SILVER MOUNTAIN CONTINUES TO HIT HIGH GRADES AT ITS RELIQUIAS MINE, PERU, AND CUTS 1.45 METRES OF 588 G/T SILVER EQUIVALENT AT THE SACASIPUEDES VEIN AND 1.05 METRES OF 558 G/T SILVER EQUIVALENT AT THE PERSEGUIDA VEIN Key Highlights – Infill and resource expansion drilling at Reliquias
SILVER MOUNTAIN CONTINUES TO HIT HIGH
GRADES AT ITS RELIQUIAS MINE, PERU, AND
CUTS 1.45 METRES OF 588 G/T SILVER
EQUIVALENT AT THE SACASIPUEDES VEIN
AND 1.05 METRES OF 558 G/T SILVER
EQUIVALENT AT THE
PERSEGUIDA VEIN
Key Highlights – Infill and resource expansion drilling at Reliquias
Drill Hole SMR136-23-SCS (SCS vein)
1.45 m
@ 205 g/t Ag, 4.06% Pb, 8.20% Zn, 0.26% Cu and 0.81 g/t Au, including
0.85 m
@ 331 g/t Ag, 6.30% Pb, 12.61% Zn, 0.41% Cu and 1.24 g/t Au
Drill Hole SMR139-23-PER (PER vein)
5.90 m
@ 188 g/t Ag, 0.22% Pb, 0.45% Zn, 0.02% Cu and 0.48 g/t Au, including
2.05 m
@ 360 g/t Ag, 0.38% Pb, 0.81% Zn, 0.04% Cu and 0.83 g/t Au
Drill Hole SMR132-23-PER (PER vein)
1.05 m
@ 431 g/t Ag, 1.90% Pb, 2.16% Zn, 0.03% Cu and 0.34 g/t Au
Drill Hole SMR134-23-PER (PER vein)
1.30 m
@ 301 g/t Ag, 0.13% Pb, 0.11% Zn, 0.04% Cu and 0.28 g/t Au, including
0.80 m
@ 450 g/t Ag, 0.14% Pb, 0.12% Zn, 0.04% Cu and 0.41 g/t Au
TORONTO
,
Oct. 4, 2023
/CNW/ - Silver Mountain Resources Inc. ("Silver Mountain" or "the
Company") (TSXV: AGMR) (OTCQB: AGMRF) is pleased to announce results from fourteen (14)
additional drill holes from its ongoing infill and resource expansion program at its 100% owned
Reliquias mine, central
Peru
. All of the holes are part of Phase 2 of its 2023 infill and resource
expansion program and are not included in the current mineral resource estimate announced on
April
12
th
, 2023.
Phase 2 of the 2023 drill program consists of 12,500 metres of NQ and HQ drilling aimed at
confirming certain high grade areas of the historical mineral resource which was not included in the
Company´s current resource estimate (see news release dated
April 12
th
, 2023 ). So far, drilling
crews have completed approximately 7,600 metres of this program with two underground rigs, and
the Company has received results from 22 drill holes (see also news releases dated
July 19
th
and
August 16
th
, 2023).
Alvaro Espinoza
, CEO of Silver Mountain, stated, "
We are very happy to see such high grade base
metal results from the Sacasipuedes ("SCS") vein. The Reliquias mine has long been known for
hosting very high grades on its multiple mineralized veins, and it is gratifying to confirm such
grades with our recent drilling. Hitting 19% of combined zinc and lead grade confirms that some of
the highest grade portions of the mineralizaed system remain outside of our current mineral
resource base and our drill program is therefore good value for money.
"
Mr. Espinoza continued, "
Coupled with the recent discovery of the Natividad vein, we feel
increasingly confident that our resource expansion drill program will continue to give us pleasant
surpirses and allow us to grow the Reliquias resource significantly. Our drilling and mine
rehabilitation program continues at full speed and we look forward to updating the market as we
receive results."
Discussion of 2023 Drilling Results
The Company has so far completed 24 drill holes on the Sacasipuedes and Perseguida vein systems
from three underground drill platforms, two from Sacasipuedes and one from Perseguida. 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 the 2023 Drill program (CNW Group/Silver Mountain Resources
Inc.)
Notes 1True thicknesses are shown only where they can be determined.
2 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: Location
and summary of results from Phase 2 of the 2023 underground drill program (CNW Group/Silver
Mountain Resources Inc.)
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.
Figure 2: Longitudinal section of the Sacasipuedes vein (CNW Group/Silver Mountain Resources
Inc.)
Drilling along the Sacasipuedes vein ("SCS") has tested its southeast extension, several hundred
metres from the limits of the current mineral resource. Figure 2 shows a longitudinal section of the
SCS vein with the updated drill results. The best results were obtained in drill hole SMR-136-23-SCS
with
1.45 m
@ 205 g/t Ag, 4.06% Pb, 8.20% Zn 0.26% Cu and 0.81 g/t Au. Mineralization remain
open along strike and at depth, and high grade trend can be identified towards the southeast and at
depth near the northwestern extension of the vein.
Drilling along the Perseguida vein ("PER") has focused along the northwestern extension of the vein,
aimed at testing the deeper levels of the vein, beyond the lowest mining levels from the historic mine.
The PER vein was not included in the current mineral resource estimate for the Reliquias mine. The
latest results show significant silver equivalent grades extending the known mineralization along
strike and down dip. Figure 3 shows a longitudinal section of the PER vein showing results from the
Company´s drilling and the location of the historic workings. The best results from the PER vein
reported here were obtained in drill hole SMR-142-23-PER with
1.50m
@ 263 g/t Ag, 0.73% Pb,
1.61% Zn, 0.18% Cu and 0.36 g/t Au. Mineralization remains open along strike and at depth.
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.
(CNW Group/Silver Mountain Resources Inc.)
The 2023 drill program consists of two phases: an initial 3,500 metre phase using BQ diameter core
(now completed); and a second 12,500 meter phase using NQ and HQ diameter core. Full results
from the BQ diameter drilling have now been announced (see also
March 29
th
and
July 19
th
news
release at
https://agmr.ca/news/
https://agmr.ca/delineation-drilling-at-agmrs-reliquias-mine-confirms-high-grade-intercepts/
). The
second phase of infill drilling started in
June 2023
and continues with 3 rigs working in the upper
levels of the MTC (Matacaballo), MTS (Meteysaca), PER (Perseguida), and SCS (Sacasipuedes)
vein systems, where high grade historical resource blocks remain outside of the current resource
estimate. The Company has also recently announced the discovery of the NAT (Natividad) vein. The
Company plans to incorporate these high-grade blocks in future resource estimates. Results will be
announced as they become available.
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 currently exploring its 100% owned Castrovirreyna Project,
consisting of over 60,000 hectares of highly prospective mineral claims and concessions located in
the Huancavelica Region, central
Peru
. For additional information regarding 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
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 laboratory and Certimin 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 "
Caution Regarding Forward-Looking Statements"
and "
Risk Factors
" in the
Company's Annual Information Form dated
August 14, 2023
, and other disclosure documents
available on the Company's profile on SEDAR+ at
www.sedarplus.ca
. 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/October2023/04/c6053.html
%SEDAR: 00052252E
For further information:
Alvaro Espinoza, Chief Executive Officer, [email protected], 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 04-OCT-23