Prime Mining Unveils Expanded Gold-Silver Resources at Los Reyes

Prime Mining Corp. has released an updated mineral resource estimate (MRE) for its Los Reyes gold-silver project, showcasing significant expansion and the inaugural underground resource. The 2024 MRE, prepared by an independent qualified person, John Sims CPG, reflects drilling up to July 17, 2024, and incorporates new open pit and underground zones.

Indicated resources have increased by 49% to 2.2 million gold-equivalent ounces (AuEq), while inferred resources have grown by 11% to 0.8 million AuEq ozs compared to the May 2023 MRE. This growth is primarily attributed to higher-grade open pit and underground zones, validating Prime's strategy of targeting a high-recovery, high-margin milling operation.

The updated resource statement reflects a mixed approach to open pit versus underground mining, considering each area's suitability on a case-by-case basis. Key details of the MRE include:

* Open-Pit Milled Indicated and Inferred Resources: 1.27 million ounces AuEq (24.7 million tonnes at 1.60 g/t AuEq) and 335,000 ounces AuEq (7.2 million tonnes at 1.45 g/t AuEq), respectively.
* New Underground Milled Indicated and Inferred Resources: 664,000 ounces AuEq (4.1 million tonnes at 5.00 g/t AuEq) and 406,000 ounces AuEq (4.1 million tonnes at 3.12 g/t AuEq), respectively.
* Open Pit Heap Leach Indicated and Inferred Resources: 261,000 ounces AuEq (20.3 million tonnes at 0.40 g/t AuEq) and 76,000 ounces AuEq (5.9 million tonnes at 0.40 g/t AuEq), respectively.

The resource expansion is a testament to Prime's successful exploration strategy, which has focused on expansion drilling along major trends and targeting generative areas. Drilling since May 2023 has added 86,650 meters, leading to the significant increase in resources. Metallurgical test work and geotechnical parameter updates have further enhanced the resource estimate, with open-pit milled Indicated Resources growing 49% and Inferred Resources increasing 11% compared to the May 2023 MRE.

The addition of new areas, such as Las Primas, Mariposa, and Fresnillo, has significantly contributed to the overall resource expansion. These new open pit and underground zones validate Prime's targeting of higher-grade areas and demonstrate the project's optionality and potential for a high-quality milling operation.

Prime's discovery cost has also decreased, dropping from approximately US$25 per AuEq ounce in 2023 to just over US$20 per AuEq ounce in 2024. This improvement suggests increased drilling efficiency and higher-grade intercepts, potentially lowering future exploration and development costs.



The 2024 MRE is based on 240,172 meters of drilling, with Prime having drilled 191,451 meters since acquisition, yielding a discovery cost of just over $20 per resource ounce added. The updated resource statement reflects a mixed approach to open pit versus underground mining, considering each area's suitability on a case-by-case basis. This flexibility in mining methods offers Prime Mining the opportunity to optimize resource extraction and potentially enhance the project's economic viability.

The expansion of resources at Los Reyes demonstrates Prime Mining's commitment to growing its gold-silver project and highlights the potential for both open pit and underground mining. With continued exploration and development, Prime Mining is well-positioned to capitalize on the growing demand for precious metals and contribute to the global mining industry's long-term growth.