/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) (" Silver Mountain ", " AGMR Company ") is pleased to announce
SILVER MOUNTAIN ACQUIRES HIGHLY
PROSPECTIVE LAND PACKAGE FROM PAN
AMERICAN SILVER
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
TORONTO
,
Nov. 3, 2022
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:
AGMRF) (BVL: AGMR) ("
Silver Mountain
", "
AGMR
" or the "
Company
") is pleased to announce
that it has entered into a purchase agreement to acquire a 100% interest in the
Lira de Plata
project
from Pan American Silver Corp. ("
Pan American Silver
"), which includes a package of 14 mining
concessions. The agreement was reached with a local subsidiary of Pan American Silver (Pan
American Silver Peru S.A.C.), which held the mining title to the 14 claims covering a total area of
799.5078 ha. The Lira de Plata mining concessions are situated in the vicinity of the Company's
Reliquias silver mine in Huancavelica, central
Peru
(Fig.1).
Alfredo Bazo
, President and CEO of the Company, commented:
"This acquisition represents an
excellent addition to our land holdings, since the acquired claims allow us to further consolidate
our Reliquias property block. Moreover, the Lira de Plata mining concessions are considered
highly prospective for mineralized structures with high-grade silver and base metal potential,
similar to the silver-lead-zinc-copper veins that we are currently exploring at our Reliquias mine."
As part of the acquisition of the Lira de Plata project by Silver Mountain, certain geological
information collected by Pan American Silver during early-stage exploration activities at the mining
properties was transferred. This includes a 1:10000 scale geological map of the area surrounding
the concessions and the geochemical assays of 130 rock channel samples. During its
reconnaissance work on the properties, Pan American Silver identified several outcropping
epithermal veins, of which the Lira and Cerro Sanchez structures were considered the most
important.
1
Average grades of 0.59 g/t Au and 176 g/t Ag were reported for the Lira vein, whereas
the assays from samples of the Cerro Sanchez vein returned on average 0.32 g/t Au, 305 g/t Ag,
2.5% Pb, and 1.81% Zn. As the mentioned results are based on a limited number of channel
samples collected predominantly from surface exposures, these values might not be representative
of the vein material present at depth. Still, the assays indicate the potential to find additional
structures with well-developed precious and base metal mineralization on the Lira de Plata
properties.
As part of its ongoing brownfields exploration program, Silver Mountain is planning to complete
geological mapping and sampling on the newly acquired claims, with the aim of identifying drill
targets to be followed up in 2023.
Figure1: Map of mining concessions, Reliquias property block. The newly acquired mining
concessions of the Lira de Plata project are shown in yellow, whereas the Company’s current titled
properties and pending claims are displayed in grey and light blue, respectively. Additionally, the
traces of the main mineralized veins and the location of the La Lira, Reliquias, and Caudalosa mines
are shown. (CNW Group/Silver Mountain Resources Inc.)
Background information
The name of the Lira de Plata project derives from the abandoned Lira mine, which is located in the
La Virreyna area at the western end of the historic Castrovirreyna mining district (Fig.1). The mineral
deposits in the La Virreyna area were discovered in the early 17
th
century (Lewis 1964).
2
The silver-
rich vein material near surface was mined intermittently over the following centuries. During the late
1950s, two mine operations were active in the La Virreyna area: Lira and Carmen (Lewis 1964),
which apparently ceased operations during the late 1970s. At least nine principal veins were
recognized at the time, including San Pablo, Caldero,
Sanchez Cerro
,
San Antonio
, Lira, Carmen –
Constante, and Beatita, with strike lengths between
100 m
and
575 m
. Based on Lewis' description,
the mineralized structures range between 0.2 and
3.0 m
in width. The ore exploited during the late
1950s contained sphalerite, galena, tetrahedrite, and chalcopyrite as the main ore minerals, with
accompanying quartz, pyrite, rhodochrosite, and minor clay minerals (Lewis 1964).
Transaction details
Silver Mountain has closed a property purchase agreement to acquire a 100% interest in the Lira de
Plata property. The cash consideration payable by Silver Mountain to Pan American Silver for the
transfer of the mining titles consists of a payment of
US$80,000
. Pan American Silver does not
retain any interest nor any net smelter return on the Lira de Plata concessions. The effective date for
the transaction is
October 26, 2022
.
On Behalf of the Board of Directors of Silver Mountain Resources Inc.
Alfredo Bazo
, Chief Executive Officer and Director
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by
Antonio Cruz
, an independent consultant of the Company and a Qualified Person within
the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators.
About Silver Mountain
Silver Mountain Resources Inc. is a silver explorer and mine developer planning to restart production
at the Reliquias underground mine and undertake exploration activities at its prospective silver
camps at the Castrovirreyna Project in Huancavelica,
Peru
.
For additional information in respect of the Castrovirreyna Project, please refer to the Company's
technical report, titled National Instrument 43-101 Technical Report—Castrovirreyna Project,
Peru
,
dated
October 6, 2021
, amended
November 18, 2021
, effective date
August 17, 2021
, available at
https://sedar.com
.
For further information about our drill program, including cross sections of the main veins with drill
hole locations, please refer to our corporate presentation, available on our website at
www.agmr.ca
Silver Mountain's subsidiary Sociedad Minera Reliquias S.A.C. owns 100% of its concessions and
holds more than 30,000 hectares in the district of Castrovirreyna, Huancavelica,
Peru
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward Looking Statements
This news release contains forward-looking statements and forward-looking information within the
meaning of Canadian securities legislation (collectively, "
forward-looking statements
") that relate
to Silver Mountain's current expectations and views of future events. Any statements that express, or
involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, through the use of words or phrases such as "will likely result",
"are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated",
"intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical
facts and may be forward-looking statements and may involve estimates, assumptions and
uncertainties which could cause actual results or outcomes to differ materially from those expressed
in such forward-looking statements. No assurance can be given that these expectations will prove to
be correct and such forward-looking statements included in this news release should not be unduly
relied upon. These statements speak only as of the date of this news release. Forward-looking
statements in this news release include, but are not limited to, statements in respect of the
Company's proposed exploration program and the timing and potential results thereof.
Forward-looking statements are based on a number of assumptions and are subject to a number of
risks and uncertainties, many of which are beyond Silver Mountain's control, which could cause
actual results and events to differ materially from those that are disclosed in or implied by such
forward-looking statements. Such risks and uncertainties include, but are not limited to, the factors
set forth under "
Forward-Looking Statements"
and "
Risk Factors
" in the Company's final prospectus
dated
January 26, 2022
, and other disclosure documents available on the Company's profile at
www.sedar.com
. Silver Mountain undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as may be
required by law. New factors emerge from time to time, and it is not possible for Silver Mountain to
predict all of them or assess the impact of each such factor or the extent to which any factor, or
combination of factors, may cause results to differ materially from those contained in any forward-
looking statement. Any forward-looking statements contained in this news release are expressly
qualified in their entirety by this cautionary statement.
____________________________
1
Pan American Silver, Summary - Lira de Plata prospect (Prospects Presentation, PAS, June 2021)
2
R.W.Lewis, Jr. (1964): The geology, mineralogy and paragenesis of the Castrovirreyna lead-zinc-silver deposits, Peru; US Geological Survey, Open-File Report 64-103
SOURCE
Silver Mountain Resources Inc.
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For further information:
Alfredo Bazo, President, CEO & Director, [email protected]; Jean Pierre
Fort, Chief Financial Officer, [email protected]; Silver Mountain Resources Inc, 82 Richmond Street
East, Toronto, ON M5C 1P1, (647) 262-4017, [email protected], www.agmr.ca
CO: Silver Mountain Resources Inc.
CNW 07:00e 03-NOV-22