Prime Mining Partners with Ausenco for Los Reyes Gold-Silver Project Evaluation

Prime Mining Engages Ausenco for Los Reyes Project Evaluation

Prime Mining has appointed Ausenco Engineering Canada to conduct a preliminary economic assessment (PEA) for its Los Reyes gold-silver project in Sinaloa, Mexico. This move marks a significant step forward in the development of the project, which aims to define a high-return, high-margin, low-capital, and long-life mining operation. The PEA will leverage drilling data gathered up to the end of 2024, along with previous technical work. Prime Mining plans to complete the assessment by Q3 2025.

Project Overview and Investment

Prime Mining acquired the Los Reyes project in 2019 and has since invested over C$64 million ($46.26 million) in exploration activities. The company has completed more than 221,000 meters of drilling to date. The evaluation process aims to outline the project’s potential, assuming a low capital expenditure model with a 5,000 tonne-per-day milling capacity, fed by both open-pit and underground materials. This PEA will also explore a scenario with higher throughput sensitivity, which could increase production potential.

CEO Scott Hicks emphasized the company’s approach in targeting the development of a long-life, sustainable mining project. As Prime Mining prepares the PEA, it will continue to prioritize exploration activities, focusing on high-potential areas that could contribute additional resources for future evaluations.

Collaboration with Leading Industry Experts

Prime Mining has selected Ausenco for its expertise in similar-scale projects in Mexico. The firm’s previous work includes projects such as Silvercrest’s Las Chispas Project, Discovery Silver’s Cordero Project, and Vizsla Silver’s Panuco Project, among others. The project will also benefit from the contributions of AGP Mining Consultants, Knight Piésold, and Kappes Cassiday & Associates, who will provide independent studies to ensure a comprehensive assessment.

Despite facing temporary drilling delays due to security concerns in Sinaloa, Prime Mining remains confident in meeting its drilling objectives. The company expects to resume drilling activities within 12 months, with six drill rigs already stationed at the site. Prime Mining’s exploration efforts will focus on expanding high-grade zones in areas such as Z-T Area, Guadalupe East, and the Central Area, as well as generative drilling at Las Primas, Fresnillo, and Mariposa.

SuperMetalPrice Commentary:

Prime Mining’s collaboration with Ausenco and other industry experts signals a promising future for the Los Reyes gold-silver project. With a substantial investment already made in exploration and drilling, the company is strategically positioning itself for long-term success in the competitive precious metals sector. As the PEA progresses, the focus on low-capital, high-margin operations and resource expansion demonstrates Prime Mining’s commitment to sustainable mining practices. This project aligns with broader industry trends toward developing high-return mining assets, even amid challenges like regional security concerns.