Prime Mining samples 63 metres of 1.78 g/t gold at Los Reyes

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Prime Mining Corp. [PYRM-TSXV; PRMNF-OTCQB; A2PRDW-FSE] announced results from its ongoing surface exploration program continue to show significant mineralization at surface on the Los Reyes Project in Sinaloa, Mexico, this time from the Tahonitas deposit, one of eight currently known adjacent gold-silver deposits.

The Los Reyes mineralized zones are characterized by a low sulphide epithermal system containing silica stockwork veins that are generally formed in felsic subaerial complexes in extensional strike slip structural settings. Low sulphidation gold deposits are associated with magmas where ore deposition occurs several kilometres above the intrusion, and display certain alteration assemblages.

Tahonitas is the southernmost deposit along the Mariposa-El Zapote-Tahonitas trend. The mineralized structure at Tahonitas strikes 350ᵒ and dips between 45ᵒ and 60ᵒ to the southwest. The current Tahonitas deposit is modeled as part of a conceptual open pit that includes the Zapote South deposit. The Zapote North, Zapote South and Tahonitas deposits are estimated to include 10,198,000 tonnes Measured and Indicated containing 311,000 oz  gold at 0.95 g/t and 5,637,000 oz silver at 17.2 g/t. There are 2,407,000 tonnes Inferred containing 70,000 oz gold at 0.91 g/t plus 1,329,000 oz silver at 17.2 g/t.

The Tahonitas gold-silver deposit has a drill-tested strike length of approximately 700 metres and a width of between 10 and 35 metres within the current resource model. Surface rock chip sampling at Tahonitas is designed to map the surface expression of mineralization. Surface trench TA-TR-3b, positioned oblique to the mineralized structure, returned 1.78 g/t gold and 71.0 g/t silver over 63.0 metres (24.1 m true width) including two high-grade intervals: 11.68 g/t gold and 333.9 g/t silver over 4.5 metres and 5.70 g/t gold and 292.0 g/t silver over 6.0 metres. This trench channel ended in mineralization. About 60 metres south of TR-3b, trench channel TR-2 returned 0.72 g/t gold and 18.5 g/t silver over 30.0 metres, including 1.86 g/t gold and 46.5 g/t silver over 7.5 metres.

In addition, two historic adits were sampled in the southernmost extension of Tahonitas. In Adit 13, two contiguous 1.5-metre channel samples were collected along an underground crosscut that returned 11.5 g/t gold and 66.2 g/t silver over 3.0 metres. In Adit 10, located about 50 metres further southeast of Adit 13, channel samples were collected near the entrance of the adit that returned 4.5 metres of 0.42 g/t gold and 66.2 g/t silver. These adit sampling results demonstrate that at Tahonitas significant mineralization is still open along strike and occurs beyond the current limits of the pit constrained resource.

Greg Liller, COO, noted, “Using low cost trench sampling, this work aims to elevate near surface Inferred resource to Measured and Indicated status and to expand the known mineralization footprint at surface. Tahonitas remains open along strike and down dip. Additional surface sampling from trenches will be included in ongoing activities.”

The surface bedrock sampling program continues to provide valuable information for planning expanded exploration and future mining. Presently, field crews are collecting surface and subsurface samples from several areas of the project. To date, 3,920 trench, road-cut and underground samples of a planned 3,500 samples have been submitted for assay. Assay results range from below detection to 48.30 g/t gold and 1,875.0 g/t silver. Composite intervals use a cut-off of 0.2 g/t gold.

Prime granted stock options to certain management and consultants to buy 750,000 shares at $1.30 per share for five years from the grant date. The options will vest 1/3 immediately as of the date of grant; 1/3 six months after the date of the grant; and 1/3 twelve months after the date of the grant. This stock option grant is subject to acceptance by the TSX Venture Exchange.

Los Reyes has Measured and Indicated in-pit oxide mineral resources of 19.8 million tonnes containing 633,000 oz gold at 1.0 g/t and 16,604,000 oz silver at 26.2 g/t. Los Reyes holds substantial resource upside based on open extensions of known resources, 10 km of undrilled strike length and at least eight additional exploration targets.

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