19:14:34 EST Mon 30 Jan 2023
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Prime Mining Corp
Symbol PRYM
Shares Issued 112,573,205
Close 2022-01-11 C$ 4.12
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Prime Mining hits 3.8m of 4.7g/t Au, 109g/t Ag at Reyes

2022-01-12 06:08 ET - News Release

Mr. Daniel Kunz reports

NOCHE BUENA DEPOSIT SIZE EXPANDING AT LOS REYES

Prime Mining Corp. has released new drill results from its wholly owned Los Reyes gold-silver project in Sinaloa state, Mexico.

Results reported today are from 13 new core holes at Noche Buena of 24 holes completed as part of the company's phase 1 exploration drilling with 11 holes previously reported. All 13 holes encountered potentially economic open-pit grade mineralization. Noche Buena is one of eight known gold-silver deposits at Los Reyes and is the most southeasterly deposit on the 2.3-kilometre-long Central structure. The Central structure is the least explored of the main corridors of mineralization at Los Reyes. Noche Buena remains open in both directions along strike and at depth.

Additionally, the company reports that 35 drill holes and 9,900 metres of core and RC (reverse circulation) drilling have already been completed as part of its $18-million phase 2 exploration program that began Nov. 1, 2021. The phase 2 budget includes over 50,000 m of drilling in approximately 250 drill holes targeting resource expansion and new discovery and should be complete by the end of October, 2022. Phase 2 includes 45 holes and 8,665 m of planned drilling of the Central structure, including 21 holes and approximately 4,000 m at Noche Buena. Currently there are assays pending for 40 drill holes containing over 8,200 sample intervals. The assay backlog was caused by the Christmas break and delays at the assay laboratory that are now being addressed. Drilling at Los Reyes resumed Jan. 5, there are currently six core rigs and one reverse circulation rig on site with an additional core rig expected by month-end.

Highlight drill intercepts

Noche Buena stepout drilling:

  • 3.16 grams per tonne gold and 74.5 g/t silver over 3.0 m (2.7 m estimated true width (etw)), plus 3.49 g/t Au and 82.4 g/t Ag over 1.0 m (0.9 m etw) contained within a 26.9 m (24.3 m etw) zone grading 0.91 g/t Au and 44.5 g/t Ag (21NB-22);
  • 4.75 g/t Au and 109.7 g/t Ag over 3.8 m (3.8 m etw) plus 4.83 g/t Au and 250.5 g/t Ag over 3.0 m (3.0 m etw) contained within a 19.7 m (19.7 m etw) zone grading 1.89 g/t Au and 75.8 g/t Ag (21NB-23);
  • 2.92 g/t Au and 24.3 g/t Ag over 14.8 m (12.8 m etw) plus 1.09 g/t Au and 65.6 g/t Ag over 5.0 m (4.3 m etw) (21NB-21);
  • 4.38 Au and 7.6 g/t Ag over 2.4 m (2.2 m etw) within a 13.2 m (12.0 m etw) zone grading 1.27 g/t Au and 12.65 g/t Ag (21NB-17).

Eleven phase 1 drill holes were previously released April and July, 2021 (see the table on the company's website for a list of Noche Buena drill hole results reported today and another table on the company's website for all Prime drill hole results to date).

Daniel Kunz, Prime's chief executive officer, commented: "Access constraints and topography meant that the Central structure historically received much less exploration than Guadalupe and Tahonitas-Zapote. The Central structure is a very significant 2.3 km long target that contains three known deposits at San Miguel West, San Miguel East and Noche Buena, but has only been explored over approximately 50 per cent of its strike length and mostly to a depth of only 625 m above sea level (asl). This is relatively shallow compared to the productive elevation for mineralization as encountered at Guadalupe and Tahonitas-Zapote. Taken collectively, the phase 1 Noche Buena results show that the Central structure needs to be explored along its full strike length for open-pit resources."

Central structure and Noche Buena

The Noche Buena portion of the Central structure has now been tested and mineralization identified along approximately 600 m of its known 1,000 m strike length. The structure remains open along strike and at depth both to the northwest and the southeast. Phase 2 drilling is planned to test extensions to the northwest toward San Miguel, where there is strong potential to join the two deposits, and to the southeast where the structure has been traced in surface mapping.

At Noche Buena, historic drilling encountered mineralization at depths of 150 m below surface to an elevation of predominantly 625 m asl. Phase 1 drilling has now intercepted potentially economic gold-silver mineralization down to 550 m asl.

All phase 1 drill holes at Noche Buena intersected mineralization in the main quartz-bearing structure that is associated with rhyolitic dikes, near and in a dacitic intrusive along with andesitic lithic tuffs that may be xenoliths within or in contact to the intrusive. The dikes exhibit moderate to strong silicification and locally have grey-green quartz veinlets with fine bands of adularia. The quartz is locally coarsely crystalline and where highly thickened zones are present, the mineralization is dominantly stockwork similar to mineralization on the Zapote-Tahonitas structure.

Quality assurance/quality control protocols and sampling procedures

Drill core at the Los Reyes project is drilled in predominately HQ-size (63.5 millimetres), 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. 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 per cent of the samples submitted to the lab for each drill hole.

Samples are picked up from the project by Bureau Veritas and transported to its laboratory in Durango, Mexico, for sample preparation. Sample analysis is carried out by Bureau Veritas, with fire assay, including overlimit fire assay reanalysis, completed at its Hermosillo, Mexico, laboratory and multielement analysis in North Vancouver, B.C., Canada. Drill core sample preparation includes fine crushing of the sample to at least 70 per cent passing less than two mm, sample splitting using a riffle splitter and pulverizing a 250-gram split to at least 85 per cent passing 75 microns (code PRP70-250).

Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30 g sample (code FA430). Multielement chemistry is analyzed by four-acid digestion of a 0.25-gram sample split (code MA300) with detection by inductively coupled plasma emission spectrometer for 35 elements (silver, aluminum, arsenic, barium, beryllium, bismuth, calcium, cadmium, cobalt, chromium, copper, iron, potassium, lanthanum, magnesium, manganese, molybdenum, sodium, niobium, nickel, phosphorous, lead, sulphur, antimony, scandium, tin, strontium, thorium, titanium, uranium, vanadium, tungsten, yttrium, zinc and zirconium).

Gold assay technique FA430 has an upper detection limit of 10 parts per million. Any sample that produces an overlimit gold value via the FA430 technique is sent for gravimetric finish via method FA-530. Silver analysis by MA300 has an upper limit of 200 ppm. Samples with overlimit silver are reanalyzed by fire assay with gravimetric finish (FA530).

Bureau Veritas is an International Organization for Standardization/International Electrotechnical Commission-accredited assay laboratory. Drill core assay results range from below detection to 93.80 g/t gold and 4,955.0 g/t silver. Composite intervals use a cut-off grade of 0.20 g/t gold.

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 in 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 is an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators who have united to undertake exploration drilling to expand the known gold-silver resource at the historically productive Los Reyes project in Mexico. Prime Mining has a well-planned capital structure with significant team and insider ownership.

We seek Safe Harbor.

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