Prime Mining Corp. (TSX-V: PRYM) (OTCQB: PRMNF) (Frankfurt: A2PRDW) is pleased to release additional positive results from its ongoing 15,000-metre Phase 1 drill program at its wholly owned Los Reyes gold-silver project in Sinaloa State, Mexico. Currently, 5 diamond drills are active until the commencement of the rainy season in August 2021. The results announced today include initial core assay results from the Zapote-South, Noche Buena and San Miguel East deposits, which are three of eight known deposits that comprise the current mineral resource at Los Reyes. Thirteen drill holes are being reported on, including eight holes from Zapote-South, four from Noche Buena and one from San Miguel East.
Daniel Kunz, Prime’s Chief Executive Officer, summarized progress to date: “These are Prime’s first results from three of the larger deposits at the western end of Los Reyes. They are in-fill drill holes largely designed to improve our geological understanding, upgrade known resources and test local extensions to the currently interpreted in-pit resources. At this early stage, we have extended the margins of known deposits, and the gold and silver grades encountered appear consistent with current resource grades. Drilling also gathered silver assay data in an area of the Project where limited silver assaying had occurred historically and was potentially underrepresented in our current resource. Silver is already a valuable contributor to the economics of any potential operation at Los Reyes; while incorporating the additional silver assays is expected to have a positive impact on silver grades in the resource and improve project economics. As these are the first holes in our Phase 1 program, they were drilled from more easily accessible locations. Later in our current program, with an improved geological understanding gained from these holes, we plan to aggressively drill step-out holes and test the numerous targets for resource expansion within the district-scale epithermal system at Los Reyes.”
Figure 1: Los Reyes Project – Location of Principal Deposits
Objectives of Phase 1 Exploration and Drill Program
Of the 493 historic drill holes that were completed by prior operators on the eight Los Reyes deposits, only 18% are diamond drill core holes with the majority being reverse circulation drill holes. Each deposit has approximately one dozen Core holes spread across a mineralized trend that is typically approximately 1 kilometre long. Since acquiring the Project, Prime has been working to obtain a full understanding of the controls of mineralization for the extensive low sulphidation epithermal system of gold-silver mineralization at Los Reyes.
Phase 1 exploration includes: (1) the first property-wide program of surface prospecting, mapping, sampling and trenching, (2) re-logging of the 89 historical Core holes, and (3) 15,000 m of Core drilling. During the rainy season that typically occurs between August and November, the Company will complete an updated geological model that will be utilized to plan the Phase 2 drill program, which will likely include both Core and RC drilling and is expected to commence in November or December.
The initial thirteen Core holes drilled by Prime reported today are on the western-most deposits at Los Reyes and had the following objectives:
Initial drilling at Zapote-South was primarily focused on in-fill drilling and was completed in areas of the deposit that are easily accessible from current infrastructure. A program of road rehabilitation is underway to permit the drilling of future step-out holes and exploration holes to the south of Zapote-South and at Tahonitas.
Figure 2: Zapote-South Drill Program – Progress Map
Mineralization at Zapote-South consists primarily of white to grey crystalline to chalcedonic quartz, quartz breccia and stockwork exploiting 45-degree southwest dipping fault structures within or along the margins of rhyolite dykes that intrude both andesitic tuffs and rhyolite. Quartz is massive to crustiform, locally displaying colliform to bladed replacement textures. Higher-grade intervals are marked by finely banded green adularia. Gold distribution appears to be zoned within the quartz bearing structure, having a 1.0 to 5.0 m thick higher-grade section of over 4.0 gpt Au enveloped by a broader zone of over 10.0 m of lower-grade mineralization. Higher-grade structures appear continuous along the section dip-planes.
At Zapote-South, the apparent optimum elevation for higher-grade deposition appears to be between 710 m and 580 m above sea level. Above this elevation, quartz and quartz breccia zones generally become narrower and lower grade. Immediately below 580 masl, the quartz bearing zones appear to broaden into wider and lower-grade zones before thinning at depth. Silver appears to have an uneven distribution throughout the mineralized interval, but in general, highest-grade silver appears to associate with higher-grade gold.
Table 1: Zapote South – Summary of Core hole assay results 1
|Hole ID||From (m)||To (m)||Interval
|Au Cut-off 3||Structure|
The initial drilling at Noche Buena is primarily focused on step-out drilling to add new resources and to upgrade the pit-constrained gold and silver resource confidence categories. Drilling will continue to step out to the southeast from readily accessible road locations, targeting extensions of the main mineralized zone, before moving to the northwest to target areas with no silver data, where large silver gaps appear in the block model.
Figure 3: Noche Buena Drill Program – Progress Map
The four drill holes each intersected the main quartz-bearing mineralized structure that is associated with rhyolitic dykes intruding andesitic lithic tuffs. The dykes exhibit moderate to strong silicification and locally have grey-green quartz veinlets with fine bands of adularia. This main mineralized zone is open to the southeast and at depth. The quartz is locally coarsely crystalline and where highly thickened zones are present, the mineralization is dominantly stockwork.
Table 2: Noche Buena– Summary of Core hole assay results 1
|Hole ID||From (m)||To (m)||Interval (m)||True Width (m)2||Au (gpt)||Ag (gpt)||Au Cut-off 3||Structure|
San Miguel East
Complete assay results have only been received for one hole at San Miguel East to date. Results of this single hole are included here for completeness. Step out drilling is on-going towards the southeast.
Figure 4: San Miguel East Drill Program – Progress Map
The first core hole from San Miguel East intersected 4.5 m at 1.0 gpt Au and 130.7 gpt Ag. The drill hole is a 50.0 m step down and the deepest intersection to date at San Miguel East. The mineralized intersection is 10.0 m below bottom of the currently defined open pit resource. The interval consists of white to green banded and, locally, adularia bearing quartz within a weakly magnetic andesitic dyke.
Table 3: San Miguel East – Summary of Core hole assay results 1
|Au Cut-off 3||Structure|
1 A complete table of assay results from all secondary zones intersected utilizing a 0.2 gpt Au cut off see link here.
2 True widths are estimated based on drill hole geology or comparisons with other on-section drill holes.
3 Composite assay grades presented in summary tables are calculated using an Au grade minimum average of 0.2 gpt or 1.0 gpt as indicated in “Au Cut-off” column of Summary Tables. Maximum internal waste included in any reported composite interval is 3.0 m. The 1.0 g/t Au cut-off is used to define higher-grade “cores” within the lower-grade halo. These cores reflect geology and are comprised of solid quartz veining with notable adularia as opposed to quartz breccia and stockwork zones.
QA/QC Protocols and Sampling Procedures
Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 mm), reducing to NQ or BQ size ranges (47.6 mm and 36.5 mm respectively) 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. Each entire hole is split, and one half is submitted for assay. Sample QA/QC measures of unmarked certified reference materials (CRMs), 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 lab for each drill hole.
Samples are picked up from the project by Bureau Veritas and transported to their laboratory in Durango, Mexico, for sample preparation. Sample analysis is carried out by Bureau Veritas, with fire assay, including over limits fire assay reanalysis, completed at their Hermosillo, Mexico, laboratory and multi-element analysis in North Vancouver, British Columbia, 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 g split to at least 85% passing 75 microns (code PRP70-250).
Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy (AAS) of a 30 g sample (code FA430). Multi-element chemistry is analyzed by 4-Acid digestion of a 0.25 g sample split (code MA300) with detection by inductively coupled plasma emission spectrometer (ICP-ES) for 35 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, La, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, S, Sb, Sc, Sn, Sr, Th, Ti, U, V, W, Y, Zn, Zr).
Gold assay technique FA430 has an upper detection limit of 10 ppm. Any sample that produces an over-limit gold value via the FA430 technique is sent for gravimetric finish via method FA-530. Silver analysis by MA300 has an upper limit of 200 ppm. Sample with over limit silver are reanalyzed by fire assay with gravimetric finish (FA530).
Bureau Veritas is an ISO/IEC accredited laboratory. Drill core assay results range from below detection to 11.7 gpt gold and 953.0 gpt silver.
Kerry Sparkes, P.Geo., Executive Vice President of Exploration, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical content in this news release.
Los Reyes Gold and Silver Project
Los Reyes is a district-scale low sulphidation epithermal gold-silver project located in a prolific mining region of Mexico. Over $20 million in exploration, engineering and prefeasibility studies have been spent on the project over 2 1/2 decades by previous operators with development plans being held back due to declining gold prices. Historic data coupled with an existing and recently updated resource estimate has provided sufficient understanding to fast-track the project to production. However, there is substantial resource expansion upside based on open extensions of known deposits, multiple untested high priority exploration targets, and only 40% of the known structures systematically explored leaving 10 kilometres of untested strike length. Potential for significant growth of the resource remains strong.
Current Measured and Indicated pit-constrained oxide mineral resources include 19.8 million tonnes containing 633,000 ounces of gold at 1.0 gpt and 16,604,000 ounces of silver at 26.2 gpt plus an additional 7.1 mt Inferred containing 179,000 ounces gold at 0.78 gpt and 6,831,000 ounces silver at 30 gpt.
About Prime Mining
Prime Mining, a member of the TSX Venture 50, is an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators who have united to build a low cost, near-term gold producer at the historically productive Los Reyes project in Mexico. Prime Mining has a well-planned capital structure with significant team and insider ownership.
Kirkland Lake Gold Ltd. (TSX:KL) (NYSE:KL) (ASX:KLA) announced pr... READ MORE
Ascot Resources Ltd. (TSX: AOT) (OTCQX: AOTVF) is pleased to ann... READ MORE
Rio Tinto has entered into a binding Heads of Agreement with Turq... READ MORE
Frontier Lithium Inc. (TSX-V: FL) (OTCQX: LITOF) (FSE: HL2) annou... READ MORE
Uranium Energy Corp (NYSE: UEC) is pleased to announce the closin... READ MORE