Mr. Daniel Kunz reports
PRIME MINING ANNOUNCES FINANCIAL RESULTS
Prime Mining Corp. has released its operating and financial results for the three-month period ended June 30, 2022. Prime Mining is focused on the exploration and development of its wholly owned Los Reyes gold-silver project in Sinaloa state, Mexico.
Prime Mining chief executive officer Daniel Kunz commented: "We are currently into the rainy season at Los Reyes, but still have five 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 downdip 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 grams per tonne gold and 129.8 g/t silver, was intersected outside the previously reported pit-constrained resource."
Corporate highlights during the quarter:
On May 10, the company announced financial results for the three-month period ended March 31, 2022.
- On June 8, the company announced upgrading to trade on the OTCQX under the symbol PRMNF.
Exploration highlights during the quarter:
On April 12, 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 subparallel veins in the system.
On May 2, 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 two holes from the Mariposa deposit. This drilling confirmed that gold-silver mineralization extends from Zapote North to Mariposa.
On June 1, the company announced 12 new stepout 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 29, the company announced 20 additional assays from its expanded phase 2 stepout and infill drilling program at the Tahonitas deposit on the western side of the project. These results continued to 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 mitigate the impact of COVID-19 on operations. To date, COVID-19 has not had a material effect on the company's activities. Prime Mining 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.
Community engagement and environmental stewardship strategy
The company continued to gather environmental and community data in the quarter to help support its environmental, social and governance programs, including completion of a materiality assessment, strategic plan and disclosure matrix. It strives to minimize the environmental impact of its activities and ensure that Los Reyes has a positive impact on its host communities.
Selected financial data
The attached selected financial data table summarizes the company's consolidated financial statements and related notes thereto for the three and six months ended June 30, 2022. A copy of the financial statements and management's discussion and analysis is available at the Prime Mining website or on SEDAR.
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 Mining'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.
Since acquiring Los Reyes in 2019, Prime Mining has spent approximately $30-million (U.S.) on direct exploration activities and is nearing completion of two phases of comprehensive drilling totalling 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 Corp.
Prime Mining 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.
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