Prime Mining (PRYM.V) has released more assay results from ongoing trench and road cut sampling on its Los Reyes gold-silver project in Mexico. The assay results remain excellent with Zapote South road cut sampling results continuing to unveil long intervals with excellent gold grades (and decent silver grades).
Additionally, the lab has also returned the assay results of three samples taken from an underground adit at Zapote South where Adit 1 returned 10.5 meters of 0.58 g/t gold and 18.4 g/t silver and 10.5 meters of 1.32 g/t gold and 25.9 g/t silver and Adit 3 returned an impressive 22.5 meters of 3.23 g/t gold and in excess of 2 ounces of silver per tonne of rock.
And that’s just Zapote South. Prime also completed road cut exploration programs and trench sampling programs at Zapote North where the assay results also returned gold and silver values ranging from ‘okay’ such as 9 and 3 meters of 0.24 g/t gold) to excellent values and widths like 12 meters of 1.56 g/t gold and 6 meters of 11.72 g/t gold.
The assay results from the ongoing sampling and trenching program continue to provide Prime Mining with more information and every single piece of data will be used in the upcoming resource update, to be completed by Stantec. In the Q&A session after the Metals Investor Forum in Vancouver, now almost three weeks ago, Chairman Daniel Kunz confirmed the updated resource was just ‘weeks’ away, so we are expecting an update any week now as Prime Mining surely wants to make sure to have it out before the PDAC conference next month. The current resource contains 660,000 gold-equivalent ounces (using a silver:gold equivalent ratio of 80), but Prime Mining appears to be confident it will be able to aggressively increase this number so the question is how close Prime Mining will get to 1 million gold-equivalent ounces at this point. The share price has been on a tear lately and is currently trading 70% higher than the C$0.30 it raised money at last summer so let’s hope the updated resource won’t be a ‘sell on the news’ event as some investors may want to ‘ride’ their warrants and lock in some of the gains.
Disclosure: The author has a long position in Prime Mining. Prime is a sponsor of the website.
