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July 16, 2019 News Release TSX-V: PMR
TANGO PORPHYRY ALTERATION STUDY
Vancouver, B.C.: Prime Meridian Resources Corp. (“PMR” or the “Company”) (TSX-V: PMR) has
completed the alteration study of the porphyry target at the Company’s Tango Gold/Silver/Porphyry
project in Southern Sinaloa State, Mexico (the “Property”). The News Release of 3 July 2019 described
data for 941 rock samples. These well-studied samples represent control points that allowed the
Company to better interpret geochemical and observational data from soil sample sites and additional
rock sample sites. There are now a total of 4578 surface points with alteration assemblages classified as
described in Table 1. Summary distribution statistics for geochemical analyses are in Table 2. A map is
in Figure 1.
Alteration mapping of the Property using field observations, conventional rock and soil geochemistry,
microscopy, magnetic susceptibility measurements and XRF geochemistry shows that a partially sericite
altered magnetite-biotite shell of “M2” veinlets daylights on surface at elevations of 350-550 meters,
centered just north of Picachos, is circular in shape, and has a diameter of about 2.3 kilometers. Based
on estimates from Pacey (2016), this shell can range from 100 to 500 meters thick, is typically closer to
200 meters thick, and surrounds and caps deeper potassic assemblages dominated by potash feldspar.
At Picachos, only 9 samples were dominated by K-feldspar, so it is likely that this assemblage and the
principal porphyry ore zone is mainly below surface on the Tango Property. Copper geochemistry of soil
samples overlying the porphyry are subdued, mainly because the overlapping sericitic alteration
contains pyrite that generates sulfuric acid in the weathering environment on surface, and has leached
the copper from any near-surface chalcopyrite or bornite. To find copper in the field, an XRF gun was
used to identify anomalous values in near-surface rock, usually where sulfide was encapsulated in quartz
veinlets, and excavations were dug into bedrock using picks and shovels. Usually some brochantite
(copper sulfate) could be found on fracture surfaces about 1 meter into the rock.
Little geological traversing has been done on the deep sericitic cover surrounding the magnetite-biotite
shell. Copper values in soil and rock samples from these areas are low for the reasons mentioned
above, and decent rock exposure usually has to be made with heavy tools . Some traverses are
warranted for the purpose of mapping the limonite to see if some of this is hematite from weathering of
chalcocite.
Table 1. Alteration assemblages inferred from observational and geochemical data on the Tango
Property
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Alteration Assemblage Number of
Observations
Observational and Geochemical Characteristics
NONE 683 Pb, Cu and Zn all below 50 ppm, gold and silver near
detection limits, no quartz veining, pyrite, sericite chlorite,
sulfide, sulfate, magnetite, clay or other alteration minerals
observed.
UNCLASSIFIED 612 No geochemical information and observational data
inadequate to classify alteration. Most of the early
geological survey points lacked alteration information.
PROPYLITIC 842 Rock is greenish due to epidote and chlorite that can (i)
pervasively replace the rock matrix, (ii) replace igneous
feldspar and mafic minerals, or (iii) occur in veins and vein
selvedges. Quartz usually has a comb texture and can be
intergrown with crystalline epidote. Base metals substitute
for iron in the silicates and occur in veins. Specifically, lead
preferentially substitutes for iron in epidote (hancockite)
and zinc for iron in chlorite (baileychlore). Hypogene veins
contain galena, sphalerite and copper sulfides. On surface,
the propylitic veins are oxidized to sulfates such as
anglesite, linarite and brochantite. Geochemically,
propylitic veins contain Zn, Pb, Cu and Mn. A few shallow
historic workings are developed on propylitic veins.
ARGILLIC 791 Samples contain gold and sometimes silver well-above
detection limits. Quartz is usually multi-stage with an early
grey cryptocrystalline stage followed by mammillary or
other crustiform stages and late comb quartz. Gold ,
sulfides and specular hematite precipitate with
cryptocrystalline and crustiform quartz. Vein selvedges
typically are altered to kaolinite or dickite. Geochemically,
the argillic veins contain Au, Ag, Cu, Pb, Zn, As and Fe.
Most historic gold production is from these veins.
POTASSIC-FERRIC 252 Symmetrical quartz veinlets 1 to 5 cm wide with selvedges
of magnetite +/- biotite that replace igneous hornblende.
The center of these veinlets may contain chalcopyrite and
occasionally bornite. This zone is probably a shell of “M2”
magnetite-biotite veinlets inwards from the propylitic zone
as defined by Pacey, 2016. Geochemically, these rocks
contain elevated potassium as well as copper, silver and
trace molybdenum. Calcium is depleted.
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POTASSIC-KFSP 9 This zone is not well-represented on surface, but probably
occurs mainly below and internal to the potassic-ferric zone
of M2 veinlets. Where observed, rocks are salmon pink due
to flooding by curvy potash feldspar veinlets and non-
symmetric vitreous grey quartz “B” veinlets with bornite
and chalcopyrite (Monecke et al. 2018). Geochemically,
these rocks contain elevated potassium, copper and
molybdenum with depleted calcium.
POTASSIC-CALCIC 58 Potassic-calcic rocks contain hornblende replaced by
biotite, actinolite and tremolite as well as magnetite,
usually with chalcopyrite and sometimes molybdenite.
They may contain epidote and calcite as well. They contain
excess Ca, Fe, Mg, K, Cu and Mo. This alteration is unusual
and is spatially close to the principal molybdenite outcrop
(TR-PxMollyUST L. 538).
CALCIC-SODIC-FERRIC 250 Calcic-sodic-ferric alteration seems to be spatially related to
a trachydiorite pluton exposed in the central part of the
Property, and may or may not be related porphyry-style
mineralization. The alteration is not propylitic because it is
associated with abundant magnetite, but it is not potassic
as it contains no biotite or K-feldspar. Minerals include
actinolite, magnetite, calcite, minor chalcopyrite, albite,
epidote and perhaps scapolite. Potassium values are low,
calcium and iron values are high. Sodium, where measured
adequately in some occasional whole-rock analyses, is high.
SERICITIC AND
POTASSIC-SERICITIC
992 Sericite is the most commonly reported alteration mineral
on the Property, and it can replace older potassic, propylitic
and calcic assemblages. Replacement of the older
mineralization can result in re-mobilization and depletion
of copper. Several types of sericite occur, ranging from
finely crystalline illite to coarsely crystalline (pegmatitic)
muscovite books, sea-green celadonite and pearly white,
shimmery paragonite. This work has not been detailed
enough to fully describe the great variety of white mica on
the Property. As it usually occurs with pyrite, surface rocks
with sericite are gossanous and have the strongest Fe
geochemistry of all samples, including those that contain
magnetite. K is generally depleted, except where sericite is
formed from albitic rocks where it might be added, or
where K is fixed in jarosite. Copper values are low in the
sericitic zone, unless chalcopyrite is encapsulated in quartz
veinlets as the pyrite breaks down to limonite and sulfuric
acid and dissolves the chalcopyrite. Calcium is depleted
due to destruction of plagioclase and hornblende.
Tourmaline commonly occurs in the sericite zone, both in
veins and replacing mafic minerals and glassy spherulites in
felsic rocks.
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SERICITIC BRECCIAS 70 Sericitic breccias are spectacular phreatomagmatic breccias
with clasts ranging from boulder size to rock flour. In
general, the breccias are located in the deep ENE trending
Cocolmeca Fault, and near TR-PxMollyUST L. 538. The
breccias contain angular to subrounded rock fragments in a
matrix of cryptocrystalline quartz blackened by rock flour,
magnetite and tourmaline. Some breccias are re-
brecciated with a late stage of comb quartz and pyrite.
Each of these has some unique geochemical characteristics.
Specifically, those near TR-PxMollyUST L. 538 contain
molybdenum oxidized to bright yellow ferrimolybdite,
those near San Agustin contain important gold values, and
others near La Coco are barren on surface, but might
contain metal at depth.
Table 2. Compiled summary distribution statistics for element concentrations measured from 3929 soil
and rock pulps using Group 1DX, Group 1F15, fire assay and hand-held XRF methods (see below and NR
dated 3 July 2019 for analytical method descriptions). 75th, 90th, 95thand 98th are percentiles. Gold* lab
analyses are available for 2916 samples as data from the hand-held XRF are not reliable for gold and are
not used. Elements such as K, Ca, Mg and others will be under -estimated in lab analyses as aqua regia
digestion of sample pulp is incomplete. Nonetheless, the data were helpful for classifying the alteration
assemblages.
Element Maximum Arithmetic Mean Median Range
Standard
Deviation 75th 90th 95th
98th
Ag_ppm 570.3 6.1 0.5 570.3 29.6 1.5 4.8 26.0 82.4
As_ppm 32661.0 81.6 9.7 32661.0 855.8 20.4 55.0 138.9 505.3
Au_ppm* 111.5 0.4 0.0 111.5 3.0 0.0 0.2 0.9 3.6
Bi_ppm 1646.8 3.6 0.1 1646.8 48.3 0.6 2.5 5.0 16.1
Ca_pct 14.5 0.5 0.4 14.5 0.7 0.6 1.1 1.5 2.4
Cu_ppm 70020.0 442.0 43.5 70020.0 2287.9 130.2 576.5 1633.8 4080.7
Fe_pct 43.8 3.4 2.9 43.8 2.8 4.1 5.8 7.8 11.7
K_pct 7.5 0.6 0.1 7.5 0.9 1.1 2.1 2.6 3.2
Mg_pct 4.5 0.4 0.3 4.5 0.4 0.6 1.0 1.3 1.6
Mn_ppm 21448.0 1144.3 909.0 21448.0 1083.8 1481.0 2194.4 3011.2 4111.5
Mo_ppm 81956.0 46.6 1.1 81956.0 1334.5 5.0 15.0 49.0 163.0
Pb_ppm 93200.0 716.3 50.0 93200.0 4159.3 182.9 912.8 2506.6 6660.8
S_pct 17.5 0.1 0.0 17.5 0.5 0.1 0.2 0.4 1.2
Zn_ppm 210429.0 1395.1 123.0 210429.0 8527.0 318.0 1426.0 3579.0 11944.0
1400 – 1040 WEST GEORGIA STREET
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Alteration map of the Tango Property. Voroni polygons of the survey points were used to illustrate the
alteration assemblages. Most of the porphyry-style mineralization is overprinted by sericitic alteration
(peach). Porphyry veinlets that are exposed on surface are mainly “M2” magnetite-biotite veinlets
(potassic-ferric alteration in pink) that form a shell 2.3 km in diameter (black dotted circle) around and
above a potassic ore zone that is probably below surface.
References
Monecke, T. Monecke, J., Reynolds, T., Tsuruoka, S., Bennett, M. Skewes, W. and Palin, R. (2018) Quartz
solubility in the H2O-NaCl system; a framework for understanding vein formation in porphyry copper
deposits; Economic Geology and the Bulletin of the Society of Economic Geologists 113 (5): 1007-1046.
Pacey, A., 2016, The characteristics, geochemistry and origin of propylitic alteration in the Northparkes
porphyry copper-gold system; Department of Earth Science and Engineering Imperial College London
UK, PhD thesis, 652 pages.
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Sampling and Analytical Procedures
Rock sampling procedures were described in a News Release dated 3 July 2019. Soil samples mentioned
in this News Release were collected on pre-planned sample grids at either 25 meter spacing or 50 meter
spacing. If the planned site did not have suitable material, the site was either moved a few meters, or
eliminated. Line spacing ranged from 400 meters to 100 meters. The sample site was cleaned of debris
using a machete or shovel, and the top layer of organics was removed. A small pit was dug with a rock
hammer or shovel and about 1 kg of mineral soil was collected. Roughly every 20 samples, blind
standards and blanks were inserted into the sample stream. Sample notes included the co-ordinates of
the site, colour of the sample, local bedrock type, local mineralization type and geologic structure.
The samples were shipped to Acme Laboratories (now Bureau Veritas) preparation facility in
Guadalajara via courier. At the lab, the samples were dried at 60 degrees Celsius, then disintegrated
and sieved to -80 mesh. Prepared pulps were couriered via DHL Express to the lab in Vancouver,
Canada. A 15 gram charge from each pulp was dissolved in hot aqua regia and analysed for gold and
base metals using combined ICP-MS methods (Group 1DX or 1F15). Samples with more than 10000 ppb
Au were re-analysed using fire assay methods. ACME has a quality system compliant with the
International Standards Organization (ISO) 9001 Model for Quality Assurance and ISO/IEC 17025 General
Requirements for the Competence of Testing and Calibration Laboratories. They ran duplicate pulp
analyses, as well as control materials internal to the lab. All QA/QC data has been checked and is
preserved in the MxDeposit database.
Aqua-regia is a weak digestion, and results are partial for most elements.
Qualified Persons
The scientific and technical information in this news release has been prepared in accordance with the
Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for
Mineral Projects) and reviewed and approved on behalf of the Company by Michelle Robinson, MASc.
P.Eng. a Qualified Person as defined by NI-43-101.
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Financing
The Company is currently conducting a non-brokered private placement financing of up to 15,000,000
units at a price of ten cents ($0.10) per unit to raise proceeds of up to $1,500,000. Each unit consists of
one common share and one common share purchase warrant (the “Warrants”) with each Warrant
entitling the holder to acquire one additional common share at a price of thirty cents ($0.30) per share
for twelve months from closing. The Warrants will be subject to the right of the Company to accelerate
the exercise of the Warrants if the shares of the Company trade at or above $0.50 for a period of 10
consecutive trading days.
Finders fees may be payable on this financing and are payable on the Tango Project transaction.
Final approval from the TSX Venture Exchange for the Tango Project is subject to submission of a Title
Opinion on the project (pending) and the closing of a financing to meet the financial obligations of the
project and the working capital needs of the Company for six months.
On behalf of the Board of Directors of
Prime Meridian Resources Corp.
"Brian Leeners"
Brian Leeners, CEO & Director
604-893-8384
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has
neither approved or disapproved the contents of this press release.