Prime Meridian Resources Corp. Executes Purchase Option Agreement on the Cuatro Hermanos Project
Prime Meridian Resources Corp. Executes
Purchase Option Agreement on the Cuatro
Hermanos Project
Vancouver, British Columbia--(Newsfile Corp. - February 9, 2023) -
Prime Meridian Resources Corp.
(
TSXV: PMR
) ("
PMR
'' or the "
Company
") is pleased to announce that today the Company received the
signed and notarized agreement (the "Agreement") for the option to purchase (the "Purchase Option") a
100-per-cent interest in the Cuatro Hermanos Porphyry Copper Project (the "4H Project"), located in
Sonora, Mexico, 185 kilometres southeast of Hermosillo.
4H Project Overview:
10 concessions totalling 8,125 hectares which contains a large porphyry copper-molybdenum
system with surface measurements of at least four kilometres east-west by two kilometres north-
south.
Initial exploration work on the property by companies including Occidental Petroleum (1969),
Amoco (1974-1975), Cominco (1981), BHP-Magma (1997) and Phelps Dodge (1998) was limited
in overall extent.
Erosion has been sufficiently moderate so that a leached oxidized capping of 10 to 60 metres
thickness has developed over the primary sulphides.
Secondary supergene chalcocite mineralization is present in a tabular zone at the base of
oxidation and the presence of exotic copper mineralization, transported by acid sulphate surface
waters into stream gravels and conglomerate indicates primary sulphides were oxidized, copper
put into solution and acid copper sulphate solutions moved down and laterally.
Primary porphyry copper-molybdenum mineralization, mainly pyrite, chalcopyrite, and molybdenite,
is present in quartz-veinlet stock works, disseminations and breccias associated with high level
porphyritic intrusions of quartz monzonite to granodiorite and diorite compositions.
Brian Leeners, CEO of Prime Meridian, stated, "The Cuatro Hermanos Copper Project is currently an 8-
square kilometre, at-surface, copper and molybdenum system with near-term soluble copper (SXEW)
production potential. The asset in its entirety versus the current value of PMR, represents tremendous
leverage to rising copper and molybdenum prices which are beginning to reflect projected deficits in
forward supply."
Main Zone - 2008 Historical Indicated Resources
Cutoff CuEq (%)**
Tonnes
Cu (%)
Mo (%)
Ag (g/t)
Cu (lbs)
Mo (lbs)
0.0484
277,404,000
0.1682
0.0172
1.3
1,028,866,000
105,021,000
0.0967
252,971,000
0.1801
0.0186
1.4
1,004,348,000
103,690,000
0.1451
243,097,000
0.1841
0.0191
1.4
986,737,000
102,630,000
0.1934
223,794,000
0.1914
0.0202
1.5
944,378,000
99,702,000
0.2417
206,262,000
0.1970
0.0210
1.5
896,008,000
95,660,000
0.2899
177,917,000
0.2049
0.0224
1.6
803,871,000
87,800,000
(1), * See Cautionary Note below.
Main Zone - 2008 Historical Inferred Resources
Cutoff CuEq (%)**
Tonnes
Cu (%)
Mo (%)
Ag (g/t)
Cu (lbs)
Mo (lbs)
0.0483
892,229,000
0.1428
0.0166
0.9
2,808,674,000
325,601,000
0.0965
798,515,000
0.1541
0.0182
1.0
2,712,243,000
320,048,000
0.1448
745,687,000
0.1596
0.0191
1.0
2,623,544,000
313,852,000
0.1929
658,405,000
0.1672
0.0207
1.1
2,426,977,000
300,324,000
0.2409
557,510,000
0.1742
0.0226
1.1
2,141,552,000
277,993,000
0.2890
464,858,000
0.1830
0.0242
1.2
1,875,236,000
248,450,000
(1), * See Cautionary Note below.
Resource calculations are taken from the Technical Report, Cuatro Hermanos Porphyry Copper-Molybdenum Project Sonora, Mexico, prepared
for Virgin Metals Inc. (09 August 2008)
(
1)
** Cutoff CuEq has been recalculated from the historical cutoff grades utilizing metal prices as of February 7, 2023: Cu = US$4.05/lb and Mo =
US$37.90/lb. No adjustments were made for recovery as the project is at an early stage and metallurgical data to allow for estimation of recoveries
is not yet available.
* Cautionary Note
The reader is cautioned that the historical resource estimates referenced in this release (the "Historical Estimates") are considered historical in
nature and as such is based on prior data and reports prepared by previous property owners. The reader is cautioned not to treat them, or any part
of them, as current mineral resources or reserves. The Company has determined these historical resources are reliable, and relevant to be
included here in that they demonstrate simply the mineral potential of the Project. A qualified person has not done sufficient work to classify the
Historical Estimates as current resources and the Company is not treating the Historical Estimates as current resources. Significant data
compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the Historical Estimates can be classified
as a current resource. There can be no ass0urance that any of the historical mineral resources, in whole or in part, will ever become economically
viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economic viability.
Even if classified as a current
resource, there is no certainty as to whether further exploration will result in any inferred mineral resources being upgraded to an indicated or
measured mineral resource category.
Mineralization
Mineralization on the 4H Project consists of disseminated porphyry copper-molybdenum mineralization
and peripheral exotic copper mineralization. Known centres of porphyry copper-molybdenum
mineralization are the Main-Sulfate Zones, Cactus Zone, and the West Zone (Figure below). Sulphide
mineralization is closely associated with the granite-quartz monzonite intrusive complex and associated
hydrothermal brecciation, development of stockwork veinlets, and emplacement of dikes and veins.
(1)
Figure 1.
Cuatro Hermanos Project - Sonora, Mexico
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5386/154174_primemeridianfigure1.jpg
The
Main Zone
of disseminated copper-molybdenum mineralization is irregular in surface outline,
measuring about 700 metres north-south by 300 to 600 in an east-west direction. Primary mineralization
consists of stockwork and disseminated chalcopyrite, bornite and molybdenite in a complex host rock of
equigranular to porphyritic quartz monzonite, related quartz porphyry dikes, quartz veinlets, and
hydrothermal breccia. The andesite and latite host rocks into which the quartz monzonite complex is
intruded contains some disseminated copper mineralization, but molybdenum mineralization is generally
low grade. Molybdenum is preferentially present in quartz-rich intrusions, hydrothermal breccia, and
quartz veins. A centre for copper-molybdenum mineralization appears to be located in the southerly and
potentially the widest part of the mineralized zone. Here, a roughly circular area is cut by eight RC holes
that demonstrate disseminated copper-molybdenite primary mineralization extends to at least 300
metres depth; the bottom and lateral limits of this mineralization have not yet been defined.
Mineralization present throughout the length of the holes commonly averages between 0.2 to 0.3 %Cu
and 0.01 to 0.04 %Mo. The base of surface oxidation and weathering varies from 20 to 60 metres in this
zone. Copper is largely removed from the oxidized cap rock. A thin chalcocite supergene enrichment
zone of 5 to 30 metres thickness is present just below the base of oxidation. Copper grades in this zone
of supergene enrichment vary from 0.3 to 2.0 %Cu.
(1)
The
Sulfate Zone
of disseminated copper-molybdenum mineralization is about 500 metres north-south
by about 200 metres east-west and lies just north of and adjacent to the Main Zone. Primary sulphides
are chalcopyrite, bornite, pyrite and molybdenite, disseminated in a host of quartz monzonite and
associated quartz porphyry, in hydrothermal breccia and in quartz-vein stockworks. Primary
mineralization in the Sulfate Zone appears more restricted when compared to the Main Zone and
bottoms out at depths of 120 to 200 metres. Oxidized capping is 30 to 80 metres thick and rich in the
iron sulphate mineral, jarosite, which gives the zone its name. A thin, secondary supergene chalcocite
enrichment zone 20 to 30 metres thick is indicated in the five holes drilled in this area. Copper grades
for the zone of enrichment are generally 0.5 to 1.0 %Cu.
(1)
The
Cactus Zone
is an area of oxide and sulphide copper-molybdenum mineralization about 300 by
1,000 metres. Based on the drill results, the oxide zone appears to average near 0.48 %Cu, while the
underlying hypogene sulphide zone is near 0.44 %Cu and 0.017 %Mo. Mineralization has been
constrained laterally and base of mineralization has been defined by drilling. This zone of mineralization
may be a slab of mineralized bedrock that is detached from its original location of formation and moved
into its present position along a low angle gravity fault of unknown displacement.
(1)
The
West Zone
is about 1000 metres north-south and 700 meters east-west and is located about two
kilometres west of the Main Zone. It has been tested with about 18 holes; 12 were drilled by Amoco, one
by Occidental, one by Cominco, and four by VGM. Assay data is available for almost all of the West
Zone drillholes, however, apart from the recent VGM reverse-circulation holes, no drill logs have been
located. The limits and extent of mineralization are not yet well defined. Low grade disseminated
chalcopyrite-chalcocite-molybdenum mineralization is hosted in phyllic-altered granodiorite, quartz
porphyry, and diorite, and to a lesser extent in andesitic to dacitic host rocks. Molybdenite is present
mainly in the intrusive complex, with higher grades generally related to cross-cutting quartz-molybdenite
veins and stockworks.
(1)
The
North and South Conglomerate Zones
are comprised of crudely stratified, poorly sorted,
polymictic conglomerates of probable Quaternary age, which were deposited on an erosion surface
developed over the Cretaceous volcanic stratigraphy. The matrix of the conglomerates contains
secondary copper minerals including malachite, chrysocolla, azurite, and black copper-manganese
oxides. Boulders and cobbles in the conglomerate are coated with the same assemblage of minerals.
Percussion drilling conducted by Morgain on both areas suggests average grades near 0.52% Cu.
Oxidized surficial rocks in the mineralized areas are heavily stained with iron oxides; goethite, jarosite,
and hematite are the most common, and are produced by oxidation of pyrite. The secondary greenish
yellow molybdenum oxide mineral ferrimolybdite is present but not widespread. Secondary green copper
minerals and copper-manganese minerals are present in Quaternary gravels and conglomerates.
(1)
The
Cerro San Felipe Area
where local topographic relief is on the order of 400 meters. Preliminary IP
Survey results indicate that a large part of Cerro San Felipe is underlain by IP chargeability anomalies.
These results are consistent with observations of extensive limonite-rich oxidized capping that indicates
disseminated sulphides are widespread across Cerro San Felipe. Phelps Dodge identified a
molybdenum-in-soil anomaly consisting of values of over 51 ppm in an area measuring approximately
5,600 meters by 2,200 meters. This anomaly is very large and covers most of Cerro San Felipe. The
exotic or transported copper mineralization at the North and South Conglomerate Zones very likely was
derived from mineralized bedrock areas in the Cuatro Hermanos intrusive complex. The shape and
location of the conglomerate units indicate they were likely derived from the Cerro San Felipe Area,
somewhere between the Main and West Zones. Oxidation and solution of copper in supergene acid
solutions is implied and suggest a possible zone of chalcocite enrichment in the bedrock source area.
(1)
The
San Lorenzo Zone
was added to the 4H Project in 2004, and reconnaissance stream sediment
sampling and rock chip sampling in 2008 delineated several areas of anomalous Cu, Mo, and Ag for
follow up investigations.
(1)
Recent Geophysics
A 14-line kilometre induced polarization geophysical survey was completed over the Cuatro Hermanos
mineralized system in January 2008, by contractor Zonge Geosciences. One east-west Line was run
across the Main and West Zones. Three north-south lines were run across the West Zone, Main Zone,
and Cerro San Felipe ridge between the West and Main Zones. Preliminary results indicate that a large
part of Cerro San Felipe is underlain by IP chargeability anomalies. These results are consistent with the
extensive limonite-rich oxidized capping that indicates disseminated sulphides are widespread across
Cerro San Felipe and the Cuatro Hermanos sulphide system.
(1)
Qualified Person Statement
The technical contents of this release were approved by Case Lewis, P.Geo., a Qualified Person as
defined by National Instrument 43-101.
References
1
.
09 August 2008. Technical Report, Cuatro Hermanos Porphyry Copper-Molybdenum Project Sonora, Mexico. Prepared for Virgin Metals Inc.
(by Chlumsky, Armbrust and Meyer, LLC. Richard Nielsen, PhD. & Robert Sandefur, P.E.
Transaction Details
As per the Agreement, dated January 16, 2023, to exercise the Purchase Option, PMR will make cash
payments to Minerales Y Yacimientos Mexicanos Sacramento, S.A. DE C.V. (the "Vendor") and
complete work expenditures over 60 months for a 100% ownership of the Cuatro Hermanos
concessions, as per the following (USD):
Date
Cash Payment
Work Commitment
Execution
$
50,000
12 Months
$
150,000
$
100,000
24 Months
$
200,000
$
250,000
36 Months
$
200,000
$
500,000
48 Months
$
200,000
$
1,000,000
60 Months
$
5,062,500
$
1,000,000
Project
$
5,862,500
$
2,850,000
The Vendor will retain a one percent (1%) Net Smelter Royalty ("NSR"), registered with the Mining
Ministry of Mexico.
PMR will also be obligated to pay for the ongoing Mining Taxes/Duties/Fees to maintain the
concessions in active status during the term of the Purchase Option. The Cuatro Hermanos concessions
are in good standing before the Mexican Mines Bureau (known in Spanish as "Direccion General de
Minas").
Financing
The Company previously announced in a News Release on November 25, 2022, that the Company
would be relying on National Instrument 45-106 Section 5A.2 and a Form 45-106F19 offering document
for an announced private placement offering. The Company has elected to terminate that private
placement and offering document has been withdrawn and should not be relied upon.
The Company further announces a non-brokered private placement offering of units at five cents per unit
for gross proceeds of up to $1.0 million. The financing will consist of up to 20 million units at five cents,
with each unit consisting of one common share of the Company and one common share purchase
warrant, with each warrant being exercisable for an additional common share at an exercise price of 10
cents for 36 months. 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 50 cents for a period of 10 consecutive
trading days. Finders' fees in accordance with TSX Venture Exchange policies may apply to the
financing. All securities issued pursuant to the financing will be subject to a four-month hold. Proceeds
raised from the financing will be used for project payments and holding costs, exploration expenditures
and working capital expenditures.
The Company is continuing to seek approval for the La Verde Project from the TSX Venture Exchange
and is continuing its due diligence review of both the La Sarita and El Chuin Projects in Sonora, Mexico.
The Company will not be using any of the above funds for expenditures on the pending La Verde
acquisition until that acquisition has been approved by the TSX Venture Exchange. The Company has
reserved the symbol SDCU for the Company's new name, Sonoran Desert Copper Corp., subject to
TSX Venture Exchange approval.
About Prime Meridian Resources
Prime Meridian Resources is focused on the exploration and development to production of copper and
silver projects in Mexico.
On behalf of the Board of Directors of
Prime Meridian Resources Corp.
"Brian Leeners"
Brian Leeners, CEO & Director
/ +1 604-862-4184 (WhatsApp)
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release."
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