Extensive Surface Sampling Program Continues At Zapote South At Los Reyes

VANCOUVER, BC - Andrew Bowering, CEO of Prime Mining Corp. said, “Results from new trenches and road cuts in the Company’s ongoing surface exploration program continue to show significant mineralized areas on the Zapote North and South deposits.

These results continue to show significant mineralization exposed at surface or at shallow depth. Surface trenching and road cut sampling is part of Prime’s initial phase of exploration designed to better map the surface expression of mineralized structures and integrate the results into the new resource model, currently underway. Two existing adits in the Zapote South zone have also been sampled.  A surface sampling program of this magnitude has never been completed on the Los Reyes project.”

The sampling program is providing valuable information in determining the surface expression of mineralized structures, planning pit locations, and establishing where structures remain open to expansion. Chip-channel sampling along historic road cuts have returned significant intervals of mineralization, in some cases expanding the surface expression of the mineralized zone as previously mapped. In some places the road cut sampling follows the strike of the mineralized structure.  Underground sampling in historic adits have returned highly encouraging grades across the main structure at Zapote South. In the Zapote North area, road cut and trench sampling is helpful in mapping zones of high grade mineralization particularly in the hanging wall of the structure.

To date, 2,220 trench, road-cut and underground samples of a planned 3,500 samples have been submitted for assay. Assay results range from below detection to 33.6 gpt gold and 170.3 gpt silver. Composite intervals use a cut-off of 0.2 gpt Au. True zone width has not been determined from the surface sampling but, based on historic drilling, the Zapote zone averages 20 meters true width, varying from 5 to over 50 meters over a strike length of one kilometer.  Additional sample results from Los Reyes are expected shortly. Prime is evaluating doubling the sampling program from 5,000 meters to 10,000 given the success of the program so far and the new mineralized areas discovered.

Sampling consists of crews collecting continuous 1.5 meter rock chip and channel samples targeting quartz bearing alteration zones in hand dug trenches where bedrock is covered by overburden and from exposed road cuts across mapped and unmapped structures. 

The Los Reyes Gold-Silver Project is an overlooked, under-explored epithermal gold-silver project in a prolific mining region of Mexico. Over $20 million in exploration and engineering has already been spent on the project over 2 1/2 decades.  Previous operators completed various prefeasibility studies and plans yet held back from development due to declining gold prices. Work that has been completed has provided sufficient understanding of existing resources to allow Los Reyes to be fast-tracked to production. However, Los Reyes holds gold and silver exploration optionality. It is a large epithermal system with the bulk of work being conducted over less than 40% of the known structures leaving significant opportunity to expand known resources.