Andrew Bowering, CEO of Prime Mining Corp. (“Prime” or the “Company”) announced today that the Company engaged Stantec Consulting Ltd. to prepare an estimate of the gold and silver resources for the Los Reyes Gold Silver Mine in Sinaloa, Mexico. The results of this estimate will be presented in a Technical Report prepared in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Since October, 2019, Prime geologists have been working with a database of 493 historic drill holes to establish a new 43-101 compliant in-pit resource over all of the project areas at Los Reyes. For the first time since modern work has been completed at Los Reyes, all 493 historic drill holes are in one data base. The data set has been thoroughly reviewed and in early December was forwarded to Stantec Consulting Ltd., which is presently working towards a new resource estimate within the coming weeks.
Prime anticipates that the current work will expand the size of the resource from the existing historic gold resource of 380,100 Indicated ounces at 1.73 g/t and 155,200 Inferred ounces at 1.49 g/t and silver resource of 6,315,300 Indicated ounces at 28.7 g/t and 3,639,000 Inferred ounces at 34.9 g/t. The existing resource estimate was prepared by Tetra Tech for Vista Gold in 2013. Prime expects to see an increase in the mineral resources from the addition of new surface assay data, inclusion of additional mineralized areas into the block model, and with remodeling being completed on the resource at lower gold cutoff grades, compared to the previous resource estimates that used 0.5 gpt gold.
Allan Turner, MSc., P.Geol. and A.C. (Chris) Hunter, P.Geol., with Stantec Consulting Ltd., are the Qualified Persons (as defined under National Instrument 43-101) responsible for the preparation of the technical report.
Bruce Kienlen, P.Geo. Vice President of Exploration, a qualified person for the purposes of National Instrument 43-101, has reviewed and approved the technical content in this news release.