Drill results returned high grade silver-polymetallic intercepts, with more than one mineralized interval encountered in various drill holes, including: 1.40m
FURTHER HIGH-GRADE POLYMETALLIC
ZONES INTERCEPTED IN DRILLING AT
AgMR's RELIQUIAS MINE
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
Highlights
Drill results returned high grade silver-polymetallic intercepts, with more than one
mineralized interval encountered in various drill holes, including:
1.40m
@ 205.0 g/t Ag, 13.5% Pb, 17.8% Zn, 0.76% Cu, and 0.3g/t Au, in drill hole SMR-16-
22-SCS
7.58m
@ 45.4 g/t Ag, 4.54% Pb, 5.59% Zn, 0.34% Cu, in hole SMR-17-22-MTC, including
1.48m
@ 83.2 g/t Ag, 7.83% Pb, 4.21% Zn, 0.89% Cu,
and
1.40m
@ 116.1 g/t Ag, 12.97% Pb, 19.77% Zn, 0.55% Cu
1.25m
@ 161.5 g/t Ag, 17.92% Pb, 7.84% Zn, 0.77% Cu, in same hole SMR-17-22-MTC
5.25m
@ 82.5 g/t Ag, 3.41% Pb, 5.42% Zn, 0.56% Cu, and 0.09 g/t Au, in drill hole SMR-
18-22-SCS
TORONTO
,
Sept. 21, 2022
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:
AGMRF) (BVL: AGMR) ("
Silver Mountain
", "
AGMR
" or the "
Company
") is pleased to provide an
update on its underground drilling at the Reliquias silver mine at the Company's Castrovirreyna
Project in Huancavelica, central
Peru
. 58 bore holes have been completed to date, with results of 5
holes drilled to test the Matacaballo and Sacasipuedes veins included in this release (Table 1). The
main objective of the fully funded drill program is to establish a National Instrument 43-101 –
Standard of Disclosure for Mineral Projects
("
NI 43-101
") compliant mineral resource in H1 2023
that will form the basis of our production decision in H2 2023. In addition, the Company aims to
better characterize and extend the known silver-rich zones at depth.
1
Alfredo Bazo
, President and CEO, commented: "The drill hole results confirm the continuity of high-
grade Ag-Pb-Zn-Cu mineralization in both the Matacaballo and Sacasipuedes vein, close to existing
mine workings at the Reliquias deposit. We are delighted that various bore holes have intersected
more than one mineralized interval, which appear to represent additional structures such as the
Ayayay vein previously observed in historic mine workings (see Fig.1). Our geological team is
currently evaluating these intercepts to incorporate them in our 3D geological model."
Figure 1: Plan view of underground drilling program at the Reliquias silver mine, showing traces of
drill holes completed to date (in blue) as well as the subsequently programmed bore holes. The five
holes reported in this release are labelled and highlighted in bold blue lines. Additionally, underground
workings, main mineralized veins, and drill platforms are displayed. Inset map shows Reliquias
property block with locations of both silver mines and the processing plant (CNW Group/Silver
Mountain Resources Inc.)
_________________________________
1
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/DisplayProfile.do?
lang=EN&issuerType=03&issuerNo=00052252.
The following table shows the detailed results of mineralized intercepts encountered in drill holes
SMR-15-22-MTC to SMR-19-22-SCS.
Table 1: Weighted assay results of drill holes SMR-15-22-MTC to SMR-19-22-SCS. MTC =
Matacaballo vein, SCS = Sacasipuedes vein. (CNW Group/Silver Mountain Resources Inc.)
Figure 2: Close-up view of mineralized intervals of drill core; photo A: semi-massive sulphides in
brecciated vein, consisting of silver sulpho-salts, sphalerite, galena, chalcopyrite, quartz,
rhodochrosite, hole SMR-16-22-SCS, 55.10 m depth; photo B: quartz – sulphide vein displaying
brecciation and multi-phase quartz veining, visible sulphides include tetrahedrite, galena, sphalerite,
hole SMR-17-22-MTC, 258.65 m depth (CNW Group/Silver Mountain Resources Inc.)
Market Making Agreement
The Company also announces the appointment of Independent Trading Group ("
ITG
") to provide
market making services in accordance with the policies of the TSX Venture Exchange (the "
TSXV
").
Under the market making services agreement dated
February 2, 2022
(the "
Agreement
"), ITG will
trade securities of the Company on the TSXV with the objective of maintaining a reasonable market
and improving the liquidity of the Company's class A common shares. The Company will pay ITG a
monthly cash fee of
C$5,000
for a minimum term of three months, payable at the beginning of each
month, and which will automatically extend for successive one-month terms unless terminated by
either party on thirty days' prior notice. ITG acts at arm's length to the Company and none of ITG
nor its affiliates or associates has any interest directly or indirectly in the Company or its securities,
or any right or intent to acquire such an interest. ITG will not receive shares or options as
compensation. ITG will provide the capital used for market-making activities. The services provided
by ITG pursuant to the Agreement commenced on
February 2
, 2022. The Agreement remains
subject to the approval of the TSXV.
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 NI 43-101.
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 27,000 hectares in the district of Castrovirreyna, Huancavelica,
Peru
.
Sampling, QA/QC, and Analytical Procedures
Silver Mountain follows systematic and rigorous sampling and analytical protocols which meet
industry standards. These protocols are summarized below.
All drill holes are diamond core holes with HQ or NQ core diameters. Drill core is collected at the
underground drill site where recovery measurements are taken before the core is transported by
truck to the core logging facility at the Caudalosa Grande mine camp, where it is photographed and
geologically logged. The core is then cut in half with a diamond saw blade with half the sample
retained in the core box for future reference and the other half placed into a pre-labelled plastic bag,
sealed with a plastic zip tie, and identified with a unique sample number. The core is typically
sampled over a 1-2 metre sample interval unless the geologist determines the presence of an
important geological contact. The bagged samples are then stored in a secure area pending
shipment to a certified laboratory sample preparation facility. Samples are sent by batch to the ALS
laboratory in
Lima
for assay. Silver Mountain independently inserts certified control standards, fine
and coarse blanks, and duplicates into the sample stream to monitor data quality. These standards
are inserted "blindly" to the laboratory in the sample sequence prior to departure from the core
storage facilities. At the laboratory, samples are dried, crushed, and pulverized and then analyzed
using a fire assay-AA finish analysis for gold and a full multi-acid digestion with ICP-AES analysis for
other elements. Samples with results that exceed maximum detection values for the main elements
of interest (Ag, Zn, Pb, Cu) are re-analyzed using precise ore-grade ICP analytical techniques, while
high gold values are re-analyzed by fire assay with a gravimetric finish.
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.
SOURCE
Silver Mountain Resources Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/September2022/21/c5001.html
%SEDAR: 00052252E
For further information:
Alfredo Bazo, President, CEO & Director, [email protected]; Silver
Mountain Resources Inc., 82 Richmond Street East, Toronto, ON M5C 1P1, [email protected],
(647) 262-4017; Jean Pierre Fort, Chief Financial Officer, [email protected]
CO: Silver Mountain Resources Inc.
CNW 07:00e 21-SEP-22