Silver Mountain Resources Reports AG-Pb-Zn Vein Intersections from the UG Resource Validation Drilling at Its Reliquias MINE IN PERU
SILVER MOUNTAIN RESOURCES REPORTS
AG-PB-ZN VEIN INTERSECTIONS FROM THE
UG RESOURCE VALIDATION DRILLING AT ITS
RELIQUIAS MINE IN PERU
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
TORONTO
,
June 7, 2022
/CNW/ - Silver Mountain Resources Inc. ("
Silver Mountain
",
"AGMR"
or
the "
Company
") is pleased to announce that diamond drilling is well underway at its Reliquias
underground silver mine in Huancavelica, central
Peru
, with the first holes intersecting Ag-Pb-Zn
mineralization in the Matacaballo Vein resource area and samples having been sent to the lab for
assaying. 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).
1
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.
Alfredo Bazo
, President & CEO comments: "
We are delighted to report that underground drilling is
progressing well at Reliquias with two drills operating, and 14 holes completed to date.
Encouraging is that the first holes designed to confirm historical resources have intersected Ag-Pb-
Zn mineralization where modelled close to existing mine workings, in zones where historic
sampling by the previous operator consistently returned values between 10 and 30 oz AgEq in the
same vein. We expect to have full assays in the coming weeks to hopefully validate these grades,
for now we remain encouraged by this first round of confirmatory drilling
."
The fully funded 2022 drill program will total
12,000 m
of diamond core from 70 holes averaging 150
-
200 m
in depth. Drilling has started on
April 22
from platform 7 (Fig.2) with the first drill rig, to test
the
Matacaballo vein
. Upon completion of the first hole, this rig continued to investigate different
sections of the same mineralized structure with additional drill holes.
Fig.1: Close-up view of mineralized intervals of drill hole SMR-01-22-MTC; photo A: brecciated vein,
multiple quartz generations, matrix consists of tetrahedrite, sphalerite, galena, rhodochrosite, 260.20
m depth; photo B: quartz – sulphide vein displaying brecciation and late quartz / rhodochrosite
veining, visible sulphides include tetrahedrite, galena, sphalerite, 264.15 m depth (CNW Group/Silver
Mountain Resources Inc.)
A second drill rig was mobilized and commenced drilling on
April 25
from drill chamber 2, aimed at
testing the
Sacasipuedes vein
(Fig.2). By utilizing two drill rigs, Silver Mountain strives for
completion of the program by approximately end of
October 2022
. The main objective of this
program is to convert current historical resources of 80.8
Moz Ag
(3.02 Mt @ 384 g/t Ag, 3.2% Zn,
2.7% Pb, and 1.4% Cu) into NI 43-101 compliant mineral resources in H1 2023 that will form the
basis of our restart decision in H2 2023. In addition, the Company aims to better characterize and
extend the known silver-rich zones at depth (Fig.3 and 4).
2
The Company's first drill hole, SMR-01-22-MTC, intercepted the
Matacaballo vein
approximately
28
m
vertically below the closest existing mine level, sublevel 745-2. Based on initial observations of the
drill core, the mineralized structure is best developed between
258.20 m
and
270.15 m
down-hole
(estimated true width
11.2 m
), within a wider interval showing silicification and argillic alteration of
the andesitic host rocks (Fig.5).
In this intersection, the Matacaballo structure displays several phases of quartz veining and
brecciation. Sulphides occur as breccia matrix together with grey to milky quartz, or in pods and
disseminations within quartz veinlets (Fig.1). Based on visual estimates, total sulphide content varies
from 3% to over 20%, containing tetrahedrite and other silver sulpho-salts, sphalerite, galena, and
minor chalcopyrite.
Since drill holes SMR-01-22-MTC and SMR-02-2022-SCS were completed in early
May 2022
,
geochemical assays are not available yet. Only for the purpose of comparison, historic sampling by
the previous operator along sublevels 745-2 and 290-2 respectively, the nearest underground drifts,
consistently returned values between 10 and 30 oz AgEq in the same vein. After completion of
detailed logging and sampling of these and subsequent bore holes, the drill core samples will be
shipped to ALS Ltd., one of the leading commercial laboratories, for preparation and analytical
geochemistry services. Geochemical assay results will be published as soon as they become
available.
Fig.2: Plan view of underground drilling program at the Reliquias silver mine, showing underground
workings, main mineralized veins, drill platforms, and traces of planned bore holes. Inset map shows
Reliquias property block with locations of both silver mines and the processing plant (CNW
Group/Silver Mountain Resources Inc.)
Fig.3: Longitudinal section of the Matacaballo vein, showing current resources and potential at depth
(based on historical data). The completed and programmed drill holes are also displayed. (CNW
Group/Silver Mountain Resources Inc.)
Fig.4: Longitudinal section of the Sacasipuedes vein, showing current resources and potential at
depth (based on historical data). The completed and programmed drill holes are also displayed.
(CNW Group/Silver Mountain Resources Inc.)
Fig.5: Drill hole SMR-01-22-MTC, core boxes 65 to 68, displaying interval from 250.15 m to 268.05
m depth; based on drill core observations, the mineralized zone starts at 258.20 m down-hole
(indicated by red arrow) and extends to 270.15 m beyond the end of core box 68 shown on the
bottom right (CNW Group/Silver Mountain Resources Inc.)
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 National Instrument 43-101.
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
.
Silver Mountain's subsidiary Sociedad Minera Reliquias S.A.C. owns 100% of its concessions and
holds more than 27,000 hectares 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 timing and 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.
________________________________
1
Acosta Ale, J., Santisteban, A., & Huanacuni, D. (2015).
Lead and Zinc in Peru: Resources and Supply Trends
. Instituto Geológico Minero Y Metalúrgico -
https://repositorio.ingemmet.gob.pe/handle/20.500.12544/3350
2
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 at https://sedar.com/DisplayProfile.do?
lang=EN&issuerType=03&issuerNo=00052252.
SOURCE
Silver Mountain Resources Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/June2022/07/c2732.html
%SEDAR: 00052252E
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]
CO: Silver Mountain Resources Inc.
CNW 12:33e 07-JUN-22