Prime Mining financial results and exploration update

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VANCOUVER, British Columbia, March 29, 2022 (GLOBE NEWSWIRE) — Prime Mining Corp. (“Prime” or the “Company”) (TSX.V: PRYM) (OTCQB: PRMNF) (Frankfurt: O4V3) is pleased to report its operating and financial results for the eight months ended December 31, 2021. Unless otherwise noted, all amounts are in Canadian dollars.

Prime is focused on the exploration and development of its 100% owned Los Reyes gold-silver project in Sinaloa State, Mexico (“Los Reyes” or the “Project”).

Daniel Kunz, Prime’s Chief Executive Officer, commented, “With $22 million in cash, strong investor support and an experienced technical and management team, Prime is well positioned to execute our planned Phase 2 exploration program at Los Reyes. To date, 30,000 meters (“m”) have been drilled with 9 drill rigs currently on site. A significant amount of prime drilling has been added to each of the 8 historic deposits at Los Reyes. We expect to produce a new resource report in Q1 2023.”

Company highlights during the quarter

On December 20thth The Company announced that it has been included in the MVIS Global Junior Miners Index according to GDXJ’s fourth quarter quarterly review and rebalancing.

Exploration Highlights During the Quarter

On 11/17thThe Company released an update on its planned Phase 2 drill program, which is expected to run from approximately November 2021 to October 2022 and will consist of approximately 250 new drill holes for at least 50,000m. There are currently seven drill rigs operating on the property.

Subsequent event highlights

On January 12thth The Company announced that the Noche Buena deposit is expanding in size at its Los Reyes project, with all 13 reported drill holes encountering potentially economic open pit grade mineralization.

On February 17thth The Company announced new drill results from the ZT structure, located on the extreme west of the project. The drill holes confirm that gold-silver mineralization extends from Zapote North to Mariposa and increases the total length of gold-silver mineralization on the ZT structure by 450 m to approximately 3 km.

On March 29thth The Company continued to report positive drill results from Phase 1 and the ongoing Phase 2 drill program at Zapote South with 20 drill holes reported. This drilling program, representing the deepest drilling at Zapote, has extended mineralization 200m below the current resource pit to a potential depth of over 300m below surface.

Maintaining health and safety protocols

The company has successfully minimized the impact of Covid-19 on operations. So far, Covid-19 has not had any significant impact on the company’s activities. Prime is staying connected with local stakeholders during this uncertain time and is proactively monitoring employees and contractors. The company continues to strictly adhere to the guidelines of all levels of government and the relevant health authorities in Mexico and Canada.

Continuous social commitment and environmental protection

Dealing responsibly with the local environment in which we operate is at the heart of our corporate values. We always strive to keep the environmental impact of our activities as low as possible. We also want to balance our activities by engaging in outreach initiatives to improve the local environment.

Selected financial data

The following selected financial information is summarized from the Company’s consolidated financial statements and accompanying notes (the “Financial Reports”) for the eight months ended December 31, 2021. A copy of the financial statements and MD&A is available at www.primeminingcorp.ca or on SEDAR at www.sedar.com.






Eight months passed
December 31, 2021
year ended
April 30, 2021
damage and total damage $14,297,342 $10,699,998
Loss per share – basic and diluted ($0.13) ($0.13)









December 31, 2021 April 30, 2021
cash register $27,413,707 $32,026,806
total assets $41,785,376 $44,791,540
Total current liabilities $1,372,458 $894,128
Total Liabilities $2,470,784 $1,812,746
Total Equity $39,314,592 $42,978,794


Qualified Person

Scott Smith, P.Geo., Executive Vice President of Exploration, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.

Los Reyes Gold and Silver Project

Los Reyes is a rapidly developing, high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa, Mexico, in the prolific Sierra Madre mining district. Historical operating results indicate that five separate operations at Los Reyes produced an estimated 1 million ounces of gold and 60 million ounces of silver between 1770 and 1990. Prior to Prime’s acquisition, recent Los Reyes operators had spent approximately $20 million on exploration, engineering and pre-feasibility studies. The project remains underexplored as only 40% of known structures have been systematically drilled leaving 10 km of untested strike length. Los Reyes holds potential for further discoveries and resource expansion.

Prime Mining acquired Los Reyes in 2019, completed initial data collection, field mapping and trenching in 2020 and completed a Phase 1 exploration program in 2021 that included 25,650m of drilling. The results indicate that the deposits are much larger than previously reported and that there is potential for new discoveries outside of the currently defined resources. The Company is currently conducting a 50,000 meter Phase 2 exploration program.

About Prime Mining

Prime Mining is an ideal blend of successful mining managers, strong capital markets personnel and experienced local operators focused on realizing the full potential of the high-grade Los Reyes gold-silver project in Mexico. Prime Mining has a well planned capital structure with significant team and insider ownership.

ON BEHALF OF THE BOARD OF DIRECTORS

Daniel Kunz
Managing Director

For more information please contact:

Daniel Kunz
Chief Executive Officer and Director
Prime Mining Corp.
1307 S. Colorado Ave.
Boise, Idaho 83706
Phone: 1-208-926-6379 office
E-mail: This email address is being protected from spam bots. You need JavaScript enabled to view it.

Andrew Bowering
Executive Vice President and Director
Prime Mining Corp.
710 – 1030 West Georgia St
Vancouver, BC, V6E 2Y3
Phone: (604) 428-6128
Fax: (604) 428-6430
E: This email address is being protected from spam bots. You need JavaScript enabled to view it.

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

Forward-Looking Information

This press release contains certain “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities legislation, as amended from time to time, including, without limitation, statements regarding the perceived value of the Company’s properties, including additional exploration potential at Los Reyes , potential quantity and/or grade of minerals, the potential size of the mineralized zone, metallurgical recoveries, permitting timing and results, and the Company’s exploration and development plans in Mexico and expectations regarding potential expansion of expired mineral claims and granting of new mineral claims on El Rey. Forward-looking statements are statements that are not historical facts and relate to events, results, outcomes or developments that the company expects. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management at the time the statements are made and involve a number of risks and uncertainties. Certain material assumptions have been made with respect to such forward-looking statements, including, without limitation, assumptions relating to the prices of gold, silver and copper; the accuracy of mineral resource estimates; that there will be no material adverse changes affecting the Company or its properties; that all necessary permits are obtained, including license renewals and permits; that political and legal developments are in line with current expectations; that currency and exchange rates reflect current levels; and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurance 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 that could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks associated with uncertainties inherent in the preparation of mineral resource estimates, including but not limited to changes in cost assumptions, variations in the amount of mineralized material, grade or recovery rates, changes in geotechnical or hydrogeological considerations, failure of plant, equipment or process, changes in electricity availability or electricity tariffs, ability to maintain social license, changes in interest or tax rates, changes in project parameters, delays and costs associated with consulting and local adjustment rights are communities, environmental risks, property risks, including concession renewal, commodity price and exchange rate fluctuations, risks related to COVID-19, delays or non-receipt of access agreements or modified permits, risks associated with the estimate ng of mineral resources associated; and risks associated with the implementation of the Company’s objectives and strategies, including costs and expenses, and the risk factors discussed in the Company’s most recently filed management discussion and analysis and its annual information form dated August 31, 2021, available at www .sedar .com Except as required by 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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