high-grade gold-silver project with upside potential … · • founded/funded millennial lithium...

HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL IN MEXICO

INVESTOR PRESENTATION

TSX.V: PRYM

JULY 2020

2

DISCLAIMER

THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF PRIME MINING CORP. ”PRIME" OR

THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN PRIME. PRIME DOES NOT MAKE

ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE COMPANY EXPRESSLY WARNS

READERS NOT TO RELY ON THE INFORMATION HEREIN FOR INVESTMENT OR OTHER RELATED PURPOSES. ACCORDINGLY, ANY USE OF THIS INFORMATION IS AT YOUR RISK

AND WITHOUT LIABILITY TO THE COMPANY. THE INFORMATION CONTAINED HEREIN IS NOT AND SHOULD NOT BE CONSTRUED AS EITHER A PUBLIC OR PRIVATE OFFER OR

SOLICITATION TO PURCHASE SECURITIES IN THE CAPITAL STOCK OF PRIME INC. THE READER IS REFERRED TO HIS/HER PROFESSIONAL INVESTMENT ADVISOR REGARDING

INVESTMENT RELATED DECISIONS RESPECTING THE SECURITIES OF THE COMPANY.

CONFIDENTIALITY

This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized

distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its

affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of PRIME Inc..

FORWARD-LOOKING INFORMATION

This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including,

without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no

assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause

actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company’s documents filed from time to time via SEDAR with the

Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we

do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue

reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-

looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as

actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The

Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

QUALITY ASSURANCE/QUALITY CONTROL

The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's

qualified person, Bruce Kienlen, P. Geo., VP Exploration of Prime Mining Corp.

3

AN EVOLVING COMPANY

Recently revamped management and board• Daniel Kunz has been recently appointed CEO and Andrew

Bowering has been appointed Executive Vice-President

• Murray John appointed Chairman of the Board

• Paul Sweeney and Marc Prefontaine appointed to the Board

• Management and Board have material ownership of 13%1

Existing Resource with upside• High-grade oxide deposit with a favourable strip ratio

• Measured & Indicated: 633kozs gold and 16,604kozs silver

• Inferred: 179kozs gold and 6,831kozs silver

• Significant upside resource potential

• Only 40% of the strike explored to date

Strong financial position and backers• Recently closed a $10M financing in June 2020 with new

cornerstone shareholders

• Long-term shareholders focused on delivering regional value

through oxides and high-grade upside

• Financial backing for 2020 – 2021 exploration budget

High-grade upside• High-grade population below the oxides could add significantly

to resources

• Multiple intercepts with minimum 3m true thickness with gold

grades in excess of 10 g/t and silver grades ranging from 35 g/t

to 1,000 g/t

• Upcoming exploration program to test high-grade targets

1. Shown on a fully diluted basis

Source: Company disclosure

4

CAPITALIZATION

1. Weighted average exercise price of C$0.83 (Low of $0.50 and High of $1.10); 2. Shown on a fully diluted basis

Source: Thomson Reuters, company disclosure

Capitalization and Balance Sheet Historical Share Price

Shareholders

RBC Investment Management Commodity Capital Global Mining

Merk Asset Management Tera Capital LLC

Management and Board own 13%2

0.0

1.0

2.0

3.0

$0.00

$0.50

$1.00

$1.50

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20

Vo

lum

e (M

)(C$/s

ha

re)

Total Volume Share Price

Ticker Ticker TSX-V: PRYM

Current share price C$/sh $1.42

Basic shares outstanding M 82.7

Warrants outstanding1 M 38.1

Options outstanding M 7.9

FDITM shares outstanding M 128.6

FDITM market capitalization C$M $183

Cash & cash equivalents C$M $11

Proceeds from in-the-money securities C$M $37

Total debt C$M $0

Enterprise value C$M $134

5

BOARD OF DIRECTORS

• Non-executive director of OceanaGold Corporation and

Adventus Mining Corporation

• Served as a director of Tahoe Resources Inc. (sold to

Pan American Sild Corp.)

• Former CFO of Canico Resources Corp. (acquired by

Vale S.A.) and Sutton Resources Ltd (acquired by

Barrick Gold) and executive for Plutonic Power

Corporation

• Chairman of the Company’s Audit Committee

• Over 40 years experience in mineral exploration

and mine development that includes over 11 million

ounces of gold and 600 million ounces of silver

reserves and resources

• Key member of the team that built Ocampo for

Gammon Gol, Lluvia de Oro, Magistral and El Cubo in

Mexico

• Co-Founder and CEO of Orla Mining from 2015 until

2019

• Chairman of Discovery Metals Corp. and is a member

of the boards of directors of Osisko Gold Royalties, Ltd

and O3 Mining Inc.

• Former President and Chief Executive Officer of

Dundee Resources Limited, a private resource-

focused investment company, and Managing Director

and a Portfolio Manager with Goodman Investment

Counsel

• Mining engineering with extensive industry experience

working as a mining engineer and Master of Business

Administration

Paul SweeneyDIRECTOR

Marc PrefontaineDIRECTOR

Murray JohnDIRECTOR & BOARD CHAIRPERSON


Paul LarkinDIRECTOR

• +35 years leading New Dawn Group investment &

financial consulting firm. Previously an investment

banker. Served as director & officer of TSX, NYSE

and TSX Venture Exchange listed companies

• Founding partner, director & Chairman of Audit &

Strategic Committees at US Geothermal Inc. (sold in

2018 for over US$200M plus enterprise value)

Daniel J. KunzCEO & DIRECTOR

Andrew BoweringEXECUTIVE VP & DIRECTOR

• Professional engineer and Master of Business

Administration with over 35 years of experience in mining,

constructing and financing global resource projects

• Former CEO of $4.2bn Ivanhoe Mines Ltd., founder and

CEO of US Geothermal Inc which sold for $250M

• Served as senior management and/or president level;

Morrison Knudson Corporation & MK Gold Company

• Built numerous mines including Castle Mountain and

American Girl. Was with Chesapeake Gold and its

Mexican Metates project (90kms from Los Reyes) for 17

years

• Venture capitalist, 30-years experience as owner

operator of drilling companies and leadership in

worldwide mineral exploration and development

• Founded/funded Millennial Lithium Corp and built

teams to pursue precious, base and industrial metals

from exploration to production

• Founder/operator of companies on the TSX Venture,

TSX main and American Stock Exchange including

Caldera Environmental, Pinnacle Mines, ATW Gold,

Cap-Ex Iron Ore, Millennial Lithium, and American

Lithium Corp.

6

MANAGEMENT TEAM

Gregory K. LillerVP & COO

• Over 40 years experience in mineral exploration

and mine development that includes over 11 million

ounces of gold and 600 million ounces of silver

reserves and resources

• Key member of the team that built Ocampo for

Gammon Gol, Lluvia de Oro, Magistral and El Cubo in

Mexico

• Senior roles in public companies on TSX Venture, TSX

main, and American Stock Exchange including Genco

Resources (TSX), Gammon Gold (TSX, AMEX),

Mexgold Resources (TSV) and Oracle Mining (TSX)

Simon AndersonCFO

• Chartered Accountant with extensive experience in

financial reporting, corporate finance and management

• A director or officer of several Canadian and US-listed

companies ensuring public disclosure meets current

standards and planning and implementing acquisitions

and divestitures

Alex TsakumisCAPITAL MARKETS ADVISOR

• Professional Geologist with over 20 years experience in

mineral exploration working with junior and major

exploration companies

• Served as senior geologist with Canterra Minerals &

Independence Gold, VP Exploration for Diamonds North

Resources and project geologist for BHP Billiton

• Played a key role in the discovery of the diamondiferous

Repulse Bay (Qilalugaq) and Amaruk kimberlite fields

Bruce KienlenP. GEO., VP EXPLORATION


• Successful public markets specialist with over 25

years of experience in all aspects of equity financing

• Represented mining resources companies listed on

major stock exchanges (including TSX and NYSE)

• Responsibilities have included corporate governance,

corporate communications, and maintaining strong

relationships within investment banking and

institutional investors

• Registered professional geologist with +30 years of

experience in the mineral exploration business as both

an exploration geologist and a mining executive

• Recently retired from Franco-Nevada Corporation and

was responsible for evaluating the geological and

resource potential of numerous mineral deposits

worldwide

• Previously Co-Founder and Director of Orla Mining

Kerry SparkesTECHNICAL ADVISOR TO THE BOARD

Daniel J. KunzCEO & DIRECTOR

• See bio on slide 5

Andrew BoweringEXECUTIVE VP & DIRECTOR

• See bio on slide 5

7Source: Company disclosure

LOS REYES PROJECTSinaloa, Mexico

8

LOS REYES PROJECT

POTENTIAL FOR SIGNIFICANT GOLD RESOURCE POTENTIAL IN A PRIME LOCATION


Key Facts

Location

Los Reyes is 43 km from the town of Cosalá in the

historic mining region of Sinaloa

Size

37 contiguous claims over 6,300 hectares

Resource Upside

Current resource open on strike and at depth

8 to 10 new high-grade underexplored surface

discoveries for drill testing

Untested new claim blocks added to project yet to

have any exploration

Acquisition

Option to acquire Vista Gold’s 2% NSRs (surface

and underground) and a 49% back-in right

Infrastructure

Direct access to roads, power, abundant water, and

local labor force

Licensing and Permitting

Successfully completed 30-year surface access

rights agreement to ensure continued exploration,

development and receipt of a mining and

construction permit

Permit application made for new exploration drilling

Proximity to Key Precious Metal Projects

Americas Gold and Silver (TSX: USA; NYSE: USAS)

Minera Alamos (TSXV: MAI)

First Majestic (NYSE: AG; TSX: FR)

McEwen Mining (NYSE: MUX)

Chesapeake (TSX: CKG)

9

LOS REYES PROJECT


Concession Boundary Showing:

• Current pit-constrained resource areas

• Additional mineralized zones

• Quartz vein and stringer breccia zones

• General road layout

10

Cutoff Assurance CategoryTonnes

(000s)

Gold Silver

Grade (g/t) Contained (kozs) Grade (g/t) Contained (kozs)

0.22 g/t cutoff

Measured & Indicated 19,752 1.00 633 26.15 16,604

Inferred 7,094 0.78 179 29.95 6,831

0.50 g/t cutoff


Inferred 3,956 1.13 144 42.90 5,456

0.70 g/t cutoff


Inferred 2,603 1.44 120 54.36 4,549

0.90 g/t cutoff


Inferred 1,859 1.71 102 64.23 3,839

1.0 g/t cutoff


Inferred 1,685 1.78 97 67.22 3,642

PIT-CONSTRAINED UPDATED RESOURCES


LOS REYES MINERAL RESOURCE

11

IMMEDIATE RESOURCE EXPANSIONAdjacent to Current Resource Areas


12

CROSS SECTION (OXIDES)


Limited project drilling provides resource expansion opportunities

Drilling

No Drilling

13

HIGH-GRADE UPSIDE


Drillhole From (m) To (m) Length (m) Au (ppm) Ag (ppm)

12GL-04 73.00 78.00 5.00 14.4 156

12GV-02 239.90 245.15 5.25 12.3 745

12SM-08 87.40 91.40 4.00 12.7 348

12ZAP-06 7.00 12.40 5.40 12.5 75

15GDLR-011 98.80 104.00 5.20 10.1 104

GL002 48.77 51.82 3.05 11.9 288

GL005 39.62 42.67 3.05 13.7 926

GL010 47.24 50.29 3.05 11.1 380

GL011 16.76 19.81 3.05 11.4 149

GL073 65.53 68.58 3.05 10.1 202

GW022 82.30 88.39 6.09 14.1 144

SM009 57.91 60.96 3.05 15.9 165

HISTORIC DRILL INTERCEPTS

Drillhole From (m) To (m) Length (m) Au (ppm) Ag (ppm)

SM032 50.29 53.34 3.05 47.9 384

TA003 21.34 24.38 3.04 11.7 80

ZA007 30.48 38.10 7.62 10.1 --

ZA016 62.48 67.06 4.58 11.4 --

ZA062 25.91 32.00 6.09 10.8 --

ZA068 47.24 50.29 3.05 10.7 51

ZA082 83.51 86.87 3.36 15.5 35

ZA093 54.86 57.91 3.05 12.4 87

ZA127 3.05 6.10 3.05 13.6 65

ZA148 35.05 41.15 6.10 32.2 80

ZA178 38.10 41.15 3.05 12.7 43

ZA196 51.82 54.86 3.04 14.3 42

14

HIGH-GRADE UPSIDE

• Over 17.5 km of mineralized

strike length identified to date

• Over 10 km of untested strike

• Multiple high-grade surface

grabs to be followed-up

15.1 g/t, 14.8 g/t and 9.5 g/t

gold at surface

• Numerous surface showings

remain untested


15

HIGH-GRADE UPSIDE


ZAPOTE NORTH, ZAPOTE SOUTH, & TAHONITAS DEPOSITS - LONG SECTION DIVIDED BY GRADE ZONES

16

BLUE-SKY POTENTIALStep-Out into New Areas

RECTANGLESShow areas that host

similar structures and

mineralized zones without

any previous drilling

17

A three-pronged approach starting with an initial 10,000 metre drilling program is planned to expand the known mineralized

area and increase the existing mineral resource size

THE PATH FORWARDA Three-Pronged Approach

Upgrade

Resource

• Upgrade 7.1 million tonnes of current Inferred resource to the Measured and Indicated category

a. Approximately 2,000 metres of surface trenching

b. Approximately 1,500 metres of drilling in 12 to 15 holes shallow

c. Represents about 12% of the initial budget of $6M

Expand

Resource

• Add new gold and silver ounces by drilling along strike and down dip adjacent to the existing pit-constrained resource areas


b. Approximately 3,500 metres of drilling with some drill holes reaching 200 metres in depth

Define

New Targets

• Define the potential to add new gold and silver ounces in unexplored areas where the existing data and the new mapping data confirm the

target potential


b. Approximately 5,000 metres of drilling with some drill holes reaching 350 metres in depth

1

2

3

18

THE PATH FORWARDOther Exploration Work in Parallel

Mapping and

Sampling

• A new detailed base geologic map is being prepared for the entire Los Reyes concession area

• Surface mapping of the various rock types, alterations, geologic structures and other physical features

• Log and analyze 13,000 metres of core contained in 89 drill holes in Prime’s core shack in Hermosillo

• New regional soil and rock chip sampling and assaying will be completed to acquire fresh data

Metallurgical

Test Work

• Past metallurgical tests show heap leach recovery as a viable option

• The drill and channel sample material sent to the assay lab will be analyzed for cyanide solubility using bottle roll and similar testing in order

to build a stronger database of recovery data across the project

Schedule and

Logistics

• The program will work through the rainy season

• Mapping and core logging activity is expected to be complete in September 2020

• Trench channel sampling already in progress

• Drilling is expected to begin when the base mapping and core logging is complete, sufficient surface trenching has been completed, and the

rainy season has been accounted for regarding access, safety and road construction permitting in new areas

• Currently, the exploration program is expected to be active from July 2020 to March 2021

19

THANK YOU

Footer

Prime Mining Corp.

1507 - 1030 West Georgia St.

Vancouver, BC V6E 2Y3 Canada

(604) 428-6128

[email protected]

www.primeminingcorp.ca

T S X . V : P R Y M

20

APPENDIX

21

LOS REYES – PHOTO WITH RESOURCE AREAS


22

ZAPOTE LONG SECTION

23

ZAPOTE LONG SECTION

24

ZAPOTE SOUTH CROSS SECTION

26

GUADALUPE WEST CROSS SECTION

27

ZAPOTE SOUTH CROSS SECTION

28

CROSS SECTION – SAN MIGUEL EAST

29

CROSS SECTION – SAN MIGUEL EAST

high-grade gold-silver project with upside potential … · • founded/funded millennial lithium...

Documents