Vancouver - PRIME MINING CORP. ('Prime' or the 'Company') (TSXV: PRYM) (OTCQB: PRMNF) (Frankfurt: A2PRDW) is pleased to provide a year-end update on its 100% owned Los Reyes Gold-Silver Project ('Los Reyes') located in the State of Sinaloa, Mexico.
'As 2020 has come to an end and the new year has started, we want to thank our shareholders and stakeholders for their continued support. Prime has evolved during 2020 into a company with a highly skilled technical, management and governance team. Our geologic understanding of Los Reyes has increased significantly pointing to tremendous potential for a major new resource discovery,' stated Daniel Kunz, Chief Executive Officer.
Prime began 2020 announcing surface sampling results that demonstrated significant outcropping mineralized areas that carried good grades over significant widths, outside the historical resources at Zapote North and Zapote South. Additionally, the Company completed a significant new long-term agreement for surface use over the Los Reyes project area with Ejido de Tasajera, the majority local landowner. This access agreement is for an initial term of 15 years and can be extended for 15-years. The agreement covers project access and land use for exploration, engineering, construction, commissioning, and commercial operations. It is an extremely significant project milestone for the local communities, Prime and all project stakeholders, as it provides long-term project stability for the development of Los Reyes.
In early April, some 10 months after initial acquisition of Los Reyes, Prime announced a measured and indicated in-pit oxide mineral resource of 19.8 million tonnes ('Mt') at 1.00 gram per tonne ('gpt Au') and 26.2 gpt silver ('gpt Ag') containing 633,000 ounces of gold ('oz Au') and 16,604,000 ounces silver ('oz Ag'). Additionally, the updated resource outlined an inferred in-pit oxide mineral resource of 7.1 M t at 0.78 gpt Au and 30.0 gpt Ag (or 179,000 oz Au and 6,831,000 oz Ag contained).
On June 12, Prime closed a C$10,000,000 financing by issuing 20,000,000 units priced at C$0.50 per unit. Each unit consisted of one common share and one common share purchase warrant exercisable for one common share at an exercise price of C$1.10 for a period of 60 months following the closing. The lead participant in the offering was Trinity Capital Partners including Mr. Pierre Lassonde.
During the year Prime also announced key management changes including the appointment of Kerry Sparkes as Executive Vice President Exploration and Ian Harcus as Chief Financial Officer. Significant changes were also made to the Board of Directors. The current Board, comprising Messrs. Andy Bowering, Murray John (Chairman), Daniel Kunz, Paul Larkin, Marc Prefontaine and Paul Sweeney, has the exploration, construction and operating experience required to drive the Company forward, along with both project finance and country specific skills relating to project exploration and development in Mexico.
The Company amended an option agreement with Vista Gold Inc. under which it holds Los Reyes by cancelling all of Vista's net smelter royalty and back-in rights in consideration for accelerating a final US$1.5M option payment owing to Vista and completing a series of additional cash payments totaling US$ 2.1M.
Los Reyes - 2020 Progress
The Los Reyes Gold-Silver Project is a district scale epithermal gold-silver project in a prolific mining region of Mexico. Mineralization in the Los Reyes area is typical of low sulfidation epithermal gold/silver systems. Over US$20M in exploration and engineering has already been spent on Los Reyes over 25 years. Previous operators completed various prefeasibility studies but held back from development due to declining gold prices. While the initial work completed provides sufficient understanding of resources to fast-track Los Reyes to production, the work to-date has been conducted over less than 40% of the known structures. Additionally, the depth potential of what is essentially an intact epithermal gold-silver system has been inadequately explored. This leaves significant opportunities to materially expand known resources.
Significant exploration progress has been made to date at Los Reyes. This ongoing work includes field mapping, trench sampling, rock alteration analysis and interpretation and re-logging of historic diamond drill core. This work led to a structural and rock alteration interpretation that is being used to guide the Company's first diamond drill exploration program. Re-logging of several existing diamond drill core holes also identified that adularia, a crystalline mineral, containing high-grade gold and silver locally with visible gold, is associated with nearby altered rock types. The adularia appears to be vertically zoned. This zoning may provide a guide to effectively target areas of higher-grade gold and silver at depth below currently known mineralization. A study of alteration types indicates that the clay kaolinite is related to the main mineralizing event and may be considered a pathfinder to locations of higher-grade mineralization. Secondary clays may also serve to indicate higher-grade; these secondary clays include smectite, illite and montmorillonite. The initial data set was limited in size, so with the data available to-date, no assumptions can be made as to the lateral or vertical extent of gold-silver zoning. Data will continue to be collected and analyzed throughout the drill program.
The Company's 15,000 metre ('m') Phase 1 diamond drill program began in December with the first of at least two drill rigs arriving at Los Reyes. The Phase 1 program will allow for the first wireframed and integrated geological, structural and alteration model to be developed for Los Reyes and will serve as the framework for the exploration and expansion of the known deposits and the discovery of new deposits at Los Reyes.
About Prime Mining Corp (TSX.V: PRYM) (OTCQB:PRMNF)
Prime is an ideal mix of successful capital markets and mining executives and experienced local exploration personnel who are expanding the exploration initiative at the historically productive Los Reyes gold and silver project in Sinaloa, Mexico. Current Measured and Indicated pit-constrained oxide mineral resources for the Property total 19.8 million tonnes at 1.0 g/t Au, plus 26.2 g/t Ag (or 633,000 oz Au, plus 16.6 million oz Ag contained). Los Reyes holds substantial resource upside based on open extensions of known resources, ten kilometres of undrilled strike length and at least eight additional exploration targets. Prime Mining has a well-planned capital structure with significant management and insider ownership.
Contact:
Daniel Kunz
Tel: 1-208-926-6379
Email: dan@dkunzassoc.com
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.
EPOWER METALS INC 
