Prime Mining (PRYM.V) is focusing on unlocking the full potential of the Los Reyes Project located in Sinaloa, Mexico. The company is led by the ideal mix of successful mining executives, strong markets personnel and experienced local operators.
Today, Prime Mining announced assay results from drilling located outside of the current resource areas which indicates significant exploration upside beyond the forthcoming Q2 2023 mineral resource update.
These results are from drill holes targeting previously undrilled or mineralized structures with limited drilling. With continued follow-up in 2023, these initial results have the potential to significantly expand the footprint of the multi-million-ounce Los Reyes high-grade gold-silver deposits. Prime Mining has identified over a dozen gold-silver mineralized targets outside of the Q2 2023 resource update areas.
Chief Executive Officer, Daniel Kunz commented, “Our 2023 work will maintain focus on known resource expansion within Guadalupe, Z-T and Central key areas, but we are also extremely excited about the success of the generative exploration results outside of these deposit areas. Further geological interpretation and drilling of five advanced generative areas, highlighted today, along with our extensive remote-sensing and field mapping across Los Reyes, are expected to define new mineralized trends conducive to additional gold-silver deposit discoveries.”
Scott Smith, EVP Exploration added: “Fresnillo drill hole 22FRE-09 is very exciting as it contains 1.7 g/t AuEq over an estimated true width of 15.8m and this ranks with some of our best intercepts inside the nearby Z-T and Central resource areas, which occur on either side of Fresnillo. This year, we will complete significant sampling, mapping, and further drilling to learn more about these prospective areas with the objective of adding them to future resource updates.”
Here are some assay highlights:
- Fresnillo Area – 1.7 g/t AuEq over 19.3m (1.4 g/t Au, 18 g/t Ag over 15.8m etw) in hole 22FRE-09, including 5.4 g/t AuEq over 3.6m (4.7 g/t Au, 48 g/t Ag over 2.9m etw)
- Fresnillo Area – 1.5 g/t AuEq over 6.4m (1.3 g/t Au, 13 g/t Ag over 5.5m etw) in hole 22FRE-04, including 8.2 g/t AuEq over 0.95m (7.5 g/t Au, 53 g/t Ag over 0.8m etw) AND 1.3 g/t AuEq over 6.0m (0.88 g/t Au, 36 g/t Ag over 4.6m etw) also in hole 22FRE-04
- Orito Area – 1.1 g/t AuEq over 9.4m (1.0 g/t Au, 2.5 g/t Ag over 4.7m etw) in hole 22OR-06, including 2.3 g/t AuEq over 3.0 m (2.2 g/t Au, 4.4 g/t Ag over 1.5m etw)
- Orito Area – 1.1 g/t AuEq over 4.2m (0.9 g/t Au, 17.5 g/t Ag over 4.2m etw) in hole 22OR-01, including 2.4 g/t AuEq over 1.1 m (2.3 g/t Au, 5.8 g/t Ag over 1.1m etw)
- Mariposa Area – 5.2 g/t AuEq over 35.3m (4.9 g/t Au, 22 g/t Ag over 34.7m estimated true width or “etw”) in hole 21MA-06 (previously released) including 42 g/t AuEq over 1.5m (41.5 g/t Au, 40 g/t Ag over 1.50 m etw)
- Las Primas Area – 1.8 g/t AuEq over 7.5m (1.6 g/t Au, 14 g/t Ag over 3.75 m etw) in hole 21LP-02 (previously released), including 17.6 g/t AuEq over 0.35m (15.9 g/t Au, 135 g/t Ag over 0.2 m etw)
- Mina 20/21 Area – 18.2 g/t AuEq over 7.5m (4.4 g/t Au, 1,060 g/t Ag over 4.80 m etw) in hole 21MINA-02 (previously released)
At Fresnillo these highlighted drill holes are 60 metres apart and at Orito they are over 350 metres apart. The structures in both areas that connect these intercepts have been confirmed by mapping and surface sampling and are open along strike and at depth.
Additional targets have been identified utilizing remote sensing, surface mapping, geological interpretation and physical surveys of historic mining activity. Prime currently plans to drill 35,000 metres in 2023. Over 15,000 metres will be testing and expanding these exciting, mineralized targets outside of the reported resource areas, along with 20,000 metres of planned step-out drilling at the three main resource areas: Z-T, Central and Guadalupe.
The stock is up over 8% on the news.
A major support at $1.80 has held, and now, it is about attempting to breakout above the $2.15 zone. If Prime Mining can achieve this, it would trigger a broader bottoming reversal pattern. A rejection and a close below $1.80, would trigger a topping pattern and lead to a move down to the $1.40 zone.
