VSA Morning Miner, 11/03/21
Prime Mining (CVE:PRYM)
Prime Mining (CVE:PRYM) has announced a substantial proposed increase to its claim block that would more than double the company’s exploration footprint to 13,800ha. The additional claims total 7,500ha and are contiguous with the current Los Reyes license on the North and Eastern boundaries. The application was filed on the 9th March 2021.
The Eastern portion of the Los Reyes license area where the Guadalupe target is located is relatively less explored than the Zapote area in the West. However, PRYM’s systematic surface sampling, mapping and trenching is delivering promising results highlighting the prospectivity of this part of the license. Furthermore, historic adits and workings extend to 400m below surface at Guadalupe and PRYM is now confident that mineralisation extends to up to 500m below surface. With this growing confidence in the mineral endowment in the Eastern portion of the resource, the company has decided to expand its footprint in this direction.
A 1,000km airborne LIDAR aeromagnetic survey is due to commence in the coming weeks which will assist exploration of the wider license area covering the whole property.
The pullback in the gold price has provided investors an extremely attractive entry point particularly as the first drilling results are expected to be released as early next week from the current programme. We expect this to be the start of a catalyst rich period of newsflow. The decision to expand the land package clearly underpins our investment case which is in large part based on our view that the Los Reyes deposit is substantially larger than the current c1mnoz Aueq resource belies; the potential for similar structures on neighbouring properties is an exciting development.
We reiterate our Buy recommendation and C$3.20/sh. target price.
Oliver O'Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: oodonnell@vsacapital.com
Paul Renken, Senior Geologist | T: +44 (0)20 3005 5011 | E: prenken@vsacapital.com
VSA Capital Research | T: +44 (0)20 3005 5000 | E: research@vsacapital.com
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