SILVER MOUNTAIN COMPLETES SUCCESSFUL 2023 RELIQUIAS DRILL PROGRAM - HITS 2.55 METRES WITH 737 G/T SILVER EQUIVALENT Key Highlights – Underground diamond drilling at Reliquias Drill Hole SMR169-23-PAS (PAS vein) 2.55 m
SILVER MOUNTAIN COMPLETES
SUCCESSFUL 2023 RELIQUIAS DRILL
PROGRAM - HITS 2.55 METRES WITH 737 G/T
SILVER EQUIVALENT
Key Highlights – Underground diamond drilling at Reliquias
Drill Hole SMR169-23-PAS (PAS vein)
2.55 m
@ 492 g/t Ag, 1.05% Pb, 2.38% Zn, 0.09% Cu and 2.06 g/t Au, including
0.20 m @
2,558 g/t Ag, 6.37% Pb, 16.49% Zn, 0.41% Cu and 18.61 g/t Au
Drill Hole SMR153-23-SCS (NAT vein)
1.60 m
@ 33 g/t Ag, 2.74% Pb, 7.02% Zn, 0.51% Cu and 0.04 g/t Au, including
o
0.35 m
@ 77 g/t Ag
,
8.37% Pb, 21.53% Zn
, 1.03% Cu and 0.09 g/t Au
Drill Hole SMR166-23-VUL (VUL vein)
0.85 m
@ 14 g/t Ag, 1.18% Pb, 2.21% Zn, 0.06% Cu and 3.50 g/t Au, including
0.55 m @ 16 g/t Ag, 1.42% Pb, 2.82% Zn, 0.08% Cu and 5.09 g/t Au
TORONTO
,
Nov. 21, 2023
/CNW/
-
Silver Mountain Resources Inc. ("Silver Mountain" or "the
Company") (TSXV: AGMR) (OTCQB: AGMRF) is pleased to announce the final batch of results
from the second phase of its 2023 underground drilling campaign at its 100% owned Reliquias mine,
central
Peru
. Drill rigs have now been demobilized, and the Company's geologists are finalizing the
database to be used in the upcoming resource update incorporating all results from the work carried
to date.
Alvaro Espinoza
, President and CEO of Silver Mountain, commented: "
The past few months have
been transformational for Silver Mountain. Not only have we advanced with our mine rehabilitation
program, preparing the Project for the next stage in its development, but we have completed the
2023 drill program on time and in line with our budget. We have confirmed and expanded the high
grade zones on our known vein systems, and we have discovered new veins such as Natividad.
This last batch of results include some of the best silver and base metal ones seen in this
program, and we very much look forward to delivering the updated database to our consultants for
preparation of an updated mineral resource estimate which, in turn, will be used to prepare a
Preliminary Economic Assessment for Reliquias
."
Mr Espinoza concluded: "
Silver Mountain is committed to restarting operations at Reliquias during
the first half of 2025, and completing this drill program fits neatly with this strategy. We look
forward to updating our shareholders on our progress towards production
."
Discussion of 2023 Drilling Results
The second phase of the 2023 drill program consisted of 45 underground diamond drill holes totaling
12,140 metres of HQ and NQ diameter drilling from 6 platforms targeting the Sacasipuedes,
Perseguida, Pasteur, Vulcano, Natividad, Matacaballo and Beatita veins. The Company has now
received results from all completed drill holes and details on the location of the underground drill
platforms and drill traces are found in Figure 1. Table 1 also shows a summary of the results
announced in this news release. Details from all drill holes announced to date will be posted on the
Company's website (
https://agmr.ca/
)
Figure 1 Drill Hole Location Map of Phase 2 of the 2023 Drill program (CNW Group/Silver Mountain
Resources Inc.)
Notes: 1 Silver equivalent (Ag_Eq) grades are calculated using metal prices of: silver US$23.30/oz.,
gold US$1764/oz, copper US$9419/tm, lead US$2188/tm and zinc US$2813/tm. Silver equivalent
grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t) + (Au (g/t)
*
2.40) + (Cu (%) * 2.70) + (Pb (%) *
0.80) + (Zn (%) * 0.80).
Metal recoveries have not been applied in the silver equivalent value
calculation. Table 1: Results from Phase 2 of the 2023 drilling program reported in this news release
(CNW Group/Silver Mountain Resources Inc.)
Drilling during the last part of Phase 2 of the 2023 drill program focused on the eastern extension of
the Matacaballo vein system, near the intersection with the Pasteur, Beatita and Vulcano veins, all
three of which are northwest-southeast trending structures which were not incorporated into the
current mineral resource estimate. Drilling was aimed at stepping out on known veins, tightening the
drillhole spacing so as to incorporate them into the mineral resource estimate, and testing the
continuity of previously undrilled or unknown veins such as Vulcano and Natividad respectively.
At the newly discovered Natividad vein, drill Hole SMR-153-23-SCS hit the vein at approximately 50
metres above the intercept in drill hole SMR-140-23-SCS (
2.20 m
@ 42 g/t Ag, 2.79% Pb, 3.84%
Zn, 0.75% Cu and 0.06 g/t Au – see news release date
September 27, 2023
). The very high lead
and zinc grades, within a wide vein interval, confirm Natividad´s potential to host a significant base
metal resource. The zone remains open along strike and at depth. Figure 2 shows a long section of
the Natividad vein with the intercepts hit to date.
Figure 2 Long section of the Natividad vein – notes on calculation of AgEq values are detailed below
Table 1 (CNW Group/Silver Mountain Resources Inc.)
Drilling on the Pasteur vein has found high grade silver and gold mineralization below existing
workings, and has extended the mineralized structure approximately 80 metres to the northwest.
The highest grade zone remains open along strike to the northwest and at depth. Figure 3 shows an
updated long section of the Pasteur vein. Twelve of the drill holes reported here intersected the
Vulcano vein, one of several parallel structures to Pasteur, including the Beatita vein ("BEA"). Drilling
tested approximately 700 metres of strike length and 300 metres of down dip extension along the
VUL vein, with the best gold and silver results found near the deepest intercepts on hole SMR166-
23-VUL. Figure 4 shows a long section of the VUL vein.
Figure 3 Pasteur Vein longitudinal Section showing grade thickness values - AgEq values are
calculated using parameters described for Table 1 (CNW Group/Silver Mountain Resources Inc.)
Figure 4 Longitudinal section showing grade thickness values on the Vulcano vein - AgEq values are
calculated using parameters described for Table 1 (CNW Group/Silver Mountain Resources Inc.)
The 2023 drill program consisted of two phases: an initial 3,500 metre phase using BQ diameter
core (now completed); and a second 12,140 meter phase using NQ and HQ diameter core. Full
results from the BQ diameter drilling have been announced (see also
March 29th
and
July 19th
news
release at
https://agmr.ca/news/
). The second phase of infill drilling started in
June 2023
and was
completed in
October 2023
. The Company plans to incorporate all of this drilling in an upcoming
mineral resource estimate. Full results have now been received and announced.
On Behalf of the Board of Directors of Silver Mountain Resources Inc.
Alvaro Espinoza
, Chief Executive Officer
Qualified Person
Antonio Cruz Bermudez
, , P. Geo. Registered Member MAIG is an independent consultant of the
Company and the Qualified Person (within the meaning of NI 43-101) responsible for the MRE, has
reviewed and approved the scientific and technical information contained in this news release.
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 NI 43-101 Technical Report Mineral Resource Estimate for the Reliquias
Mine, Huancavelica-
Peru
, dated
March 27, 2023
, effective date
March 18, 2023
, 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 60,000 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.
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 BQ, 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.
Rock channel samples were collected with an electric percussion hammer and do not exceed
1.0 m
in length. Channels 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 or Certimin laboratories 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 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/November2023/21/c5844.html
%SEDAR: 00052252E
For further information:
Alvaro Espinoza, Chief Executive Officer, Silver Mountain Resources Inc,
82 Richmond Street East, Toronto, ON M5C 1P1, +51 954 475 319, [email protected], www.agmr.ca
CO: Silver Mountain Resources Inc.
CNW 07:00e 21-NOV-23