Prime Mining (PRYM.V) has provided an exploration update on its Los Reyes gold-silver project in Mexico’s Sinaloa province where the company has been following up on historical mapping and sampling programs.
Prime is working on a 5,000 meter trenching and road cut sampling program on outcropping mineralized structures in an attempt to connect these outcrops with the existing below-surface resources. Prime’s field crews have been collecting 1.5 meter rock chip and channel samples in hand dug trenches and some of the assay results returned by the lab are very encouraging. With 34.5 meters containing 4.2 g/t gold and 21.2 g/t silver, 36 meters of 1.85 g/t gold and 13 g/t silver and 16.5 meters containing 2.5 g/t gold and 39.2 g/t silver, these initial results from the road cut sampling program are very encouraging.
And although it’s still early days at Los Reyes and these initial results will have to be followed up on with a drill program, the consistency of encountering what appears to be economic-grade gold and silver is a good start.
The new geological information will also help Prime to establish an updated resource estimate as the new data from the surface exploration programs could help to both expand the size of the open pits as well as reduce the strip ratio which would indicate more tonnes could end up in the total resource on top of the current resource containing 535,000 ounces of gold (380koz in the indicated and 155koz in the inferred resource) and 10 million ounces of silver (6.3Moz indicated, 3.6Moz inferred) in all resource categories.
Disclosure: The author has a long position in Prime Mining. Prime is a sponsor of the website.
