Highlights:

Drilling has confirmed the southern extensions of gold mineralized veins at the new Westaway Target, 1.2 kilometres (Km) west of the current South West gold resource:

MGH20-150: Confirmed the extensions of gold mineralized veins 90 metres (m) south of previously announced hole MGH20-143:
Intersected 35.50 m at 2.96 grams per tonne gold (g/t Au) including 25.50 m at 3.70 g/t Au, including 11.70 m at 5.46 g/t Au, including 3.70 m at 8.36 g/t Au, 1.00 m at 11.50 g/t Au and 2.00 m at 9.04 g/t Au from the WA-3 vein
Intersected 2.60 m at 6.08 g/t Au including 0.90 m at 12.70 g/t Au from the WA-9 vein
Intersected 3.90 m at 3.43 g/t Au including 1.00 m at 7.54 g/t Au from the WA-5 vein
MGH20-155: Confirmed continuity of the Westaway veins 100 m to the west of MGH20-143:
Intersected 2.00 m at 6.15 g/t Au including 1.22 m at 10.06 g/t Au, including 0.62 m at 17.40 g/t Au from the WA-9 vein
Extended veins 100 m to the west and up to 100 m to depth

The latest assay results are from the final two (2) drill holes, MGH20-150 and MGH20-155, completed on the 2019/2020 winter drill program at the Westaway discovery for a total of 1,575.0 m, located west of the South West Deposit. Drill hole MGH20-150 was testing the southern extensions of the new veins recently discovered at Westaway south of hole MGH20-143 and MGH20-155 was confirming the western and down dip extensions of the veins to the west of MGH20-143 (ME-PR 07-2020, dated May 05 2020 and ME-PR 12-2020, dated June 24 2020). The drill program consisting of 36 holes for 18,159.00 m was successfully completed with the processing and assaying of core continuing under COVID-19 work safety protocols. The results of the “55” deposit extension drill program remain pending and will be released upon receipt.

Westaway Drill Results

Drill Hole MGH20-150 was drilled 90 m to the south of MGH20-143 (Figure 2) (see press release PR-07-2020 dated May 05 2020: Drilling intersected up to 4.20 m at 4.49 g/t Au including 1.00 m at 7.25 g/t Au and 3.00 m at 3.72 g/t Au including 1.00 m at 5.83 g/t Au and press release PR-12-2020 dated June 24 2020: Drilling intersected 11.80 m at 3.91 g/t Au including 2.00 m at 7.08 g/t Au and 2.00 m at 5.78 g/t Au from WA-4, 16.35 m at 2.45 g/t Au including 7.00 m at 4.19 g/t Au and 1.80 m at 5.73 g/t Au from WA-3, and 21.00 m at 2.55 g/t Au including 11.00 m at 3.38 g/t Au including 0.94 m at 14.60 g/t Au from the WA-2). The drill hole has confirmed the southern extensions of 12 veins (WA-2 to WA-13). The hole confirmed wide extensions of WA-3 and intercepted up to 35.50 m at 2.96 g/t Au, including 25.50 m at 3.70 g/t Au, including 11.70 m at 5.46 g/t Au, including 3.70 m at 8.36 g/t Au and 1.00 m at 11.50 g/t Au and 2.00 m at 5.78 g/t Au including 1.00 m at 12.50 g/t Au from the WA-3 vein. The hole also intersected 9.70 m at 1.94 g/t Au, including 3.90 m at 3.43 g/t Au, including 1.00 m at 7.54 g/t Au from the WA-5 vein and 2.60 m at 6.08 g/t Au including 0.90 m at 12.70 g/t Au from the WA-9 vein.

Drill hole MGH20-155 was drilled 100 m to the west and as an under-cut of the MGH20-143 drill hole (see press release PR-07-2020 dated May 05 2020: Drilling intersected up to 4.20 m at 4.49 g/t Au including 1.00 m at 7.25 g/t Au and 3.00 m at 3.72 g/t Au including 1.00 m at 5.83 g/t Au in MGH20-143 and press release PR-12-2020 dated June 24 2020: Drilling intersected 11.80 m at 3.91 g/t Au including 2.00 m at 7.08 g/t Au and 2.00 m at 5.78 g/t Au from WA-4, 16.35 m at 2.45 g/t Au including 7.00 m at 4.19 g/t Au and 1.80 m at 5.73 g/t Au from WA-3, and 21.00 m at 2.55 g/t Au including 11.00 m at 3.38 g/t Au including 0.94 m at 14.60 g/t Au from the WA-2 from MGH20-143). The drill hole intersected up to 2.00 m at 6.15 m, including 1.22 m at 10.06 g/t Au, including 0.62 m at 17.40 g/t Au from the WA-9 vein in MGH20-155.

WESTAWAY: SELECTED SIGNIFICANT DRILL RESULTS

Hole From To Length Au Vein
(No.) (m) (m) (m) (g/t) (Name)

MGH20-150 318.00 320.00 2.00 1.72* WA-10
includes 319.00 320.00 1.00 3.26 WA-10
MGH20-150 338.40 341.00 2.60 6.08 WA-9
includes 338.40 339.30 0.90 12.70 WA-9
MGH20-150 431.00 435.00 4.00 1.84* WA-6
includes 434.00 435.00 1.00 4.79 WA-6
MGH20-150 449.00 458.70 9.70 1.94 WA-5
includes 454.80 458.70 3.90 3.43 WA-5
includes 456.80 457.80 1.00 7.54 WA-5
MGH20-150 474.50 478.50 4.00 1.75* WA-4
includes 477.50 478.50 1.00 3.38 WA-4
MGH20-150 522.00 557.50 35.50 2.96 WA-3
includes 532.00 557.50 25.50 3.70 WA-3
includes 545.80 557.50 11.70 5.46 WA-3
includes 545.80 549.50 3.70 8.36 WA-3
includes 545.80 546.57 0.77 15.00 WA-3
and 548.50 549.50 1.00 11.50 WA-3
and 554.50 556.50 2.00 9.04 WA-3
includes 555.50 556.50 1.00 12.50 WA-3
MGH20-150 586.80 588.30 1.50 3.77 WA-2
includes 586.80 587.60 0.80 4.77 WA-2
MGH20-155 560.40 562.40 2.00 6.15 WA-9
includes 560.40 561.62 1.22 10.06 WA-9
includes 561.00 561.62 0.62 17.40 WA-9
Intercepts are calculated using a 2.0 g/t Au cut-off unless noted (*), a maximum of 2m internal dilution and no top cap applied. All intercepts are reported as drill widths and estimated to be 80% to 95% of true width.

Westaway Target

The Westaway Target is located within a similar geological setting as the South West Deposit and is now seen to be continuous with the adjacent West Block mineralization over a distance of more than 1.2 km. Gold mineralization is seen to occur as a series of mineralized vein structures which occur adjacent to the regional Timiskaming age banded iron formation “A” unit (“BIF-A”) and dominantly hosted within an overlying coarse grain sandstone. The mineralized quartz-pyrite veins occur as extensional vein structures associated with ankerite-sericite-silica-pyrite alteration haloes. The zones occur as steeply west dipping WNW-ESE oriented mineralized structures as per the main mineralization at South West (Figure 3). Drilling to date has confirmed the veins over a strike length of 450 m, widths averaging over 4.00 m with widths up to 30 m and to depths of 600 m. A total of 13 mineralized veins have been confirmed at Westaway and 13 mineralized veins at West Block to date and are open to the south towards the new South Basin target.

QA/QC Procedures

All core drilling conducted by Moneta is oriented. Drill core is cut with half sent to AGAT Laboratories Inc. (AGAT) for drying and crushing to -2 mm, with a 1.00 kg split pulverized to -75 microm (200#). AGAT is an ISO 17025 accredited laboratory. A 50 g charge is Fire Assayed and analyzed using an AAS finish for Gold. Samples above 10.00 g/t Au are analyzed by Fire Assay with a gravimetric finish and selected samples with visible gold or high-grade mineralization are assayed by Metallic Screen Fire Assay on a 1.00 kg sample. Moneta inserts independent certified reference material and blanks with the samples and assays routine pulp repeats and coarse reject sample duplicates, as well as completing routine third-party check assays at Activation Laboratories Ltd. Kevin Montgomery, P.Geo. is a qualified person under NI 43-101 and has reviewed and approved the technical contents of this press release.

The gross proceeds of the offered securities will be used primarily for exploration and diamond drill programs at the company’s highly prospective Tilt Cove gold project in Newfoundland, the Goldboro and Lower Seal Harbour (LSH) projects in Nova Scotia, as well as multiple targets at the Point Rousse project, particularly along the Scrape trend, following recent success at Stog’er Tight (see press release dated July 7, 2020).

Any securities to be issued under the offering will be subject to a hold period of four months and a day from the closing date of the offering in accordance with the rules and policies of the Toronto Stock Exchange, and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws. The offering remains subject to the approval of the TSX.

Accelerated advancement of growth programs

At Tilt Cove, this financing will allow accelerated potential for a discovery in this newly consolidated, highly prospective region in the Baie Verte mining district, enabling immediate testing of the company’s top priority drill targets. Tilt Cove covers a 20-kilometre strike extent of the Betts Cove complex, a highly prospective geological terrane that includes the Nugget Pond horizon, the same geological trend as the past-producing, high-grade Nugget Pond mine, which had an average recovered grade of 9.85 grams per tonne gold. The high-grade targets at Tilt Cove are within trucking distance along paved roads to the operating Pine Cove mill and tailings facility, fast-tracking the period from discovery to production.

At the Goldboro gold project, work on a definitive feasibility study continues to identify potential areas that may allow Anaconda to upgrade the mineral resource from the inferred category to the measured and indicated category, in addition to the continuing 5,500-metre drill program, which would have an immediate impact on the economics of the study. The company is also keen to follow up on recent exploration work completed at the LSH project, located three kilometres south of the Goldboro deposit, which has identified drill targets that indicate a similar geological setting to Goldboro. Exploration at LSH will target an anticlinal fold structure that commonly host gold deposits in Nova Scotia and sits parallel to the structure hosting the Goldboro deposit.

At the Point Rousse project, in light of the recent expansion of the Stog’er Tight deposit and the refinement of the exploration model, the company has identified further opportunities to continue our history of discovery, development and production.

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president of exploration with Anaconda, a qualified person under National Instrument 43-101.

The high-powered VES survey was shot on a small portion of the Company’s 27,500 hectares and successfully detected several horizons of high conductivity which likely represents subsurface brine deposits. The results coincide with shallow tests previously conducted on the salar which identified the presence of both brine and lithium.

As a result, discussions have commenced regarding expanding the survey area to the previously unexplored southern portion of the salar. The survey results also suggest that drilling a combination of shallow and deep holes to investigate the brine chemistry and hydraulic and hydrochemical behaviour of existing facies is highly warranted.

Brad Nichol, president and chief executive officer, commented: “Our entire team is delighted about the results. We have identified highly conductive zones that are hundreds of meters thick and that extend beyond our area of investigation; thus, motivating us to consider another geophysical survey in a new part of our salar. We will continue to refine the results to determine the best drilling locations and start the process of securing the necessary permissions, equipment, and personnel to do so. It’s an exciting result during an exciting time for Alpha.”

This was the second VES survey conducted on the property and it incorporated a total of 24 VES measurements to determine sediment thickness and subsurface structural conditions. Of the 24 shots, five parametric control soundings were shot on different known outcrops beside the salar to provide additional confidence in the results.

The Phase 1 program is focused on: upgrading and expanding the current mineral resource; testing identified zones of high-grade gold and silver potential; and advancing our understanding of the geology and structural controls of the known deposits on the property. Los Reyes has well established estimated Measured and Indicated resources of 19.8 million tonnes containing 633,000 gold ounces at 1.0 gram per tonne (“gpt”) and 16,604,000 silver ounces at 26.2 gpt. There is a significant opportunity to expand this resource by drilling deeper within the known deposits and exploring the structures between and beyond the eight known deposits. Resources at Los Reyes are limited by the depth of drilling, where historic drilling has not exceeded about 200 meters below surface, and by the lack of systematic exploration on some 60% of the known mineralized structures.

Additional details regarding this exploration program are in the Company’s presentation online at https://bit.ly/2WmktD2 * Surface Trench Sampling and Drilling

Prime is executing a planned 10,000-meter drilling and surface trench sampling program employing a three-pronged approached:

Increase current mineral resource confidence: Upgrade 7.1 million tonnes of Inferred mineral resources to the Measured and Indicated category, which currently contains 19.75 million tonnes at 1.0 gpt gold and 26.2 gpt silver:

2,000 meters of surface rock chip sampling in trenches

1,500 meters of drilling in 12 to 15 shallow drill holes

Focus areas include Noche Buena, Tahonitas, and Zapote including surface rock chip sampling in trenches at San Miguel East and San Miguel West

Expand resource immediately: Add gold and silver ounces by drilling along strike and down dip in areas adjacent to the existing 8 open pit-constrained mineral resource areas:

1,500 meters of surface rock chip sampling in trenches

3,500 meters of drilling with some holes reaching a depth of 200 meters

Focus areas include the mineralized structures at Zapote, San Miguel East, and south-east extensions to Noche Buena and Tahonitas

Add future targets: Define the potential the add new gold and silver ounces in unexplored areas where existing data and new mapping information confirm mineral potential:

3,500 meters of surface rock chip sampling in trenches

5,000 meters of drilling with some holes reaching a depth of 350 meters

Focus areas include potential mineralized structures extending between San Miguel East, Guadalupe East, and Las Primas, and between Guadalupe West and the Zapote/Mariposa trend. A structural re-interpretation indicates new northwest trending structures parallel to the Zapote trend may exist.

Mapping and Sampling

The Company is currently undertaking the first-ever comprehensive modern geologic mapping effort for the entire ~6,300-hectare Los Reyes concession area. Up to four teams are mapping the rock types, alternations, geologic structures, and other physical features.

The Los Reyes project has had several previous operators, so Prime will also be undertaking a comprehensive re-logging program to improve the understanding of the geological model. Some 13,000 meters of core from 89 historic drill holes currently stored in Prime’s core building in Hermosillo will be re-logged and analyzed to confirm the reported rock type, alteration, and mineralization data. In addition, historic reverse circulation drill reject samples stored on-site will be recovered, re-bagged and re-logged based on the new interpretation parameters, if and where possible. Additionally, new regional soil and rock chip sampling and assaying will be completed with a view to generate grass roots targets across the rest of the 6,300-hectare concession.

Metallurgical Test Work

All new drill and surface rock chip sampling material sent to the assay lab will also be analyzed for cyanide solubility using bottle roll tests to build a strong database of metal recovery data across the project. Prior metallurgical test work has confirmed heap leach and mill gold and silver recovery are viable alternatives.

Execution Timeline

This first phase of exploration will continue through the upcoming rainy season. Surface rock chip sampling in trenches has been ongoing since October 2019 and will continue through during Phase 1. To date, 4,501 samples have been collected from 6,076 meters of surface outcrop, including 2,533 trench channel samples and 1,979 roadcut channel samples. Of these, 2,282 samples have been reported, leaving 1,650 samples to be reported. Assay results will be released as available.

The new field mapping and core re-logging activity has begun and is expected to be completed by September 2020. Drilling will begin shortly after the completion of these activities, and as soon work can be safely undertaken after the end of the rainy season.

After the rainy season and mapping work, drilling can begin in areas with existing roads, areas where the local ejido needs access roads for its own purposes and in areas where portable drills can be utilized. Drilling activities in new areas, where no land disturbance currently exists, will require permits for land disturbance and construction of new roads. Such environmental permit applications were submitted in March 2020 but due to government office closures during the Covid-19 shutdown, a recent amended application for 100 drill holes into these new areas has been filed. Initial drill results are expected in November 2020.

Bruce Kienlen, P.Geo. Vice President of Exploration, a qualified person for the purposes of National Instrument 43-101, has reviewed and approved the technical content in this news release.

The prospectus was filed under Multilateral Instrument 11-102, Passport System, in Alberta and Nova Scotia. A receipt for the prospectus is deemed to be issued by the regulator in each of these jurisdictions, if the conditions of the instrument have been satisfied.

The TSX Venture Exchange has been advised that closing of the prospectus offering occurred on July 14, 2020, for gross proceeds of $9,211,500. The overallotment option was exercised in full.

Please refer to the news releases issued by the company on June 22, 2020, and July 14, 2020.

Underwriters:  Cormark Securities Inc., Red Cloud Securities Inc. and Canaccord Genuity Corp.

Offering:  30,705,000 units (Each unit consists of one share and one-half warrant.)

Unit price:  30 cents per unit

Warrant exercise price/term:  40 cents per share for 24 months from date of closing of offering

Underwriters’ commissions:  $492,690

The Dome Mountain gold mine project holds a mining permit and Environmental Management Act permit (EMA) providing for up to 75,000 tonnes production annually plus a long-term milling and mining profit share agreement with Nicola Mining Inc., which operates a modern mill facility located near Merritt, B.C.

Phase one drilling will consist of 2,800 metres of HQ diamond drilling from 22 holes located on eight pre-existing pads. All access roads are in place and permitted. No tree cutting or road/pad construction is needed. At this time staff from the Blue Lagoon office in Smithers has installed sumps at each proposed pad location and is currently constructing a core shack and core saw facility.

Driftwood drilling of Smithers, B.C., will be performing the drilling and, drill and drill rods have already been mobilized to site.

The expected start up for drilling is Monday, July 20, 2020.

The scientific and technical data contained in this news release were approved by William Cronk, PGeo, a qualified person as defined in National Instrument 43-101 and a consultant to the company.

As a result of the temporary shutdown due to COVID-19, all production results were lower than anticipated compared with Q2 2019.

Mining operations were temporarily suspended at the beginning of April as mandated by the Mexican government and the Avino mine transitioned to care and maintenance utilizing a reduced work force to protect employees, contractors and the local communities.

On June 1, 2020, Avino was approved by the Secretariat of Health to recommence regular mining activities in an orderly, gradual and cautious manner.

2020 second quarter highlights

• Increase in recovery rates and grades at the Avino mine: On a metal-by-metal basis, recovery rates were higher and the grades rose slightly.

Avino mine

• Avino mine successfully recommenced operations: The ramp-up began June 1, working toward achieving production levels experienced prior to March 31, 2020.

“We are encouraged by the higher recoveries achieved in the second quarter, and the progress made in the ramp-up to full production which was under way once mining operations were allowed to resume in early June,” said David Wolfin, president and chief executive officer. “In addition, I am pleased to report that despite the challenges related to the COVID-19 pandemic, the company’s combined operational and health and safety measures enabled us to continue with concentrate shipments from established stockpiles of material and, because of our established crisis management plan, we had a well-executed response for stringent COVID-19 transmission prevention. Finally, due to the disappointing strike action at site last week, we reiterate that the company remains receptive to having good-faith discussions with authorized representatives of the union.”

During Q2 2020 production came from the Avino mine only.

Avino production highlights for Q2 2020 (compared with Q2 2019)

• Silver equivalent production decreased by 56 per cent to 158,286 ounces*;
• Copper production decreased by 54 per cent to 459,767 pounds;
• Silver production decreased by 52 per cent to 50,581 oz;
• Gold production decreased by 50 per cent to 404 oz.

* In Q2, 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 oz Au and $2.45 lb Cu. In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. Calculated figures may not add up due to rounding.

Management expects to update shareholders on plans for the second half of 2020 when it reports the Q2 2020 financial results in August.

The recoveries and grades at the Avino mine were marginally higher in Q2 2020 compared with Q2 2019.

                                         CONSOLIDATED PRODUCTION TABLES
                                                      Q2 2020

Production by mine                   Tonnes processed      Silver oz        Gold oz      Copper lb           AgEq

Avino                                          40,190         50,581            404        459,767        158,286
Historic aboveground stockpiles                     -              -              -              -              -
Consolidated                                   40,190         50,581            404        459,767        158,286

YTD 2020
Production by mine                   Tonnes processed      Silver oz        Gold oz      Copper lb           AgEq

Avino                                         199,575        312,819          1,916      2,263,082        835,370
Historic aboveground stockpiles                 4,711          4,481             19          4,857          6,860
Consolidated                                  204,286        317,299          1,935      2,267,939        842,230


  

  
Q2 2020

                                          Grade         Grade       Grade       Recovery       Recovery   Recovery
Grade and recovery by mine               Ag g/t        Au g/t        Cu %           Ag %           Au %       Cu %

Avino                                        43          0.40        0.58            90%            79%        90%
Historic aboveground stockpiles               -             -           -              -              -          -
Consolidated                                 43          0.40        0.58            90%            79%        90%

YTD 2020                                  
                                          Grade         Grade       Grade       Recovery       Recovery   Recovery
Grade and recovery by mine               Ag g/t        Au g/t        Cu %           Ag %           Au %       Cu %

Avino                                        54          0.40        0.58            90%            75%        88%
Historic aboveground stockpiles              59          0.31        0.15            50%            41%        31%
Consolidated                                 54          0.40        0.57            89%            74%        87%


  

                       AVINO MINE PRODUCTION HIGHLIGHTS
  
                                             Q2 2020      Q2 2019     YTD 2020

Total mill feed (dry tonnes)                  40,190       96,707      199,575
Feed grade silver (g/t)                           43           41           54
Feed grade gold (g/t)                           0.40         0.38         0.40
Feed grade copper (%)                           0.58         0.56         0.58
Recovery silver (%)                              90%          81%          90%
Recovery gold (%)                                79%          69%          75%
Recovery copper (%)                              90%          84%          88%
Total silver produced (oz)                    50,581      104,893      312,819
Total gold produced (oz)                         404          800        1,916
Total copper produced (lb)                   459,767    1,003,995    2,263,082
Total silver equivalent produced (oz)*       158,286      362,445      835,370

* In Q2, 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 
  oz Au and $2.45 lb Cu. In Q2, 2019, AgEq was calculated using metals prices 
  of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. Calculated figures may not 
  add up due to rounding.


  

Mine update

Further to the company’s press release dated July 10, 2020, good-faith negotiations with representatives of the authorized union are continuing and an update will be provided when further information is available.

Quality assurance/quality control

Mill assays are performed at the Avino property’s on-site lab. Check samples are sent to SGS Labs in Durango, Mexico, for verification. Gold and silver assays are performed by the fire assay method with the gravimetric finish for the concentrates and the AAS methods for copper, lead, zinc and silver for the feed and tail grade samples. All concentrate shipments are assayed by one of the following independent third party labs: AHK, Inspectorate in the United Kingdom and LSI in the Netherlands.

Qualified person(s)

Peter Latta, PEng, MBA, vice-president of technical services, Avino, who is a qualified person within the context of National Instrument 43-101, has reviewed and approved the technical data in this news release.

In October, 2019, Golden Minerals entered into a similar option agreement with Magellan Gold that gave Magellan a 150-day period in which to complete due diligence and secure financing for its purchase of the Santa Maria project. That agreement expired prior to execution.

The agreement provides a 10-calendar-day period during which Fabled will conduct its due diligence. Pertinent details of the underlying transaction, if executed, include the following:

• Fabled will pay $500,000 (U.S.) in cash to Golden upon closing and will issue to Golden 1.0 million Fabled shares of common stock;
• Fabled will pay $1.5-million (U.S.) in cash to Golden 12 months after closing of the transaction;
• Fabled will pay $2.0-million (U.S.) in cash to Golden 24 months after closing of the transaction;
• Upon exercise of the option, Fabled will grant to Golden a 1-per-cent net smelter return royalty on the Santa Maria and Punto Com concessions.

The proposed transaction is subject to acceptance by the TSX Venture Exchange, which approval will be contingent on a number of regulatory requirements including:

• Fabled having secured, and the TSX-V having accepted, an equity private placement of a minimum of $4.0-million;
• Delivery of an acceptable geological report by Fabled to the TSX-V.

The transaction would close within five business days of receiving final acceptance for the transaction from the TSX-V.