Step-Out Drilling Intersections Reported At The San Miguel East

VANCOUVER - Prime Mining Corp. reported on Phase 2 step-out and infill drilling program at Los Reyes. The project hosts an existing multi-million-ounce gold and silver resource and is located in the mining friendly jurisdiction of Sinaloa, Mexico. Results are from 8 drill holes at the San Miguel East deposit located in the western part of Los Reyes targeting mineralization below the current resource. San Miguel East is one of eight known gold-silver deposits that comprise the resource at Los Reyes.

Chief Executive Officer, Daniel Kunz, said, “Our ongoing Phase 2 drilling of step out holes at San Miguel East has made discoveries of both mill and heap leach grade mineralization that are expanding the potential resource at this deposit. Once again, our drilling continues to intersect multiple veins down-hole that increase the resource potential. We also expect that the deposit will grow along strike to the southeast eventually connecting with the nearby Noche Buena deposit.”

San Miguel East Highlight Drill Intercepts: 2.72 grams per tonne (“gpt”) gold (“Au”) and 129.8 gpt silver (“Ag”) over 18.0 meters (“m”) (16.9 m estimated true width (“etw”)) and 1.24 gpt Au and 14.0 gpt Ag over 3.0 m (2.6 m etw) and 1.12 gpt Au and 4.2 gpt Ag over 3.0 m (2.3 m etw) (22SME-11); 4.86 gpt Au and 151.5 gpt Ag over 6.1 m etw and 3.96 gpt Au and 2.0 gpt Ag over 1.2 m etw and 1.51 gpt Au and 5.3 gpt Ag over 1.8 m etw (22SME-13); 1.88 gpt Au and 283.7 gpt Ag over 2.9 m (2.6 m etw) (22SME-10); and 1.25 gpt Au and 67.2 gpt Ag over 6.0 m (5.4 m etw) (22SME-14).

To date, Prime has drilled approximately 83,235 meters and completed 323 holes at Los Reyes. The Phase 2 program has now completed 57,585 meters, with drilling planned to continue until the end of October. To date, 201 Phase 2 drill holes have been completed and 6 drills continue to operate. Including the drilling results herein, 224 drill holes have been released and 99 are pending.

The 8 drill holes at San Miguel East were drilled down dip of the known structure at depth. All 8 encountered mineralization with 7 of the 8 extending mineralization beyond the current historic resource. The southernmost hole, 22SME-11, with an 18-meter intercept listed above, was at 560 meters above sea level. South of this hole is open along strike with potential to expand the San Miguel East deposit and connect it with the nearby Noche Buena deposit.

Mineralization at San Miguel East consists primarily of white to grey crystalline to chalcedonic quartz, quartz breccia and stockwork exploiting 45-degree southwest dipping fault structures within or along the margins of rhyolite dykes that intrude both andesitic tuffs and rhyolite. Quartz is massive-to-crustiform, locally displaying colliform to bladed replacement textures. Higher-grade intervals are marked by finely banded green adularia. Gold distribution appears to be zoned within the quartz bearing structure. Computer 3D modeling of grades is suggesting a steep south-southeast rake of the higher-grade internal zone.