Prime Extends Mineralization Beyond Los Reyes Resource Pit at Central Area

Discoveries similar to the Z-T structures include 5 gpt AuEq¹ over 9.1 metres and 1.50 gpt AuEq over 14.0 metres

VANCOUVER, British Columbia, July 11, 2023 (GLOBE NEWSWIRE) -- Prime Mining Corp. (“Prime” or the “Company”) (TSX-V: PRYM, OTCQX: PRMNF, Frankfurt: 04V3) is reporting drill results from nine core holes at the Central Area, one of three main zones hosting the gold-silver mineral resource estimate (“MRE”) at the Company’s Los Reyes Project, located in Sinaloa State, Mexico. The 2023 Technical Report outlining the MRE can be found on the Company's website at https://primeminingcorp.ca/ and on SEDAR at www.sedar.com, under the Company’s Issuer Profile.

Central Area Drilling Highlights:

• 4.99 grams per tonne (gpt) gold-equivalent (AuEq) (4.11 gpt Au and 67.9 gpt Ag) over 9.1 metres (m) estimated true width (etw) in hole 23NB-46, located 150 m along strike from the bottom of the MRE pit, including:
  • 37.48 gpt AuEq (31.40 gpt Au and 470.0 gpt Ag) over 1.1 m etw.
• 1.50 gpt AuEq (1.23 gpt Au and 20.5 gpt Ag) over 14.0 m etw in hole 23NB-39, located immediately adjacent to the MRE pit, including:
  • 5.17 gpt AuEq (4.19 gpt Au and 76.0 gpt Ag) over 2.0 m etw.
• 2.25 gpt AuEq (1.86 gpt Au and 30.2 gpt Ag) over 5.7 m etw in hole 23NB-40, located 80 m along strike and below the MRE pit, including:
  • 5.62 gpt AuEq (4.75 gpt Au and 67.6 gpt Ag) over 1.4 m etw.

The holes reported in this news release were drilled at Noche Buena, located in the southeastern-most end of the Central Area (see Figures 1, 2) up to 150 m along strike from the bottom of the recently announced resource pit. As with the Company’s June 20^th release regarding the Z-T Area, the drilling at Central Area confirms the ongoing expansion of potential gold-silver resources in addition to and not included in the Company’s MRE.

Prime Mining Corp. Chief Executive Officer Daniel Kunz commented, “Our expansion drilling continues to encounter wide intercepts of high-grade mineralization outside of the current resource pits, this time in the Central Area. These results parallel what we recently reported at the Z-T Area. We see expansion of the Central Area with high-grade mineralization discovered along strike and at depth beyond the current resource pit, with the potential discovery of a new high-grade structure. We are excited by the continued discovery of high-grade areas outside of the MRE that demonstrate the scale of the Los Reyes system with potential to contribute to the global project.”

Figure 1: Los Reyes drilling update

The mineralization encountered in this drilling has identified a new developing high-grade shoot in drill holes 23NB-40 and 46 (see Figures 3, 4). Extending out from previously released drill hole 23NB-21, this high-grade shoot remains open south-southeast along strike. Results from remaining drill holes 23NB-47 and 23NB-48, with a quartz vein intersected about 30 m down-plunge from the intercept in 23NB-46, are expected in the coming weeks.

Figure 2: Central Area drilling update

Figure 3: Central Area long section with drill holes highlighted

Figure 4: Central Area (Noche Buena) cross section A-A’

Drilling is ongoing through the current rainy season (which started at the end of June) with four drill rigs focusing on:

1. extending the high-grade Z-T Area shoots that remain open at depth, as well as along strike north and south;
2. expanding the two other MRE resource areas, including the eastern extensions of the Guadalupe System and Echeguren Shaft area; and,
3. exploring the new generative targets.
   

Prime has completed over 30,000 m of its planned 60,000 m 2023 drill program and will continue to evaluate its drilling plans using its success-based approach.

Link 1– PDF Figures

Link 2 – PDF Drill Hole Tables

Note 1: Gold equivalent grades are calculated based on an assumed gold price of $US 1700 per ounce and silver price of $22 per ounce, based on the formula AuEq grade (gpt) = Au grade + Ag grade x ($22 / $1,700). Metallurgical recoveries are not considered in the in-situ grade estimate but are estimated to be 93% and 83% for gold and silver, respectively, when processed in a mill, and 72% and 25% respectively when heap-leached.

QA/QC Protocols and Sampling Procedures

Drill core at the Los Reyes project is drilled in predominately HQ size (63.5 millimetre “mm”), reducing to NQ (47.6 mm) when required. Drill core samples are generally 1.50 m long along the core axis with allowance for shorter or longer intervals if required to suit geological constraints. After logging intervals are identified to be sampled, the core is cut and one half is submitted for assay. RC drilling returns rock chips and fines from a 133.35 mm diameter tricone bit. The returns are homogenized and split into 2 halves, with one half submitted for analysis and the other half stored.

Sample QA/QC measures include unmarked certified reference materials, blanks, and field duplicates as well as preparation duplicates are inserted into the sample sequence and make up approximately 8% of the samples submitted to the laboratory for each drill hole.

Samples are picked up from the Project by the laboratory personnel and transported to their facilities in Durango or Hermosillo Mexico, for sample preparation. Sample analysis is carried out by Bureau Veritas and ALS Labs, with fire assay, including over limits fire assay re-analysis, completed at their respective Hermosillo, Mexico laboratories and multi-element analysis completed in North Vancouver, Canada. Drill core sample preparation includes fine crushing of the sample to at least 70% passing less than 2 mm, sample splitting using a riffle splitter, and pulverizing a 250-gram split to at least 85% passing 75 microns.

Gold in diamond drill core is analyzed by fire assay and atomic absorption spectroscopy of a 30 g sample (code FA430 or Au-AA23). Multi-element chemistry is analyzed by 4-Acid digestion of a 0.25-gram sample split (code MA300 or ME-ICP61) with detection by inductively coupled plasma emission spectrometer for a full suite of elements.

Gold assay techniques FA430 and Au-AA23 have an upper detection limit of 10 ppm. Any sample that produces an over-limit gold value via the initial assay technique is sent for gravimetric finish via method FA-530 or Au-GRA21. Silver analyses by MA300 and ME-ICP61 have an upper limit of 200 ppm and 100 ppm, respectively. Samples with over-limit silver values are re-analyzed by fire assay with gravimetric finish FA530 or Au-GRA21.

Both Bureau Veritas and ALS Labs are ISO/IEC accredited assay laboratories.

Qualified Person

Scott Smith, P.Geo., Executive Vice President of Exploration, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical content in this news release.

Additional Notes

Metres is represented by “m”; “etw” is Estimated True Width and is based on drill hole geometry or comparisons with other on-section drill holes; “Au” refers to gold, and “Ag” refers to silver; “gpt” is grams per metric tonne; some figures may not sum due to rounding; Composite assay grades presented in summary tables are calculated using a Au grade minimum average of 0.20 gpt or 1.0 gpt as indicated in “Au Cut-off” column of Summary Tables. Maximum internal waste included in any reported composite interval is 3.00 m. The 1.00 gpt Au cut-off is used to define higher-grade “cores” within the lower-grade halo.

About the Los Reyes Gold and Silver Project

Los Reyes is a rapidly evolving high-grade, low sulphidation epithermal gold-silver project located in Sinaloa State, Mexico. Since acquiring Los Reyes in 2019, Prime has spent approximately US$30 million on direct exploration activities and has completed over 120,000 m of drilling. On May 2, 2023, Prime announced an updated multi-million-ounce high-grade open pit constrained resource (see below, and refer to Note 1 and the May 2, 2023 press release for more details).

May 2, 2023 Resource Statement

Drilling is on-going and suggests that the three known main deposit areas (Guadalupe, Central and Z-T) are larger than previously reported. Potential also exists for new discoveries where mineralized trends have been identified outside of the currently defined resource areas.

Historic operating results indicate that an estimated 1 million ounces of gold and 60 million ounces of silver were recovered from five separate operations at Los Reyes between 1770 and 1990. Prior to Prime’s acquisition, recent operators of Los Reyes had spent approximately US$20 million on exploration, engineering, and prefeasibility studies.

About Prime Mining

Prime is managed by an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators all focused on unlocking the full potential of the Los Reyes Project. The company has a well-planned capital structure with a strong management team and insider ownership.

ON BEHALF OF THE BOARD OF DIRECTORS

Daniel Kunz
Chief Executive Officer

For further information, please contact:

Daniel Kunz
Chief Executive Officer and Director
Prime Mining Corp.
1307 S. Colorado Ave.
Boise, Idaho 83706
Telephone: +1 (208) 926-6379 office
email: [email protected]

Scott Hicks
Executive Vice President
Prime Mining Corp.
710 – 1030 West Georgia Street
Vancouver, BC, V6E 2Y3
Telephone: +1 (604) 428-6128 office
email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information
This news release contains certain “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities legislation as may be amended from time to time, including, without limitation, statements regarding the perceived merit of the Company’s properties, including additional exploration potential of Los Reyes, potential quantity and/or grade of minerals, the potential size of the mineralized zone, metallurgical recoveries, and the Company’s exploration and development plans in Mexico. Forward-looking statements are statements that are not historical facts which address events, results, outcomes, or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made, and they involve several risks and uncertainties. Certain material assumptions regarding such forward-looking statements were made, including without limitation, assumptions regarding the price of gold, silver and copper; the accuracy of mineral resource estimations; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained, including concession renewals and permitting; that political and legal developments will be consistent with current expectations; that currency and exchange rates will be consistent with current levels; and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks related to uncertainties inherent in the preparation of mineral resource estimates, including but not limited to changes to the cost assumptions, variations in quantity of mineralized material, grade or recovery rates, changes to geotechnical or hydrogeological considerations, failure of plant, equipment or processes, changes to availability of power or the power rates, ability to maintain social license, changes to interest or tax rates, changes in project parameters, delays and costs inherent to consulting and accommodating rights of local communities, environmental risks, title risks, including concession renewal, commodity price and exchange rate fluctuations, risks relating to COVID-19, delays in or failure to receive access agreements or amended permits, risks inherent in the estimation of mineral resources; and risks associated with executing the Company’s objectives and strategies, including costs and expenses, as well as those risk factors discussed in the Company's most recently filed management's discussion and analysis, as well as its annual information form dated April 22, 2022, available on www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.

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