March 29, 2022 06:00 ET | Source: Prime Mining Corp. Prime Mining Corp.

VANCOUVER, British Columbia, March 29, 2022 (GLOBE NEWSWIRE) -- Prime Mining Corp. (“Prime” or the “Company”) (TSX-V: PRYM, OTCQB: PRMNF, Frankfurt: 04V3) announces continuing positive drill hole results from its 2021 Phase 1 drill program and its on-going Phase 2 drill program at the Zapote South deposit. Zapote South is one of the eight known gold-silver deposits at the Company’s wholly owned Los Reyes project located in Sinaloa State, Mexico (the “Project”).

Being reported today are 20 new drill holes from Zapote South, including 15 diamond drill and 5 reverse circulation (“RC”) holes. Eleven of the holes represent final results of the Zapote South Phase 1 program and 9 holes from the ongoing Phase 2 program (see Figures 1 and 2).

Highlights from the Zapote South Drill Program Include:

Chief Executive Officer, Daniel Kunz commented, “Drilling continues to be highly successful at Zapote South as we consistently encounter robust high-grade mineralization with an expanding footprint. The Z-T structure is proving to be an area of good continuity and remains open at depth below the Zapote pits and the current Tahonitas drilling. Recent drilling represents our deepest drilling at Zapote and has expanded mineralization a further 200 metres deeper and significantly to the southeast. Results now indicate that the ZT structure is mineralized over three kilometres to a potential depth of over 300 m below surface.”

Executive Vice President of Exploration, Scott Smith commented, “Hole 22ZAP-55R contains one of the widest and deepest intercepts drilled to date and this new discovery opens the opportunity for the entire Z-T Structure at depth. The RC hole ended in mineralization at 406 metres above sea level and was terminated due to encountered water. The intercept is over 200 m below the bottom of the current resource with a width of 42.7 m (27.4 m etw) and grades of 2.38 gpt Au and 43.4 gpt Ag.”

Nine drill rigs are currently operating at Los Reyes in the Phase 2 program and have completed 30,000 m (106 holes) of the planned 50,000 m program. Five drills are operating on Guadalupe East, two on the Central Structure, one on the Z-T Structure and one on other generative targets. Considerable progress has been made on the previously experienced assay backlog with assay turnaround has been reduced to approximately five weeks.

The Zapote South deposit is part of the Zapote-Tahonitas (“Z-T”) major northwest-southeast trending structure, as such it remains open along strike and at depth. To date the Company has defined this structure over three kilometres in length.

The majority of higher-grade mineralization encountered to date has been found between 710 and 480 metres above sea level (“masl”). However, 22ZAP-55R, at the north end of Zapote South, encountered significant widths of mineralization at 400 masl along the margins of a large rhyolite intrusive.

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 strike.

Link 1 – PDF Figures Link 2 – PDF Drill Hole Tables

QA/QC Protocols and Sampling Procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetre “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. RC drilling returns rock chips and fines from a 133.35 mm diameter tricone bit. The returns are homogenized and split into 2 halves, one submitted for analysis and the other stored.

Sample QA/QC measures of 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 lab 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 reanalysis, completed at their respective Hermosillo, Mexico laboratories 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-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 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 ppm. 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 ppm and 100 ppm, respectively. Samples with over-limit silver values are reanalyzed by fire assay with gravimetric finish FA530 or Au-GRA21.

Both Bureau Veritas and ALS Labs are ISO/IEC accredited assay laboratories. Drill core assay results range from below detection to 93.80 gpt gold and 4,955.0 gpt silver. Composite intervals use a cut-off grade of 0.20 gpt gold.

Scott Smith, 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 rapidly evolving high-grade, low sulphidation epithermal gold-silver project located in Sinaloa, Mexico, within the prolific Sierra Madre mining region. 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 USD 20 million on exploration, engineering, and prefeasibility studies. The Project remains underexplored as only 40% of the known structures have been systematically drilled, leaving 10 kilometres of untested strike length. Los Reyes holds potential for additional discovery and resource expansion.

Prime Mining acquired Los Reyes is 2019, completed initial data compilation that included 51,000 metres of historical drilling, field mapping and trenching in 2020, and in 2021, executed a Phase 1 exploration program that included 25,650 metres of drilling. Results suggest the eight known deposits are much larger than previously reported and potential exists for new discoveries outside of current defined resource areas. The Company is currently undertaking a 50,000 metre Phase 2 exploration program.

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 undertake exploration drilling to expand the known gold-silver resource at the historically productive Los Reyes project in Mexico. Prime Mining has a well-planned capital structure with significant team and insider ownership.

The TSX Venture 50 is a ranking of the top performers in each of 5 industry sectors on the TSX Venture Exchange over the last year.

ON BEHALF OF THE BOARD OF DIRECTORS

Daniel Kunz Chief Executive Officer

For further information, please contact:

Daniel Kunz Chief Executive Officer and Director Prime Mining Corp. 1307 S. Colorado Ave. Boise, Idaho 83706 Telephone: 1-208-926-6379 office email: daniel@primeminingcorp.ca

Andrew Bowering Executive Vice President and Director Prime Mining Corp. 710 – 1030 West Georgia Street Vancouver, BC, V6E 2Y3 Telephone: (604) 428-6128 Facsimile: (604) 428-6430 E: andy@primeminingcorp.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities legislation as may be amended from time to time, including, without limitation, statements regarding the perceived merit of the Company’s properties, including additional exploration potential of Los Reyes, potential quantity and/or grade of minerals, the potential size of the mineralized zone, metallurgical recoveries, the timing and results of permitting and the Company’s exploration and development plans in Mexico and expectations on the potential extension of the expired mineral concessions and granting of new mineral concessions with respect to El Rey. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made, and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements were made, including without limitation, assumptions regarding the price of gold, silver and copper; the accuracy of mineral resource estimations; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained, including concession renewals and permitting; that political and legal developments will be consistent with current expectations; that currency and exchange rates will be consistent with current levels; and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks related to uncertainties inherent in the preparation of mineral resource estimates, including but not limited to changes to the cost assumptions, variations in quantity of mineralized material, grade or recovery rates, changes to geotechnical or hydrogeological considerations, failure of plant, equipment or processes, changes to availability of power or the power rates, ability to maintain social license, changes to interest or tax rates, changes in project parameters, delays and costs inherent to consulting and accommodating rights of local communities, environmental risks, title risks, including concession renewal, commodity price and exchange rate fluctuations, risks relating to COVID-19, delays in or failure to receive access agreements or amended permits, risks inherent in the estimation of mineral resources; and risks associated with executing the Company’s objectives and strategies, including costs and expenses, as well as those risk factors discussed in the Company's most recently filed management's discussion and analysis, as well as its annual information form dated August 31, 2021, available on www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.