Silver Mountain Files Ni 43-101 Technical Report FOR Previously Announced Mineral Resource Estimate at the Reliquias MINE
SILVER MOUNTAIN FILES NI 43-101
TECHNICAL REPORT FOR PREVIOUSLY
ANNOUNCED MINERAL RESOURCE
ESTIMATE AT THE RELIQUIAS MINE
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
TORONTO
,
May 15, 2023
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:
AGMRF) (BVL: AGMR) ("
Silver Mountain
", "
AGMR
" or the "
Company
") today announces that it
has filed an independent technical report prepared in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") supporting the maiden mineral resource
estimate ("MRE") for its 100% owned Reliquias mine at the Castrovirreyna Project in Huancavelica,
central
Peru
.
The technical report entitled "NI 43-101 Technical Report Mineral Resources Estimate for the
Reliquias Mine, Huancavelica-Peru" with an effective date of
March 18, 2023
, has been prepared for
Silver Mountain by RREMIN S.A.C. The full report is available on SEDAR (
www.sedar.com
) under
the Company's issuer profile and will be posted on Silver Mountain's website at
www.agmr.ca
. The
Company is pleased to report there are no material differences between the key results,
assumptions and estimates contained in the news release dated
April 12, 2023
, and the content of
the technical report filed today.
Highlights of Mineral Resource Estimate
Measured & Indicated Resources: 861,300 tons containing 2.78 million ounces of silver,
7,100 ounces of gold, 28,800 tons of zinc, 21,400 tons of lead, and 3,400 tons of copper
Inferred Resources: 969,000 tons containing 3.10 million ounces of silver, 6,600 ounces
of gold, 26,100 tons of zinc, 18,800 tons of lead, and 3,300 tons of copper
Mineralization in all three main vein structures is open along strike and at depth,
showing excellent potential to grow with future drilling and underground sampling
.
Comparison of historic resource 2021 with MRE 2022
In the 2021 NI 43-101 Technical Report of the Castrovirreyna project, historic resources were
calculated for both the Reliquias and the Caudalosa mine
1
. In Table 1 (upper part), the historic
resources were recalculated utilizing current long-term prices.
The 2022 exploration campaign focussed on the Reliquias mine, successfully converting a significant
percentage of the historic resources into NI 43-101 compliant mineral resources. Furthermore, the
drilling and sampling program delineated additional resources at depth and to a lesser extent along
strike of the three main veins. The results reported in the news release of
April 12, 2023
, include
both converted and new resources (Fig.1, and lower part of Tab.1).
2
Silver Mountain has rehabilitated over
6,500 m
of underground workings to date. However, during
the 2022 drilling campaign, the upper mine levels were not accessible. Therefore, larger zones
containing historic resources with high-grade Ag-Pb-Zn-Cu-Au mineralization along the upper mine
levels (shown in orange colour in Fig. 2 to 4, also summarized in Fig.1) and along strike remain to be
converted into compliant resources through additional exploration. The rehabilitation of upper mine
levels along several veins is rapidly advancing in 2023, followed by detailed channel sampling and
underground drilling. The aim of the Company is to include those areas of higher-grade mineralization
in an update of the mineral resource estimate planned for Q4 2023.
Additionally, more than 22.3 Moz of Ag plus significant amounts of base metals remain as historical
resources in the Caudalosa mine, which has not been included in the rehabilitation work so far.
__________________________________
1
For additional information regarding the historical resources 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 on the Company's profile on
www.sedar.com
.
2
(i) Historical Resource Estimates Have Been Classified in Accordance with the Cim Definition Standards; (Ii) Historical Resource Estimates Are Not Mineral Reserves or Mineral
Resources and Do Not Have Demonstrated Economic Viability. All Figures Are Rounded to Reflect the Relative Accuracy of the Estimates; (Iii) Information Is As of July, 2019 Source:
Sociedad Minera Reliquias Sac, the Information Is Based on Rm-master pro Quality, C. Rodriguez, Abril 2019; Rm-master pro Quality, C. Rodriguez, Jul19; (Iv) Antonio Cruz
Bermudez, a "Qualified Person" (As Defined in Ni 43-101) Considers That the Historical Resource Estimates Are Relevant for the Proper Understanding of the Castrovirreyna Project
and Additional Exploration, Including Drilling, Could Be Needed to Verify the Historical Estimate As Current Mineral Resources; (V) a Qualified Person Has Not Done Sufficient Work to
Classify the Historical Estimate As Current Mineral Resources or Mineral Reserves; and (Vi) the Company Is Not Treating the Historical Estimate As Current Mineral Resources or
Mineral Reserves.
Fig.1: Diagram showing the 2022 MRE inventory. NI43-101 compliant resources at the Reliquias
mine are shown in light blue and green, whereas remaining historic resources at Reliquias and
Caudalosa are shown in orange colour. Data is displayed using a logarithmic scale. (CNW
Group/Silver Mountain Resources Inc.)
Table 1: Historic resources (2021), restated at current prices, and MRE inventory (2022) (CNW
Group/Silver Mountain Resources Inc.)
Notes:
1.
Mineral Resources described above have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)) Standards on Mineral
Resources and Mineral Reserves, 2014.
2.
The independent qualified persons responsible for the preparation of the technical report supporting the MRE are Antonio Cruz Bermudez, P.Geo., member of the Australian
Institute of Geoscientists (member #7065), and Gerardo Acuña, P.Eng., fellow of the Australasian Institute of Mining and Metallurgy (member #337049, CP Mining), both of
RREMIN S.A.C., Lima, Peru.
3.
Mineral Resources have an effective date of March 18, 2023, using a database current as of December 15, 2022. Antonio Cruz Bermudez is the independent qualified
person responsible for the Mineral Resources estimate.
4.
The Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
5.
There is no certainty that all or part of the estimated Mineral Resources will be converted to Mineral Reserves.
6.
Mineral Resources are reported at US$36.34 NSR cut-off for the polymetallic veins and the long-term prices of the metals considered were Silver US$ 23.29 /oz, Copper US$
9,419 /t, Zinc US$ 2,813 /t, and Lead US$ 2,188 /t.
7.
Metallurgical recoveries for polymetallic veins are based on historical recovery by the previous operator CMC: Ag= 73.00%, Pb= 83.00%, Zn= 71.00%, Cu= 85.00%. Initial
metallurgical test work carried out by Silver Mountain in 2022 indicates potential to achieve significantly higher recoveries.
8.
The average density was calculated from drill core samples for all the veins and the average value used for the calculation of tonnage is 2.76 t/m
3
.
9.
The MRE is based on block model with a block size of 2.0 m x 2.0 m x 2.0 m.
10.
Tonnage has been expressed in the metric system, and the precious metal content (Ag, Au) has been expressed in troy ounces.
11.
Mineral Resource tonnes are rounded to the nearest 1,000 tonne and precious metal content has been rounded to the nearest 1,000 oz. Totals may not add due to rounding.
12.
The reported Mineral Resources are not diluted.
13.
The Mineral Resources reported do not include mined-out areas.
14.
Antonio Cruz Bermudez is not aware of factors or issues that could materially affect the mineral resource estimate other than normal risks faced by mining projects, in
terms of environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant factors, and additional risk factors regarding inferred resources.
The estimated tonnage considered for the MRE is contained in five main veins (Matacaballo,
Sacasipuedes, Meteysaca, Ayayay, and Sorpresa) and 14 vein splays. The NI 43-101 compliant
resources reported in the MRE are located predominantly below Level 480 of the Reliquias deposit,
due to restricted accessibility of underground workings during the 2022 drilling campaign. To
highlight the potential to grow high-grade silver resources at the Reliquias mine, long sections of the
three main veins are included below (see Fig.2 to 4). Areas with remaining historic resources are
shown in orange colour, these are the focus of the ongoing rehabilitation work of upper mine levels
and subsequent detailed geological evaluation.
Fig.2: Cross section of the Matacaballo vein, at the Reliquias mine, showing areas of converted
resources in light blue and newly added resources in light green. Zones containing historic resources
(shown in orange) remain on upper mine levels and are the focus of ongoing rehabilitation and
exploration. (CNW Group/Silver Mountain Resources Inc.)
At the
Sacasipuedes
vein, the cross section (Fig.3) shows that larger zones on the southeastern
side of the structure, containing 291,000 tons of historic resources, remain to be evaluated and re-
categorized through future exploration.
At the
Meteysaca
structure (Fig.4), levels 520 and 560 have already been rehabilitated in early
2023. Currently, underground mapping and sampling is being carried out, with the objective of
including mineralization along those levels in an upcoming resource estimate.
Fig.3: Cross section of the Sacasipuedes vein, at the Reliquias mine, showing areas of converted
resources in light blue and newly added resources in light green. Large zones containing historic
resources (shown in orange) remain on upper mine levels and along strike, which are the focus of
ongoing rehabilitation and exploration. (CNW Group/Silver Mountain Resources Inc.)
Fig.4: Cross section of the Meteysaca vein, at the Reliquias mine, showing areas of converted
resources in light blue and newly added resources in light green. Zones containing historic resources
(shown in orange) remain along strike and on upper mine levels, which are the focus of ongoing
rehabilitation and exploration. (CNW Group/Silver Mountain Resources Inc.)
On Behalf of the Board of Directors of Silver Mountain Resources Inc.
Alvaro Espinoza
, Chief Executive Officer
Qualified Person
Antonio Cruz Bermudez
, 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 40,000 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 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 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/May2023/15/c3833.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, +51 997 377 968,
[email protected], www.agmr.ca
CO: Silver Mountain Resources Inc.
CNW 17:00e 15-MAY-23