Mr. Daniel Kunz reports
PRIME MINING Q2 2022 UPDATE ON EXPLORATION, REPORT TO SHAREHOLDERS AND AGM RESULTS
Prime Mining Corp. has released its operating and financial results for the second quarter of fiscal 2022, ended Oct. 31, 2021.
Prime is focused on the exploration and development of its wholly owned Los Reyes gold-silver project in Sinaloa state, Mexico.
Corporate highlights during the quarter
On Aug. 30, the company reported the exercise of 19,040,256 common share purchase warrants issued in August of 2019, resulting in gross proceeds of $9.52-million.
On Sept. 27, Prime appointed Edie Hofmeister to the board as an independent director. Ms. Hofmeister brings tremendous strength and wealth of knowledge in ESG (environmental, social and governance) matters and governmental affairs. She is an attorney who has counselled large and small multinational resource companies on legal and ESG matters for over 20 years. Most recently, she served as executive vice-president, corporate affairs, and general counsel of Tahoe Resources Inc., where she headed the legal, sustainability and government affair departments, as it moved from a small junior explorer to a mid-cap producer.
In addition, Scott Smith was appointed as executive vice-president, exploration, replacing Kerry Sparkes, who remains active with the company as a senior technical adviser and supports Mr. Smith, who will now lead exploration in its quest to continue the discovery process. Mr. Smith is a registered professional geologist and a qualified person, and has over 25 years of experience in mine production, exploration, mine start-up and advanced projects at world-class operating mines, and brownfield and greenfield situations in Canada, the United States, Peru and Chile. Mr. Smith recently worked as chief geologist for Taseko Gibraltar Mines Ltd., where he was responsible for managing geology, geotechnical, dewatering, grade control, reserve reconciliation and conversion, exploration, performance standards, and quality assurance/quality control for both production and exploration. Mr. Smith is a highly experienced manager of Latin American exploration and operating teams. His prior positions include exploration manager for Teck Resources Ltd. for Chile and Argentina based in Santiago, exploration manager for Newmont Mining Corp. at Minera Yanacocha in Peru, and senior mine geologist at Antamina mine in Peru for Compania Minera Antamina SA. Mr. Smith holds a BSc (geology) from the University of Alberta.
Exploration highlights during the quarter
On Aug. 4, the company announced the discovery of gold-silver zones in San Miguel East pit-constrained resource in addition to near-surface mineralization at Las Primas.
On Sept. 8, the company reported additional high-grade results expanding the open-pit potential at Guadalupe East.
On Oct. 12, the company confirmed strike and depth potential of the Zapote-Tahonitas mineralized structure.
Subsequent event highlights
Exploration update
On Nov. 16, the company provided an update on its planned phase 2 drill program. The phase 2 program will run from approximately November, 2021, to October, 2022, and will consist of approximately 250 new drill holes for a minimum of 50,000 metres. There are currently seven drill rigs operating on the property.
Other continuing subjects and activities critical to progress and the overall success of the project include the following.
Maintaining health and safety protocols
The company minimized 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 pro-active 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.
Continuing community engagement and environmental stewardship
The responsible stewardship of the local environment where it operates is at the heart of its corporate values. It strives to minimize the environmental impact of its activities at all times. Plus, it aims to offset its activities by engaging in outreach initiatives to improve the local environment.
Selected financial data
The attached selected financial data are summarized from the company's condensed interim consolidated financial statements and related notes thereto for the three months ended Oct. 31, 2021. A copy of the financial statements and management's discussion and analysis is available at the Prime Mining website or on SEDAR.
FINANCIAL HIGHLIGHTS
Q2 2022 Q2 2021
(Loss) and comprehensive (loss) ($5,600,423) ($2,548,756)
(Loss) per share -- basic and diluted ($0.05) ($0.03)
ADDITIONAL HIGHLIGHTS
Oct. 31, 2021 April 30,2021
Cash $29,848,024 $32,026,806
Total assets $43,961,419 $44,791,540
Total current liabilities $472,903 $894,128
Total liabilities $1,396,764 $1,812,746
Total shareholders equity $42,564,655 $42,978,794
Annual general meeting results
On Dec. 9, 2021, the company held its annual general and special meeting of shareholders, where the shareholders voted in favour of all the items put forward by the board of directors and management.
Shareholders voted in favour of the election of all director nominees: Murray John (chairman), Daniel Kunz, Andrew Bowering, Paul Larkin, Marc Prefontaine, Paul Sweeney and Ms. Hofmeister.
The shareholders also approved the following items:
- Reappointment of Davidson & Company LLP, chartered professional accountants, as auditor of the company for the ensuing year and authorizing the board to fix the remuneration of the auditor;
- Fixing the number of the directors of the company for the ensuing year at seven;
- Election of directors to hold office for the ensuing year;
- Approval of the company's stock option plan (see information circular);
- Ratification by disinterested shareholders of the long-term incentive plan (see information circular).
A total of 60,222,302 Prime common shares were voted, representing 53.50 per cent of the total issued and outstanding as at the record date of this meeting.
Qualified person
Scott Smith, PGeo, 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 one 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 $20-million (U.S.) on exploration, engineering and prefeasibility studies. The project remains underexplored as only 40 per cent 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.
Prime Mining acquired Los Reyes is 2019, completed initial data compilation, 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 deposits are much larger than previously reported, and potential exists for new discoveries outside of current defined resources. The company is currently undertaking a 50,000-metre phase 2 exploration program.
About Prime Mining Corp.
Prime Mining (member of the TSX Venture 50) is an ideal mix of successful mining executives, strong capital market 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.
The TSX Venture 50 is a ranking of the top performers in each of five industry sectors on the TSX Venture Exchange over the last year.
We seek Safe Harbor.
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