07:35 AM EDT, 05/28/2025 (MT Newswires) -- Prime Mining ( PRMNF ) overnight Tuesday announced that it has selected Ausenco Engineering Canada ULC to lead the study work for a Preliminary Economic Assessment on its wholly-owned Los Reyes gold-silver project located in Sinaloa State, Mexico.

The company in a statement said it is targeting the delivery of a PEA reflecting a high return, high margin, low capital and long-life project at Los Reyes. It added the PEA will be based on drilling to the end of 2024 and incorporate the extensive technical work completed to-date.

Since acquiring Los Reyes in 2019, Prime has spent more than $64 million on direct exploration activities and has completed over 221,000 metres of drilling. The PEA is targeted for completion in Q3 2025, the statement noted.

Prime CEO, Scott Hicks, said, "We are accelerating our work on a Preliminary Economic Assessment for the Los Reyes Project. This follows a recently completed, robust initial de-risking program of benchmarking capital and operating costs, assessing infrastructure and reviewing design parameters for both mining and processing with the Ausenco team. It builds upon the extensive metallurgical testwork program that we had undertaken, in addition to the geotechnical and mine planning optimization that Prime and previous Project owners have completed. 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 prioritize exploration, targeting highly prospective areas with potential to contribute additional resource ounces in future studies."

PRYM was down 2% at $1.42 yesterday.