Evidence for a porphyry copper system at depth found in an erosional window over an area of at least 2 x 1 km Large lithocap covering 7 x 3 km offers additional potential to explore for covered porphyry targets
SILVER MOUNTAIN IDENTIFIES PORPHYRY
COPPER TARGET AT YAHUARCOCHA -
GUANAJATO ZONE ON RELIQUIAS CLAIM
BLOCK
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
Highlights:
Evidence for a porphyry copper system at depth found in an erosional window over an
area of at least 2 x 1 km
Large lithocap covering 7 x 3 km offers additional potential to explore for covered
porphyry targets
TORONTO
,
Feb. 23, 2023
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:
AGMRF) (BVL: AGMR) ("
Silver Mountain
", "
AGMR
" or the "
Company
") is pleased to report that a
porphyry copper target has been recognized at the Yahuarcocha and Guanajato zones, within the
Company's 20,000-ha Reliquias property block in Huancavelica, central
Peru
. The Yahuarcocha –
Guanajato sector is located at an altitude of 4550 to
4800 m
, approximately 5 km northwest of the
company's Caudalosa mine camp. An improved dirt road allows access to the area throughout the
whole year.
An extensive alteration zone stretching over an area of approximately 7 km long and 3 km wide was
recognized in the central-northern portion of the Reliquias claim block (see inset map in Fig.1).
Numerous structurally-controlled silica ledges occur at higher altitudes, surrounded by quartz-
kaolinite alteration. In an erosional window below this lithocap approximately 200 –
250 m
lower in
elevation, several hydrothermal breccia pipes were identified in the Yahuarcocha and Guanajato
areas.
During
November 2022
, approximately 2 km
2
were mapped at 1:2500-scale, to provide detailed
geological information on the central prospect area. Additionally, a total of 101 Terraspec analyses
were carried out on rock samples collected across the whole prospect area, resulting in the
identification of alteration minerals. Furthermore, a total of 908 rock samples were taken to evaluate
the geochemical characteristics of the Yahuarcocha – Guanajato zones (Fig.1). This total includes
surface channel and underground grab samples collected in 2019.
Based on the geological mapping, the higher parts of the prospect area are underlain by andesitic
lavas and flow breccias of the Miocene-age Caudalosa Formation. Approximately
200 m
below in
altitude, dacitic – andesitic stocks and dykes showing weakly porphyritic textures are outcropping
both in the Yahuarcocha and Guanajato areas. The deeper erosion along the floor of a glacial valley
has exposed a 100 x
60 m
-sized hydrothermal breccia cutting the volcanic rocks in the Guanajato
sector (Fig.1). This breccia body displays quartz-kaolinite-pyrophyllite alteration, cemented by
quartz, enargite, and barite.
Figure1: Map of the Yahuarcocha – Guanajato prospect area; displaying the most significant
lithological units, as well as geochemical values for molybdenum from rock samples. Inset map
shows the location of the target area within the Reliquias property block. (CNW Group/Silver
Mountain Resources Inc.)
Approximately 1.5 km to the west and another
100 m
lower in elevation, the area around the
Yahuarcocha lake is characterized by more widespread outcrops of andesite-dacite stocks and
related hydrothermal breccia pipes. The dominant feature are three quartz-tourmaline breccia pipes,
the largest one measuring 90 x
90 m
. The andesitic breccia clasts display moderately to strong
silicification and pervasive phyllic alteration, cemented by quartz, tourmaline, and limonite after pyrite
(Fig. 2). This type of quartz-tourmaline-sericite-pyrite breccia is typical for a porphyry-copper
environment.
Late pulses of structurally-controlled mineralization cut the older lithologies and structures, resulting
in the deposition of intermediate sulphidation epithermal veins and locally an overprint of the
intersected breccia pipes. These NW-SE and W-E striking veins show widths of 1-
2 m
, with strong
silicification and moderate argillic alteration. The veins contain high-grade sulphide mineralization,
predominantly galena, sphalerite, and chalcopyrite. Assay results returned maximum values of 3,558
g/t Ag, 20% Pb, 4.1 % Zn, 5.7% Cu, and 5.2 g/t Au for individual rock samples. Due to their rich
metal endowment, some veins are actively exploited at a small scale by artisanal miners.
The analysis of hand samples with Terraspec served to better define the alteration zonation within
the prospect area. Pyrophyllite, sericite, tourmaline, high-Mg chlorite, high-crystallinity illite, and
other minerals indicative of higher temperatures were identified in the Yahuarcocha and Guanajato
sectors. These alteration minerals are typical for the transition between the root of a high
sulphidation system and a porphyry intrusion, or – in the case of sericite - for the phyllic halo of a
porphyry copper system. Highly anomalous values for molybdenum (Mo) were recognized in the
geochemical samples, with numerous samples returning between 20 and 202 ppm Mo. The elevated
molybdenum values are concentrated around the Yahuarcocha lake, also providing a vector towards
a porphyry copper system at depth (Fig.1).
The geological characteristics recognized to date at the wider Yahuarcocha – Guanajato area
indicate the potential presence of a porphyry copper system at depth. This assessment has been
confirmed earlier by the well-known consultant
Richard Sillitoe
, during a reconnaissance visit to the
area in 2010. Sillitoe stated in his report: "One or more porphyry centres are believed to be present
in the district, most likely at depths of
300 m
, or appreciably more, beneath the lithocap. However,
size and metal contents cannot be predicted."
1
______________________________
1
Richard H. Sillitoe: Comments on the porphyry copper potential of the Castrovirreyna district, Peru; Internal Report 2010
Torsten Danne
, Director of Exploration, commented:
"The evidence found so far clearly warrants a
more detailed exploration campaign, aimed at encountering a porphyry system at depth, with
potentially economic grades of Cu-Mo(-Au). Apart from detailed mapping and geochemical
vectoring, a geophysical survey using Titan 24 and the execution of a few exploratory drill holes
would be the next logical steps for a follow-up exploration campaign."
Alfredo Bazo
, President and CEO, stated:
"
The main value driver for Silver Mountain is the
Reliquias silver mine and the planned production start-up in H2 2024. While we want to stay
focused on our main asset Reliquias, we are evaluating the best way forward to advance the
Yahuarcocha – Guanajato area. As part of our plan, we are looking for partnerships with major
players in the industry with interest in potentially large porphyry copper systems in
Peru
".
Figure 2: Photos taken from outcrops of the quartz-tourmaline breccia, Yahuarcocha sector.
Sericite-altered andesite fragments are cemented by quartz, tourmaline, and limonite after pyrite.
Note shingle-like appearance of many clasts, a typical texture in tourmaline breccias related to
porphyry copper systems. (CNW Group/Silver Mountain Resources Inc.)
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.
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
.
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.
Reconnaissance rock samples were collected either as rock chip samples or along channels with
hammer and chisel, typically over a 1–2-meter sample interval. Channel samples are broken at
obvious geologic boundaries to correctly separate rock types and mineralization styles. The sample
bags were sealed with a plastic zip tie and identified with a unique sample number, pending shipment
to a certified laboratory sample preparation facility. Samples are sent by batch to the ALS
laboratory in
Lima
for assaying. Silver Mountain independently inserts certified control standards
(purchased from OREAS and Target Rocks), 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 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, Au) 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 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.
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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 23-FEB-23