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HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL IN MEXICO INVESTOR PRESENTATION TSX.V: PRYM JULY 2020
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HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL … · This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations.

Jul 25, 2020

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  • HIGH-GRADE GOLD-SILVER PROJECT WITH UPSIDE POTENTIAL IN MEXICO

    INVESTOR PRESENTATION

    TSX.V: PRYM

    JULY 2020

  • 2

    DISCLAIMER

    THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF PRIME MINING CORP. ”PRIME" OR

    THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN PRIME. PRIME DOES NOT MAKE

    ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE COMPANY EXPRESSLY WARNS

    READERS NOT TO RELY ON THE INFORMATION HEREIN FOR INVESTMENT OR OTHER RELATED PURPOSES. ACCORDINGLY, ANY USE OF THIS INFORMATION IS AT YOUR RISK

    AND WITHOUT LIABILITY TO THE COMPANY. THE INFORMATION CONTAINED HEREIN IS NOT AND SHOULD NOT BE CONSTRUED AS EITHER A PUBLIC OR PRIVATE OFFER OR

    SOLICITATION TO PURCHASE SECURITIES IN THE CAPITAL STOCK OF PRIME INC. THE READER IS REFERRED TO HIS/HER PROFESSIONAL INVESTMENT ADVISOR REGARDING

    INVESTMENT RELATED DECISIONS RESPECTING THE SECURITIES OF THE COMPANY.

    CONFIDENTIALITY

    This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized

    distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its

    affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of PRIME Inc..

    FORWARD-LOOKING INFORMATION

    This presentation contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including,

    without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no

    assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause

    actual results to differ materially from our expectations as well as a comprehensive list of risk factors are disclosed in the Company’s documents filed from time to time via SEDAR with the

    Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we

    do not undertake any obligation to update forward-looking statements should conditions or our estimates change, other than as required by law and readers are further advised not to place undue

    reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-

    looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as

    actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The

    Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

    QUALITY ASSURANCE/QUALITY CONTROL

    The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's

    qualified person, Bruce Kienlen, P. Geo., VP Exploration of Prime Mining Corp.

  • 3

    AN EVOLVING COMPANY

    Recently revamped management and board• Daniel Kunz has been recently appointed CEO and Andrew

    Bowering has been appointed Executive Vice-President

    • Murray John appointed Chairman of the Board

    • Paul Sweeney and Marc Prefontaine appointed to the Board

    • Management and Board have material ownership of 13%1

    Existing Resource with upside• High-grade oxide deposit with a favourable strip ratio

    • Measured & Indicated: 633kozs gold and 16,604kozs silver

    • Inferred: 179kozs gold and 6,831kozs silver

    • Significant upside resource potential

    • Only 40% of the strike explored to date

    Strong financial position and backers• Recently closed a $10M financing in June 2020 with new

    cornerstone shareholders

    • Long-term shareholders focused on delivering regional value

    through oxides and high-grade upside

    • Financial backing for 2020 – 2021 exploration budget

    High-grade upside• High-grade population below the oxides could add significantly

    to resources

    • Multiple intercepts with minimum 3m true thickness with gold

    grades in excess of 10 g/t and silver grades ranging from 35 g/t

    to 1,000 g/t

    • Upcoming exploration program to test high-grade targets

    1. Shown on a fully diluted basis

    Source: Company disclosure

  • 4

    CAPITALIZATION

    1. Weighted average exercise price of C$0.83 (Low of $0.50 and High of $1.10); 2. Shown on a fully diluted basis

    Source: Thomson Reuters, company disclosure

    Capitalization and Balance Sheet Historical Share Price

    Shareholders

    RBC Investment Management Commodity Capital Global Mining

    Merk Asset Management Tera Capital LLC

    Management and Board own 13%2

    0.0

    1.0

    2.0

    3.0

    $0.00

    $0.50

    $1.00

    $1.50

    Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20

    Vo

    lum

    e (M

    )(C$/s

    ha

    re)

    Total Volume Share Price

    Ticker Ticker TSX-V: PRYM

    Current share price C$/sh $1.42

    Basic shares outstanding M 82.7

    Warrants outstanding1 M 38.1

    Options outstanding M 7.9

    FDITM shares outstanding M 128.6

    FDITM market capitalization C$M $183

    Cash & cash equivalents C$M $11

    Proceeds from in-the-money securities C$M $37

    Total debt C$M $0

    Enterprise value C$M $134

  • 5

    BOARD OF DIRECTORS

    • Non-executive director of OceanaGold Corporation and

    Adventus Mining Corporation

    • Served as a director of Tahoe Resources Inc. (sold to

    Pan American Sild Corp.)

    • Former CFO of Canico Resources Corp. (acquired by

    Vale S.A.) and Sutton Resources Ltd (acquired by

    Barrick Gold) and executive for Plutonic Power

    Corporation

    • Chairman of the Company’s Audit Committee

    • Over 40 years experience in mineral exploration

    and mine development that includes over 11 million

    ounces of gold and 600 million ounces of silver

    reserves and resources

    • Key member of the team that built Ocampo for

    Gammon Gol, Lluvia de Oro, Magistral and El Cubo in

    Mexico

    • Co-Founder and CEO of Orla Mining from 2015 until

    2019

    • Chairman of Discovery Metals Corp. and is a member

    of the boards of directors of Osisko Gold Royalties, Ltd

    and O3 Mining Inc.

    • Former President and Chief Executive Officer of

    Dundee Resources Limited, a private resource-

    focused investment company, and Managing Director

    and a Portfolio Manager with Goodman Investment

    Counsel

    • Mining engineering with extensive industry experience

    working as a mining engineer and Master of Business

    Administration

    Paul SweeneyDIRECTOR

    Marc PrefontaineDIRECTOR

    Murray JohnDIRECTOR & BOARD CHAIRPERSON

    Source: Company disclosure

    Paul LarkinDIRECTOR

    • +35 years leading New Dawn Group investment &

    financial consulting firm. Previously an investment

    banker. Served as director & officer of TSX, NYSE

    and TSX Venture Exchange listed companies

    • Founding partner, director & Chairman of Audit &

    Strategic Committees at US Geothermal Inc. (sold in

    2018 for over US$200M plus enterprise value)

    Daniel J. KunzCEO & DIRECTOR

    Andrew BoweringEXECUTIVE VP & DIRECTOR

    • Professional engineer and Master of Business

    Administration with over 35 years of experience in mining,

    constructing and financing global resource projects

    • Former CEO of $4.2bn Ivanhoe Mines Ltd., founder and

    CEO of US Geothermal Inc which sold for $250M

    • Served as senior management and/or president level;

    Morrison Knudson Corporation & MK Gold Company

    • Built numerous mines including Castle Mountain and

    American Girl. Was with Chesapeake Gold and its

    Mexican Metates project (90kms from Los Reyes) for 17

    years

    • Venture capitalist, 30-years experience as owner

    operator of drilling companies and leadership in

    worldwide mineral exploration and development

    • Founded/funded Millennial Lithium Corp and built

    teams to pursue precious, base and industrial metals

    from exploration to production

    • Founder/operator of companies on the TSX Venture,

    TSX main and American Stock Exchange including

    Caldera Environmental, Pinnacle Mines, ATW Gold,

    Cap-Ex Iron Ore, Millennial Lithium, and American

    Lithium Corp.

  • 6

    MANAGEMENT TEAM

    Gregory K. LillerVP & COO

    • Over 40 years experience in mineral exploration

    and mine development that includes over 11 million

    ounces of gold and 600 million ounces of silver

    reserves and resources

    • Key member of the team that built Ocampo for

    Gammon Gol, Lluvia de Oro, Magistral and El Cubo in

    Mexico

    • Senior roles in public companies on TSX Venture, TSX

    main, and American Stock Exchange including Genco

    Resources (TSX), Gammon Gold (TSX, AMEX),

    Mexgold Resources (TSV) and Oracle Mining (TSX)

    Simon AndersonCFO

    • Chartered Accountant with extensive experience in

    financial reporting, corporate finance and management

    • A director or officer of several Canadian and US-listed

    companies ensuring public disclosure meets current

    standards and planning and implementing acquisitions

    and divestitures

    Alex TsakumisCAPITAL MARKETS ADVISOR

    • Professional Geologist with over 20 years experience in

    mineral exploration working with junior and major

    exploration companies

    • Served as senior geologist with Canterra Minerals &

    Independence Gold, VP Exploration for Diamonds North

    Resources and project geologist for BHP Billiton

    • Played a key role in the discovery of the diamondiferous

    Repulse Bay (Qilalugaq) and Amaruk kimberlite fields

    Bruce KienlenP. GEO., VP EXPLORATION

    Source: Company disclosure

    • Successful public markets specialist with over 25

    years of experience in all aspects of equity financing

    • Represented mining resources companies listed on

    major stock exchanges (including TSX and NYSE)

    • Responsibilities have included corporate governance,

    corporate communications, and maintaining strong

    relationships within investment banking and

    institutional investors

    • Registered professional geologist with +30 years of

    experience in the mineral exploration business as both

    an exploration geologist and a mining executive

    • Recently retired from Franco-Nevada Corporation and

    was responsible for evaluating the geological and

    resource potential of numerous mineral deposits

    worldwide

    • Previously Co-Founder and Director of Orla Mining

    Kerry SparkesTECHNICAL ADVISOR TO THE BOARD

    Daniel J. KunzCEO & DIRECTOR

    • See bio on slide 5

    Andrew BoweringEXECUTIVE VP & DIRECTOR

    • See bio on slide 5

  • 7Source: Company disclosure

    LOS REYES PROJECTSinaloa, Mexico

  • 8

    LOS REYES PROJECT

    POTENTIAL FOR SIGNIFICANT GOLD RESOURCE POTENTIAL IN A PRIME LOCATION

    Source: Company disclosure

    Key Facts

    Location

    Los Reyes is 43 km from the town of Cosalá in the

    historic mining region of Sinaloa

    Size

    37 contiguous claims over 6,300 hectares

    Resource Upside

    Current resource open on strike and at depth

    8 to 10 new high-grade underexplored surface

    discoveries for drill testing

    Untested new claim blocks added to project yet to

    have any exploration

    Acquisition

    Option to acquire Vista Gold’s 2% NSRs (surface

    and underground) and a 49% back-in right

    Infrastructure

    Direct access to roads, power, abundant water, and

    local labor force

    Licensing and Permitting

    Successfully completed 30-year surface access

    rights agreement to ensure continued exploration,

    development and receipt of a mining and

    construction permit

    Permit application made for new exploration drilling

    Proximity to Key Precious Metal Projects

    Americas Gold and Silver (TSX: USA; NYSE: USAS)

    Minera Alamos (TSXV: MAI)

    First Majestic (NYSE: AG; TSX: FR)

    McEwen Mining (NYSE: MUX)

    Chesapeake (TSX: CKG)

  • 9

    LOS REYES PROJECT

    Source: Company disclosure

    Concession Boundary Showing:

    • Current pit-constrained resource areas

    • Additional mineralized zones

    • Quartz vein and stringer breccia zones

    • General road layout

  • 10

    Cutoff Assurance CategoryTonnes

    (000s)

    Gold Silver

    Grade (g/t) Contained (kozs) Grade (g/t) Contained (kozs)

    0.22 g/t cutoff

    Measured & Indicated 19,752 1.00 633 26.15 16,604

    Inferred 7,094 0.78 179 29.95 6,831

    0.50 g/t cutoff

    Measured & Indicated 11,822 1.44 546 33.97 12,912

    Inferred 3,956 1.13 144 42.90 5,456

    0.70 g/t cutoff

    Measured & Indicated 8,697 1.74 488 38.77 10,840

    Inferred 2,603 1.44 120 54.36 4,549

    0.90 g/t cutoff

    Measured & Indicated 6,746 2.02 438 42.96 9,317

    Inferred 1,859 1.71 102 64.23 3,839

    1.0 g/t cutoff

    Measured & Indicated 5,914 2.17 413 45.20 8,595

    Inferred 1,685 1.78 97 67.22 3,642

    PIT-CONSTRAINED UPDATED RESOURCES

    Source: Company disclosure

    LOS REYES MINERAL RESOURCE

  • 11

    IMMEDIATE RESOURCE EXPANSIONAdjacent to Current Resource Areas

    Source: Company disclosure

  • 12

    CROSS SECTION (OXIDES)

    Source: Company disclosure

    Limited project drilling provides resource expansion opportunities

    Drilling

    No Drilling

  • 13

    HIGH-GRADE UPSIDE

    Source: Company disclosure

    Drillhole From (m) To (m) Length (m) Au (ppm) Ag (ppm)

    12GL-04 73.00 78.00 5.00 14.4 156

    12GV-02 239.90 245.15 5.25 12.3 745

    12SM-08 87.40 91.40 4.00 12.7 348

    12ZAP-06 7.00 12.40 5.40 12.5 75

    15GDLR-011 98.80 104.00 5.20 10.1 104

    GL002 48.77 51.82 3.05 11.9 288

    GL005 39.62 42.67 3.05 13.7 926

    GL010 47.24 50.29 3.05 11.1 380

    GL011 16.76 19.81 3.05 11.4 149

    GL073 65.53 68.58 3.05 10.1 202

    GW022 82.30 88.39 6.09 14.1 144

    SM009 57.91 60.96 3.05 15.9 165

    HISTORIC DRILL INTERCEPTS

    Drillhole From (m) To (m) Length (m) Au (ppm) Ag (ppm)

    SM032 50.29 53.34 3.05 47.9 384

    TA003 21.34 24.38 3.04 11.7 80

    ZA007 30.48 38.10 7.62 10.1 --

    ZA016 62.48 67.06 4.58 11.4 --

    ZA062 25.91 32.00 6.09 10.8 --

    ZA068 47.24 50.29 3.05 10.7 51

    ZA082 83.51 86.87 3.36 15.5 35

    ZA093 54.86 57.91 3.05 12.4 87

    ZA127 3.05 6.10 3.05 13.6 65

    ZA148 35.05 41.15 6.10 32.2 80

    ZA178 38.10 41.15 3.05 12.7 43

    ZA196 51.82 54.86 3.04 14.3 42

  • 14

    HIGH-GRADE UPSIDE

    • Over 17.5 km of mineralized

    strike length identified to date

    • Over 10 km of untested strike

    • Multiple high-grade surface

    grabs to be followed-up

    15.1 g/t, 14.8 g/t and 9.5 g/t

    gold at surface

    • Numerous surface showings

    remain untested

    Source: Company disclosure

  • 15

    HIGH-GRADE UPSIDE

    Source: Company disclosure

    ZAPOTE NORTH, ZAPOTE SOUTH, & TAHONITAS DEPOSITS - LONG SECTION DIVIDED BY GRADE ZONES

  • 16

    BLUE-SKY POTENTIALStep-Out into New Areas

    RECTANGLESShow areas that host

    similar structures and

    mineralized zones without

    any previous drilling

  • 17

    A three-pronged approach starting with an initial 10,000 metre drilling program is planned to expand the known mineralized

    area and increase the existing mineral resource size

    THE PATH FORWARDA Three-Pronged Approach

    Upgrade

    Resource

    • Upgrade 7.1 million tonnes of current Inferred resource to the Measured and Indicated category

    a. Approximately 2,000 metres of surface trenching

    b. Approximately 1,500 metres of drilling in 12 to 15 holes shallow

    c. Represents about 12% of the initial budget of $6M

    Expand

    Resource

    • Add new gold and silver ounces by drilling along strike and down dip adjacent to the existing pit-constrained resource areas

    a. Approximately 1,500 metres of surface trenching

    b. Approximately 3,500 metres of drilling with some drill holes reaching 200 metres in depth

    Define

    New Targets

    • Define the potential to add new gold and silver ounces in unexplored areas where the existing data and the new mapping data confirm the

    target potential

    a. Approximately 3,500 metres of surface trenching

    b. Approximately 5,000 metres of drilling with some drill holes reaching 350 metres in depth

    1

    2

    3

  • 18

    THE PATH FORWARDOther Exploration Work in Parallel

    Mapping and

    Sampling

    • A new detailed base geologic map is being prepared for the entire Los Reyes concession area

    • Surface mapping of the various rock types, alterations, geologic structures and other physical features

    • Log and analyze 13,000 metres of core contained in 89 drill holes in Prime’s core shack in Hermosillo

    • New regional soil and rock chip sampling and assaying will be completed to acquire fresh data

    Metallurgical

    Test Work

    • Past metallurgical tests show heap leach recovery as a viable option

    • The drill and channel sample material sent to the assay lab will be analyzed for cyanide solubility using bottle roll and similar testing in order

    to build a stronger database of recovery data across the project

    Schedule and

    Logistics

    • The program will work through the rainy season

    • Mapping and core logging activity is expected to be complete in September 2020

    • Trench channel sampling already in progress

    • Drilling is expected to begin when the base mapping and core logging is complete, sufficient surface trenching has been completed, and the

    rainy season has been accounted for regarding access, safety and road construction permitting in new areas

    • Currently, the exploration program is expected to be active from July 2020 to March 2021

  • 19

    THANK YOU

    Footer

    Prime Mining Corp.

    1507 - 1030 West Georgia St.

    Vancouver, BC V6E 2Y3 Canada

    (604) 428-6128

    [email protected]

    www.primeminingcorp.ca

    T S X . V : P R Y M

  • 20

    APPENDIX

  • 21

    LOS REYES – PHOTO WITH RESOURCE AREAS

    Source: Company disclosure

  • 22

    ZAPOTE LONG SECTION

  • 23

    ZAPOTE LONG SECTION

  • 24

    ZAPOTE SOUTH CROSS SECTION

  • 25

    GUADALUPE EAST CROSS SECTION

    23© 2020 Prime Mining Corp. All rights reserved.

    GUADALUPE EAST CROSS SECTION

  • 26

    GUADALUPE WEST CROSS SECTION

  • 27

    ZAPOTE SOUTH CROSS SECTION

  • 28

    CROSS SECTION – SAN MIGUEL EAST

  • 29

    CROSS SECTION – SAN MIGUEL EAST