Silver Mountain Resources Announces 2022 Exploration Program at Its Reliquias Underground Silver MINE and Other Prospective Properties
SILVER MOUNTAIN RESOURCES
ANNOUNCES 2022 EXPLORATION PROGRAM
AT ITS RELIQUIAS UNDERGROUND SILVER
MINE AND OTHER PROSPECTIVE
PROPERTIES
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
TORONTO
,
March 8, 2022
/CNW/ - Silver Mountain Resources Inc. ("
Silver Mountain
" or the
"
Company
") is pleased to announce its 2022 exploration program at its Castrovirreyna Project
located in central
Peru
(the "Expiration Program"). The primary focus of the Exploration Program will
be to convert and expand the current historical resources of the Reliquias silver underground mine at
the Castrovirreyna Project into a National Instrument 43-101 –
Standards of Disclosure for Mineral
Projects
("NI 43-101") compliant mineral resource.
Alfredo Bazo
, President & CEO,
commented,
"We are very excited to start this drilling program at
our flagship project with a focus on the Reliquias silver underground mine, where we see excellent
potential to validate and grow the historical resources. We also expect that our program will add
new discoveries by diligently exploring our promising brownfield and greenfield targets."
The Huancavelica region, and especially the Castrovirreyna mining district, is known to host
significant precious metal and polymetallic deposits such as Julcani (101
Moz Ag
past production)
and San Genaro (>60
Moz Ag
past production; data source for both mines: Acosta et al.,
INGEMMET, 2015). Silver Mountain, through its subsidiary Sociedad Minera Reliquias S.A.C.,
controls over of 27,000 hectares in this belt, mostly within the prospective Reliquias and Dorita
property blocks.
2022 Exploration Program
A major part of the Exploration Program will be directed towards drilling the Reliquias silver deposit
both from surface and underground. Approximately 15% of the budget will be allocated to conduct
brownfield exploration on the large, highly prospective land package surrounding the former
operations (Fig.1). Funding has also been earmarked for regional exploration at the Dorita claim
block and other regional exploration targets.
The Exploration Program is planned as follows:
Reliquias underground drilling program of
12,000m
, sampling, and mapping;
Reliquias and Caudalosa Grande surface drilling program of
17,000 m
, and geochemical
sampling;
Brownfield Exploration on Reliquias claim block: surface mapping, geochemistry, and
geophysics; and
Dorita claim block: geological mapping, geophysics, and geochemistry.
Figure 1: Silver Mountain’s Reliquias land package. The map shows the large number of identified
veins and fault structures and associated argillic alteration zones. (CNW Group/Silver Mountain
Resources Inc.)
Reliquias Underground Drilling Program
At the Reliquias underground mine, over 10 silver-rich polymetallic veins have been recognized along
NW-SE and E-W striking trends. Examples of historic drill intersections include 2,784 grams per
tonne (g/t) of silver over
1.05 m
for the Vulcano vein and 1124 g/t of silver over
0.9 m
for the
Perseguida vein.
(1)
Based on historic exploration at the Reliquias mine, the previously identified
mineralization remains open along strike and at depth.
The proposed 2022 underground drilling program of 70 holes for a total of
12,000 m
is expected to
validate historical resources that are within the most promising vein structures. In addition, the drilling
will also aim at extending the known silver-rich zones at depth. Furthermore, an extensive
underground mapping and sampling program will be carried out in the historic mine workings to
better understand the geology and controls of the mineralization and update the 3D mineral model
for future mineral resource estimations.
Reliquias and Caudalosa Grande Surface Drilling
After completion of the underground drilling, a
13,000 m
drilling program will commence on surface in
the area of the Reliquias and Caudalosa Grande mines once the respective permits have been
granted. As the mineralized structures extend for considerable strike length on the Silver Mountain's
concession block (Fig.1), there is potential to add mineral resources at or near surface. The drilling
campaign will evaluate known high-grade silver zones and test potential extensions of the principal
vein structures. This program will be complemented by detailed geological mapping of the most
prospective zones and extensive rock sampling.
Reliquias Block Brownfield Exploration
The Company intends to allocate funds in 2022 to conduct brownfield exploration on the large, highly
underexplored land package surrounding the former mines. At the Caudalosa Grande mine, at least
six veins with silver-rich historic resources are known. A mineralized corridor with a strike length of
up to 5 km has been identified, returning high-grade silver values in rock samples on surface.
(1)
This
corridor extends from Caudalosa northwest towards the Poetas target and towards the west to the
Bonanza – Yahuarcocha targets, respectively (Fig. 1).
The brownfield program includes geological mapping of the veins and breccias zones outcropping
within the large alteration zone. It will be accompanied by a widespread rock sampling program, and
geophysical surveys of the most promising targets.
Dorita Block
The large Dorita concession block is located approximately 25 km northwest of the Reliquias mine.
Breccias and vein systems hosted by volcanic and volcanoclastic rocks have been identified on these
claims, surrounded by a widespread alteration zone (Fig.2). At Dorita, small-scale underground
exploitation was carried out by a previous owner, based on silver-rich polymetallic veins that appear
to transition from high to intermediate sulphidation. Further west, the Huancarpusca target displays
typical alteration features of a high-sulphidation system.
The exploration program for the Dorita claims will consist of detailed mapping and geochemical
sampling followed by a geophysical survey. Applications for drill permits have already been filed to
allow for drill testing of the best targets later in 2022 once the permits are granted.
Figure 2: Silver Mountain’s Dorita land package. The map shows the main exploration targets Dorita
and Huancarpusca within large alteration zones. (CNW Group/Silver Mountain Resources Inc.)
For additional information in respect of the Castrovirreyna Project, please refer to the Company's
technical report entitled "National Instrument 43-101 Technical Report – Castrovirreyna Project,
Peru
", dated
October 6, 2021
and amended
November 18, 2021
with an effective date of
August
17, 2021
, (the "Castrovirreyna Technical Report") and available on the Company's profile at
www.sedar.com
.
On Behalf of the Board of Directors of Silver Mountain Resources Inc.
Alfredo Bazo, Chief Executive Officer and Director
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by
Jose Vizquerra
, a Director of the Company and a Qualified Person within the meaning
of NI 43-101.
Notes
(1) Please refer to the Castrovirreyna Technical Report. The potential quantity and grade of
mineralization described herein is conceptual in nature as there has been insufficient exploration to
define a Mineral Resource and it is uncertain if further exploration will result in targets being
delineated as a Mineral Resource.
About Silver Mountain
Silver Mountain Resources Inc. is a silver explorer and mine developer planning to re-start
production at the Reliquias underground mine and undertake exploration activities at its prospective
silver camps at the Castrovirreyna project in Huancavelica,
Peru
.
Silver Mountain's subsidiary Sociedad Minera Reliquias S.A.C. owns 100% of its concessions and
holds more than 27,000 ha in the district of Castrovirreyna, Huancavelica,
Peru
.
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 in this news release include, but are not limited to, statements in respect of the
Company's proposed Exploration Program and the potential results thereof.
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
. 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:
Alfredo Bazo, President, CEO & Director, [email protected]; Jean
Pierre Fort, Chief Financial Officer, [email protected]; Silver Mountain Resources Inc, 82 Richmond
Street East, Toronto, ON M5C 1P1, [email protected], (647) 262 4017
CO: Silver Mountain Resources Inc.
CNW 07:00e 08-MAR-22