Plans to Continue Success-Based Drilling and Technical De-Risking Programs
VANCOUVER, British Columbia, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Prime Mining Corp. (“Prime” or the “Company”) (TSX: PRYM) (OTCQX: PRMNF) (Frankfurt: O4V3) announces its 2025 success-based exploration drilling program and plan to continue with technical de-risking of its wholly-owned Los Reyes gold-silver project (“Los Reyes” or the “Project”) located in Sinaloa State, Mexico. The Company also announces that drilling is temporarily suspended due to recent events in the State of Sinaloa but does not anticipate any changes to the Outlook detailed below.
2025 Los Reyes Project Outlook:
Exploration: Continue success-based approach to drilling in 2025, with an initial program of 40,000 metres to further identify new prospects on our vast property (see Figure 1 below). To identify both extensions to known structures and further discovery areas, we will continue the successful geological mapping and geochemical sampling programs.
Technical: Work toward a Preliminary Economic Assessment, further refining the metallurgical, geotechnical, mine planning and development parameters for project development, including process and underground mining optimization, infrastructure assessment and permitting requirements.
Community Engagement: Continue to engage with and support local ejidos (communities) through educational, community and environmental programming, access road improvements and infrastructure development.
2025 Exploration Drilling will focus 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, Fresnillo and Mariposa to further grow these emerging resources, as well as other target discovery areas to demonstrate the significant resource expansion potential at Los Reyes.
Drilling Status Update: Prime has completed approximately 1,500 metres of drilling year to date, prior to the temporary suspension of drilling on January 28, 2025 in response to recent changes in the security situation in parts of Sinaloa, including the Los Reyes area. This suspension is not expected to have an impact on the Company’s ability to execute the 2025 drill program described, as drill rigs remain on site and drill contractors are on standby to resume drilling as soon as the local security situation improves. The Company will continue to work with local authorities to monitor the situation.
Scott Hicks, CEO commented, “In 2025, we will continue our success-based exploration program with an initial 40,000 metre drill program that targets resource expansion and advances our generative targets as soon as it is practical to do so. We are continuing our multi-disciplinary technical and engineering de-risking program with the aim of demonstrating the strong potential of the Los Reyes project through a Preliminary Economic Assessment. The current drilling program delay is not anticipated to affect our overall plans, as we have ample drilling capacity to make up lost time. Prime is well-funded for our upcoming programs with approximately $19 million in cash, unaudited, as at December 31, 2024 and approximately $19 million of in-the-money warrants and options that we anticipate will fund us through the end of 2025 and well into 2026.”
Scott Smith, EVP Exploration added, “In 2025 we will continue to focus on material, step-out drilling along our main trends as well as looking for additional new discovery areas within our prolific exploration land package. We are also delighted to announce that Prime has been selected to participate in the prestigious ‘Core Shack’ at the annual Prospectors & Developers Association of Canada conference in Toronto in early March. We look forward to greeting you at booth 3110A on the Sunday and Monday, while providing a great opportunity to learn more about the Los Reyes Project directly from our team.”
Prime will continue to evaluate drilling plans using its success-based approach. This evaluation will include prioritization of targets based on probability of resource development and generative area discovery potential.
Figure 1: Expansion and Generative Target Areas
Figure 1 - Expansion & Generative Drilling Plan 2025
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. On October 15, 2024, Prime announced an updated multi-million-ounce high-grade open pit and underground resource based on exploration drilling up to July 17, 2024. Since acquiring Los Reyes in 2019, Prime has spent more than $62 million on direct exploration activities and has completed over 220,000 metres of drilling.
October 15, 2024 Resource Statement1 (based on a $1950/oz gold price, $25.24/oz silver price, economic-constrained estimate)
Mining Method and Process
Class
Tonnage (kt)
Gold Grade (g/t)
Gold Contained (koz)
Silver Grade (g/t)
Silver Contained (koz)
Gold Equiv. (g/t)
Gold Equiv. (koz)
Silver Equiv. (g/t)
Silver Equiv. (koz)
Open Pit - Mill
Indicated
24,657
1.13
899
35.7
28,261
1.60
1,265
123.3
97,723
Inferred
7,211
0.89
207
42.8
9,916
1.45
335
111.8
25,911
Underground
Indicated
4,132
3.02
402
152.4
20,243
5.00
664
386.1
51,290
Inferred
4,055
2.10
273
78.6
10,247
3.12
406
240.7
31,380
Total Mill
Indicated
28,789
1.41
1,301
52.4
48,504
2.08
1,928
161.0
149,012
Inferred
11,266
1.33
480
55.7
20,163
2.05
741
158.2
57,291
Open Pit - Heap Leach
Indicated
20,254
0.29
190
8.4
5,492
0.40
261
31.0
20,201
Inferred
5,944
0.30
58
7.3
1,398
0.40
76
30.6
5,856
Total
Indicated
49,042
0.95
1,491
34.2
53,995
1.39
2,190
107.3
169,213
Inferred
17,210
0.97
538
39.0
21,561
1.48
817
114.1
63,147
Refer to the Additional Notes section for the gold equivalent grade (“AuEq”) calculation method and further information.
Drilling and geological interpretation suggests that the three known main deposit areas (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” 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 Technical Report, filed on November 27, 2024.
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.
Indi Gopinathan VP Capital Markets & Business Development
Prime Mining Corp. 710 – 1030 West Georgia St. Vancouver, BC V6E 2Y3 Canada +1(604) 238-1659 info@primeminingcorp.ca
Cautionary Notes to U.S. Investors Concerning Resource Estimates This 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 “SECModernization 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 Information This 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, on-going receipt of amended and/or operating permits, risks inherent in the estimation of mineral resources; and risks associated with executing the Company’s objectives and strategies, including costs and expenses, physical access to the property, security risks, availability of contractors and skilled labour, 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.
