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Prime Mining Corp
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Close 2022-03-07 C$ 4.14
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Prime Mining drills 1.5 m of 11.60 g/t Au at Los Reyes

2022-03-08 09:40 ET - News Release

Mr. Daniel Kunz reports

PRIME DRILLING AT GUADALUPE EAST SHOWS MARGINAL IMPACT OF HISTORICAL MINING ON POTENTIAL OPEN PIT RESOURCES

Prime Mining Corp. has released continuing positive drill results from a key drill hole at Guadalupe East, one of eight known gold-silver deposits, at its wholly owned Los Reyes gold-silver project in Sinaloa State, Mexico.

Drill hole 22GE-33, located on the west side of the Guadalupe East conceptual open pit, struck a 41.6-metre-long mineralized intercept within the high-grade Estaca vein that includes a 4.5-metre cavity of a historic mining stope (old mine opening). A 1.5-metre mineralized intercept in the hanging wall, the 4.5-metre mining stope, and a 35.6-metre estimated true width mineralized interval in the footwall reveals that considerable mineralization remains in place despite previous small-scale underground mining of the high-grade Estaca structure.

Estaca vein with historical stope intercept (22GE-33)

  • 11.60 grams per tonne gold and 219 g/t silver over 1.5 m (1.2 m estimated true width (ETW));
  • 4.5 m (3.7 m ETW) cavity from historic underground small-scale mining;
  • 3.67 g/t Au and 120.5 g/t Ag over 35.6 m (29.2 m ETW) including 6.57 g/t Au and 137.2 g/t Ag over nine m (7.4 m ETW) and including 8.39 g/t Au and 321.0 g/t Ag over 2.6 m (2.1 m ETW).

Drill hole 22GE-32, drilled east of the current Guadalupe East conceptual open-pit boundary, intercepted a 3.8-metre cavity followed by a 10.3-metre intercept of high-grade mineralization. Final assay results for this drill hole, and several others from Guadalupe East, are expected shortly and will be released upon receipt.

Chief executive officer of Prime Mining, Daniel Kunz, commented: "We do not normally release a single drill hole, but these results provide important information. Wide mineralized intercepts alongside historic stopes are confirming that underground mining at Guadalupe East did not extract much of the major mineralization. Further, these new drill holes are located within our conceptual open pit. We have reviewed all the cavities encountered in our drilling and believe that previous historical underground mining will not materially impact the resource potential at Los Reyes."

Eight drill rigs are currently operating at Los Reyes in the phase 2 program with four drill rigs now at Guadalupe East. Drilling at Guadalupe East is testing the San Nicholas, San Manuel and Estaca veins along strike and at depth and targeting the known extensions of current open pit resources. Phase 2 drilling also includes additional shallow drilling to determine the extent and alignment of near-surface resources from the San Nicolas and San Manuel veins that could potentially be mined in conjunction with the main Guadalupe East pit-constrained resource.

There are currently 15 pending drill holes at Guadalupe East out of a total of 49 completed project drill holes pending release subject to completion of additional drilling nearby, receipt of assay results, and/or receipt of quality assurance/quality control checks.

QA/QC 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. RC drilling returns rock chips and fines from a 133.35-millimetre-diametre tricone bit. The returns are homogenized and split into two 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 per cent 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 overlimits fire assay reanalysis, completed at their respective Hermosillo, Mexico, laboratories 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.

Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30-gram sample (code FA430 or Au-AA23). Multielement chemistry is analyzed by four-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 parts per million. Any sample that produces an overlimit 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 overlimit 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 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 is 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 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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