Prime Mining Corp. Partners with Ausenco for Los Reyes Project Economic Assessment
- Prime Mining Corp. appointed Ausenco Engineering to conduct the Preliminary Economic Assessment for the Los Reyes project in Mexico.
- The company has invested over $64 million in the Los Reyes project since 2019, completing over 221,000 meters of drilling.
- Prime Mining aims to resume drilling with a minimum program of 40,000 meters, despite current local security challenges.
Prime Mining Corp. Advances Los Reyes Project with Ausenco Engineering Partnership
Prime Mining Corp. has appointed Ausenco Engineering Canada ULC to spearhead the Preliminary Economic Assessment (PEA) for its Los Reyes gold-silver project located in Sinaloa, Mexico. This strategic move is pivotal for Prime as it seeks to highlight the project's potential as a high-return, low-capital venture with a long operational lifespan. The PEA is expected to utilize extensive drilling data and technical insights accumulated through 2024, aiming for completion by the third quarter of 2025. Since acquiring the Los Reyes project in 2019, Prime has dedicated over $64 million to exploration efforts, which include the completion of more than 221,000 meters of drilling.
CEO Scott Hicks expresses optimism regarding the PEA, emphasizing the importance of an accelerated timeline following a thorough de-risking initiative that has evaluated various aspects such as capital expenditures, operational costs, and the necessary infrastructure for effective mining and processing. The project is designed to operate a 5,000 tonne-per-day milling facility, incorporating both open-pit and underground mining techniques. This multifaceted approach not only enhances operational flexibility but also aligns with Prime's broader objectives of maximizing resource recovery while managing costs effectively.
Despite facing challenges, including a temporary halt in drilling activities due to security issues in Sinaloa, Prime Mining Corp. remains committed to its exploration goals. The company plans to resume a minimum drilling program of 40,000 meters once conditions allow. Currently, six drill rigs are on standby, with the company collaborating with esteemed partners such as AGP Mining Consultants, Knight Piésold, and Kappes Cassiday & Associates to ensure a robust and comprehensive PEA. The Los Reyes project stands out for its high-grade, low-sulphidation epithermal deposits, boasting a historic recovery of approximately one million ounces of gold and 60 million ounces of silver from previous operations.
In addition to the PEA, Prime Mining continues to prioritize the safety of its workforce and the integrity of its operations amidst local security concerns. The company's proactive measures and strategic partnerships position it favorably to navigate the complexities of the mining landscape in Sinaloa. With a clear vision and dedicated resources, Prime is poised to unlock the potential of the Los Reyes project, which could significantly contribute to the company’s growth trajectory in the competitive gold-silver market.