VSA Capital Market Movers – Prime Mining

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VSA Morning Miner, 15/10/20

Prime Mining (CVE:PRYM)

Prime Mining (CVE:PRYM) has announced an additional change to management with Kerry Sparkes taking on a wider role as Executive VP Exploration. Mr Sparkes joined PRYM earlier this year and his new role encompasses aspects of the roles of Greg Liller (formerly Chief Operating Officer) and Bruce Kienlen (formerly Vice President Exploration). The latter two executives stepping back will continue to support PRYM in an advisory capacity. Mr Sparkes has an impressive CV and his decision to become more involved with PRYM is a strong endorsement of the company’s asset base and its potential, in our view. He was most notably VP Geology for Franco Nevada for seven years and also a founder and Director of Orla Mining.

The change comes with the upcoming drill programme set to commence in early November. The drilling side of the programme will cover 10,000m of drilling with three primary aims as previously indicated. Firstly, upgrading confidence of the existing resource. PRYM has now quantified this ambition and hopes to increase 7.1mnt of inferred resources into the M&I category. Secondly, extension of the known mineralisation along strike and down dip to depths of around 350m. Notable targets include at Zapotes where extending the mineralisation could increase the mineralised ore within the current pit constrained shells; reducing strip ratios and enhancing economics. Thirdly, although a 1.1mnoz AuEq resource already exists and we believe can be upgraded substantially through step outs, only a small portion of the known mineralisation have been drill tested. 60% of the known structures have yet to be tested and the scale which this could add to the project would transform the prospects for PRYM.

We reiterate our Buy recommendation and C$3.20/sh. target price.

Oliver O’Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: [email protected]

Paul Renken, Senior Geologist | T: +44 (0)20 3005 5011 | E: [email protected]

VSA Capital Research | T: +44 (0)20 3005 5000 | E: [email protected]

VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com

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