Prime Mining: How BIG will the Los Reyes resource upgrade be? (PRYM)

By James Moore

Jan 24, 2020

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What began with noticing an obscure reference in an online report, ended with the discovery of a treasure trove of data that might just have unearthed the investment opportunity of the decade.

It is quite amazing to think that something as valuable as 16 drawers of drill exploration data could simply be forgotten about; ignored and left to gather dust at the back of a sleepy office.

But it can and does happen.

Prime Mining’s (TSX-V:PRYMOTCMKTS:EPWMF)shareholders will almost certainly end up being most grateful for this.

Prime’s COO and Chief Geologist Greg Liller tells the story best,

“We were reading a report that was online. It referenced four, four-drawer filing cabinets of hard data; so 16 drawers of data. We went to one previous operator to ask, “Where is the data?” They said, “We don’t know, try the previous operator.” So we did. We went on a site visit to their office and there, buried right at the back, it was. It hadn’t been touched in seven years.

Metallurgical tests, surface work, bulk met test work and even assays; it was all there. We could not believe what we had found.”

This is THE story behind Prime’s incredibly exciting Los Reyes gold project and its much anticipated resource upgrade.

The results of current work on this missing data set and the five Los Reyes deposits could be spectacular.

And they could be imminent.

The heavy lifting has already been done at Los Reyes

When Prime’s CEO Andy Bowering and his team first took over Los Reyes they already had a clear view of the enormous promise of this overlooked project.

Despite having had tens of millions of dollars spent on developing it over three decades, Los Reyes had never made it into production.

Various external events got in the way and the project bounced from one owner to another.

During this time records were lost, work was left half complete and corporate staff changes meant that there was a lack of continuity.

This can be calamitous for a mining project, but despite such corporate carelessness one fact remains constant.

The gold is still there.

It just needs the right person to come up with a plan to mine it.

Read about the Los Reyes project’s game-changing in our EXCLUSIVE report, which can be downloaded here.

Step forward that man Greg Liller.

During his career, Liller has played a key role in the development of seven mines, hosting over 11 million ounces of gold and 600 million ounces of silver.

He has serious pedigree.

Presented with a data set as rich as the one Prime already had for Los Reyes, Liller was always going to be the man to paint the real picture of how much extractable gold and silver is here.

After all, Los Reyes has an established 530,000-ounce gold and 10 million ounce silver resource, in the indicated and inferred categories.

A full Pre Feasibility Study was completed in the 1990s, proving Los Reyes’ potential to host an economic mine at $325 an ounce!

Nearly 500 holes had been drilled here and at least 41 of those, drilled by C$230 million market-cap Great Panther (TSX:GPR), had not been included in the existing resource model.

Staggeringly, none of the previous operators at Los Reyes had combined all this information into a comprehensive wireframe and block model, to map what the whole resource really looks like.

Liller knew he would be in his element. He had followed the progress at Los Reyes throughout his career and had plenty to go at to demonstrate what he believes is Los Reyes’ true unrecognised potential.

However, even he could not believe his good fortune when the Prime team tracked down the 16 filing cabinet drawers of forgotten extra data!

A resource upgrade is surely coming at Los Reyes

For a geologist as passionate as Liller, this untapped horde of data was a dream come true.

An expert user of Hexagon’s MineSight software, Liller immediately set about furiously entering this treasure trove of information into the existing Los Reyes model. 

Once complete he immediately followed up with over two months of painstaking work, creating new models for all five of Los Reyes’ known deposits.

His goal was to create a more accurate resource model than the one currently attributed to Los Reyes.

We now await the results, but what can we expect?

Liller’s excitement and enthusiasm for Los Reyes spills over when he talks about it, but he’s very careful not to give anything away about a possible imminent resource upgrade. He went on;

“We have a formal process to complete here, which is nearing its end. I’m clearly a strong believer in the project because I came out of retirement specifically to work on it.

I’ve worked tirelessly on the data for months and my view has always been we don’t need to do much more at Los Reyes. It is nearly ready to go into production. The new data obviously opens up a number of interesting possibilities, especially when it is methodically applied to a comprehensive wireframe model of the resource. 

The heavy lifting has already been done.”

To delve much deeper into the Los Reyes gold project read our special report HERE 

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