New drilling results add further confidence to the geological model with intercepts including: 9.20m
DRILLING CONTINUES TO DEFINE HIGH
GRADE ZONES AT AgMR's RELIQUIAS MINE
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Highlights
New drilling results add further confidence to the geological model with intercepts including:
9.20m
@ 220.8
grams per ton silver equivalent (AgEq), including
1.33m
@ 672.8
g/t and
1.25m
@
706.7g/t
AgEq, in drill hole SMR-03-22-MTC
0.70m
@
1,314.6g/t
AgEq, in hole SMR-08-22-MTC
5.35m
@ 324.0g/t AgEq, including
2.40m
@ 611.2g/t AgEq, in hole SMR-08-22-MTC
3.78m
@ 506.1g/t AgEq, including
1.50m
@ 755.1g/t AgEq, in hole SMR-10-22-MTC
TORONTO
,
July 19, 2022
/CNW/ - Silver Mountain Resources Inc. ("
Silver Mountain
", "
AGMR
" or
the "
Company
") is pleased to provide an update on its underground drilling at the Reliquias silver
mine in Huancavelica, central
Peru
. The main objective of the
12,000m
program is to establish a
National Instrument 43-101 – Standard of Disclosure for Mineral Projects ("NI 43-101") compliant
mineral resources 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
_________________________________
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.
Alfredo Bazo
, President and CEO, commented: "
The assay results from the reported drill holes
confirm the continuity of high-grade Ag-Pb-Zn-Cu mineralization in the Matacaballo vein in
proximity to existing mine workings at the Reliquias deposit. As was expected, the typical pinch-
and-swell behaviour of the Sacasipuedes vein is shown in these drill holes, with varying vein
widths and grades. We are encouraged that various bore
holes have intersected more than one
mineralized interval, which may represent splays of the main vein or newly identified structures.
Our geological team is currently evaluating these intercepts to incorporate them in our 3D
geological model."
The drilling program is fully funded, with two rigs operating 24 hours per day. 32 holes have been
completed to date, with results of 12 holes drilled to test the Matacaballo and Sacasipuedes veins
included in this release (Table 1).
Figure1: 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.
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.)
The following table provides more detail regarding the mineralized intercepts encountered in drill
holes SMR-03-22-MTC to SMR-14-22-SCS.
Table 1: Weighted assay results of drill holes SMR-03-22-MTC to SMR-14-22-SCS. MTC =
Matacaballo vein, SCS = Sacasipuedes vein. AgEq values were calculated using silver, lead, zinc,
copper, and gold. Metal prices utilized for the calculations are current prices as of June 9, 2022: Ag
– 21.92US$/oz, Pb – 2,150US$/t, Zn – 3,754US$/t, Cu – 4.38US$/lb, and Au – 1,846US$/oz.
Recovery is assumed as 100% as sufficient metallurgical data is not yet available. (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
Jose Vizquerra
, a Director 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 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.
www.agmr.ca
SOURCE
Silver Mountain Resources Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/July2022/19/c0601.html
%SEDAR: 00052252E
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, [email protected]
CO: Silver Mountain Resources Inc.
CNW 07:00e 19-JUL-22