dr Gibson, Prismo’s President and CEO, stated, “This acquisition agreement gives Prismo access to a copper system in Arizona’s world-class copper belt with potential precious metal values for drilling before the end of the year. Prismo has sufficient cash to meet property payments and minimum exploration expenditures on all of its projects, including Hot Breccia, through 2024.”
The project is currently subject to an option agreement between Infinitum and Walnut Mines LLC, a Tucson, Arizona corporation (“walnut“). Walnut provided data from several drill holes drilled by Bear Creek Mining, a subsidiary of Kennecott Copper Co., on a portion of the property during the 1970’s and 1980’s. Although the data is incomplete and non-compliant with NI 43-101 are compliant, Multiple intervals of high grade mineralization have been reported as detailed below.
Under the terms of the agreement, Prismo will pay $350,000 in cash and issue 500,000 shares of Prismo common stock to Infinitum, in addition to assuming certain earn-in obligations from Infinitum under the option agreement with Walnut to acquire a 75% interest in hot breccia .
Earn-in Obligations to Walnut:
| As in | work commitments | property payments | Share Payments |
| 31 January | Be satisfied with Prismo | Manufactured by Prismo | Manufactured by Infinitum |
| 2024 | $500,000 | $165,000 | 250,000 shares |
| 2025 | $1,000,000 | $100,000 | 500,000 shares |
| 2026 | $1,750,000 | $275,000 | 875,000 shares |
| 2027 | $2,000,000 | – | 750,000 shares |
| In total | $5,250,000 | $540,000 | 2,375,000 shares |
Upon satisfaction of earn-in obligations and exercise of the option, Prismo and Infinitum will enter into a joint venture agreement, with Prismo being the first operator of the project. Upon completion of all earn-in obligations, Prismo will have acquired 75% of the Hot Breccia property, subject to a 2% NSR to Walnut.
Kennecott drilled seven holes from 1972 to 1981 and Phelps Dodge drilled two holes on and near the current property during the same period.
All drill holes intersected hydrothermal alteration within volcanic rocks overlying typically better mineralized Paleozoic carbonate rocks, with alteration intensity increasing downwards. The carbonate host units exhibit multiple copper intervals reported to exceed 1% copper and elevated zinc grades.
Kennecott reported highlights:
OC-1: 77′ @ 0.54% Cu at 2100′
OCC-7 60′ with 1.4% Cu, 4.6% Zn at 2900′
OCC-8: 25′ with 1.73% Cu and 0.11% Zn at 2.305′ and 15′ with 1.4% Cu and 0.88% Zn at 2.350′
Phelps Dodge well PD 2 reported:
1,270 feet of variably mineralized skarn with multiple intervals greater than 1% copper and a high of 3.16% copper
The source for the above drill hole data is Keating, L. DSc, CPG (2021): “The HotBx Claims, Winkelman, Pinal County, Arizona”. By Walnut Mines LLC for Infinitum Copper Corp. created data package.
The drill data presented in this news release is incomplete and will not be qualified under NI 43-101, but is believed to be accurate. The Company has not verified and cannot trust the historical data presented and is being used solely to support exploration plans.
Drill hole data for holes from the Kennecott program
| Hole | east | high quality | Elev. (ft) | Azim | Incl | depth (ft) | |
| OC-1 | 526,901 | 3,653,535 | unknown | vert | – | 2406 | |
| OC-2 | 526,090 | 3,653,577 | unknown | vert | – | +970? | |
| OC-3 | 527.117 | 3,653,763 | unknown | vert | – | +970? | |
| UnknownOC-5 | 525,869 | 3,653,946 | unknown | vert | – | +500? | |
| OCC-6 | 526,890 | 3,653,709 | 2,520 | vert | – | 3,704 | |
| OCC-7 | 527,078 | 3,653,356 | 2,500 | vert | – | 3,587 | |
| OCC-8 | 526,957 | 3,653,368 | 2,500 | vert | – | 2,908 | |
Coordinates in UTM NAD27 estimated from drill logs.
Location of the Hot Breccia Property within the Southern Arizona Copper Belt.
To view an expanded version of this graphic, please visit:
https://images.newsfilecorp.com/files/7434/152847_bbd142fcf48f58f9_002full.jpg
Location of the Hot Breccia claim package southeast of the Christmas mine.
To view an expanded version of this graphic, please visit:
https://images.newsfilecorp.com/files/7434/152847_fig2.jpg
Cross-section of the Christmas Mine showing mineralized material defined by Freeport (from Arizona Geological Society Field Trip Guide, 2014)
To view an expanded version of this graphic, please visit:
https://images.newsfilecorp.com/files/7434/152847_fig3.jpg
Agentis Capital Mining Partners provided financial and capital markets advisory services to Prismo in relation to the transaction described herein.
Prismo Metals has entered into an agreement with LFG Equities Corp. completed to provide strategic consulting and digital media and marketing services to the company. LFG, a Toronto-based company, will provide the company with strategic consulting, content development, media buying and distribution, and marketing services through social media channels and online media placements. The directors of LFG currently own 251,000 common shares of the company. Under the terms of the Agreement, LFG will receive a monthly fee of $2,500 and will receive 150,000 stock options in the Company, each option being exercisable at a price per share equal to the closing price per share for the Company’s shares on the CSE on January 30, 2022 a period of two years. The options were granted under the terms of the Company’s Long Term Incentive Plan and are subject to certain vesting conditions. Prismo also reimburses LFG for all pre-approved expenses related to LFG’s engagement.
All references to dollars or $ in this press release are in Canadian dollars.
dr Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-01 and President, CEO and a Director of the Company, has reviewed and approved the technical disclosures in this news release.
About Prism
Prismo (CSE: PRIZ) is a junior mining company focused on precious metals exploration in Mexico and Arizona.
ON BEHALF OF THE BOARD OF DIRECTORS
Craig Gibson, Chief Executive Officer and Director
Prismo Metals Inc.
1100 – 1111 Melville St., Vancouver, British Columbia V6E 3V6
[email protected]
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact, including but not limited to statements regarding the potential of the Hot Breccia project, expected content, initiation and results of the exploration program, permitting required, exploration programs and drilling, and anticipated The Company’s business plans and timeline for future activities are forward-looking statements. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “postulate” and similar expressions, or, by their nature, address future events. Although the Company believes such statements are reasonable, by their nature, forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements or other future events to differ materially from those in the future results, performance or achievements expressed or implied by such forward-looking statements and therefore cannot guarantee that such expectations will prove to be correct.
The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future results or performance and that actual results could differ materially from those projected in the forward-looking statements as a result of various factors including, but not limited to, the state of the financial markets for the shares of the Company, the state of commodity markets generally, fluctuations in nature, assay results from surface trenching and sampling programs including diamond drilling programs, results from IP surveys, results from ground and up to sampling programs. the quality and quantity of mineral deposits that may be located, fluctuations in the market price of mineral products that the Company may produce or intend to produce, the Company’s inability to obtain any necessary permits, approvals or permits, including CSE approval, for its planned activities, the Company’s inability to successfully or profitably produce minerals from its properties, continue its projected growth, raise required capital or fully implement its business strategies, the potential impact of COVID-19 (coronavirus) on the Company’s exploration program and the company’s general business, operating and financial condition and other risks and uncertainties. While the Company may choose to do so, it makes no commitment to update this information at any particular time, except as required by applicable law. All of the Company’s Canadian publications can be accessed at www.sedar.com and readers are urged to review these materials, including the technical reports filed in relation to the Company’s mineral properties.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the CSE Rules) accepts responsibility for the adequacy or accuracy of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/152847