Prize Mining (PRZ.V) has published the assay results from 47 chip samples that were taken from 14 channels from the underground Granizo copper mine. This is a past-producing mine and just one of the 35 (!) exploration target of Prize’s Manto Negro copper project in Mexico. The samples were taken over an area of 150 meters of mine workings and covers an area of 45 by 50 meters.
The assay results of this sampling program show consistently high copper values (the weighted average was 2.62% copper over all 47 samples, with copper grades ranging from 0.65% to 4.82% over an average channel height of 1.7 meters), with 32 of the 47 samples (68%) returning copper values of in excess of 1%. Additionally, approximately 1/4th of the samples had a grade of in excess of 100 g/t silver, indicating the silver component could be an interesting by-product at Manto Negro.
More importantly, the good silver grades appear to confirm the exploration theory at Manto Negro, as the company expected this to be a Kupferschiefer type of deposit. There also was some lead (generally less than 1%), so it will be interesting to see if the lead grade picks up deeper into the system. As this is just a channel sampling program, the company obviously doesn’t know yet how deep these copper zones extend.
Prize has now found high grade copper mineralization at both the Granizo and Pilar Grande (past-producing) mines, and both zones are currently being worked on by a diamond drill rig. At Granizo, the copper zones will be drill-tested by a 15-hole drill program over an area of 550 by 100 meters (which translates into 5.5 hectares or 13.6 acres). After seeing these sampling results, ware now very interested to see what the assay results from the diamond drill program will show. With approximately C$8M in cash on hand after the recent financings, Prize Mining is in an excellent shape, and the cash position represents C$0.067 per share. This means the company’s projects in Canada and Mexico are currently being valued at just C$.023 per share (or C$3M). And although we certainly understand the grade on the Canadian gold project appears to be low and the Mexican project is in an early stage exploration phase, this low single-digit dollar valuation doesn’t do these projects any justice.