Prismo Metals to Increase Hot Breccia Interest to 95%, Secures Option for Full Control

(TheNewswire)

Vancouver, British Columbia –TheNewswire - January 9th, 2025 – PrismoMetals Inc. (“Prismo” or the “Company”) (CSE: PRIZ)(OTCQB: PMOMF) is pleased to announce that it has entered into anagreement with Infinitum Copper Corp. (TSXV: INFI) (“Infinitum”) wherebyPrismo will increase its interest in the Hot Breccia copper project,located in the heart of Arizona’s prolific copper belt, from 75% to95%. In addition, Prismo has obtained an irrevocable option to acquireInfinitum’s remaining 5%interest, providing a clear path to 100% interest in theproject.

Alain Lambert, CEO of Prismo commented: “The absenceof a clear mechanism to secure full ownership at Hot Breccia hadpreviously limited our ability to fund drilling and pursue potentialthird-party partnerships. The transaction announced today totallyremoves that constraint and materially improves the strategicflexibility of the project.”

He added: “Prismo remains firmly committed toadvancing Hot Breccia. The recent extension of certain milestoneobligations under the option agreement with Walnut Mines LLC (the“OptionAgreement”), the owner of the Hot Brecciaclaims, together with the deal announced today, provides the Companywith additional flexibility as we evaluate a range of strategicalternatives. Each of these pathways is intended to position Prismo tocommence drilling on what we consider to be one of the most compellingcopper exploration opportunities in Arizona and the broader UnitedStates.”

Dr. Linus Keating, manager of Walnut Mines LLC,enthusiastically commented: “Walnut Mines is solidly in favor of anyaction that moves Hot Breccia closer to a serious drill program. Weare hopeful that this transaction will accomplish that goal in 2026.In our opinion, this property remains one of the best copperexploration opportunities in North America.”

Under the terms of the transaction, Prismo will payInfinitum CA $185,000 to acquire a 20% additional interest in the HotBreccia project and assume all of Infinitum’s remaining obligationsunder the Option Agreement to issue shares to Walnut, which iscurrently evaluated at approximately CA $54,000 through the issuanceof Prismo common shares at a deemed issue price of $0.11 per share,subject to adjustments at closing. Prismo has also agreed to pay 5% ofany consideration received in connection with a transaction in whichPrismo assigns its interest in Hot Breccia to a third-party. The cashpayment will be funded through a third party as an advance to theCompany and will not utilize its working capital which is earmarkedfor the advancement of the Silver King project. Closing of thetransaction is expected to take place on or around January16th.

Prismo’sHot Breccia project lies at the heart of the Arizona Copper Belt,which hosts several globally significant porphyry copper deposits. Examples of these significant deposits are Freeport McMoRan'sMiami-Inspiration mining complex, BHP's San Manuel mine, RioTinto and BHP's Resolution deposit and others (see Figure 1). 

Figure 1. Location of the Hot Breccia Project inthe Arizona Copper Belt.

Historical drilling carried out in the mid to late1970’s by a Rio Tintosubsidiary intersected high-grade copper mineralization at depthsranging from 640 to 830 meters below surface. Several holes targetedan area with a coincident magnetic high, believed to be caused bymagnetite skarn that was cut in the drill holes and that occurs inxenoliths in cross cutting dikes exposed at the surface. Prismobelieves those intercepts may represent the periphery of the upperportion of a large mineralized system.  

Support for the Company’s mineralization model at theproject comes from several sources, including the results ofhistorical drilling, geophysical surveys, distribution of dikes withxenoliths of Cu-bearing skarn, the 2023 ZTEM survey as well as theresults of an AI study. The anomalous target area identified inPrismo’s modellingmeasures 1,100 meters by 1,150 meters.  

Dr. Craig Gibson, Chief Exploration Officer of Prismostated: “The copperexploration target at Hot Breccia has geophysical, geochemical andgeological features characteristic of many porphyry copper deposits.The project area has a regional setting similar to BHP-RioTinto's Resolution copper deposit located 40 kilometers to thenorthwest of Hot Breccia and which is considered to be one of thegreatest copper discoveries in the history of North Americanmining.”  He added:“The drill program isintended to drill through the entire prospective Paleozoic carbonatestratigraphy into the postulated porphyry body/breccia zone. Theexploration team will take advantage of geological informationprovided by each hole during drilling to refine targeting ofsubsequent holes.”

Historical drill holes cut high grade skarnmineralization including 23 meters with 0.54% Cu at 640 meters depth(hole OC-1), 18 m with 1.4% Cu and 4.65% Zn at 830 meters depth (holeOCC-7), and 7.6 m with 1.73% Cu and 0.11% Zn at 703 meters and 4.6meters with 1.4% Cu and 0.88% Zn at 716 meters (OCC-8). Mineralization occurs within a several hundred-meter-thick alteredzone hosted in favorable Paleozoic carbonate rocks that underly asequence of Cretaceous andesitic volcanic rocks.  These carbonatesare the same rocks that host the high-grade copper mineralization atFreeport’s nearby Christmas mine.  The historical drilling intersecteda blind mineralized intrusion associated with the skarnmineralization, providing an immediate drill target that is believedto be the source of the mineralization at Hot Breccia (Figure 2).Several magnetic highs in the region surrounding the proposedintrusion may also indicated buried skarn mineralization and provideadditional exploration targets.

Click Image To View Full Size

Figure 2. Schematic cross section at Hot Breccia showing updatedinterpretation after Barrett (1974).

Notes:

1. (1)Barrett, LarryFrank (1972): Igneous Intrusions and Associated Mineralization in theSaddle Mountain Mining District Pinal County, Arizona. UnpublishedMaster's Thesis, University of Utah. 

2. (2)Barrett, LarryFrank (1974): Diamond drill hole OC-1, O’Carroll Canyon, PinalCounty, Arizona, unpublished internal report, Bear CreekMining. 

About Hot Breccia

The Hot Breccia property consists of 1,420 hectares in227 contiguous mining claims located in the world class Arizona CopperBelt between several very well understood world-class copper minesincluding Morenci, Ray and Resolution (Figure 1). Hot Breccia showsmany features in common with these neighboring systems, mostprominently a swarm of porphyry dikes and series of breccia pipescontaining numerous fragments of well copper-mineralized rocks mixedwith fragments of volcanic and sedimentary derived from considerabledepth. Prismo performed a ZTEM survey last year that identified a verylarge conductive anomaly directly beneath the breccia outcrops. 

Sampling at the project has shown the presence ofcopper mineralization associated with dacite dikes that transportedfragments of strongly mineralized carbonate rocks to the surface fromdepths believed to be 400-1,000 meters. Drillingdeep holes is necessary to tap into the source of these mineralizedfragments found at surface.

Assay results from historical drill holes areunverified as the core has been destroyed, but information has beengathered from memos, photos and drill logs that contain some, but notall, of the assay results and descriptions.  Technical informationfrom adjacent or nearby properties does not mean nor does it implythat Prismo will obtain similar results from its ownproperties.

Data on previous drilling and geophysics is historicalin nature and has not been verified, is not compliant with NI 43-101standards and should not be relied upon; the Company is using theinformation only as a guide to aid in exploration planning.

Qualified Person

Dr. Craig Gibson, PhD., CPG., a Qualified Person asdefined by NI 43-01 and Chief Exploration Officer and a director ofthe Company, has reviewed and approved the technical disclosure inthis news release.

About Prismo Metals Inc.

Prismo (CSE: PRIZ) is a mining exploration companyfocused on advancing its Hot Breccia copper project in Arizona and itsPalos Verdes silver project in Mexico.

Please follow @PrismoMetals on ,, , Instagram, and

Prismo Metals Inc.

1100 - 1111 Melville St., Vancouver,British Columbia V6E 3V6  Phone: (416) 361-0737

Contact:

Alain Lambert, Chief Executive Officeralain.lambert@prismometals.com

Gordon Aldcorn, Presidentgordon.aldcorn@prismometals.com

Cautionary NoteRegarding Forward-Looking Information

This release includescertain statements and information that may constitute forward-lookinginformation within the meaning of applicable Canadian securities laws.Forward-looking statements relate to future events or futureperformance and reflect the expectations or beliefs of management ofthe Company regarding future events. Generally, forward-lookingstatements and information can be identified by the use offorward-looking terminology such as “intends” or “anticipates”, or variations of suchwords and phrases or statements that certain actions, events orresults “may”, “could”, “should”, “would” or “occur”. This information and these statements,referred to herein as "forward?looking statements", are nothistorical facts, are made as of the date of this news release andinclude without limitation, statements regarding discussions of futureplans, estimates and forecasts and statements as to management'sexpectations and intentions with respect to, among other things: thetiming, costs and anticipated results of drilling at Hot Breccia; theability of Prismo to fund drilling and pursue potential third-partypartnerships; the Company’s strategic flexibility with respect tothe Hot Breccia project going forward; the number of shares issuableby Prismo to Walnut pursuant to the transaction described inthis news release; and the Company’s expectations regardingmineralization and other qualities of the Hot Brecciaproject.

Theseforward?looking statements involve numerous risks and uncertainties, andactual results might differ materially from results suggested in anyforward-looking statements. These risks and uncertainties include,among other things: delays in obtaining or failure to obtainappropriate funding to finance the exploration program at Hot Breccia;the risk that the Company will not enter into a third-partypartnership with respect to the Hot Breccia project; the risk thatmineralization will not be as anticipated at the project; the riskthat the Company will not be able to take advantage of geologicalinformation to refine drill targeting; metal prices; marketuncertainty; and other risks and uncertainties application toexploration activities and the Company’s business as set forth inthe Company’s disclosure documents available for viewing under theCompany’s profile on SEDAR+ at www.sedarplus.ca.

In making theforward-looking statements in this news release, the Company hasapplied several material assumptions, including without limitation,that: the ability to raise capital to fund the drilling campaign atHot Breccia and the timing of such drilling campaign; the ability ofthe Company to enter into a third-party partnership on the project;that the project will have the anticipated mineralization and otherqualities; and the  Company will be able to take advantage ofgeological information to refine drill targeting.

Although managementof the Company has attempted to identify important factors that couldcause actual results to differ materially from those contained inforward-looking statements or forward-looking information, there maybe other factors that cause results not to be as anticipated,estimated or intended. There can be no assurance that such statementswill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements.Accordingly, readers should not place undue reliance onforward-looking statements and forward-looking information. Readersare cautioned that reliance on such information may not be appropriatefor other purposes. The Company does not undertake to update anyforward-looking statement, forward-looking information or financialout-look that are incorporated by reference herein, except inaccordance with applicable securities laws. We seek safeharbor.

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