Here’s Why Prismo Metals Is Worth Watching in 2024

Prismo Metals (CSE: PRIZ, OTCQB: PMOMF) is a junior exploration company focused on advancing its portfolio of precious metals and copper projects in Mexico and Arizona. Led by a team of successful explorers, the company is strategically targeting high-grade mineralization in regions known for their production potential.

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One of Prismo’s flagship asset is the Palos Verdes project in the Panuco district of Sinaloa, Mexico, an area with a long history of high-grade silver and gold mining. Palos Verdes is surrounded by strategic investor Vizsla Silver Corp. (TSXV: VZLA). The company also holds the Hot Breccia copper project in Arizona, located in the heart of the famous Arizona copper belt.

Prismo also hold the Los Pavitos orogenic gold property in Sonora state.

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With a tight share structure and backing from Vizsla Silver, which holds a 9.6% stake, Prismo is in a solid position to continue its exploration efforts. The focus on district-scale potential and experienced leadership make this company a strong player in the junior mining sector.

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Palos Verdes Project (Sinaloa, Mexico)

The Palos Verdes project is located in the historic Panuco district of Sinaloa, Mexico, known for high-grade silver and gold deposits. The project lies at the northeastern limit of the district and has shown bonanza grade mineralization in past drilling,  making it a central focus for Prismo’s future exploration plans.

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Exploration Progress

To date, Prismo has completed over 6,000 meters of drilling across 33 holes. The most significant intercept came from drill hole PV-23-25, which returned 102 g/t gold and 3,100 g/t silver over 0.5 meters, one of the highest grades encountered in the region. These bonanza-grade results demonstrate the potential for substantial high-grade mineralization at depth. The deeper portions of the Palos Verdes vein remain largely untested, and Prismo’s 2024 exploration program is aimed at expanding the resource further.

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A key structural feature in the area is the northwest shear zone, which is believed to control the mineralization along the Palos Verdes vein. This shear zone is an important geological boundary that separates different segments of the vein system, and understanding its role is crucial for targeting deeper mineralized zones. The deeper portions of the Palos Verdes vein, particularly around this shear zone, remain largely untested, making it a primary focus for Prismo’s 2024 drilling program.

2024 Drilling Program for Palos Verdes

The 2024 drilling campaign at the Palos Verdes project is an important step for Prismo Metals, aiming to explore deeper extensions of the known mineralized zones. The planned program spans 3,000 meters of staged drilling, focusing on targets that could enhance the current understanding of the Palos Verdes vein system. The current phase of drilling is taking place from strategic partner’s VizslaSilver which surrounds Palos Verdes.

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Key Focus Areas:

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Southwest of the Shear Zone:

Drilling here will target the deeper extensions of the high-grade Au/Ag vein and the Palos Verdes vein, with plans to test at least 50 meters beneath past drilling. The program includes 725 meters of priority holes designed to test the mineralized body at depth. Offsets of 50 to 100 meters are expected to play a critical role in expanding the known mineralization, with the potential to uncover more extensive and higher-grade sections of the vein system.

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Northeast of the Shear Zone:

Geologic mapping and alteration studies suggest that mineralized zones to the northeast may have been displaced downward. To test this theory, Prismo has planned a total of 750 meters of drilling along strike to the northeast, targeting the deeper extensions of the Palos Verdes vein. These holes will also probe hanging wall splits at significant depths, where only shallow testing has occurred thus far.

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Jesusita Mine Area:

In the Jesusita area, located at the northeast limit of the concession, 400 meters of drilling are planned to test for the presence of gold and silver mineralization. This area has seen limited historical exploration, making it a priority for new drilling to potentially expand the project’s overall resource base.

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The drilling is being conducted in partnership with Vizsla Silver, Prismo’s strategic partner, with both companies aiming to leverage their technical expertise to maximize exploration efficiency. The ultimate goal is to define the deeper potential of the Palos Verdes vein, adding value to the project by expanding the resource and understanding its district-scale potential within the broader Panuco silver-gold belt.

Hot Breccia Project (Arizona, USA)

The Hot Breccia project is Prismo Metals’ copper project located in the heart of Arizona’s Copper Belt, a world-class mining district. Spanning 1,420 hectares, the project lies adjacent to the historic Christmas Mine, which produced over 360 million pounds of copper. The region is known for hosting porphyry copper deposits, making Hot Breccia a key asset for Prismo’s exploration portfolio.

Exploration Progress

Historical drilling at Hot Breccia, completed by companies such as Kennecott and Phelps Dodge in the 1970s and 1980s, provided early indicators of copper and zinc mineralization. Highlights from past drill results include intercepts of 0.54% copper over 77 feet and 1.4% copper with 4.65% zinc over 60 feet. These historical results confirm the presence of a large hydrothermal system with multiple high-grade zones.

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2024 Exploration Plans

In 2024, Prismo Metals plans to apply a modern and systematic approach to exploration at the Hot Breccia project. Following a detailed geophysical survey in 2023, which identified a large resistivity low at depth, the company is targeting this anomaly with an initial 5,000 meters of drilling. This phase will focus on twinning or deepening historical drill holes to confirm previous results, while also testing the deeper sections of the system.

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The goal is to findthe source of the known mineralized zones, particularly in terms of size and grade, while also exploring for new high-grade copper targets. Arizona remains one of the world’s top copper-producing regions, and the proximity of Hot Breccia to major copper mines gives Prismo Metals the advantage of operating in a highly productive district.

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Los Pavitos Project (Sonora, Mexico)

The Los Pavitos project is located in the Álamos region of Sonora, Mexico, a well-known mineralized area with several active exploration and mining projects. Spanning 5,289 hectares, the project consists of a single concession, Los Pavitos Reducción, located approximately 23 kilometres from the city of Navojoa and 25 kilometres from the town of Álamos. The project benefits from road access, with the main mineralized zones reached by local dirt roads.

Mineral Concessions and Agreements

Prismo Metals has an option to acquire 100% ownership of the concession through an agreement with Minera Cascabel, a Mexico-based company that previously conducted reconnaissance mapping and sampling in the area. To exercise the option, Prismo must incur USD $1.5 million in exploration expenses over a five-year period and issue an additional 2 million common shares. To date, CAD $210,000 has been incurred in exploration.

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Exploration Progress

The Los Pavitos property is still in the early stages of exploration. Initial geologic mapping has identified several principal structures, including the Las Auras, Santa Cruz, and Oromuri trends. These fault systems are associated with areas of strong oxidation and host quartz veining, where the best sampling results have been recorded.

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Sampling in the Santa Cruz area, the principal known mineralized zone, has returned notable values, with individual samples yielding up to 28 g/t gold and 398 g/t silver from a 1-meter sample. Another sample taken from the Hedionda mine returned 8.3 g/t gold and 62 g/t silver over 0.25 meters. The Las Auras area has also yielded promising results, with a grab sample returning 10.15 g/t gold and a 2-meter chip sample grading 3.97 g/t gold.

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Capital Structure and Insider Ownership

Prismo Metals has a total of 40.5 million shares outstanding, with 28.6% held by officers, directors, and advisors, reflecting strong insider commitment. Vizsla Silver holds a 9% stake, highlighting their strategic partnership with Prismo.

The company also has 10.5 million warrants and options outstanding, bringing the fully diluted share count to 51.3 million.

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This structure ensures insider alignment and provides flexibility for future growth through existing warrants and options, as shown in the chart below.

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Conclusion

Prismo Metals is well-positioned for near-term exploration success with two key projects, Palos Verdes and Hot Breccia, both fully permitted and ready for drilling. The upcoming drill mobilizations and results from these projects serve as immediate catalysts that could positively impact the company’s valuation in the short term.

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However, it’s important to recognize that investing in junior exploration companies carries inherent risks. While the potential for discovery is high, projects at this stage are subject to uncertainties related to exploration results, financing, and market conditions. As always, investors should consider these risks carefully when evaluating Prismo Metals.

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‍Sources: The information from this article was sourced from Prismo Metals Inc.’s official website, investor presentations, and recent press releases.