Investing in Opportunities for Cash Flow Generation and Major Exploration Developments.
This Prime Meridian Resources Corp. profile is part of a paid investor education campaign.*
Prime Meridian Resources Corp. (TSXV:PMR) is building a balanced portfolio of projects that target both cash flow generation and focused exploration to development in Mexico. Once Prime Meridian takes control of these opportunities, the company works to maximize exploration and development and operational efficiencies to provide streamlined productivity and growth as projects are put into operation. This model allows Prime Meridian to accelerate the development of its assets, generate revenue faster and ensure rapid scaling while providing continuing exploration value.
Prime Meridian is applying its project model to its flagship Tango gold and porphyry property in southern Sinaloa State, Mexico. Tango hosts several precious metal targets as well as a newly identified copper–molybdenum porphyry target.
The San Agustin target hosts over 665 meters of underground development and 450 meters of mineralized outcrops with historical production of approximately 40,000 tonnes. Whereas, the La Gloria target, another past-producing mine, produced 110,000 tonnes of rock, making it the largest historical prospect on the property. To date, Prime Meridian has planned drill programs for these two targets. The company hopes to define an inferred resource of greater than 150,000 ounces of gold at the San Agustin target and to test the extent and scale of the La Gloria target.
Prime Meridian has also optioned a 100 percent interest in a series of claims in the Red Lake gold district of Ontario. The 4,250-acre Bruce Lake project is located southeast of Great Bear Resources Ltd.’s (TSXV:GBR,OTC:GTBDF) Dixie project and the 6,250-acre Camping Lake project is adjacent to Great Bear Resources’ Packwash project. The company has also optioned three additional claims that are contiguous to the Bruce Lake and Camping Lake projects and due south of the TNT target on BTU Metals’ (BTU.TSXV) Dixie Halo Project.
“The Red Lake gold district in Ontario hosts some of the richest gold deposits in the world and, as evidenced by the recent high-grade discovery of Great Bear Resources, the region remains a major gold exploration opportunity,” said Prime Meridian CEO Brian Leeners.
Prime Meridian’s management team and founders notably hold more than 30 percent of the company’s shares. The team also looks to increase its ownership in the company in each financing round.
Prime Meridian’s Company Highlights
- Concessions are in good standing with permits in place for exploration work.
- Over US$6 million in exploration work has been completed to date.
- Detailed exploration and drilling programs are planned to commence in the near term.
- The Tango project provides Prime Meridian with potential low-cost development to early cash flow opportunity.
- There is significant upside potential in numerous areas on the property as Tango hosts 67 known historical workings on gold and silver veins as well as the potential for copper-molybdenum porphyry system.
- The San Agustin target was previously in production.
- The La Gloria target is larger than the San Agustin target.
- Recently optioned two projects and three additional claims in Ontario’s Red Lake gold district.
- The Ontario projects are located in proximity to Great Bear Resources Dixie and Packwash projects.
- Existing and experienced in-country management.
- Management notably holds over 30 percent of shares.
Tango Gold and Porphyry Project
The 3,954-hectare Tango project is located in southern Sinaloa State, Mexico. Prime Meridian is earning a 100 percent interest, subject to a two percent royalty, in the property by paying US$5 million in purchase payments and holding costs over five years. The company is expected to spend a minimum of US$250,000 annually on the development of Tango over the term.
The Tango project is prospective for gold, copper and molybdenum. Several areas of interest have been identified through extensive exploration and mapping. Prime Meridian has developed comprehensive drill programs for several confirmed and prospective deposits on the property.
In addition to its exploration targets, Prime Meridian is also prepared to begin operations on the following precious metals targets: San Agustin, La Cocolmeca, El Pino, La Gloria, Los Colgados, Mango, Urrea, La Vibora, La Flauta, La Botica and Lentes. The company is also looking for copper and molybdenum deposits at the Guacamaya and Pórfido del Cuervo targets. Prime Meridian’s focus on both pre-mapped and speculative targets allows the company to expand and initiate operations at Tango to generate revenue, while also exploring new opportunities.
Prime Meridian has registered its surface access agreement with the Ejido of Picachos and is permitted to complete exploration activities on the property.
Precious metals targets
- Over 665 meters of existing underground development.
- Historic production of 15,000 to 30,000 tonnes.
- Gold grades are variable, but range from 15 g/t gold across 2.5 meters to 185 g/t gold across 1.5 meters.
- Average assay values of 15.8 g/t gold and 63 g/t silver across a width of 2.5 meters were measured from three rounds of test-mined rock in 2014.
- Assay values from a shaft about 45 meters deep near the end of the main level are 185 g/t gold and 61.2 g/t silver.
- A minimum of 2,340 meters and up to 4,905 meters are recommended in 17 to 31 holes on roughly 50-meter centers to test San Agustín. The holes range from 85 meters to 300 meters in length.
- The first hole (PDH1) is targeted 15 to 20 meters below the shaft where values of 185 g/t gold and 61 g/t silver were assayed.
- La Gloria Vein is one of many northwest-trending veins on the property. Others include the Urrea, Colorin and El Placer veins.
- Main level is a 103-meter-long easterly trending tracked tunnel about two meters high and two meters wide at 965-meter elevation that cross-cuts a northwest-trending structural zone hosted in argillic altered rhyolitic breccia
- Open stope is greater than 150 meters long and breaks through to surface at 1,038-meter elevation. The lower levels are flooded.
- Roughly greater than 50,000 tonnes of rock appears to have been mined out of La Gloria, making it the largest known historic prospect on the Tango property.
- Rock sample 15,659 contains 21.1 g/t gold and 6 g/t silver across 0.8 meters.
- Gold mineralization (electrum) occurs in a structural zone characterized by 10 percent to 20 percent red cryptocrystalline quartz-hematite veinlets that are oxidized to mattromite, chrysocolla, willemite and brochantite.
El Placer Vein System
El Placer vein system is a north-northwest trending extensional fault more than four kilometers long located in the eastern part of the property that has been historically worked along several prospects, including La Flauta, La Botica and Lentes. El Placer is not a single vein but rather a trend of subparallel north to northwest trending veins that define a zone ranging from 60 to 240 meters wide.
Historic excavations follow gold-rich seams. The near-vertical lineaments are structural damage zones related to faulting. On the southwestern fault are the Tarantula adits. On the northeastern side, the Vibora adits. The distance between La Tarantula and La Vibora is about 60 meters. A grab sample from La Vibora at level 1,033 contains 26.4 g/t gold, 60 g/t silver, 0.2 percent copper, 6.2 percent iron, one percent lead, 2.4 percent zinc and 64 ppm tungsten.
Copper-molybdenum porphyry target
- The USGS stream sediment geochemistry model for Mexico supports a high probability that an economic porphyry system underlies Tango.
- The Laramide belt contains most of the known copper deposits in Mexico, including actively copper and molybdenum producing deposits at Cananea and La Caridad.
- The Laramide consists of over four kilometers of volcano-sedimentary and plutonic rocks of the Late Cretaceous Tarahumara Formation in Sonora.
- Centeno-Garcia (2017) proposed that the Tarahumara formation is an arc that extends further south of Sonora.
- Recent uranium-lead isotope measurements from zircons in volcanic host rocks from the Tayoltita mining camp in Durango 140 kilometers due north of the Tango property have ages that range from 75.5 mega-annum in the Socavon Volcanics to younger than 63 mega-annum in the Productive Andesite (Paula Montoya-Lopera et al., 2019). They correlate the volcanic rocks at Tayoltita to the Tarahumara formation in Sonora.
- Molybdenite-quartz veinlets hosted in the tuffites from the northern part of the Tango property was dated in the fall of 2018 by the Department of Geosciences at the University of Arizona using rhenium and osmium isotopes under the supervision of Dr. Martín Valencia Moreno of the Instituto de Geología and ERNO Universidad Nacional Autónoma de México. This molybdenite has a Latest Cretaceous age of 66.31 +/- 0.33 mega-annum. As the host rocks at Tango in Sinaloa are older than the mineralization, they most likely correlate to the Tarahumara formation as well.
Porphyry systems are defined by the alteration minerals that accompany the copper and molybdenum minerals. Specifically, ore grades of copper and molybdenite occur with minerals that contain potassium such as biotite and potash feldspar. This process adds potassium and removes calcium from the system (calcium moves outwards where it is deposited in the propylitic alteration zone as epidote). As the system cools down, early potassic assemblages are overprinted by sericitic (micaceous) minerals.
The maps below show the location of 941 rock samples that were collected on a roughly 100-meter by 100-meter grid. The geochemistry of these samples was analyzed using a hand-held Niton XRF, then they were analyzed with a Terraspec short-wave infrared spectrometer to analyze the alteration minerals. Finally, they were inspected using a binocular microscope to confirm the instrument readings. The background of the image is gridded (potassium and potassium-calcium). Hot pink is where this ratio approaches one, indicating either (i) addition of potassium to the rock or (ii) a rock that has a lot of potassium and little calcium (such as the alkali granite in the south). If minerals such as potassium or biotite are present (as they are here), then potassium was added.
Comparing this map to the Cu/Mo maps below suggest that copper follows mainly biotite and molybdenum follows potash feldspar.
Red Lake Gold Project
Prime Meridian Resources has an option to acquire a 100 percent ownership in five claim blocks in the Pakwash area of the Red Lake gold district in Ontario, Canada.
The Bruce Lake and Camping Lake projects, were staked by Perry English, the same prospector who vended the Dixie and Pakwash projects to Great Bear Resources (TSXV:GBR).
The Bruce Lake Project comprises 4,250 acres and is located southeast of the Dixie Project of Great Bear Resources. The Camping Lake Project comprises 6,250 acres and ties directly onto the southeast of the Pakwash Project of Great Bear Resources.
The two claim blocks formerly comprised part of a large claim group known as Goldpines that were explored by Laurentian Goldfields Inc. Laurentian collected multiple lake sediment and MMI soil samples containing anomalous gold on the two claim blocks and conducted a first phase drill program on the Bruce Lake claims.
Prime Meridian has also optioned three additional claims that are contiguous to the Bruce Lake and Camping Lake projects and due south of the TNT target on BTU Metals’ Dixie Halo Project. BTU Metals Corp. announced that they have discovered compelling indications suggestive of a notable volcanogenic massive sulphide target in DH 13. Current interpretation of the data is that the target is up to 200 meters in width and 1000 meters long at surface with a dip of near -45 degrees east.
The Red Lake gold district in Ontario is host to some of the richest gold deposits in the world. As shown by the recent high-grade discovery of Great Bear Resources, the region remains a major gold exploration opportunity.
Prime Meridian’s development plan
Gold & Silver Veins
|· San Agustín||· Phase 1 Drilling
· Underground Refurbishment
|· +150,000Oz Au|
|· La Gloria||· Underground tunnel access
· Phase 1 Drilling
|· Grade & scale confirmation|
|· La Víbora, La Flauta,
· La Botica, Lentes
|· Geological mapping
· Surface geochemistry
|· Grade & scale confirmation|
Laramide Belt Porphyry
|· Porphyry targets||· Geophysics and mapping
· Phase 1 Drilling
Prime Meridian’s Management Team
Brian Leeners — CEO and Director
Brian Leeners received both his B.Comm. and LL.B. degrees from the University of British Columbia in 1992 and since that time, has been focused on the management of private and public venture companies. In 2002, he founded Nexvu Capital Corp. which is a venture capital firm focused on developing companies in the materials and technology sectors. During the last resource cycle, Nexvu Capital focused on four copper projects – three were sold for gains and one (a targeted copper porphyry) is now under an exploration JV with the Friedland Group.
Hugh Callaghan — President
Hugh Callaghan has 25 years of experience in the mining industry, initially with Goldfields of South Africa, Rio Tinto and Xstrata in commercial and corporate roles around the globe in base metals and coal, and has founded or managed a range of junior companies with assets spanning metallurgical coal, copper and potash. Callaghan has extensive base metals experience including a role as Commercial Manager for a zinc refinery and extensive marketing, new business development and corporate management roles that included roles at the Escondida copper mine and building an underground copper mine in Chile. He holds both a B.Comm. and LLB degree.
Michelle Robinson, MASC., P.Eng. — Project Manager (Mexico)
Michelle Robinson worked for several major metal mining companies in the 1990s, including Noranda, Cominco (now Teck), Inco (now Vale), Westmin Resources Ltd. (now Nyrstar), Anglo American (Vancouver exploration group) and Hudbay Minerals (Flin Flon, Manitoba). In 1998, she moved to Mexico and domiciled several junior mineral explorers, including Canamera Geological, Oro Gold Resources (now Marlin Gold Mining Ltd.), La Plata Gold (now Alphamin Resources Corp.) and Seafield Mineral Resources. She is a member of working groups organized by the Mexican Mining Chamber (CAMIMEX), speaks fluent Spanish and English and is a Qualified Person as defined by NI 43-101.
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