Prime Mining Corp. [PRYM-TSXV; PRMNF-OTCQB] reported additional assays from its expanded Phase 2 step-out and infill drilling program at the 100%-owned Los Reyes project in the mining friendly jurisdiction of Sinaloa, Mexico. The current drill program is now planned to 70,000 metres. The project hosts an existing multi-million-ounce gold and silver resource. Todayâ€™s results are from 20 step-out drill holes into the Tahonitas deposit located on the western side of the project and one of eight known gold-silver deposits that comprise the resource.
CEO Daniel Kunz commented, â€œWe are highly encouraged by the continuing high-grade intercepts of open pit and underground gold-silver mineralization being encountered in our first two formal drill campaigns at Los Reyes. Todayâ€™s results further support the significance of the Z-T Structure at the western end of Los Reyes, from Mariposa to Tahonitas, which is now delineated over a strike length of 3 kilometres, a vertical extent of 200 to 300 metres and average thickness of 5 to 30 metres. Importantly, our drilling at both the western and eastern deposits continues to intersect multiple veins down-hole and is improving our overall confidence in the continuity of the veins at depth and along strike. The remainder of the Phase 2 program will continue to step-out along strike and at depth and will target under-drilled areas within the growing resource.â€
At Tahonitas drill hole 22TA-18 returned 6.08 g/t gold and 103.5 g/t silver over 3.4 metres (2.9 m estimated true width (etw)), including 13.5 g/t gold and 123.1 g/t silver over 1.3 metres (1.1 metres etw). Hole 22TA-23 returned 3.12 g/t Au and 24.5 g/t Ag over 4.5 metres (3.1 metres etw), including 7.67 g/t Au and 34.4 g/t Ag over 1.5 metres (1.4 metres etw).
Hole 22TA-29 returned 1.37 g/t Au and 11.4 g/t Ag over 10.5 metres (6.7 m etw). Hole 22TA-17 returned 0.86 g/t Au and 51.1 g/t Ag over 13.5 metres (9.5 m etw), including 4.36 g/t Au and 228.0 g/t Ag over 1.5 metres (1.1 m etw).
Hole 22TA-27 returned 0.92 g/t Au and 104.4 g/t Ag over 4.5 metres (3.9 m etw), including 1.97 g/t Au and 244.0 g/t Ag over 1.5 metres (1.3 m etw). Hole 22TA-31 returned 0.99 g/t Au and 41.4 g/t Ag over 4.5 metres (2.2 m etw), including 2.28 g/t Au and 37.7 g/t Ag over 1.5 metres (0.8 m etw) and 1.59 g/t Au and 2.20 g/t Ag over 1.5 metres (0.8 m etw).
To date, Prime has drilled approximately 81,000 metres and completed 310 holes at Los Reyes. The Phase 2 program has now completed 54,466 metres, with drilling planned to continue until the end of October. To date, 188 Phase 2 drill holes have been completed and 5 drills continue to operate. Including the drilling results herein, 216 drill holes have been released and 94 are pending.
Limited drilling was completed in Phase 1 at Tahonitas due to difficult access. For Phase 2, access was improved, and current drilling has continued to successfully identify shallow near surface mineralization as well as deeper mineralization down to 450 metres above sea level as in 22TA-31 where the deepest intercept was over 200 metres below the previously reported pit-constrained resource. Drilling has continued to test the mineralized structure to connect the pit-constrained resource of Tahonitas to the north with Zapote South, as well as further testing of Tahonitas at depth and assays are pending and further holes are planned. Additional road access is planned to be completed after the current rain season as drilling will continue to step out to the southeast following along strike the structure and open mineralization encountered to date.
Prime renewed the engagement with an arms-length financial advisory firm to assist in various strategic and capital markets initiatives for two years. The advisor received a one-time fee of 1,000,000 warrants. Each share purchase warrant is exercisable to acquire a common share of the company at a price of $3.00 per share for three years.
Los Reyes hosts a pit-constrained Measured and Indicated resource of 0.63 million gold and 16.6 million silver ounces plus Inferred resources of 0.18 million gold and 6.8 million silver ounces Inferred across the west (Z-T Structure), central, and east (Guadalupe) deposits. Additional prospects exist for property-wide underground resources and for open pit resources in the central zone at Las Primas and Fresnillo and further east at Orito and Mina.