Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 7 www.resourceworld.com 57 Prize Mining exploring Daylight and Toughnut prospects by Ellsworth Dickson PRIZE MINING CORP. [PRZ-TSXV; MQSP-FSE, XETRA] reports that Phase 1 fieldwork is now underway at the Daylight and neighboring Toughnut gold properties, located near Nelson, British Columbia. The company recently optioned a 100% inter- est, subject to a 2% NSR, in the Toughnut property. The property is contiguous to the west side of Prize's Daylight property. Under the Toughnut option terms, Prize must pay $150,000, issue 250,000 shares, and spend $750,000 on exploration over five years. Collectively, the 1,550-hectare Daylight and the 1,010-hect- are Toughnut properties strategically cover a five-km strike-length of the central and eastern segments of the >1 km wide Silver King shear system. The Daylight property is part of the 80%-optioned Kena-Daylight Project with the Kena property hosting six past- producing gold and copper mines with four past-producing mines over a 3.5-km trend with grades as high as 37 g/t gold. These include the Starlight, Victoria, Daylight and Great Eastern mines. The Kena property has three prospective gold and copper-gold zones: 1) the bulk tonnage porphyry gold deposits which host the KGM gold deposit with high-grade zones; 2) high-grade gold veins characterized by the four historic mines in the Daylight gold area; and 3) the bulk tonnage porphyry copper-gold mineral- ization characterized by the Copper King Zone. The KGM Zone on the Kena ground contains a porphyry deposit with NI 43-101 compliant indicated resources totaling 24,890,000 tonnes averaging 0.60 g/t gold, for 481,000 ounces of gold. Inferred resources stand at 85,790,000 tonnes, for 1,318,000 ounces of gold. Company geologists are of the view that these resources can be expanded with additional drilling. These gold resources are amenable to leaching. Feisal Somji, President and CEO, said, "This is a strategic acquisition for Prize Mining as we now control what we believe to be the most significant part of the mineralized Silver King shear zone. This parcel of land will play an important role in this sum- mer's exploration program as we prepare to drill this fall." The Toughnut showing features old pits, shafts and trenches where 1989 grab samples returned 6.64 g/t, 8.65 g/t, and 32.8 g/t gold with associated silver ranging between 33 and 175 g/t Ag. Drilling in 2010 returned 6.9 g/t gold and 143 g/t silver over 2.0 metres and 4.05 g/t gold over 8.0 metres. The Gold Eagle showing, located 500 metres north of the Toughnut showing, was drilled by US Borax in 1988 which reported 90 g/t gold over 1.53 metres. In 2010 Valterra Resources also drilled the property with its best results returning 4.02 g/t gold and 9.52 g/t silver over 24.33 metres, including 4.0 metres grading 14.47 g/t gold and 3.46 g/t silver. The zone has been tested to 73 metres in depth and remains open and along strike and down dip. Sampling is underway on the consolidated land package with about $1 million budgeted for exploration this year. Other work includes geophysics, trenching with drilling expected to start in September or October, pending receipt of permits. The objective of the Phase-I field program is to refine the loca- tions and geochemical/geophysical signatures of known historical workings on the properties. Prize will use this information to spearhead upcoming Phase II trenching and Phase III drilling pro- grams later in 2017. The company is well financed having completed a $6 million private placement in April. The business strategy of Prize Mining is to achieve near term production of over 50,000 ounces of gold per year at an all-in cost of less than $800/oz by isolating high- grade material. The Teck Resources Trail smelter is 45 minutes' drive south. Prize Mining geologists have determined that there is potential for higher grade porphyry targets of over 1 g/t gold within the ~2 million ounce resource. The company's properties are near rail and power. Prize Mining is headed by Feisal Somji, BSc, MBA, CEO, who has over 20 years' experience from grassroots exploration to mine development, corporate finance and governance. Most recently, he was founding President and CEO of Rio Alto Mining which was acquired by Tahoe Resources in 2015 for $1.3 billion. The company has approximately 58.7 million shares outstanding. Several new forest service roads have been identified that provide new prospective cross-cut exposures over the main min- eralized trends at both Daylight and Toughnut properties. At the Daylight, one such road replaces at least two proposed cat trenches from the upcoming Phase-II program. New road cuts will be mapped and chip sampled during Phase I. n Connor Malek, Project Geologist from Terralogics, takes a mineral sample on a new forest service road at the border between the Black Witch area and the eastern Toughnut ground. Photo courtesy Prize Mining Corp. MINING

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