Prism Resources Inc. ("Prism" or the "Company") announces that it has initiated a strategic review of potential mine development scenarios with JDS Energy and Mining Inc. at the Huampar project near Lima, Peru. JDS will examine historical data and Prism's current plans for advanced exploration drilling and the potential early reactivation of mining. Upon the successful completion of the advanced exploration drilling phase and the establishment compliant mineral resource model, the Project would be advanced to the Preliminary Economic Assessment ("PEA")/Prefeasibility Study ("PFS") stage led by JDS.
The project which hosts precious and base metals including lead, zinc, silver and gold was mothballed over 18 years ago, due to power shortages and market conditions. Past production at Huampar Mine between 1956 and 1991 is approximately 2.5 million tonnes averaging 5.4 oz/T (185 g/t) silver, 5% zinc, 3.8% lead and 1.6 g/t gold with excellent metallurgical recoveries. The project contains historical estimate of 874,412 tonnes grading 6.1 oz/T silver (209 g/t), 3.63% zinc, 3.31% lead and 1.3 g/t gold. This estimate was reported in Prism's qualifying NI 43-101 Huampar Project Technical Report written by Mining Plus Canada Cons. Ltd. on July 2016. This historical resources was originally estimated by MRDI Canada (now Amec Foster Wheeler) in June 1999. The methodology used by MRDI is not consistent with the CIM Definition Standards on Mineral Resources and Reserves. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the issuer is not treating the historical estimate as current mineral resources or mineral reserves. The Huampar project property hosts four ex-producing mines including the Huampar Mine, all located within an 8-kilometer radius. None of these have ever been investigated by modern exploration techniques such as diamond drilling or geophysics. Prism plans to define a current resource estimate and will carry out exploration to extend known mineralized zones as well as test regional exploration targets.
Qualified Person and Quality Control/Quality Assurance
Mr. Richard Dufresne, P.Geo., is Prism's Vice-President Exploration and is a qualified person as defined by NI 43-101. He has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Dufresne is not independent of the Company, as he is an officer.