Additionally, drill results reported today reveal an extensively mineralized system at a potential new deposit area called Las Primas, located between the Guadalupe East and
Highlights
Expansion at San Miguel East
- 2.50 grams per tonne (“gpt”) gold (“Au”) and 117.9 gpt silver (“Ag”) over 8.3 metres (“m”) (7.5 m estimated true width “etw”) at 139.5 m downhole including 4.57 gpt Au and 139.8 gpt Ag over 3.8 m (3.4 m etw) and 1.63 gpt Au and 193.2 gpt Ag over 1.5 m (1.3 m etw) at 244.5 m downhole (21SME-03);
- 1.02 gpt Au and 51.4 gpt Ag over 15.0 m (etw) at 7.5 m downhole including 4.11 gpt Au and 13.1 gpt Ag over 3.0 m (etw) and 1.22 gpt Au and 137.8 gpt Ag over 7.9 m (etw) at 42.0 m downhole including 2.48 gpt Au and 280.3 gpt Ag over 3.1 m (etw) (21SME-07);
- 1.59 gpt Au and 5.2 gpt Ag over 1.5 m (1.4 m etw) at 42.0 m downhole (21SME-04).
New Discovery at San Miguel East (Fresnillo Structure)
- 0.82 gpt Au and 7.5 gpt Ag over 6.8 m (5.6 m etw) from surface in newly defined mineralized vein breccia (21SME-02);
- The nearly 1-kilometre long
Fresnillo structure has never been drilled until now.
Initial Drilling at Las Primas
- 1.55 gpt Au and 3.4 gpt Ag over 1.0 m (0.7 m etw) at 31.7 m downhole (21LP-01);
- 1.58 gpt Au and 13.6 gpt Ag over 7.5 m (3.8 m etw) at 24.0 m downhole including 15.90 gpt Au and 134.5 gpt Ag over 0.4 m (0.2 m etw) and including 7.02 gpt Au and 50.2 gpt Ag over 0.7 m (0.4 m etw) and 0.83 gpt Au and 26.4 gpt Ag over 3.0 m (1.1 m etw) at 107.3 m downhole (21LP-02);
- 1.18 gpt Au and 42.3 gpt Ag over 1.5 m (1.4 m etw) at 70.5 m down hole (21LP-03).
Kunz added, “Follow-up drilling is key to unlocking the full potential of
San Miguel East Drilling
Phase 1 drilling at San Miguel East is now complete with the mineralized structure successfully intersected in all seven drill holes. These are the first core holes we drilled at San Miguel East, and they have added considerably to our geological understanding of the potential of this deposit.
- 21SME-01 and 21SME-02 were collared in previously unrecognized mineralized vein breccia material within the San Miguel East deposit, that is likely the
Fresnillo structure. From surface, 21SME-01 returned 0.353 gpt Au, 1.1 gpt Ag over 1.5m (1.1 m etw) and 21SME-02 returned 0.82 gpt Au and 7.5 gpt Ag over 6.8 m (5.6 m etw) (see Figures 2 to 4). - A mineralized
Fresnillo structure will have favorable implications for San Miguel East’s open pit modeling potentially reducing stripping ratios. Additionally, success atFresnillo has the potential to have a favorable impact on the nearbyNoche Buena deposit - 21SME-04,05 & 06 were designed to expand the resource to the south-east. These holes intersected narrow zones of cut-off grade mineralization. Re-interpretation of these holes indicates that they may have intersected the main mineralized zone too high to intercept the highest grades. Phase 2 drilling will target the steeper inclination both up-dip and down-dip to find the extensions of the higher-grade core zone.
- 21SME-01 intersected 4.5 m at 1.0 gpt Au and 130.8 gpt Ag at 218.0 m downhole.
One drill hole completed at San Miguel East was previously reported on
Mineralization at San Miguel East 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. Computer 3D modelling of grades is suggesting a steep south-southeast rake of the higher-grade internal zone indicating that 21SME-04 and 21SME-06 may have drilled over the top of the higher-grade mineralization. Reinterpretation of the drill hole results, also indicates that 21SME-02 may have been drilled under the main mineralized structure.
Initial Drilling at Las Primas
Las Primas (see Figure 5) is located between the Guadalupe East and
Phase 1 drilling at Las Primas included three shallow holes to acquire an initial subsurface understanding of the outcropping breccia and quartz vein structures. No drilling has occurred at las Primas by any of the previous operators, in part due to a lack of road and constrained access. The large surface expression, multiple, sub-parallel quartz breccia structures and the proximity to the high-grade, historic
Three historic adits have been found in the area, two of which have now been mapped and sampled. LP-Adit-29 returned 0.63 gpt Au, 28.3 gpt Ag over 16.5 m (9.0 m etw) from a quartz vein and breccia structure. LP-Adit-15 was driven into the hillside then drifts obliquely along a mineralized structure. Economic grades were returned from within the adit such as 0.33 gpt Au and 1.4 gpt Ag over 43.5m (7.0 m to 10.0 m etw), 0.96 gpt Au and 28.0 gpt Ag over 9.0 m (3.0 m etw) including 2.30 gpt Au and 69.8 gpt Ag over 3.0 m (1.0 m etw), and 0.72 gpt Au and 23.8 gpt Ag over 24.0 m (7.0 m etw) including 3.79 gpt Au and 93.0 gpt Ag over 3.0 m (1.0 m etw).
Surface trenching and outcrop channel sampling in the Las Primas area exposed several quartz-bearing structures with encouraging mineralization. LP-TR-5 returned 0.71 gpt Au and 9.5 gpt Ag over 27m (16.0 m etw) including 7.25 gpt Au and 57.1 gpt Ag over 1.5m (0.9 m etw). LP-TR-2 returned 0.65 gpt Au and 7.25 gpt Ag over 9.0 m (6.5 m etw) including 2.64 gpt Au and 30.9 gpt Ag over 1.5 m (1.1 m etw). LP-RS5 returned 0.86 gpt Au and 7.2 gpt Ag over 9.0 m (6.6 m etw). LP-RS9 returned 0.78 gpt Au and 17.9 gpt Ag over 7.5 m (5.0 m etw).
21LP-01 drilled beneath LP-Adit-15 & 29 intersecting three structures with anastomosing quartz veins and quartz breccia that appear to be dipping steeply to the north-northeast. 21LP-02 and 21LP-03 were drill 55 m apart along the same azimuth. They also intersected three structures, likely the same as those intersected in 21LP-01. See Figure 6 for a plan view of the Las Primas drilling and Figures 7 and 8 for the interpreted cross sections.
Link 1: Figures 1 to 8
Link 2: Drill Hole Tables 1 to 3
QA/QC Protocols and Sampling Procedures
Drill core at the
Samples are picked up from the project by Bureau Veritas and transported to their laboratory in
Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30 g sample (code FA430). Multi-element chemistry is analyzed by 4-Acid digestion of a 0.25 g sample split (code MA300) with detection by inductively coupled plasma emission spectrometer for 35 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, La, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, S, Sb, Sc, Sn, Sr, Th, Ti, U, V, W, Y, Zn, Zr).
Gold assay technique FA430 has an upper detection limit of 10 ppm. Any sample that produces an over-limit gold value via the FA430 technique is sent for gravimetric finish via method FA-530. Silver analysis by MA300 has an upper limit of 200 ppm. Sample with over limit silver are reanalyzed by fire assay with gravimetric finish (FA530).
Bureau Veritas is an ISO/IEC accredited assay laboratory. 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.
Qualified Person
Current Measured and Indicated pit-constrained oxide mineral resources from an
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email: daniel@primeminingcorp.ca
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Fig. 1 Aug 4 Los Reyes Property Drill Progress
Fig. 1 Aug 4 Los Reyes Property Drill Progress
Fig 2 Aug 4 San Miguel Drill Progress
Fig 2 Aug 4 San Miguel Drill Progress
Fig 3 Aug 4 San Miguel Section 5275E
Fig 3 Aug 4 San Miguel Section 5275E
Fig 4 Aug 4 San Miguel Section 5175E
Fig 4 Aug 4 San Miguel Section 5175E
Fig 5 Aug 4 San Miguel Section 5230E
Fig 5 Aug 4 San Miguel Section 5230E
Fig 6 Aug 4 Las Primas Drill Progress
Fig 6 Aug 4 Las Primas Drill Progress
Fig 7 Aug 4 Las Priomas Section 21LP-01
Fig 7 Aug 4 Las Priomas Section 21LP-01
Fig 8 Aug 4 Las Primas Section 21LP-02 & 03
Fig 8 Aug 4 Las Primas Section 21LP-02 & 03
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