SILVER MOUNTAIN CONTINUES TO REPORT HIGH GRADE SILVER RESULTS FROM ITS UNDERGROUND CHANNEL SAMPLING PROGRAM AT THE RELIQUIAS MINE, PERU Key Highlights – Channel sampling at Reliquias – weighted averages MTC vein (Level 520):
SILVER MOUNTAIN CONTINUES TO REPORT
HIGH GRADE SILVER RESULTS FROM ITS
UNDERGROUND CHANNEL SAMPLING
PROGRAM AT THE RELIQUIAS MINE, PERU
Key Highlights – Channel sampling at Reliquias – weighted averages
MTC vein (Level 520):
130m
with average vein width of
0.73m
@ 553 g/t Ag, 1.27% Pb, 1.37 %
Zn, 0.23 % Cu and 0.83 g/t Au
PAS vein (Level 710):
84m
with average vein width of
0.86m
@ 214 g/t Ag, 0.78% Pb, 1.56%
Zn, 0.06% Cu and 1.51 g/t Au
BEA vein (Level 470):
23m
with average vein width of
0.37m
@ 727 g/t Ag, 1.35% Pb, 1.21%
Zn, 0.24% Cu and 0.33 g/t Au
TORONTO
,
Oct. 17, 2023
/CNW/ - Silver Mountain Resources Inc. ("Silver Mountain" or "the
Company") (TSXV: AGMR) (OTCQB: AGMRF) is pleased to announce that it has received results
from underground channel sampling carried out between June and
August 2023
, part of its ongoing
mine rehabilitation program at its 100% owned Reliquias mine, central
Peru
.
The Company´s crews have continued to systematically sample the underground workings as part of
the preparation work needed to restart operations at Reliquias in the future. A total of 3,499
samples were collected from the Sorpresa ("SOR"), Matacaballo ("MTC"), Perseguida ("PER"),
Meteysaca ("MTS"),
Pozo Rico
("PZR"), Beatita ("BEA"), Pasteur ("PAS") and Vulcano ("VUL")
veins. All samples were collected perpendicular to the veins using portable rock saws.
Alvaro Espinoza
, President and CEO of Silver Mountain, said, "
Our crews have continued to work at
full speed rehabilitating and sampling the workings at the Reliquias Mine. Having readily
accessible tunnels and crosscuts will allow us not only to potentially restart mine production
quickly, but also provide us with sufficient representative data points to increase the confidence in
our resource.
"
Mr. Espinoza continued, "
As Silver Mountain's current exploration phase nears conclusion, we
consistenly see excellent silver grades in known and new veins. Results from the Beatita vein, in
particular, are very encouraging, as they confirm that there are multiple parallel NW-SE vein
systems with grades similar to those found at Perseguida. Reliquias continues to deliver, and we
optimistically look forward to the culmination of the current highly successful exploration phase and
the preparation of an updated mineral resource estimate and publishing a new technical report".
Channel Sampling Results
Silver Mountain geologists collected 3,499 channel samples from 1,046 channels between June and
August 2023
, as part of the Company´s plan to systematically sample the veins exposed in the
Reliquias mine workings. Table 1 and Table 2 show the distribution of samples between the veins
and vein systems, and the compiled weighted results respectively and Figure 1 shows the channel
sampling coverage to date.
Table 1: Distribution of underground channel samples reported in this news release (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 2: Weighted assay results from systematic channel sampling along several veins,
calculated for (CNW Group/Silver Mountain Resources Inc.)
Channel sampling along an 84.40 metre long segment of the easternmost part of the Pasteur
("PAS") vein, on level 710 and near the intersection with the Beatita vein ("BEA"), yielded a weighted
average of 13.80 oz/t AgEq, with an average vein thickness of 0.86 metres. Furthermore, channel
sampling 700 metres to the northwest along the BEA vein, on level 470, highlighted a 23 metre long
segment with an average thickness of 0.37 metres grading 26.81 oz/t AgEq, indicating that high
grade silver extends both laterally and at depth. The Beatita vein is a 2.3 km long northwest-
southwest trending vein, parallel to the Perseguida ("PER") vein system, where some of the highest
grades seen at Reliquias are hosted and it intersects the Pasteur vein system near the latter´s
easternmost sxtension. The BEA vein is not included in the current mineral resource estimate. Figure
2 shows the results from the channel sampling in level 470 of the BEA vein. Figure 3 shows the
results from level 710 of
the PAS
and BEA veins.
Figure 1: Isometric view showing distribution of channel sampling at the Reliquias mine (sampling
announced to date) (CNW Group/Silver Mountain Resources Inc.)
See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated.
Figure 2: Isometric view of Level 470 of the Beatita vein showing the location of systematic channel
sampling. Individual channel samples are colour-coded according to AgEq values. (CNW
Group/Silver Mountain Resources Inc.)
See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated.
Figure 3: Isometric view of Level 710 of the Beatita and Pasteur veins showing the location of
systematic channel sampling. Individual channel samples are colour-coded according to AgEq
values. (CNW Group/Silver Mountain Resources Inc.)
The Meteysaca ("MYS") vein system continues to show high grade silver and base metal grades.
Results from a 130 metre long segment along level 520 from the central part of this NW-SE trending
vein shows an average vein width of 0.73 metres with grades of 553 g/t Ag, 1.27% Pb, 1.37% Zn,
0.23% Cu and 0.85 g/t Au (22.51 oz/t AgEq). Figure 4 shows the sampling from level 520 of the
MYS vein reported here.
See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated.
Figure 4: Isometric view of Level 520 of the Meteysaca vein showing the location of systematic
channel sampling. Individual channel samples are colour-coded according to AgEq values. (CNW
Group/Silver Mountain Resources Inc.)
Sampling elsewhere along a 30 metre segment of the Pasteur vein system ("PAS") on level 642
shows an average vein width of
0.78m
with average grade of 10.69 oz/t AgEq. Figure 5 shows the
location of this sampling interval.
See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated.
Figure 5: Isometric view of Level 642 of the Pasteur vein showing the location of systematic channel
sampling. Individual channel samples are colour-coded according to AgEq values. (CNW
Group/Silver Mountain Resources Inc.)
Channel sampling of the Reliquias mine workings is part of the Company´s strategy of expanding the
current mineral resource estimate by incorporating continuous vein samples from multiple veins in
parallel with the mine rehabilitation and underground diamond drilling programs. Earlier channel
sampling results from samples collected in 2023 were announced on
August 16
th
and
May 9
th
(please visit Silver Mountain´s website
www.agmr.com
for more details).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, currently under way and
approaching its conclusion.
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 and 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:
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%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 17-OCT-23