Prime Mining Reports Los Reyes Surface Sample Results of 63.0 Metres at 1.78 gpt Gold and 71.0 gpt Silver

VANCOUVER, British Columbia, June 30, 2020 (GLOBE NEWSWIRE) -- Prime Mining Corp. (TSX.V:PRYM) (OTCQB: PRMNF) (Frankfurt:A2PRDW) (“Prime” or the “Company”) announced today that results from the Company’s ongoing surface exploration program continue to show significant mineralization at surface on the Los Reyes project, this time from the Tahonitas deposit, one of eight currently known adjacent gold-silver deposits. The Los Reyes mineralized zones are characterized by a low sulphide epithermal system containing silica stockwork veins that are generally formed in felsic subaerial complexes in extensional strike slip structural settings. Low sulphidation gold deposits are associated with magmas where ore deposition occurs several kilometres above the intrusion, and display certain alteration assemblages.

Tahonitas is the southernmost deposit along the Mariposa-El Zapote-Tahonitas trend. The mineralized structure at Tahonitas strikes 350° and dips between 45° and 60° to the southwest. Tahonitas is hosted by andesite of the Lower Volcanic Sequence and is capped to the east by rhyolite and aplitic dikes of the Upper Volcanic Sequence. Mineralization occurs in silicified host rock and veins and has a sharp footwall contact with some veining to the hanging wall.

The current Tahonitas deposit is modeled as part of a conceptual open pit that includes the Zapote South deposit. The Zapote North, Zapote South and Tahonitas deposits are estimated to include 10,198,000 tonnes Measured and Indicated containing 311,000 ounces (“oz”) gold (“Au”) at 0.95 grams per tonne (“gpt”) and 5,637,000 oz silver (“Ag”) at 17.2 gpt. There are 2,407,000 tonnes Inferred containing 70,000 oz Au at 0.91 gpt plus 1,329,000 oz Ag at 17.2 gpt. See Prime’s April 2, 2020 news release for complete details of the current mineral resource estimate.

The Tahonitas gold-silver deposit has a drill-tested strike length of approximately 700 metres (“m”) and a width of between 10 and 35 m within the current resource model. Surface rock chip sampling at Tahonitas is designed to map the surface expression of mineralization. Surface trench TA-TR-3b, positioned oblique to the mineralized structure, returned 1.78 gpt Au and 71.0 gpt Ag over 63.0 m (24.1 m true width) including two high-grade intervals: 11.68 gpt Au and 333.9 gpt Ag over 4.5 m and 5.70 gpt Au and 292.0 g/t Ag over 6.0 m. This trench channel ended in mineralization. About 60 m south of TR-3b, trench channel TR-2 returned 0.72 gpt Au and 18.5 gpt Ag over 30.0 m, including 1.86 gpt Au and 46.5 gpt Ag over 7.5 m.