Company description
Prismo Metals (CSE: PRIZ, OTCQB: PMOMF, FSE: 7KU) is a growth-stage exploration company, focused on creating shareholder value by acquiring, exploring and developing precious and base metal projects in Mexico and Arizona (USA). The company is actively exploring two precious metal projects in Mexico (Palos Verdes and Los Pavitos), but most importantly its flagship copper project in Arizona (Hot Breccia).
Prismo is led by a very experienced team of mining professionals, as there are CEO and co-founder Alain Lambert (raised over C$1B for pubcos throughout his career), President Steve Robertson (instrumental in exploring and building the Red Chris Mine), VP Exploration and co-founder Craig Gibson PhD (instrumental in discoveries of the Ana Paula, Dolores, and Paredones Amarillos precious metals deposits in Mexico) and Technical Advisor Peter Megaw PhD. This last person probably doesn’t need any introduction, but for those who aren’t that familiar with the mining industry here is a quick one: Peter Megaw is the geologist who discovered the Juanicipio deposit (nameplate production since Q4, 2023, MAG Silver/Fresnillo JV) and the Platosa Mine (Excellon Resources) in Mexico and considered an expert in the field of carbonate replacement deposits (CRD). The discovery of Juanicipio earned him the 2017 Thayer Lindsley award, the most prestigious award for geologists in the mining industry.
Prismo is currently focusing on its Hot Breccia project, which consists of 1,420 hectares of contiguous mining claims located in the world-class Arizona Copper Belt. Prismo also fully owns the Palos Verdes Project (explored together with strategic partner Vizsla Silver), a 22.8-hectare property located in the historic Pánuco-Copala silver-gold district in southern Sinaloa, Mexico, and the 5,289-hectare Los Pavitos Project located in southern Sonora, Mexico.
The exploration concept for Hot Breccia is an analogy of the nearby Resolution deposit which is owned by a Rio Tinto/BHP joint venture. Resolution is adjacent to the Magma Mine which produced high-grade copper for decades. At the same time, the geology and structural setting is a remarkable analogy for Hot Breccia and the adjacent Christmas Mine (owned by Freeport), which like Magma, produced high-grade copper for decades.
Historic drilling, regional mapping and other information at Hot Breccia clearly show a vertical displacement of the Christmas mineralized stratigraphy that hosts high grade mineralization on the other side of a porphyry intrusion nearby Christmas mine. These vertically displaced layers are covered by a 400m thick volcanic layer, which in turn is penetrated in many locations by a swarm of dikes and several mineralized structures including breccia bodies in some locations.
A mineralized fragment brought up from depth within an intrusion assayed 5.7% Cu, 32.8 g/t Ag and 0.24 g/t Au, a clear indication of a mineralized event going on at depth according to Prismo management. The historic drilling also cut high grade mineralization in the favorable stratigraphy underneath the volcanic rocks, including: 26m @ 0.54%Cu, 20m @ 1.4%Cu, 8m @ 1.73% Cu plus 5m @ 1.4% Cu., of which samples contained up to 1.28% Cu and 3.75g/t Au.
Prismo is awaiting the exploration drill permit for Hot Breccia at the moment, which can be granted any day now (beginning of June), and drilling is planned to start at the end of June, commencing with 5 widely spaced holes of 1,000m deep each.
The share structure is very tight at 44.6M shares outstanding with a tiny market cap of just C$7.4M, and 29.6 % ownership by insiders, founders and advisors, so there is a lot of skin in the game. Vizsla Silver (TSXV: VZLA, C$580M market cap) owns 9% as a strategic investor, as they are direct neighbours and exploration partner at Palos Verdes.
The company is raising C$750k at the moment, which will allow Prismo to resume drilling at its Palos Verdes silver project. This will be followed by a larger C$3M financing shortly as soon as the drill permit for Hot Breccia is granted to fund the drill program at Hot Breccia.
Share price Prismo Metals: