Project

History

Gold and silver were discovered at Los Reyes by the Spanish in the late 1700s and mining occurred in the area for over 150 years up until the 1950s. The Guadalupe de los Reyes underground mine opened in the late 1800s and to date is the most significant source of gold production in the district. It is estimated to have produced 500-600,000 oz of gold and 40M oz of silver at reported grades of +10 g/t Au and +500 g/t Ag.

From the 1950s through the 1980s there was limited activity in the Los Reyes area other than mostly exploration reconnaissance studies. Modern drilling began at the Los Reyes area in the 1990s and was targeted at defining shallow and lower-grade gold-silver mineralization in areas surrounding the historical Los Reyes underground operations.  Previous owners drilled approximately 50,000 meters of RC and core drilling within the current project boundaries and also performed metallurgical testwork culminating in several studies and resource estimates.

Prime mining has since added significant core drilling, metallurgical testing, geotechnical investigation and other work. Please find Prime's latest Resource information below.

Prime’s Los Reyes property consists of a land package of 37 contiguous concessions, totaling to a property size of 6,273 hectares. An application has been made for an additional 7,500 hectare  concession, the El Rey.

Geology & Mineralization

The Property is in the Guadalupe de los Reyes mining district in the western foothills of the Sierra Madre Occidental mountain range, Sinaloa State, México. In the vicinity of the Property, the volcanic sequence unconformably overlies a late Cretaceous-aged felsic batholith. This overlying volcanic package is subdivided into Lower and Upper sequences that are separated by an angular unconformity. 

The Lower Sequence spans from late Cretaceous-early Tertiary, is approximately 1 km thick, and is predominantly composed of intermediate (andesite) volcanics, felsic intrusives and related felsic (dacite to rhyolite) volcanics, intercalated sandstone and volcanic conglomerate intervals. 
The upper sequence, which is deposited unconformably on the lower sequence, is composed of ash-flow and ash-fall tuffs that are rhyolitic to dacitic in composition. In the main area of mineralization, the deposits dominantly occur along three northwest and west-northwest oriented silicified structural corridors.

These mineralized structural corridors are named after the hosted mineralized areas which include:

Mineralized areas that are not along the main recognized structural corridors include Fresnillo, Las Primas, Las Palmitas, El Orito, Mina, El Tule and La Verde.

Resource

Mineral Resource - October 2024

Note that the Resource Calculations shown below are released with a cut-off date of July 17, 2024, and do not include any data released after this date.

GOLD RESOURCE

• 1,491 kozs Measured & Indicated
• 538 kozs Inferred

SILVER RESOURCE

• 53,995 kozs Measured & Indicated
• 21,561 kozs Inferred

2024 Resource Estimate

$1950/oz gold price, $25.24/oz silver price, economic-constrained estimate.

Exploration

Results from drilling at Los Reyes to-date show that the deposits are much larger than historically reported with several new discoveries including very high grade gold-silver mineralization discoveries outside of the currently defined resources.

The Project continues to be vastly underexplored with potential for additional discoveries and resource expansion potential based on open extensions of known deposits, multiple untested high priority exploration targets, and only 40% of the known structures systematically explored, leaving over 10 kilometres of untested strike length.

Prime plans to continue its success-based approach to exploration to further identify new prospective targets, expand the existing resource, and infill drilling. Additional work will include geological mapping and geochemical sampling to identify further discovery areas.

On January 28, 2025, drilling was paused in response to a deterioration in the security situation in parts of Sinaloa, including the Los Reyes area. This pause is not currently expected to impact the Company’s ability to drill a minimum 40,000m program over 12-months from the recommencement of drilling. Six drill rigs remain on site and drill contractors are on standby to resume drilling as soon as security improves. The Company will continue to work with local authorities to monitor the current situation.

Exploration will focus on:

• Extending the high-grade Z-T Area shoots that remain open at depth, as well as along strike, both north and south.
• Expanding the known high-grade mineralization at Guadalupe East.
• Increasing the Central Area resource through additions southeast at Noche Buena and its connection to San Miguel East.
• Generative target drilling of high-grade intercepts at Las Primas, Fresnillo and Mariposa to further grow these emerging resources, as well as other target discovery areas to demonstrate the significant resource expansion potential at Los Reyes.

Project activities are also planned to include:

• Preliminary Economic Assessment completion: Further refine metallurgical, geotechnical, mine planning and development parameters for project development, including process and underground mining optimization, infrastructure assessment and permitting requirements – targeting Q3 2025 completion.
• Community Engagement: Continue to engage with and support local ejidos (communities) through educational, community and environmental programming, access (road) improvements and infrastructure development. Prime continues to sponsor and benefit from a strong geologist intern program, supporting geology students from local colleges and universities.

Drill Intercepts