13:44:15 EST Fri 27 Jan 2023
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Prime Mining Corp
Symbol PRYM
Shares Issued 112,800,705
Close 2022-10-21 C$ 1.27
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Prime Mining drills 2.3 m of 27.9 g/t Au at Los Reyes

2022-10-24 11:37 ET - News Release

Mr. Daniel Kunz reports

PRIME DRILLS SEVERAL BONANZA GRADE INTERCEPTS IN GUADALUPE INCLUDING 27.9 GPT AU AND 509 GPT AG OVER 2.3 METRES

Prime Mining Corp. has released further phase 2 drill results from the Guadalupe area where Prime continues to delineate and expand the multimillion-ounce Los Reyes high-grade gold-silver deposit. Located in a highly prospective 500-year-old mining-friendly district of Sinaloa, Mexico, Los Reyes and its three known gold-silver deposit areas (Guadalupe, Z-T and Central) have a mineralized footprint of over 15 square kilometres.

Highlight drill intercepts:

  • 27.9 grams per tonne (g/t) gold (Au) and 509 g/t silver (Ag) over 2.3 metres (m) (estimated true width (ETW) of 2.2 m) in hole 22GE-101;
  • 23.2 g/t Au and 2,550 g/t Ag over 1.5 m (ETW of 0.6 m) in 22GE-116;
  • 6.08 g/t Au and 913 g/t Ag over 4.4 m (ETW of 1.9 m) in 22GE-116;
  • 10.5 g/t Au and 284 g/t Ag over 1.8 m (ETW of 1.8 m) in hole 22GE-106.

These results are the highlights from nine significant drill holes in the main Guadalupe deposit. Seven of these holes are considered stepout, intersecting high-grade mineralization outside of the April, 2020, pit-constrained resource shell. Drilling continues to identify multiple new high-grade mineralized intercepts along the Estaca vein. Reported intercepts are up to 100 m to the west, 240 m to the east and 100 m below the 2020 pit-constrained resource.

Drilling is also defining new areas of mineralization inside the current boundaries of the April, 2020, resource that were previously classified as waste. Drilling has been successful in delineating a cluster of high-grade mineralized Estaca vein splays in the main Guadalupe deposit, outside of the Estaca vein. For example, holes 22GE-101 and 22GE-106 intersected multiple mineralized zones ranging from two m to over 17 m estimated true width in the hangingwall of the Estaca vein. Continued drilling success in these vein assemblages will add high-grade ore tonnes and reduce waste at Guadalupe East.

Chief executive officer Daniel Kunz commented: "The high-grade drill results reported today continue to confirm and expand the resource potential at Guadalupe by several hundred metres along strike, at depth and downplunge. Multiple wide high-grade gold and silver mineralized intercepts outside the current Guadalupe resource are expected to significantly increase the Los Reyes mineral resource update planned for the first half of 2023. Continued drilling and definition of the newly intercepted vein splays in the hangingwall outside of the main Estaca vein should also enhance pit economics by lowering the overall strip ratio, converting what were previously considered waste blocks into ore and contributing new high-grade high-margin ounces." Executive vice-president of exploration Scott Smith added: "We are also pleased with the number of intercepts we are encountering through each individual drill hole at Guadalupe. Recent drilling adjustments, targeting these steeply dipping sections of the vein structures, have yielded newly discovered bonanza-grade veins, as well as new much longer intercepts of economic mineralization."

Five drills have continued to operate during the current rainy season, successfully completing 71,750 metres to date, with phase 2 drilling planned to continue until the end of October. To date, 250 phase 2 drill holes have been completed, including the results from 78 holes that remain to be released, pending the completion of assays and QA/QC (quality assurance/quality control) protocols.

Guadalupe drilling results and interpretation

In addition to the significant intercepts shown in this news release, Prime has released the full current assay table for the Guadalupe area. While some of the holes included in that table are more exploratory in nature, holes targeting the key mineralized vein structures in Guadalupe continue to indicate potential high-grade high-margin resource expanding ounces characteristic of the Guadalupe area. Included in these results are intersections of various structures, including previous underground workings. Where previous workings or stopes have encountered what has been interpreted as backfill material, these segments have been included in the table and identified as such in the vein column. While some of this material is mineralized and high-grade (for example, 7.1 g/t Au and 1,040 g/t Ag over 0.8 m; and 6.4 g/t Au and 855 g/t Ag over 0.6 m in hole 22GE-116), it will be excluded from future reported resource inventories and will not influence interpolated resource block grades. Highlights and significant intercepts shown include what has been interpreted as in situ material and do not include any assayed backfill material.

QA/QC protocols and sampling procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetre (mm)), 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. After logging intervals are identified to be sampled and split and one-half is submitted for assay. RC (reverse circulation) drilling returns rock chips and fines from a 133.35-millimetre diameter tricone bit. The returns are homogenized and split into two halves, with one-half submitted for analysis and the other half stored.

Sample QA/QC measures include unmarked certified reference materials, blanks and field duplicates, as well as preparation duplicates, which are inserted into the sample sequence and make up approximately 8 per cent of the samples submitted to the laboratory for each drill hole.

Samples are picked up from the project by the laboratory staff 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 overlimit fire assay reanalysis, completed at their respective Hermosillo, Mexico, laboratories and multielement analysis completed in North Vancouver, 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 (ppm). Any sample that produces an overlimit gold value through the initial assay technique is sent for gravimetric finish through 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 200.0 g/t gold and 4,955.0 g/t silver.

Qualified person

Mr. 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.

About Prime Mining Corp.

Prime is managed by an ideal mix of successful mining executives, strong capital markets staff and experienced local operators, all focused on unlocking the full potential of the Los Reyes project. The company has a well-planned capital structure with a strong management team and insider ownership.

We seek Safe Harbor.

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