VANCOUVER - Prime Mining Corp. ('Prime' or the 'Company') (TSX-V: PRYM, OTCQB: PRMNF, Frankfurt: 04V3) announces continuing positive Phase 1 drill results from its wholly owned Los Reyes gold-silver project in Sinaloa State, Mexico.
Chief Executive Officer, Daniel Kunz commented, 'The high-grade drill results reported today expand the resource potential at Guadalupe East considerably. The three historic main veins and multiple mineralized splays encountered to-date all remain open at depth and along strike. Drilling has now defined the Guadalupe East veins over 420 metres incorporating current and previous drilling. Adding known historical underground workings, the total strike length of the Guadalupe East vein system is 1,000 metres. For reference, our April 2020 oxide Pit-Constrained Resource reflects a mineralized strike extent of only 120 metres at Guadalupe East based on open pit mining and heap leach parameters. The high-grade gold-silver values reported from our Phase 1 drill program indicate that conventional milling, with much higher silver and gold recoveries, may be the preferred processing method going forward.'
Reported today are results from thirteen drill holes within, and adjacent to, the Guadalupe East deposit. Guadalupe East is one of eight known gold-silver deposits that comprise the current April 2020 oxide, open-pit constrained mineral resource ('Pit-Constrained Resource') at Los Reyes. Twelve of these holes intercepted the high-grade Estaca epithermal vein and the remaining hole, 21GE-08, collected structural data on the San Nicolas vein. Eight of the twelve Estaca holes were successful in intersecting high-grade gold-silver mineralization. This Phase 1 drilling extends 100 metres below the base of the Pit-Constrained Resource giving an approximate 250 to 300 drill-indicated metre vertical extent of the mineralized boiling zone that remains open vertically up dip. Historical metallurgical test work was completed by prior operators of high-grade mineralized material at Los Reyes. The material tested is in line with the gold-silver grades encountered during Phase 1 drilling and results indicate that gold recovery increased to 93% from 75% and silver recovery increased to 83% from 25% using mill processing instead of heap leaching. Two of the twelve Estaca holes were terminated in old workings.
Three drill rigs will operate at the Project until the commencement of the expanded Phase 2 program, which is expected to begin in November 2021. There are currently 35 completed drill holes that are pending release subject to receipt of some assay results. The Phase 2 program is under review and will include an increased number of drill rigs. Specifically, Phase 2 drilling will test the Guadalupe East veins, including the Estaca Vein, along strike and at depth and will target the known extensions of open pit resources. The Company expects that drilling will increase its understanding of the boiling zone controls and geometry and will target down-dip areas of underground resource potential at the Guadalupe East veins and other regional targets.
About Prime Mining
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.
Contact:
Daniel Kunz
Tel: 1-208-926-6379 office
Email: daniel@primeminingcorp.ca
Forward Looking Information
Information set forth in this document may include forward-looking statements. While these statements reflect management's current plans, projections, and intents, by their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of the Company. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. There is no assurance the transactions noted above will be completed on the terms as contemplated, or at all. The Company's actual results, programs, activities, and financial position could differ materially from those expressed in or implied by these forward-looking statements.
PRIME MINING CORP. 
