Prime Mining has appointed Ausenco Engineering Canada to spearhead a preliminary economic assessment (PEA) for its Los Reyes gold-silver project in Sinaloa, Mexico.
The PEA aims to outline a high-return, high-margin, low-capital, and long-life project. It will utilise data from drilling activities up to the end of 2024 and will incorporate prior technical work.
Since acquiring the project in 2019, Prime Mining has invested over C$64m ($46.26m) in exploration and completed more than 221,000m of drilling. The assessment is slated for completion in Q3 2025.
Prime Mining CEO Scott Hicks said: “Our approach assumes a low capital, 5,000 tonne-per-day mill fed by a combination of open pit and underground material and may include a higher throughput sensitivity scenario.
“We look forward to updating the market on our results as we target completion of the PEA in the third quarter of 2025. In parallel with the preparation of the PEA, Prime will prioritise exploration, targeting highly prospective areas with potential to contribute additional resource ounces in future studies.”
Ausenco’s selection is attributed to its experience with similar scale projects in Mexico, including work on Silvercrest’s Las Chispas Project, Discovery Silver’s Cordero Project, Vizsla Silver’s Panuco Project, and GoGold’s Los Ricos Project.
Prime Mining will also collaborate with AGP Mining Consultants, Knight Piésold, and Kappes Cassiday & Associates to deliver a comprehensive independent study.
Despite a temporary halt in drilling due to security concerns in Sinaloa as of January 2025, Prime Mining said that it remains confident in meeting its drilling targets. The company plans to resume its minimum 40,000m programme within 12 months once conditions improve.
Six drill rigs are stationed onsite with contractors ready to recommence operations once safety is assured.
In fiscal 2025, exploration efforts will concentrate on expanding high-grade zones within the Z-T Area, Guadalupe East, and the Central Area, alongside generative drilling at Las Primas, Fresnillo, and Mariposa. The aim is to enhance resource expansion potential across the project.
Alongside technical evaluations for the PEA, Prime Mining will refine metallurgical and geotechnical parameters and optimise mine planning and underground mining processes.
