VSA Morning Miner, 26/02/21
Prime Mining (CVE:PRYM)
Prime Mining (CVE:PRYM) has announced that a fifth drill rig has arrived on site to speed up the work programme. With drilling having started in December and management determined to complete the 15,000m programme ahead of the rainy season which commences in mid-August the addition of an extra rig means the pace of drilling is sure to pick up.
Ten holes have been completed with weekly shipments to the assay lab now being made. A combination of COVID and a general uptick in exploration activity does mean that results in North America have perhaps been somewhat slower than usual hence the reason why assay results are still pending with drilling having commenced in December. However, it appears that newsflow from the programme is imminent and with the rate of drilling increasing we expect a bumper period of newsflow, drilling results and potential share price catalysts.
Six of the ten holes completed so far have been located at Zapote South, perhaps the most well explored portion of the license area to date. Trenching which the company has likened to horizontal drilling has indicated the low hanging fruit in this part of the license, in part due to ease of access, with high confidence that mineralisation and new ounces can be added to existing resources both down dip and along strike. Drilling has ranged from 65m to 195m in depth. Three holes of up to 160m have been drilled to the East of Zapote at Noche Buena, another zone which has existing compliant resources, albeit not yet as extensive as at Zapote. A similar rationale for targeting as at Zapote has driven this early focus.
At Guadalupe, the most North Easterly target in the license, one hole has to date been drilled. Deeper this time ending at 467m below surface and all holes are expected to be testing deeper mineralisation here. Historical mine workings extend to 400m depth, highlighting that these early drill holes are also targets with high confidence underpinning our view that PRYM will be able to comfortably and substantially expand the current resource. Drilling has also commenced at San Miguel located at the confluence of where the structure divides out to from the major trends on which Zapote, Noche Buena and Guadalupe are located.
Work is also underway to access new areas within the license to start the methodical exploration approach that has served PRYM well to date. Well-funded with C$6m in cash the current programme clearly forms a strong platform from which to broaden exploration and demonstrate the larger scale potential of Los Reyes.
We reiterate our Buy recommendation and C$3.20/sh. target price.
Please click here for a link to our recent video interview with CEO Dan Kunz.
VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com
This email is intended solely for the named recipient. It may contain privileged and/or confidential information. If you are not one of the intended recipients, please notify the sender immediately, and destroy this email: any disclosure, copying to any person or any action taken or omitted to be taken in reliance on this e-mail, is prohibited and may be unlawful. Any views expressed in this message are those of the individual sender, except where specifically stated to be the view of VSA Capital Limited, its subsidiaries or associates. Whilst all efforts are made to safeguard inbound and outbound emails, VSA Capital Limited and its subsidiaries or associates cannot guarantee that attachments are virus-free or compatible with your systems and do not accept any liability in respect of viruses or computer problems experienced.
VSA Capital Limited will use your personal information to administer your account in order to provide any products and services you have requested from us. Your personal information will be kept secure and will not be shared with any other party unless you provide consent to that effect.
VSA Capital Limited is Authorised and Regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
The Company is registered in England with company number 2405923 at New Liverpool House, 15-17 Eldon Street, London EC2M 7LD.
Please consider the environment before printing this e-mail
unsubscribe from this list update subscription preferences