VANCOUVER, Dec. 20, 2018 /CNW/ - PRIZE MINING
CORPORATION ("Prize" or the "Company") (TSXV:PRZ)
(OTCQB:PRZFF) (MQSP:GR:FRANKFURT) announces that step-out diamond
drill holes at the Pilar Grande area of the Manto Negro Copper
Project in Coahuila State, Mexico
continues to intersect copper-silver mineralization. Drilling
at the El Granizo site has
encountered complex faulting that is yet to be fully interpreted as
to the impact on mineralization.
"Our first drill program at the Pilar Grande and El Granizo areas continues to provide
important geological information on the continuity of copper-silver
mineralization", stated Michael
McPhie, President & CEO of Prize Mining. "In
detail, the areas are more structurally complex than we had
anticipated but our geologists are working on an interpretation
that will help guide our ongoing drill
program."
As reported on November 14, 2018,
the first two holes from each of the El
Granizo and Pilar Grande Mine
areas intersected consistent thicknesses and relatively consistent
grades of copper and silver. Holes DDHDI-18-03 and 05 at
Pilar Grande intersected similar mineralization, while hole
DDHDI-18-04 returned no significant values.
At El Granizo, holes
DDHMN-18-03 to 07 appear to have been drilled within a fault block
that is not mineralized at the same horizon as the first two
holes. The main north-easterly trending faults defining this
block are therefore interpreted to be pre-mineral and likely played
a role in localizing metalliferous brines. As such, it is
possible that a separate, lower mineralized horizon exists.
If the structures are post-mineral, then a simple offset of the
mineralization would be expected.
Highlights of Drill Intersections
Hole
Number
|
Area
|
From
(m)
|
To
(m)
|
Width
(m)
|
Cu
%
|
Ag
g/t
|
DDHDI-18-03
|
Pilar
Grande
|
85.75
|
87.80
|
2.05
|
0.59
|
20
|
DDHDI-18-05
|
Pilar
Grande
|
75.05
|
77.55
|
2.50
|
0.72
|
46
|
Including
|
|
75.05
|
75.60
|
0.55
|
1.43
|
126
|
And
|
|
77.10
|
77.55
|
0.45
|
1.74
|
87
|
DDHDI-18-05
|
Pilar
Grande
|
80.90
|
83.05
|
2.15
|
0.79
|
37
|
DDHDI-18-05
|
Pilar
Grande
|
87.70
|
90.60
|
2.90
|
0.72
|
24
|
Note: Intersections
above are drilled core lengths. True thicknesses are thought
to be approximately 80-90% of drilled lengths.
|
Due to performance issues, the drilling contractor has been
changed and the program is continuing with a single rig at the
moment with a new contractor. Performance has improved
significantly as a result of this and production expectations are
being met or exceeded on a daily basis. A second rig
may be added in the New Year.
Copper-silver mineralization on the Manto Negro Project belongs
to the category of sediment-hosted stratabound copper deposits,
similar in style to the world class deposits of the Kupferschiefer
in Poland.
Sampling QA/QC and Analysis
The Company followed a rigorous Quality Assurance/Quality
Control program over the chain-of-custody of samples with the
insertion of blanks and duplicates into the sample stream submitted
to the laboratory for analysis. Sample preparation and
analysis took place at the SGS facility in Durango, Mexico.
The analysis completed on all samples was the 32 Element Package
by 4-acid digestion and Inductively Coupled Plasma Optical Emission
Spectrometry (ICP-OES) (package GE-ICP40B). Samples with Cu
or Pb over the upper detection limit of 10,000 ppm were re-analyzed
by Sodium Peroxide Fusion and ICP-OES (package GO-ICP90Q).
Samples with Ag over the upper detection limit of 100 ppm were
re-analyzed by Lead Fusion Fire Assay with Gravimetric Finish
(package GO-FAG313).
Robert Archer, P.Geo., a Director
of the Company, and a Qualified Person under NI 43-101, is the
Company's nominated qualified person responsible for monitoring the
supervision and quality control of the programs completed on the
Company's properties. Mr. Archer has approved and verified
the scientific and technical information in this news release.
Corporate Update
On June 21, 2018 Prize announced
that the amount sought to be raised under a previously announced
private placement had been increased to $8
million and that the proceeds would be used for marketing,
advertising and investor relations activities, corporate
development and M&A financial advisory services, in addition to
funding exploration programs on Prize's Manto Negro Copper Project
and Kena Gold Project, property payments, and general and
administrative expenses. On July 9,
2018, Prize announced that the initial tranche of this
private placement was completed for proceeds of $6.5 million and that the net proceeds were
intended to be used by the Company for:
- Marketing, advertising and Investor Relations activities;
- Corporate Development and M&A financial advisory
services;
- Drilling, geological, engineering and metallurgical
investigations and associated consulting services on the Manto
Negro Copper Project located in Coahuila State, Mexico;
- Property payments/leases/option payments, and
- Corporate General and Administrative expenses.
As of the date of this release the company has completed two
drilling programs at the Kena Gold Project located in southeastern
British Columbia since July of
this year. That program has consisted of drilling a total of
20 holes and 3,886 meters (see Prize Press Release on December 12, 2018). The company has also
been undertaking the first phase of drilling at the Manto Negro
Copper Project in northeastern Mexico as discussed above. This initial
3,000 meter diamond drill program is ongoing now and assay results
are pending.
In conjunction with the closing in July, the Company also
entered into several contractual agreements (the "Agreements") for
the provision of marketing, advertising and investor relation
activities, corporate development and M&A advisory and
financial accounting and advisory services. These Agreements
totaled $5.5 million, are prepaid and
the services were to be carried out over a twelve-month
period. On November 1, 2018 the
Company reallocated it's corporate spending, cancelled and
allocated $1,220,000 from five
agreements towards project related initiatives. Prize
undertook this initiative to address revised corporate priorities
and a focus on drilling and exploration opportunities at its
properties in Mexico and British
Columbia.
As part of the Company's ongoing evaluation of priorities and
direction and our internal processes where we follow up with all of
our contracts and consultants on a regular basis to evaluate their
work and deliverables, the Company has decided to shift its focus
on the remaining work programs associated with certain additional
Agreements. These Agreements had an initial value of
$3,710,000 at inception. The
Company has determined to cancel the remaining work associated with
these Agreements and is in discussions with the service providers
involved to facilitate that decision.
About Prize Mining Corp.
Prize is a junior mining issuer listed on the TSX Venture
Exchange. Prize is focused on the exploration and development
of the Manto Negro Copper Property in Mexico and the Kena Gold Property in BC.
Find out more at: www.prizemining.com
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Reader Advisory
Forward-Looking Statements. This news release contains
forward-looking statements. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"scheduled", "potential", or other similar words, or statements
that certain events or conditions "may", "should" or "could"
occur.
The forward-looking statements are based on certain key
expectations and assumptions made by Prize, including the assay
results of the 2018 diamond drilling program on Prize's Manto Negro
Property and the demand for refunds under terminated
Agreements. Although Prize believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Prize can give no assurance that
they will prove to be correct. There is no assurance that the
result of these exploration programs will be successful or that
additional refunds under the Agreements will be received.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks.
These include, but are not limited to, exploration
risks and that required regulatory and third-party
approvals and consents are not obtained on terms satisfactory to
the parties within the timelines provided.
The reader is cautioned that assumptions used in the preparation
of such information, although considered reasonable by the Company
at the time of preparation, may prove to be incorrect and readers
are cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date hereof. The
Company does not undertake any obligation to release publicly any
revisions to forward-looking information contained herein to
reflect events or circumstances that occur after the date hereof or
to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Prize Mining Corporation