Underground drilling encountered high-grade silver-polymetallic intercepts in the Perseguida and Pozo Rico veins and adjacent vein splays, including: 7.50m
SILVER MOUNTAIN REPORTS FINAL DRILL
HOLES OF 2022 DRILL CAMPAIGN AT THE
RELIQUIAS MINE
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO
THE UNITED STATES
/
Highlights
Underground drilling encountered high-grade silver-polymetallic intercepts in the
Perseguida and Pozo Rico veins and adjacent vein splays, including:
7.50m
@ 260.76 g/t Ag, 1.25% Pb, 2.19% Zn, 0.10% Cu, and 2.27 g/t Au in the
Perseguida
vein
, in drill hole SMR-69-22-MTC, including
0.75m
@ 611.00 g/t Ag, 4.00% Pb, 9.00% Zn, 0.44% Cu, and 14.20 g/t Au
1.60m
@ 296.59 g/t Ag, 2.78% Pb, 6.32% Zn, 0.04% Cu, and 0.99 g/t Au in the
Perseguida
vein
, in drill hole SMR-68-22-MTC, including:
0.55m
@ 565.00 g/t Ag, 7.50% Pb, 17.20% Zn, 0.06% Cu, and 1.50 g/t Au
0.60m
@ 180.00 g/t Ag, 0.24% Pb, 0.29% Zn, 0.03% Cu, and 1.15 g/t Au in the
Pozo Rico
vein
, in drill hole SMR-65-22-PZR
TORONTO
,
March 8, 2023
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:
AGMRF) (BVL: AGMR) ("
Silver Mountain
", "
AGMR
" or the "
Company
") is pleased to provide the
assay results from the last drill holes of its 2022 underground drilling campaign with a total of 16,955
metres drilled in 71 bore holes at the Company's 100% owned Reliquias silver mine in Huancavelica,
central
Peru
.
1
The assay results of 7 holes drilled to test the Pozo Rico, Perseguida, Matacaballo,
Vulcano, and Escondida veins are reported in this release (Table 1).
Pozo Rico vein system
Located between 120 and
280 m
southwest and subparallel to the Sacasipuedes vein, the Pozo
Rico system includes at least 6 structures that have been identified through surface mapping with a
combined strike length of at least
490 m
(Fig.1). Only two vein splays of the Pozo Rico vein system
have seen restricted historic underground exploitation along two levels. Two exploratory bore holes
were programmed to investigate the vein system at depth, especially the splays closest to the
Sacasipuedes structure. Drill hole SMR-65-22-PZR intercepted four different splays of the Pozo
Rico system, with the best intercept returning
0.60 m
@ 180 g/t Ag, 0.24% Pb, 0.29% Zn, and 1.15
g/t Au (Tab.1). The second hole passed initially through a remaining pillar of the Sacasipuedes
structure, which assayed
1.45 m
@ 184 g/t Ag, 2.65% Pb, 4.67% Zn, 1.75% Cu, and 0.27 g/t Au.
Further downhole, three distinct Pozo Rico vein splits were intercepted, with up to 67 g/t Ag, 1.2%
Pb, 1.9% Zn, 0.24% Cu, and 1.29 g/t Au over widths of 0.50 to
0.75 m
.
________________________________
1
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.
Fig. 1: Plan view of underground drilling program at the Reliquias silver mine, showing traces of drill
holes completed in 2022 (in blue). The seven holes reported in this release are labelled and
highlighted in bold green lines. Additionally, underground workings, main mineralized veins, and drill
platforms are displayed. Inset map shows Reliquias property block with locations of both silver
mines and the processing plant. (CNW Group/Silver Mountain Resources Inc.)
Perseguida vein system
The four initial drill holes testing the Perseguida vein were aimed below existing historic workings
(see news release published
January 25
). Subsequently, the drill platform C-11 was prepared on the
historic haulage level 701 of the Perseguida structure (see longitudinal section, Fig.2), which was
used to complete three bore holes: SMR-67, SMR-68, and SMR-69. Two drill holes intercepted the
Perseguida vein and two splays in the first 50 metres of the hole, before continuing drilling towards
the Matacaballo vein. The downhole drill intercepts of the Perseguida vein returned strongly
mineralized intervals with
7.50m
@ 260.76 g/t Ag, 1.25 Pb, 2.19% Zn, 0.10% Cu, and 2.27 g/t Au in
hole SMR-69-22-MTC and
1.60m
@ 296.59 g/t Ag, 2.78% Pb, 6.32% Zn, 0.04% Cu, and 0.99 g/t
Au in hole SMR-68-22-MTC (Tab.1). The third hole, SMR-67-22-MTC, was drilled at a different
azimuth to test the Matacaballo structure to the east of previous intercepts. Unfortunately, this drill
hole had to be abandoned at
147.40 m
due to technical difficulties, just after encountering three
different splays of the Perseguida vein which returned up to 274 g/t Ag, 2.4% Pb, 5.7% Zn, and 1.84
g/t Au over widths of 0.30 to
1.20 m
.
Fig. 2: Longitudinal section of the Perseguida vein, at the Reliquias mine, displaying historic mine
levels and unmined mineralized blocks. Pierce points of completed drill holes are shown as blue
circles, with corresponding assay results in gray boxes. (CNW Group/Silver Mountain Resources
Inc.)
Vulcano and Escondida structures
The eastern part of the Reliquias mine has seen extensive exploitation from several levels developed
on the Pasteur and Vulcano veins, with reportedly high-grade silver mineralization encountered near
surface.
2
Due to the lack of access to lower mine levels on these veins in Q4 2022, the drill chamber
C12 was prepared just inside the adit of the Ramp 759 (Fig.1), basically above the historic
workings. Hole SMR-70-22-VUL was drilled with a northwesterly azimuth with the intent to test the
Vulcano vein. At
33.45 m
depth, it intercepted a
2.30 m
-wide interval of mineralized veins splays
correlated to the Pasteur vein, with the best interval returning 170 g/t Ag, 1.5% Pb, 2.6% Zn, and
1.17 g/t Au over
0.50 m
(Tab.1). A few meters downhole, a void over
3 m
wide was encountered -
most likely an undocumented historic working - and the hole had to be abandoned.
_________________________________
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 on the Company's profile on www.sedar.com.
The second bore hole programmed from this platform was SMR-71-22-ESC, aimed at investigating
the extension of the Perseguida system, also called Escondida vein, more than
600 m
to the
southeast of existing drill intercepts. In this hole, vein splays returning up to 501 g/t Ag and 1.24 g/t
Au with thicknesses between 0.30 and
1.10 m
were observed. Hole SMR-71 had a target depth of
460 m
to reach the Escondida vein, but had to be terminated at
394.55 m
due to technical difficulties
in advancing through a fault zone.
Alfredo Bazo
, President and CEO, commented:
"The drill holes reported today were aimed at
expanding our knowledge of additional veins, 100s of metres beyond the main mine workings.
These exploratory holes identified very promising intercepts from the Perseguida and Pozo Rico
structures which warrant follow-up drilling during the upcoming drill campaign.
To further explore
the Pozo Rico vein system in the vicinity of existing workings, additional drill holes will be
completed during the coming months. A crosscut leading to the 390 level of the northern branch of
the Pozo Rico vein is already undergoing rehabilitation, with the objective of carrying out detailed
mapping and channel sampling.
Simultaneously, our mine rehabilitation work is currently
advancing towards the eastern part of the Reliquias mine. This will allow us to prepare drill
platforms that are better suited to test the Pasteur, Vulcano, and Escondida veins below and
laterally of historic mine workings."
The following table shows the results of mineralized intercepts encountered in the seven drill holes
reported in this news release in more detail.
Table 1: Weighted assay results of seven drill holes testing the Pozo Rico, Matacaballo, Perseguida,
and Vulcano vein. Intervals are downhole drilled core intervals. Drilling data to date is insufficient to
determine true width of mineralization. (CNW Group/Silver Mountain Resources Inc.)
Fig. 3: Longitudinal section of the Perseguida vein, at the Reliquias mine, displaying historic mine
levels and unmined mineralized blocks. Pierce points of completed drill holes are shown as blue
circles, with corresponding assay results in gray boxes. (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
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 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 39,000 hectares in the district of Castrovirreyna, Huancavelica,
Peru
.
Silver Mountain Resources Inc,
82 Richmond Street East
Toronto, ON
M5C 1P1
647-262-4017
www.agmr.ca
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. 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/March2023/08/c5477.html
%SEDAR: 00052252E
For further information:
Alfredo Bazo, President, CEO & Director, [email protected]; Jean Pierre
Fort, Chief Financial Officer, [email protected]
CO: Silver Mountain Resources Inc.
CNW 07:00e 08-MAR-23