Prime Mining Corp. (“Prime” or the “Company”) (TSX:
PRYM) (OTCQX: PRMNF) (Frankfurt: 04V3) is
reporting expansion drilling results from the Company’s Los Reyes
Project (the “Project”), located in Sinaloa State, Mexico. These
results are from 2024 drilling at the
Guadalupe
Trend and are not included in the Company’s October 15,
2024, Mineral Resource Estimate (“MRE”).
Expansion Drilling Highlights at
Guadalupe
The Company is reporting 4 core holes at
Guadalupe East, located in the south-east end of the
Guadalupe Trend with the following highlights:
- 42.07 grams per tonne (“g/t”)
gold-equivalent (“AuEq”) (14.25 g/t Au and 2,150.0 g/t Ag) over 1.0
metres (“m”) estimated true width (“ETW”) in hole 24GE-160, and:
- 11.33 g/t AuEq (3.34 g/t Au and 617.4
g/t Ag) over 1.3 m ETW, including:
- 21.28 g/t AuEq (6.27 g/t Au and 1,160.0
g/t Ag) over 0.7 m ETW;
- 5.32 g/t AuEq (1.80 g/t Au and 271.8
g/t Ag) over 2.4 m ETW in hole 24GE-162, including:
- 7.34 g/t AuEq (2.41 g/t Au and 381.0
g/t Ag) over 1.5 m ETW.
Prime Mining Corp. Chief Executive Officer Scott
Hicks commented, “Guadalupe East continues to provide exceptional
high-grade results. In targeting the sparsely drilled 700m gap
between the main ‘Laija’ area at Guadulupe East and the Echeguren
Shaft, we continue to find mineralization. Drill hole 24GE-160 is
particularly outstanding for its high-grade gold and silver,
measuring half an ounce of gold and over 2 kilograms of silver over
a metre in length. Both drill holes 24GE-160 and 24GE-162
demonstrate the potential for further expansion of mineralized
material, amenable for underground extraction.”
Scott Smith, Executive Vice President of
Exploration, added, “Drilling in the San Manuel vein area of
Guadalupe East targeted a set of north-dipping veins in the
footwall of the Estaca vein. Today’s drill results demonstrate the
high grades typical of Guadalupe East and are located over 400m
away from the main Guadalupe East resource area. This part of the
trend demonstrates strong exploration potential for further
antithetic vein structures to be discovered with mineralization
open in several directions. We believe the old mine workings,
including the Echeguren Shaft, which is approximately 300m from
these highlight holes, provide good hunting ground for further
discovery, given the mineralization we have found to-date by
referencing these workings for drill targeting.”
Figure 1: Expansion drilling
update
Guadalupe East Drill Hole
Highlights1
Hole ID |
From (m) |
To (m) |
Interval (m) |
ETW (m)2 |
Au (g/t) |
Ag (g/t) |
AuEq3 |
Au Cut-off4 |
24GE-160 |
173.80 |
175.20 |
1.40 |
1.05 |
0.41 |
11.80 |
0.56 |
0.2 |
24GE-160 |
184.70 |
186.15 |
1.45 |
1.10 |
0.60 |
55.10 |
1.31 |
0.2 |
24GE-160 |
265.50 |
267.15 |
1.65 |
1.25 |
3.34 |
617.36 |
11.33 |
0.2 |
including |
266.30 |
267.15 |
0.85 |
0.65 |
6.27 |
1160.00 |
21.28 |
1 |
24GE-160 |
284.35 |
285.60 |
1.25 |
0.95 |
14.25 |
2150.00 |
42.07 |
1.0 |
24GE-162 |
85.85 |
87.00 |
1.15 |
0.80 |
0.81 |
0.80 |
0.82 |
0.2 |
24GE-162 |
195.30 |
196.60 |
1.30 |
0.90 |
0.26 |
4.60 |
0.32 |
0.2 |
24GE-162 |
211.80 |
215.10 |
3.30 |
2.35 |
1.80 |
271.80 |
5.32 |
0.2 |
including |
213.00 |
215.10 |
2.10 |
1.50 |
2.41 |
381.00 |
7.34 |
1 |
Notes:
- A complete table of assay results
from all deposits and all secondary zones intersected utilizing a
0.20 g/t Au cut-off is on the Company's website.
- Estimated True Widths (ETW) are
estimated based on drill hole geology or comparisons with other
on-section drill holes.
- Au Equivalent (AuEq) grade is
calculated as Au g/t + (Ag g/t x ($25.24/$1950)) where $25.24 and
$1950 are the price of one ounce of Ag and Au respectively (in US
dollars).
- Composite assay grades presented in summary tables are
calculated using a Au grade minimum average of 0.20 g/t or 1.0 g/t
as indicated in “Au Cut-off” column of Summary Tables. Maximum
internal waste included in any reported composite interval is 3.00
m. The 1.00 g/t Au cut-off is used to define higher-grade “cores”
within the lower-grade halo.
INTERPRETATION
Guadalupe East:
Three principal vein sets have been the focus of
both historical mining operations and recent exploration at
Guadalupe East (Estaca, San Manuel, and San Nicolas). In the Laija
area, high-grade gold and silver mineralization is hosted in the
steeply south-dipping Estaca vein and north-dipping antithetic
veins emanating from its hanging wall. Further to the east,
approaching the Echeguren Shaft area, high-grade mineralization is
also hosted in the moderately north-dipping San Manuel and San
Nicolas vein sets, which appear to truncate on the footwall of the
Estaca vein. All three principal vein sets remain open in several
directions and will continue to be the focus of exploration at
Guadalupe East.
The drillholes released today targeted the
extension of the San Manuel vein set projected along-strike and
down-dip from historical mine workings. The intercepts in 24GE-160
represent a 60m step out along strike to the west from 23GE-144
(8.17 g/t Au and 1,498 g/t Ag over 0.75m) and confirm the
continuity of high-grade gold and silver mineralization hosted in
the San Manuel area. The intercept in 24GE-160 similarly represents
a 60m step out from stopes generated in the 2024 MRE. The Company,
therefore, believes that both drillholes are likely to further
expand underground mineable mineralization at Guadalupe East in
future Resource estimates. Additionally, the drillholes released
today are roughly 330m west of the Echeguren Shaft area, a
historical mine exploited in the early 1900's for very high-grade
silver. We believe that significant potential exists to expand
mineralization along strike of the San Manuel vein set toward and
beyond the Echeguren Shaft.
Figure 2: Guadalupe Trend drilling
update
Figure 3: Guadalupe
Trend (GE Area)
3D View
2024 Outlook
Given the results from Prime’s success-based
drilling program, the Company has expanded its fiscal 2024 program
to 50,000 metres from 40,000 metres. The drill program will
continue to evaluate drilling plans using its success-based
approach. This evaluation will also include prioritization of
targets based on probability of resource development and generative
area discovery potential.
Five drill rigs are currently active on site at
Los Reyes, with 2024 exploration focused on:
- Extending the high-grade
Z-T Area shoots that remain open at depth, as well as
along strike, both north and south.
- Expanding the known
high-grade mineralization at Guadalupe East.
- Increasing the Central Area
resource through additions at Noche Buena and its
connection to San Miguel East.
- Generative target drilling
of high-grade intercepts at Las Primas, Mariposa,
Fresnillo and others to further develop the resource potential at
Los Reyes.
Links to Figures:
- Figure 1 – Expansion drilling
update
- Figure 2 –
Guadalupe Area drilling update
- Figure 3 –
Guadalupe Area (Guadalupe East)
3D View
Links to Tables:
- Table 1 – Drill Intercepts in this
Release
- Table 2 – Drill Intercepts to
Date
About the Los Reyes Gold and Silver
Project
Los Reyes is a high-grade, low-sulphidation
epithermal gold-silver project located in Sinaloa State, Mexico.
Since acquiring Los Reyes in 2019, Prime has spent more than $59
million on direct exploration activities and has completed over
210,000 metres of drilling. On October 15, 2024, Prime announced an
updated multi-million-ounce high-grade open pit constrained
resource based on exploration drilling up to July 17, 2024 (see the
October 15, 2024, press release for more information).
October 15, 2024 Resource
Statement(based on a $1950/oz gold price, $25.24/oz silver
price, economic-constrained estimate)
- Refer to the Additional Notes section
for the gold equivalent grade (“AuEq”) calculation method.
Drilling is ongoing and suggests that the three
known main resource trends (Guadalupe, Central and Z-T) are larger
than previously reported. Potential also exists for new discoveries
where mineralized trends have been identified outside of the
currently defined resource areas. Historic operating results
indicate that an estimated 1 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 US$20 million
on exploration, engineering, and prefeasibility studies.
QA/QC Protocols and Sampling Procedures
Drill core at the Los Reyes project is drilled
in predominately HQ size (63.5 millimetres “mm”), reducing to NQ
(47.6 mm) 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, the core is cut and one
half is submitted for assay. RC drilling returns rock chips and
fines from a 133.35 mm diameter tricone bit. The returns are
homogenized and split into 2 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 are inserted into the sample sequence and
make up approximately 8% of the samples submitted to the laboratory
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 over limits fire assay re-analysis, completed at their
respective Hermosillo, Mexico laboratories and multi-element
analysis completed in North Vancouver, Canada. Drill core sample
preparation includes fine crushing of the sample to at least 70%
passing less than 2 mm, sample splitting using a riffle splitter,
and pulverizing a 250-gram split to at least 85% passing 75
microns.
Gold in diamond drill core is analyzed by fire
assay and atomic absorption spectroscopy of a 30 g sample (code
FA430 or Au-AA23). Multi-element chemistry is analyzed by 4-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 ppm. Any sample that produces an
over-limit 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 over-limit silver values are re-analyzed
by fire assay with gravimetric finish FA530 or Au-GRA21.
Both Bureau Veritas and ALS Labs are ISO/IEC
accredited assay laboratories.
Additional Notes
Prime’s MRE as of October 15, 2024 is classified
in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) “CIM Definition Standards - For
Mineral Resources and Mineral Reserves” adopted by the CIM Council
(as amended, the “CIM Definition Standards”) and
in accordance with the requirements of NI 43-101. Mineral resources
are not mineral reserves and do not have demonstrated economic
viability.
Metres is represented by “m”; “ETW” is
Estimated True Width and is based on drill hole geometry or
comparisons with other on-section drill holes; “Au” refers to gold,
and “Ag” refers to silver; “g/t” or “gpt” is grams per metric
tonne; some figures may not sum due to rounding; Composite assay
grades presented in summary tables are calculated using a Au grade
minimum average of 0.20 g/t or 1.0 g/t as indicated in “Au Cut-off”
column of Summary Tables. Maximum internal waste included in any
reported composite interval is 3.00 m. The 1.00 g/t Au cut-off is
used to define higher-grade “cores” within the lower-grade
halo.
Gold equivalent grades are calculated based on
an assumed gold price of US$1,950 per ounce and silver price of
$25.24 per ounce, based on the formula AuEq grade (g/t) = Au grade
+ (Ag grade x $25.24 / $1,950). Metallurgical recoveries are not
considered in the in-situ grade estimate but are estimated to be
95.6% and 81% for gold and silver, respectively, when processed in
a mill, and 73% and 25% respectively when heap-leached. Additional
details are available in the associated 2024 Technical Report.
Qualified Person
Scott Smith, P.Geo., Executive Vice President of
Exploration, is a Qualified Person for the purposes of NI 43-101
and has reviewed and approved the technical content in this news
release.
About Prime Mining
Prime is managed by an ideal mix of successful
mining executives, strong capital markets personnel and experienced
local operators all focused on unlocking the full potential of the
Project. The Company has a well-planned capital structure with a
strong management team and insider ownership. Prime is targeting a
material resource expansion at Los Reyes through a combination of
new generative area discoveries and growth, while also building on
technical de-risking activities to support eventual project
development.
For further information, please visit
https://www.primeminingcorp.ca/ or direct enquiries to:
Scott HicksCEO &
Director
Indi GopinathanVP Capital
Markets & Business Development
Prime Mining Corp.710 – 1030 West Georgia
St.Vancouver, BC V6E 2Y3 Canada+1(604)
238-1659info@primeminingcorp.ca
Cautionary Notes to U.S. Investors
Concerning Resource EstimatesThis news release has been
prepared in accordance with the requirements of the securities laws
in effect in Canada, which differ from the requirements of the U.S.
securities laws. In particular, and without limiting the generality
of the foregoing, the terms “mineral reserve”, “proven mineral
reserve”, “probable mineral reserve”, “inferred mineral resources,”
“indicated mineral resources,” “measured mineral resources” and
“mineral resources” used or referenced in this presentation are
Canadian mineral disclosure terms as defined in accordance with NI
43-101 under the guidelines set out in the CIM Standards. The CIM
Standards differ from the mineral property disclosure requirements
of the U.S. Securities and Exchange Commission (the
“SEC”) in Regulation S-K Subpart 1300 (the
“SEC Modernization Rules”) under
the U.S. Securities Act of 1933, as amended (the
“Securities Act”). As a foreign private issuer
that is eligible to file reports with the SEC pursuant to the
multijurisdictional disclosure system, the Company is not required
to provide disclosure on its mineral properties under the SEC
Modernization Rules and will continue to provide disclosure under
NI 43-101 and the CIM Standards. Accordingly, the Company’s
disclosure of mineralization and other technical information may
differ significantly from the information that would be disclosed
had the Company prepared the information under the standards
adopted under the SEC Modernization Rules.
Forward Looking InformationThis
news release contains certain “forward-looking information” and
“forward-looking statements” within the meaning of Canadian
securities legislation as may be amended from time to time,
including, without limitation, statements regarding the perceived
merit of the Company’s properties, including additional exploration
potential of Los Reyes, potential quantity and/or grade of
minerals, the potential size of the mineralized zone, metallurgical
recoveries, and the Company’s exploration and development plans in
Mexico. Forward-looking statements are statements that are not
historical facts which address events, results, outcomes, or
developments that the Company expects to occur. Forward-looking
statements are based on the beliefs, estimates and opinions of the
Company’s management on the date the statements are made, and they
involve several risks and uncertainties. Certain material
assumptions regarding such forward-looking statements were made,
including without limitation, assumptions regarding the price of
gold, silver and copper; the accuracy of mineral resource
estimations; that there will be no material adverse change
affecting the Company or its properties; that all required
approvals will be obtained, including concession renewals and
permitting; that political and legal developments will be
consistent with current expectations; that currency and exchange
rates will be consistent with current levels; and that there will
be no significant disruptions affecting the Company or its
properties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements involve significant known
and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated. These risks
include, but are not limited to: risks related to uncertainties
inherent in the preparation of mineral resource estimates,
including but not limited to changes to the cost assumptions,
variations in quantity of mineralized material, grade or recovery
rates, changes to geotechnical or hydrogeological considerations,
failure of plant, equipment or processes, changes to availability
of power or the power rates, ability to maintain social license,
changes to interest or tax rates, changes in project parameters,
delays and costs inherent to consulting and accommodating rights of
local communities, environmental risks, title risks, including
concession renewal, commodity price and exchange rate fluctuations,
risks relating to COVID-19 and other future pandemics, delays in or
failure to receive access agreements or amended permits, risks
inherent in the estimation of mineral resources; and risks
associated with executing the Company’s objectives and strategies,
including costs and expenses, as well as those risk factors
discussed in the Company's most recently filed management's
discussion and analysis, as well as its annual information form
dated March 25, 2024, available on www.sedarplus.ca. Except as
required by the securities disclosure laws and regulations
applicable to the Company, the Company undertakes no obligation to
update these forward-looking statements if management’s beliefs,
estimates or opinions, or other factors, should change.
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