VANCOUVER, March 12, 2019 /CNW/ - PRIZE MINING
CORPORATION ("Prize" or the "Company") (TSXV:PRZ)
(OTCQB:PRZFF) (MQSP:GR:FRANKFURT) wishes to announce plans for the
next phase of exploration at the Company's Manto Negro Copper
Property in Coahuila State, Mexico
and the launch of a strategic review of the Kena Gold Project in
southeastern British Columbia.
"We are pleased to announce the next phase of exploration at
our high grade Manto Negro Copper Property" said Michael McPhie, President and CEO of
Prize. "In our recently completed Phase 1 drilling
program we tested just a small part of our wholly owned
18,000 hectare property that contains 35 meaningful surface copper
showings over a 45 kilometer trend. Building on encouraging Phase 1
results, the next phase of exploration is intended to further
define the scale, grade and potential of this district scale
property" said McPhie. "With the increased
interest in copper and other metals used in sustainable energy
sources by investors and major mining companies globally, we
believe Manto Negro stands out as a unique opportunity to create
value for our shareholders in the near
term."
"The Company is also considering options for the future of
the Kena Gold Project and is formally initiating a strategic review
of this valuable consolidated land package in southeastern
British Columbia" said
McPhie. "Kena has a substantial NI 43-101 bulk tonnage
resource of 481,000 ounces indicated and 1,318,000 inferred in a
great jurisdiction. In this review, we are looking at all options
to maximize shareholder value from the Kena, Daylight and Toughnut
properties that, together, make up the Kena Gold Project, that
would allow us to focus our time, funding and resources in building
the company for the future."
NEXT PHASE OF EXPLORATION AT THE MANTO NEGRO COPPER
PROPERTY
1. Setting
The Manto Negro Copper Project is located in Coahuila State,
northeastern Mexico, and consists
of over 45 kilometers of known stratabound Cu-Ag mineralized
horizon, analogous in style to the Kupferschiefer world class
deposits. In the first phase of exploration completed
recently the drilling program focused on two main copper rich
mineralized zones. The first one was in the area of the old
artisanal Manto Negro mine within the El
Granizo claim block. The second area was around the
old artisanal Pilar Grande mine
within the Don Indio claim block located some 17 kilometers
northwest of the Manto Negro mine. Following the drilling of
these two areas, it was decided to drill test two other zones south
of Pilar Grande within the Don Indio
claim block.
The two areas were the La
Cuchilla and El Pilon,
located 1.3 km and 2.5 km respectively south of Pilar Grande. Both these areas host old
abandoned artisanal mines that targeted a manto type
silver-lead-zinc mineralized horizon that sits some ten meters
stratigraphically above the stratabound copper layer. This
relationship is observed throughout the property where the Ag-Pb-Zn
mineralization is hosted within the Cretaceous age San Marcos
Formation and the stratabound Cu horizon is found at or near the
contact between the San Marcos Formation and hematite rich Cupido
Formation.
Three diamond drill holes were completed at El Pilon, testing 3 separated areas. One
of the areas returned two mineralized horizons; from 25.45 to 26.55
meters, 1.1m at 1.21% Cu and 26 g/t
Ag and from 41.6 to 43.1, 1.5m at
1.24% Cu and 102 g/t Ag.
At La Cuchilla zone the two
holes drilled along the same horizon returned anomalous Cu and Ag
mineralization. Hole CA19-01 intersected 6.75m at 0.75% Cu and 9 g/t Ag and hole CA19-02
returned 1.2m at 0.71% Cu and 13 g/t
Ag. Full results from the Phase 1 drilling program can be
viewed at https://www.prizemining.com/.
2. Next Phase of Exploration at Manto
Negro
This first exploration phase allowed for a better understanding
of the geology and mineralization distribution. High angle
faulting, trending mostly NW-SE, along the edges of the basin,
pre-date the mineralizing event. These faults controlled the
migration of the mineralizing fluids responsible for both the Cu-Ag
and Ag-Pb-Zn deposition. Other series of NNE-SSW and NNW-SSE
faults cut through the San Marcos
– Cupido Formations. At this time, their displacement and
control on the mineralization is not fully understood.
Analogous to the Kupferschiefer deposits environment of
Eastern Europe and the
Congo in Africa, deep-seated faults served as conduits
for the mineralizing fluids that spread within the porous acidic
sandstone-conglomerate-mudstone of the San Marcos Formation that
sits below the reducing limestone of the Cupido Formation.
So far only about 10% of the potential contact within the
property has been investigated. Mapping and prospecting need to be
completed as there are still over 40 kilometers of potential
horizon that remain to be evaluated. Locating structural and
geological traps where there is increase thickness in
mineralization will be part of the mandate of this next phase of
exploration. High potential targets will be targeted for
diamond drilling.
A specialized crew directed by Project Manager, Richard Dufresne, P. Geo., will undertake this
work over an approximate six to eight week period starting in March
of this year and will be completed by the end of May.
Our budget for this work is approximately $250,000 Canadian.
Following this, the focus will be on drill testing the sites
identified in this mapping and prospecting program. Current
expectations are that this will be between a 3,000 and 5,000 meter
program depending on the outcomes of this work, budget and funding
considerations. Following positive results metallurgical
testing will be completed as well as 3D interpretation on key
areas.
KENA GOLD PROJECT
The Kena Gold Project consists of a consolidated land package of
the Kena, Daylight and Toughnut properties, together covering an
area of 9,000 hectares. It is located in the Kootenay
Boundary Region of south western British Columbia.
The Kena Gold Project contains a bulk tonnage resource of just
under 2 million ounces of gold in an indicated and inferred 43-101
resource and amenable to leaching (refer to
https://prizemining.com/projects/kena-daylight-gold-project/ for
details about the property, history and resources).
Between 2017 and 2018, Prize carried out extensive surface
sampling, geophysical surveys on all three properties. It also
carried out 3 diamond drilling campaigns, one on Daylight
consisting of 18 holes for a total of 2,695 meters and two on
Toughnut for a total of 31 holes for 5,559 meters.
In undertaking this strategic review, the Company is considering
options for the future of the Kena Gold Project that will allow us
to focus on metals used in sustainable energy sources and further
defining and developing our high grade Manto Negro Copper
Project.
Sampling QA/QC and Analysis
The Company followed a rigorous Quality Assurance/Quality
Control program over the chain-of-custody of samples with the
insertion of blanks and duplicates into the sample stream submitted
to the laboratory for analysis. Transport of samples was carried
out by a Company's employee who brought the samples directly from
the field site to the laboratory. Sample preparation and
analysis took place at the SGS facility in Durango, Mexico.
The analysis completed on all samples was the 32 Element Package
by 4-acid digestion and Inductively Coupled Plasma Optical Emission
Spectrometry (ICP-OES) (package GE-ICP40B). Samples with Cu
or Pb over the upper detection limit of 10,000 ppm were re-analyzed
by Sodium Peroxide Fusion and ICP-OES (package GO-ICP90Q).
Samples with Ag over the upper detection limit of 100 ppm were
re-analyzed by Lead Fusion Fire Assay with Gravimetric Finish
(package GO-FAG313).
Richard Dufresne, P.Geo., Project
Manager of the Company, is a Qualified Person under NI 43-101, is
the Company's nominated qualified person responsible for monitoring
the supervision and quality control of the programs completed on
the Company's properties. Mr. Dufresne has approved and
verified the scientific and technical information in this news
release.
ABOUT PRIZE MINING CORPORATION
Prize is a junior mining issuer listed on the TSX Venture
Exchange. Prize is focused on the exploration and development
of the Manto Negro Copper Property in Mexico and the Kena Gold Property in BC.
Find out more at: www.prizemining.com
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Reader Advisory
Forward-Looking Statements. This news release contains
forward-looking statements. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"scheduled", "potential", or other similar words, or statements
that certain events or conditions "may", "should" or "could"
occur.
The forward-looking statements are based on certain key
expectations and assumptions made by Prize, including the assay
results of the 2018 and 2019 diamond drilling program on Prize's
Manto Negro Property. Although Prize believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because Prize can give no
assurance that they will prove to be correct. There is no
assurance that the result of these exploration programs will be
successful. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to,
exploration risks and that required regulatory and
third-party approvals and consents are not obtained on terms
satisfactory to the parties within the timelines provided.
The reader is cautioned that assumptions used in the preparation
of such information, although considered reasonable by the Company
at the time of preparation, may prove to be incorrect and readers
are cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date hereof. The
Company does not undertake any obligation to release publicly any
revisions to forward-looking information contained herein to
reflect events or circumstances that occur after the date hereof or
to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Prize Mining Corporation