Prismo Metals

Overview

Mexico’s Sinaloa state hosts a number of prolific silver and gold mines, including McEwen Mining’s (TSX:MUX) El Gallo Complex, Americas Gold and Silver’s (TSX:USA) Cosalá operations and Kootenay Silver’s (TSXV:KTN) Copalito silver-gold project. Between 2012 and 2019, gold production at the El Gallo mine alone totaled 295,000 ounces (oz) and silver production peaked at 142,000 oz.

Prismo Metals (CSE:PRIZ, OTCQB:PMOMF) has made a strategic move to join the list of successful explorers in this region. The company’s leadership team has decades of experience in the Mexican precious metals industry. Director, president and CEO Dr. Craig Gibson has been an exploration consultant since 1998 and a director of Garibaldi Resources Inc. (TSXV:GGI). Additionally, advisor Dr. Peter Megaw sits on the board of directors and is co-founder of MAG Silver Corp. (TSX:MAG) and Minaurum Gold Inc. (TSXV:MGG). Megaw and his team are credited with MAG Silver’s Juanicipio discovery in the famous Fresnillo District as well as Excellon Resources’ (TSX:EXN) Platosa mine.

Prismo Metals has two current exploration projects: Palos Verdes and Los Pavitos. The Palos Verdes property covers 22.77 hectares within the historic Panuco-Copala silver-gold district in Sinaloa. The district is well-known for its numerous veins with historical production. While much of the district has been consolidated by Vizsla Resources (TSXV:VZLA), the Palos Verdes project is located near the district’s under-explored northeastern limit.

On January 9, 2023, Vizsla Resources acquired a right of first refusal to purchase the Palos Verdes project through a strategic investment agreement with Prismo Metals. Vizsla's strategic investment consists of a cash payment of $500,000 and the issuance of one million common shares of Vizsla to Prismo. Pursuant to the strategic investment, the two companies have agreed to form a technical committee to pursue district-scale exploration of the Panuco silver-gold district.

Prismo Metals’ Palos Verdes property includes 700 meters of strike length along the Palos Verdes vein, which has been explored for 250 meters with findings yielding as much as 6.7 grams per ton (g/t) gold and 544 g/t silver from surface and underground sampling. A second vein system may be reflected in a northwest striking alteration zone, offering an additional high-grade exploration target on the property. In 2018, ProDeMin completed a diamond drilling program on the property, with notable drill results including 3.75 g/t gold and 1,098 g/t silver for 2.3 meters, as well as 8.42 g/t gold and 2,336 g/t silver for 0.8 meters.

In May 2019, the company and ProDeMin entered an option agreement in which Prismo may acquire 75 percent interest in the Palos Verdes property. A second agreement with the owner of the remaining 25 percent will allow Prismo to obtain 100 percent ownership of the Palos Verdes concession. The company conducted a 2,000-meter drill program at Palos Verdes in 2022, designed to test the Palos Verdes vein and a structural intersection with a second vein at depths where it is believed that potential for a large ore shoot is present, similar to the drilling accomplished by Vizsla Silver on their adjacent land package. Prismo expects to receive the permit for the planned 2023 drilling program consisting of 2,500 meters.

The company’s Los Pavitos project is located in the Alamos region of southern Sonora, a well-mineralized area that hosts several active exploration and mining projects. The project consists of one concession covering 5,289 hectares. Early sampling and reconnaissance work has been carried out by previous companies, including Minera Cascabel.

Company Highlights

• Prismo Metals is an exploration company targeting high-grade silver and gold projects in Mexico, one of the world’s top producers of precious metals.
• The company’s Palos Verdes property is located in the historic Panuco-Copala silver-gold district in Sinaloa, Mexico.
• The Palos Verdes property includes 700 meters of strike length along the Palos Verdes vein, which has yielded 6.7 g/t gold and 544 g/t silver.
• The company’s Los Pavitos project is located in the well-mineralized Alamos region of southern Sonora. The project consists of one concession covering 5,289 hectares.
• Prismo’s management and advisory team offer decades of experience in the Mexican precious metals industry, including all aspects of exploration and resource development.
• Prismo acquired 100 percent of the Palos Verdes and commenced a drill program on the property. The drill results revealed four vein holes showing multiple discrete quartz vein stages lacing between breccia fragments showing distinctly differing mineralogy.
• The company also filed on SEDAR a NI 43-101 Technical Report for its Los Pavitos Gold-Silver Project in southern Sonora, Mexico.

Key Projects

Palos Verdes

The company’s Palos Verdes property is located in Southern Sinaloa, roughly 65 kilometers northeast of Mazatlán. The Palos Verdes concession covers 22.77 hectares and is situated within the historic Panuco-Copala mining district, the largest silver producer in Sinaloa.

History

Limited sampling has been performed on the property. According to a sample database compiled by ProDeMin, findings have yielded as much as 4.15 g/t gold and 732.7 g/t silver. Prior to the turn of the century, a 70-meter tunnel was driven along the Palos Verdes vein near the bottom of the Palos Verdes arroyo. In 2018, ProDeMin completed a diamond drilling program on the property. Notable drill results included 3.75 g/t gold and 1,098 g/t silver for 2.3 meters and 8.42 g/t gold and 2,336 g/t silver for 0.8 meters.

Next Steps

The company recently announced a 10-year surface access agreement that grants Prismo immediate access for exploration. In 2022, the company conducted a 2,000-meter drill program designed to test the Palos Verdes vein and a structural intersection with a second vein at depths where it is believed that potential for a large ore shoot is present, similar to the drilling accomplished by Vizsla Silver on their adjacent land package. Prismo is further expecting to receive the permit for the planned 2023 drilling program consisting of 2,500 meters.

Los Pavitos

The company’s Los Pavitos project is located in the Alamos region of Southern Sonora, a well-mineralized area that hosts multiple active exploration and mining projects. Los Pavitos consists of one concession covering 5,289 hectares. Early sampling and reconnaissance work has been carried out by previous companies, including Minera Cascabel. The property’s numerous mines and prospect pits indicate historical interest.

Hot Breccia

The Hot Breccia project is Prismo’s latest acquisition located in the heart of the great Arizona Copper Belt, USA and is adjacent to Christmas Mine and Hayden Smelter. The Hot Breccia property has the same productive geologic units that host high-grade copper skarn mineralization at the adjacent, past-producing Christmas Mine. Prismo has the option to earn from Infinitum Copper (TSXV: INFI) a 75 percent interest in the Hot Breccia project.

The company plans to begin the permitting process by the first quarter of 2023 and expects permits to be granted by the second quarter of the same year. Prismo further aims to identify high-potential targets and conduct an aeromagnetic/VTEM survey to help define the full shape of the sulfide system. Additional drilling is also anticipated in 2024.

Management Team

Craig Gibson - Director, President and CEO

Dr. Craig Gibson has extensive experience in the minerals industry. He received his BS (1984) in earth sciences from the University of Arizona and MS (1987) and PhD (1992) in economic geology and geochemistry from the Mackay School of Mines, University of Nevada, Reno. He co-founded Prospeccion y Desarrollo Minero del Norte, S.A. de CV (ProDeMin) based in Guadalajara, Mexico, in 2009. ProDeMin is a consulting firm providing a broad spectrum of exploration related services to the mining industry and has been involved in several major precious metal discoveries in Mexico. Dr. Gibson is also a director of Garibaldi Resources Inc., a Vancouver-based junior exploration company; a certified professional geologist of the American Association of Professional Geologists; and a qualified person under NI 43-101.

Carmelo Marelli - CFO and Secretary

Carmelo Marrelli is the principal of the Marrelli Group, comprising Marrelli Support Services Inc., DSA Corporate Services Inc., DSA Filing Services Limited, Marrelli Press Release Services Limited, Marrelli Escrow Services Inc. and Marrelli Trust Company Limited. The Marrelli Group has delivered accounting, corporate secretarial and regulatory compliance services to listed companies on various exchanges for over twenty years. Marrelli is a chartered professional accountant (CPA, CA, CGA), and a member of the Institute of Chartered Secretaries and Administrators, a professional body that certifies corporate secretaries. He received a bachelor of commerce degree from the University of Toronto. Marrelli acts as the chief financial officer to several issuers on the TSX, TSX Venture Exchange and CSE, as well as non-listed companies, and as a director of select issuers.

Jorge Rafael Gallardo-Romero - Director

Jorge Rafael Gallardo-Romero has been a consultant geologist of Cascabel since March 1992. He also acts as Mexico exploration manager of Gainey Capital Inc. (since January 2015) and of Minera Goldzone SA de CV (since March 2011). Gallardo-Romero graduated from the University of Sonora with a degree in Geology in 1984.

Jean-François Meilleur - Director

Jean-François Meilleur has been active in the capital market since 2006 as a managing partner of Paradox Public Relations and PE Partners providing strategic advisory, investor relations services and being a supportive shareholder providing development capital to different ventures. In May 2017, Meilleur was appointed president and CEO of Canada Strategic Metals. From 2012 to 2018, Meilleur was VP at Critical Elements Corp. Meilleur holds a bachelor’s degree from the HEC business school (Hautes Études Commerciales) in Montreal, with a specialization in marketing and finance. He is also a managing partner and co-owner of Paradox Public Relations.

Maria Guadalupe Yeomans Otero - Director

Maria Yeomans Otero is a geologist who graduated from Universidad de Sonora, Mexico, in 1986, with master studies in business administration at the same university. She has been a part of the team at Cascabel since 1992 and is now office manager. She speaks English fluently and has extensive experience in the administration, legal and commercial relations related to mining.

Louis Doyle - Director

Louis Doyle has over 30 years of experience focused primarily on capital markets and public companies. Since 2016, he has also provided consulting services to private companies seeking listing on Canadian exchanges. Since January 2016, Doyle has been the executive director of Québec Bourse. Between October 1999 and December 2015, he was the vice-president, Montréal of the TSX Venture Exchange. As such, he was responsible for business development and listing activities in the provinces of Québec and Atlantic Canada. During his tenure, he acted as chairman of TSX Venture Listing Committee and was a member of the Policy committee. Doyle also led the nationwide TSX Venture Mentorship program and further acted regularly as a speaker and advisor at conferences and workshops. He also holds directorship roles with two other publicly traded companies. Doyle was granted 150,000 incentive stock options exercisable at $0.165 per share before June 26, 2027. Also, three other directors were granted 50,000 incentive stock option each exercisable at $0.165 per share before June 26, 2027.

Peter Megaw - Advisor

Dr. Peter Megaw is best known as co-founder of MAG Silver Corp. and Minaurum Gold Inc. He and his team are credited with MAG Silver’s Juanicipio discovery in the famous Fresnillo District and Excellon Resources’ Platosa mine. He received his doctorate from the University of Arizona and has more than 35 years of experience exploring for silver and gold in Mexico. Dr. Megaw is a certified professional geologist by the American Institute of Professional Geologists and an Arizona Registered Professional Geologist. He is the author of numerous scientific publications on ore deposits and is a frequent speaker at academic and international exploration conferences. He was awarded the 2017 Thayer Lindsley Award for the 2003 discovery of the Juanicipio silver deposit in the Fresnillo District, ultimately leading to a further 600 million ounces being identified in the immediate area. Dr. Megaw also received the Society of Mining Engineers 2012 Robert M. Dreyer Award for excellence in applied economic geology.

Allan Frame - Director of Business Development

Allan Frame recently retired from the investment business. During his successful forty-seven-year career, Frame focused primarily on working with mining companies, helping them raise over $100 million and having had the benefit of being associated with multiple major discoveries, including the Snip Deposit now owned by Skeena Resources Ltd.