Prime Mining Corp. (“Prime”, or the “Company”) (
TSX.V:
PRYM) (
OTCQB: PRMNF) (
Frankfurt:
O4V3) is pleased to report its operating and financial
results for the three-month period ending June 30, 2022. Unless
otherwise stated, all amounts are presented in Canadian dollars.
Prime is focused on the exploration and development of its wholly
owned Los Reyes Gold-Silver Project in Sinaloa State, Mexico (“Los
Reyes” or the “Project”).
Prime Chief Executive Officer Daniel Kunz
commented, “We are currently into the rainy season at Los Reyes but
still have 5 drill rigs operating and already have completed 63,000
metres of drilling in Phase 2, for a total of 88,500 metres Phase 1
and 2 combined. In July 2022, the Company reported
results from eight drill holes at the San Miguel East deposit,
which were drilled down dip of the known structure at depth. All
eight encountered mineralization with seven of the eight extending
mineralization beyond the current historic resource. The
southernmost hole, 22SME‐11, with an 18‐metre intercept returning
2.72 gpt Au and 129.8 gpt Ag (16.9 m etw), was intersected outside
the previously reported pit‐constrained resource.”
Corporate Highlights During the
Quarter
On May 10th, the Company announced financial
results for the three-month period, ending March 31st, 2022. On
June 8th, the Company announced upgrading to trade on the OTCQX
under the symbol PRMNF
Exploration Highlights During the
QuarterOn April 12th, the Company announced positive drill
results from 26 drill holes into its Guadalupe East deposit. These
holes intercepted the high-grade Estaca, the San Nicolas and the
San Manuel epithermal veins as well as other sub-parallel veins in
the system.
On May 2nd, the Company announced new drill
results expanding the Zapote North deposit. These results included
17 new holes targeting the northern extension of the Z-T Structure,
including 2 holes from the Mariposa deposit. This drilling
confirmed that gold-silver mineralization extends from Zapote North
to Mariposa. On June 1st, the Company announced 12 new step-out
drill holes at the Guadalupe East deposit. Six of these holes
interested high-grade gold and silver mineralization below the
current pit-constrained resource which demonstrated the strong
potential for near-pit resource expansion.
On June 29th, the Company announced 20
additional assays from its expanded Phase 2 step-out and infill
drilling program at the Tahonitas deposit on the western side of
the project. These results continued to successfully identify
shallow near surface mineralization as well as deeper
mineralization down to 450 metres above sea level.
Maintaining Health and Safety Protocols
The Company continues to successfully mitigate
the impact of Covid-19 on operations. To-date Covid-19 has not had
a material effect on the Company’s activities. Prime remains
engaged with local stakeholders and is proactive in monitoring
employees and contractors during this uncertain period. The Company
continues to closely adhere to the directives of all levels of
government and relevant health authorities in Mexico and
Canada.
Community Engagement and Environmental
Stewardship Strategy
We continued to gather environmental and
community data in the quarter to help support our ESG programs,
including completion of a materiality assessment, strategic plan
and disclosure matrix. We strive to minimize the environmental
impact of our activities and ensure that Los Reyes has a positive
impact on our host communities.
Selected Financial Data
The following selected financial data is
summarized from the Company’s consolidated financial statements and
related notes thereto (the “Financial Statements”) for the three
and six months ended June 30, 2022. A copy of the Financial
Statements and MD&A is available at www.primeminingcorp.ca or
on SEDAR at www.sedar.com.
|
Three months ended June 30, 2022 |
Three months endedJuly 31,
2021 |
Loss and comprehensive loss |
$7,063,916 |
$4,046,624 |
Loss per share - basic and diluted |
$0.06 |
$0.04 |
|
June 30, 2022 |
December 31, 2021 |
Cash |
$14,441,284 |
$27,413,707 |
Total assets |
$28,552,940 |
$41,785,376 |
Total current liabilities |
$915,536 |
$1,372,458 |
Total liabilities |
$1,779,915 |
$2,470,784 |
Total shareholders’ equity |
$26,773,025 |
$39,314,592 |
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.
Since acquiring Los Reyes in 2019, Prime has
spent approximately US$30 million on direct exploration activities
and is nearing completion of two phases of comprehensive drilling
totaling over 87,000 metres and growing. Results to date suggest
the eight known deposits are much larger than previously reported
and potential exists for new discoveries outside of current defined
resource areas.
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 Bowering
Executive Vice President and DirectorPrime
Mining Corp.710 – 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 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. 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 a number of 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 April 22, 2022, 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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