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Prime Mining drills 6.9 g/t AuEq over 3.5 metres at Los Reyes, Mexico

May 29, 2024
in Business
Prime Mining drills 6.9 g/t AuEq over 3.5 metres at Los Reyes, Mexico
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Prime Mining Corp. [TSX-PRYM; OTCQX-PRMNF; FSE-04V3] reported expansion drilling results from the company’s Los Reyes project, Sinaloa state, Mexico. These results are from 2024 drilling at the Guadalupe East Area within the Guadalupe Trend, and are not included in the company’s May 2, 2023 Mineral Resource Estimate (MRE).

Expansion Drilling Highlights in the Guadalupe Trend: The company is reporting 11 core holes at Guadalupe East with the following highlights: 6.9 g/t gold-equivalent (AuEq) (2.67 g/t Au and 326.6 g/t Ag) over 3.5 metres estimated true width (etw) in hole 24GE-149; 12.65 g/t AuEq (4.06 g/t Au and 664.0 g/t Ag) over 1.1 m etw in hole 24GE-150; 7.8 g/t AuEq (2.38 g/t Au and 419.0 g/t Ag) over 1.5 m etw in hole 24GE-151; 9.86 g/t AuEq (3.71 gpt Au and 475.0 gpt Ag) over 1.0 m etw in hole 24GE-158; 54.41 g/t AuEq (20.5 g/t Au and 2,620 g/t Ag) over 0.70 m etw in hole 24GE-159.

Scott Hicks, CEO, commented, “Today’s results build upon the quality of mineralization that we continue to discover at Guadalupe East and indicate that mineralization remains open in all directions. This area continues to return impressive silver values in addition to gold, including an intercept assaying just over 2,600 grams per tonne in 24GE-159 – one of the highest-grade silver intercepts we have recorded on the property. These high-grade results indicate tremendous optionality between potential open pit or underground mining approaches.”

Scott Smith, Executive Vice President of Exploration, added, “These results demonstrate strong potential to grow the Guadalupe East Resource, having returned high gold-equivalent grades from multiple quartz veins over a significant strike length and vertical extent beyond our 2023 economic resource pits. Mineralization remains open in many directions including to the east under the 2023 economic Resource pit as seen in Figure 3 of today’s release. Further, given the similarities between Las Primas and Guadalupe East, we continue to explore for comparable mineralization and structures at Las Primas in 2024.”

The target of this drilling at Guadalupe East was high-grade antithetic veins stepping out to the west. Antithetic veins are footwall and hanging wall splays that intersect the main Estaca vein at Guadalupe East. High-grade areas or “clavos” are often present at these intersections.

The Guadalupe Trend hosts approximately one-half of the Indicated gold-equivalent ounces reported in the MRE. Z-T, Central and Guadalupe are the three main zones hosting the gold-silver MRE at the Los Reyes Project.

Prime has completed over 24,000 metres of its targeted 40,000-metre 2024 drill program to-date (within budget) and will continue to evaluate drilling plans using its success-based approach. This evaluation will also include prioritization of targets based on probability of resource development and generative area discovery potential.

Four drill rigs are currently active on site at Los Reyes, with 2024 exploration focused on: extending the high-grade Z-T Trend 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 Trend resource through additions at Noche Buena and its connection to San Miguel East and generative target drilling of high-grade intercepts at Las Primas, Mariposa, Fresnillo, Mina and others to further develop the resource potential at Los Reyes.

Los Reyes is a rapidly evolving high-grade, low sulphidation epithermal gold-silver project. Since acquiring Los Reyes in 2019, Prime has spent approximately CAD$52 million on direct exploration activities and has completed over 185,000 metres of drilling (to March 31, 2024). On May 2, 2023, Prime announced an updated multi-million-ounce high-grade open pit constrained resource.

Indicated resources stand at 27.2Mt of 1.16 g/t gold for 1,013,000 oz and 40.4 g/t silver for 35,263,000 averaging 1.68 g/t gold. Inferred resources are 18.1Mt of 0.85 g/t gold for 497,000 oz and 31.52 g/t silver for 18,334  oz averaging 1.26 g/t gold.

Drilling is on-going and 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.

Resource World Magazine Inc. has prepared this editorial for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed herein. The information provided has been derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account the readers investment criteria, investment expertise, financial condition, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for certain persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.

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