
Current Cash Balance of $33M Funds Activities Through 2026
Prime Mining Corp. (TSX: PRYM) (OTCQX: PRMNF) (Frankfurt: O4V3) announces that 97% of its $1.10 warrants due June 12, 2025 have been exercised, which, including the exercise of certain options, have increased Prime’s cash balance to almost $33 million dollars as of today. Proceeds will contribute to the advancement of Prime’s wholly-owned Los Reyes gold-silver project located in Sinaloa State, Mexico.
Scott Hicks, CEO commented, “We are delighted to see the confidence of warrant-holders in the Los Reyes Project reflected in this warrant exercise. With our cash position now at approximately $32.9 million, we are very well capitalized to deliver the upcoming Preliminary Economic Assessment, expected in the third quarter, and to advance our other technical programs through the end of 2026. We would like to thank our core shareholder group, led by Pierre Lassonde, for their continued support of Prime.”
2025 Outlook
The Company plans to continue its success-based approach to exploration to further identify new prospective targets, expand the existing resource, and infill drilling. Additional work will include geological mapping and geochemical sampling to identify further discovery areas.
On January 28, 2025, drilling was paused in response to a deterioration in the security situation in parts of Sinaloa, including the Los Reyes area. This pause is not currently expected to impact the Company’s ability to drill a minimum 40,000m program over 12-months from the recommencement of drilling. Six drill rigs remain on site and drill contractors are on standby to resume drilling as soon as security improves. The Company will continue to work with local authorities to monitor the current situation.
Planned fiscal 2025 exploration will focus on:
Project activities are also planned to include:
Figure 1 – Los Reyes Trends and Exploration Targets
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 $64 million on direct exploration activities and has completed over 221,000 metres of drilling to date. The Company is targeting the delivery of a PEA by the end of Q3, 2025 that will highlight a high return, high margin, low capital and long-life project at Los Reyes.
October 15, 2024 Resource Statement1,2 |
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(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) |
Open Pit – Mill | Indicated | 24,657 | 1.13 | 899 | 35.7 | 28,261 |
Inferred | 7,211 | 0.89 | 207 | 42.8 | 9,916 | |
Underground | Indicated | 4,132 | 3.02 | 402 | 152.4 | 20,243 |
Inferred | 4,055 | 2.10 | 273 | 78.6 | 10,247 | |
Total Mill | Indicated | 28,789 | 1.41 | 1,301 | 52.4 | 48,504 |
Inferred | 11,266 | 1.33 | 480 | 55.7 | 20,163 | |
Open Pit – Heap Leach | Indicated | 20,254 | 0.29 | 190 | 8.4 | 5,492 |
Inferred | 5,944 | 0.30 | 58 | 7.3 | 1,398 | |
Total | Indicated | 49,042 | 0.95 | 1,491 | 34.2 | 53,995 |
Inferred | 17,210 | 0.97 | 538 | 39.0 | 21,561 |
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 predominantly HQ size (63.5 millimetres), 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.
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 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 an 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 g/t. 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 g/t and 100 g/t, 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 Definition Standards – For Mineral Resources and Mineral Reserves” adopted by the CIM Council 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.
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.
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