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VSA Capital Market Movers - Prime Mining

Prime Mining (CVE:PRYM) has announced its first positive fieldwork results following the recent fundraise with wide and high grade trenching results. Surface exploration and trenching is proving to be a reliable indicator for the company as it seeks to expand the already significant near surface known resources contained within low sulphidation epithermal veins and stockwork.

Capital Limited - VSA Capital Market Movers - Prime Mining

VSA Morning Miner, 02/07/20

Prime Mining (CVE:PRYM)

Prime Mining (CVE:PRYM) has announced its first positive fieldwork results following the recent fundraise with wide and high grade trenching results. Surface exploration and trenching is proving to be a reliable indicator for the company as it seeks to expand the already significant near surface known resources contained within low sulphidation epithermal veins and stockwork.

The most recent work where results have been announced relates to the Tahonitas deposit on the western side of the project area. It forms the southerly part of the Mariposa-El Zapote-Tahonitas trend which runs from the northwest to southeast. Zapote is one of the most significant areas of mineralisation in terms of the existing resource and where most of the work has been carried out historically. Some work has been carried out at Tahonitas previously which has a drill tested strike length of 700m and width of 10-35m although remains open at depth and along strike. Surfacing trenching yielded 63m at 1.78g/t Au and 71g/t Ag including 11.68g/t Au and 71g/t Ag over 4.5m and 5.7g/t Au and 292g/t Ag over 6m. A second trench around 60m further south returned 0.7g/t Au and 18.5g/t Ag over 30m. These strong zones of high grade mineralisation at surface confirm the attractive upside potential and our view that PRYM will be able to rapidly expand the compliant resources from the total which currently exceeds 1mnoz AuEq.

Furthermore, two historic adits were also sampled with two contiguous channel samples collected from an underground crosscut that returned 11.5g/t Au and 66.2g/t Ag over 3m.

Investors are quickly realising the upside potential and although the stock is up 320% YTD we believe that this is only beginning to reflect the recent resource upgrade, and indeed stronger gold prices, notwithstanding the future potential. With numerous untested targets and large structures we believe there is significant further exploration upside. Given the strength of indication provided by low cost surface sampling and trenching we expect PRYM to continue delivering strong results in a cost efficient manner.

We reiterate our Buy recommendation and target price of C$2.08/sh.

Oliver O'Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: [email protected]
Paul Renken, Senior Geologist | T: +44 (0)20 3005 5011 | E: [email protected]

VSA Capital Research | T: +44 (0)20 3005 5000 | E: [email protected]

VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com

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