Prime Mining Selects Ausenco to Lead Los Reyes PEA

Prime Mining has selected Ausenco Engineering Canada to lead the Preliminary Economic Assessment (PEA) for its Los Reyes gold-silver project located in Sinaloa. The company is aiming to deliver a PEA that outlines a high-return, low-capital, long-life operation with strong margins. The study will incorporate data from drilling completed through the end of 2024 and will reflect the technical work carried out to date. The PEA is scheduled for completion in 3Q25.

Since acquiring Los Reyes in 2019, Prime Mining has invested over US$64 million in direct exploration and completed more than 221,000m of drilling. Scott Hicks, CEO, Prime Mining, says that the company is moving forward with the Los Reyes PEA after successfully concluding an initial de-risking program in collaboration with Ausenco. This program evaluated capital and operating costs, infrastructure needs, and mine and processing designs. The upcoming PEA will be supported by extensive metallurgical testing and further optimized through geotechnical studies and mine planning completed by Prime Mining and previous owners. The development concept assumes a low-capex, 5,000tpd processing facility sourcing material from both open pit and underground operations, with the possibility of including a higher-throughput scenario. While preparing the PEA, the company will also maintain a strong focus on exploration to identify new high-potential zones that could contribute to future resource growth.

The company explains that Ausenco was chosen based on its proven track record in Mexico, having supported projects such as Silvercrest’s Las Chispas from early studies through to construction, led the feasibility work on Discovery Silver’s Cordero Project, contributed to the PEA for Vizsla Silver’s Panuco Project, and provided process design for GoGold’s Los Ricos Project. 

In 2025, Prime Mining plans to continue its exploration efforts using a success-based approach to discover new targets, expand the current resource, and carry out infill drilling. This work will be complemented by geological mapping and geochemical sampling to identify additional discovery areas. Although drilling was paused on Jan. 28, 2025, due to a deterioration in the security situation in parts of Sinaloa, including the Los Reyes region, the company does not expect this to impact its ability to carry out a planned 40,000m program within 12 months of resuming operations. Six drill rigs remain on site, and contractors are on standby to resume work as soon as conditions improve. The company continues to coordinate with local authorities to monitor developments closely.

Exploration efforts will focus on extending high-grade zones in the Z-T Area that remain open both at depth and along strike, expanding mineralization at Guadalupe East, and growing the Central Area resource through additional work around Noche Buena and its connection to San Miguel East. Generative drilling will also target high-grade intercepts at Las Primas, Fresnillo, and Mariposa to demonstrate the broader resource potential across the Los Reyes property.