher-grade
internal zone.
Link 1 – PDF
FiguresLink 2 – PDF Drill Hole
Tables
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 163.0 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.
Based entirely on historic drilling by prior
operators, 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 (Zapote and Tahonitas), 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 a 50,000 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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