Silver Mountain Reports New Underground Channel Sampling Results from the Sacasipuedes and Matacaballo Veins, Reliquias MINE
SILVER MOUNTAIN REPORTS NEW
UNDERGROUND CHANNEL SAMPLING
RESULTS FROM THE SACASIPUEDES AND
MATACABALLO VEINS, RELIQUIAS MINE
Highlights:
1.53m
@ 510.60 g/t Ag, 19.77% Pb, 12.14% Zn, 5.60% Cu, and 0.16 g/t Au (SCS vein)
2.08m
@ 247.49 g/t Ag, 1.95% Pb, 4.92% Zn, 2.64% Cu, and 0.26 g/t Au (SCS vein)
2.32m
@ 114.23 g/t Ag, 5.65% Pb, 7.93% Zn, 1.08% Cu, and 0.20 g/t Au (SCS vein)
0.81m
@ 231.06 g/t Ag, 4.50% Pb, 8.30% Zn, 0.79% Cu, and 2.79 g/t Au (MTC vein)
1.52m
@ 231.72 g/t Ag, 8.25% Pb, 6.92% Zn, 0.96% Cu, and 0.32 g/t Au (MTC vein)
TORONTO
,
May 9, 2023
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:
AGMRF) (BVL: AGMR) ("
Silver Mountain
", "
AGMR
" or the "
Company
") is pleased to announce
new results from underground channel sampling at the Reliquias silver mine in Huancavelica, central
Peru
. To complement the drill campaigns and to facilitate the conversion of additional historic
resources into an updated National Instrument 43-101 –
Standards of Disclosure for Mineral
Projects
("NI 43-101") compliant mineral resource in Q1 2024, an extensive underground mapping
and sampling program is continuing at Reliquias. Several existing drifts and sublevels were mapped
and systematically sampled along channels cut across the exposed veins.
The best channel results were obtained from the
Sacasipuedes
structure on sublevel 290, which is
currently accessible over
16 m
of strike length (Fig.1 and Table 1). The mineralization is well
developed over the exposed shoot, with the vein thickness averaging
1.93 m
. The weighted average
assay results returned 210.90 g/t Ag, 6.25% Pb, 7.14% Zn, 2.14% Cu, and 0.34 g/t Au.
Along the sampled levels of the
Matacaballo
vein, the mineralization is best developed in Zone 5 on
Level 390, which extends over
51 m
along strike, with a weighted average of 194.74 g/t Ag, 4.67%
Pb, 5.85% Zn, 1.17% Cu, and 0.33 g/t Au over an average vein width of
1.29 m
(Fig.2 and Table 2).
Sacasipuedes Vein (SCS)
Fig. 1 displays the underground channel sampling results for the Sacasipuedes vein on sublevel 290
situated approximately
60 m
below the main haulage level 390. On this and other sampled mine
levels, various zones returned high-grade Pb and Zn grades, moderately high Ag and Cu values, and
promising Au values (8 individual channel samples above 1 g/t Au, with highs of 13.75 and 15.55 g/t
Au).
Figure 1: Isometric view of Sublevel 290, Sacasipuedes vein, and adjacent workings at the Reliquias
silver mine, showing the location of systematic channel sampling. Adjoining workings on the 290
sublevel along strike further to the southwest are currently inaccessible. Individual channel samples
are shown within Zone 1, colour-coded according to Ag values. Length, average thickness, and
metal grades of Zone 1 are provided above the image and in Table 1 in the text below. In the inset
map, underground workings, main mineralized veins, and drill hole traces from the 2022 drill program
are displayed, with the location of the shown segment of Sublevel 290, Sacasipuedes vein, indicated
by a red rectangle. (CNW Group/Silver Mountain Resources Inc.)
Table 1: Weighted assay results from systematic channel sampling along the Sacasipuedes vein,
calculated for contiguous zones on each level. Levels 390, 365, and sublevels 730 and 290 were
developed along the main Sacasipuedes vein, while on sublevel 745 mining also followed a vein
splay. (CNW Group/Silver Mountain Resources Inc.)
Matacaballo Vein (MTC)
On levels 390 and 365 of the Matacaballo vein, various zones of well-developed mineralization are
exposed over approximately
210 m
in a horizontal direction and additionally
25 m
vertically. The
central part of Level 365 was exploited in the past (see Fig.2), indicating prior occurrence of
economic mineralization. The underground sampling results from the Matacaballo vein confirm the
continuity of high- to medium-grade polymetallic mineralization within the structure, with significant
concentrations of silver (Ag), lead (Pb), zinc (Zn), and copper (Cu). Gold grades, ranging on
average between 0.16 g/t and 1.02 g/t on both levels 365 and 390, correlate well with previously
reported values from Sublevel 735-1 located above and to the east (see news release
December 7,
2022
). To highlight the consistency of this vein system, the grades and widths of channels were
averaged over each of the seven zones shown in Fig. 2 (see Tab. 2 for results).
Table 2: Weighted assay results from systematic channel sampling along the Matacaballo vein,
calculated for each of the zones displayed in Fig. 2. Levels 390 and 365 were developed along the
main Matacaballo vein, whereas Level 340 followed a vein splay, named Matacaballo South vein.
(CNW Group/Silver Mountain Resources Inc.)
Figure 2: Isometric view of Levels 390 and 365, Matacaballo vein, at the Reliquias silver mine,
showing the location of systematic channel sampling along the main 390 haulage level and adjacent
workings. Individual channel samples are shown within seven zones, colour-coded according to Ag
values. Length, average thickness, and metal grades of each zone are provided in Table 2 in the text
above. In the inset map, underground workings, main mineralized veins, and drill hole traces from the
2022 drill program are displayed, with the location of the shown segment of Level 390, Matacaballo
vein, indicated by a red rectangle. (CNW Group/Silver Mountain Resources Inc.)
Alvaro Espinoza
, CEO, commented:
"We are delighted about these sampling results, proving
moderate- to high-grade polymetallic mineralization over several levels in two of our most
important vein structures. The sampled sublevels are located close to existing infrastructure, most
significantly the main haulage level 390. The grades encountered on Level 290 of the
Sacasipuedes vein over the exposed strike length of
16 m
, with an average vein thickness of
1.93
m
averaging 210.9 g/t Ag, 6.25% Pb, 7.14% Zn, 2.14% Cu, and 0.34 g/t Au, are especially
promising. The 290 level is currently the lowest working of the Reliquias mine, which emphasizes
the potential of adding high-grade mineralization in this structure further towards depth."
The following tables provide more details regarding the channel sample results reported today from
the Sacasipuedes and Matacaballo vein structures. In total, geochemical assays have been received
for 1,007 rock channel samples taken from Levels 390, 365, 290, and adjacent workings of the
Sacasipuedes vein and from Levels 390, 365, and 340 of the Matacaballo vein (Tables 3 and 4).
Table 3.1: Assay results of systematic channel sampling, Sacasipuedes vein, on Levels 290, 730,
365, and 390 of the Reliquias mine. (CNW Group/Silver Mountain Resources Inc.)
Table 3.2: Assay results of systematic channel sampling, Sacasipuedes vein, on Levels 290, 730,
365, and 390 of the Reliquias mine. (CNW Group/Silver Mountain Resources Inc.)
Table 4.1: Assay results of systematic channel sampling, Matacaballo Vein, Reliquias mine, on
Levels 390, 365, and 340. Channels shown without a zone ID are located outside the main workings
and were not included in the calculation of weighted averages for each zone. (CNW Group/Silver
Mountain Resources Inc.)
Table 4.2: Assay results of systematic channel sampling, Matacaballo Vein, Reliquias mine, on
Levels 390, 365, and 340. Channels shown without a zone ID are located outside the main workings
and were not included in the calculation of weighted averages for each zone. (CNW Group/Silver
Mountain Resources Inc.)
Table 4.3: Assay results of systematic channel sampling, Matacaballo Vein, Reliquias mine, on
Levels 390, 365, and 340. Channels shown without a zone ID are located outside the main workings
and were not included in the calculation of weighted averages for each zone. (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
The scientific and technical information contained in this news release has been reviewed and
approved by
Antonio Cruz
, an independent consultant of the Company and a Qualified Person within
the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
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 on
the Company's profile on
www.sedar.com
. A new technical report, titled NI 43-101 Technical Report
Mineral Resource Estimate for the Reliquias Mine, Huancavelica-
Peru
, dated
March 28, 2023
,
effective date
March 18, 2023
, will be made available shortly at
https://sedar.com
.
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
.
www.agmr.ca
Sampling Methodology, QA/QC and Analytical Procedures
Silver Mountain follows systematic and rigorous sampling and analytical protocols which meet
industry standards. These protocols are summarized below.
Samples were taken using an electric percussion hammer to produce a channel perpendicular
across the veins and mineralized structures. By cutting a continuous channel approximately 3-5 cm
deep by 10 cm wide, the channel samples essentially equal a drill core in their significance for future
resource estimation. Where the structure is exposed along the back of the drift, channels were cut
across the vein systematically every
4 m
. Channel lengths range between
0.15 m
and
2.57 m
.
All 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 assaying. Silver Mountain independently inserts
certified control standards (purchased from OREAS and Target Rocks), 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 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,
Au) 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.
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For further information:
Alvaro Espinoza, CEO, [email protected]; Silver Mountain Resources
Inc, 82 Richmond Street East, Toronto, ON M5C 1P1, +51 997 377 968, [email protected]
CO: Silver Mountain Resources Inc.
CNW 07:00e 09-MAY-23