Silver Storm Announces 107% Increase IN Indicated Mineral Resources at LA Parrilla
NEWS RELEASE
SILVER STORM ANNOUNCES
107% INCREASE IN INDICATED MINERAL RESOURCES AT LA PARRILLA
Toronto, Ontario, February 11, 2025: Silver Storm Mining Ltd. (“ Silver Storm” or the " Company")
(TSX.V: SVRS | OTC: SVRSF | FSE: SVR), is pleased to announce the results of an updated Mineral
Resource estimate (“ Updated Mineral Resource Estimate ”) reported in compliance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) for the Company’s 100%
owned La Parrilla Silver Mine Complex, located in Durango Mexico. The Updated Mineral Resource
Estimate was completed by David F. Machuca -Mory, PhD, PEng, of SRK Consulting (Canada) Inc.
(“SRK”).
Highlights of the Updated Mineral Resource Estimate include:
• 107% increase in Indicated Mineral Resources, from 5.2 Moz Ag.Eq1,2 in the 2023 Mineral
Resource Statement to 10.8 Moz Ag.Eq
• 58% increase of Inferred Mineral Resources , from 10.3 Moz Ag.Eq in the 2023 Mineral
Resource Statement to 16.3 Moz Ag.Eq
• Approximately 90% of the Indicated and 85% of the Inferred Mineral Resource tonnage
is sulphide mineralization; 10% of the Indicated and 15% of the Inferred Mineral
Resource tonnage is oxide mineralization
• Silver dominant: 66% of the Indicated and 69% of the Inferred Updated Mineral Resource
gross metal value is derived from silver
• 23 additional mineralized structures have been modelled, including several that were
previously mined by the former operator, with significant upside potential
• Total all-in exploration cost of US$0.22/oz Ag.Eq discovered
Greg McKenzie, President and CEO, commented, “We are incredibly pleased with this latest
resource update. We achieved a material 107% increase in Indicated Resources and there was also
a significant increase in Inferred Resources at La Parrilla . With further drilling, we would expect to
maintain a continued conversion rate. The Company is now very well positioned , having a fully
permitted silver mine complex, with a sizable Mineral Resource endowment that could potentially feed
the La Parrilla processing plant for several years.
Our sizable Mineral Resource growth in both classification categories is a testament to the hard work
and dedication of the team including Will Ansley, COO and Bruce Robbins , P.Geo, our exploration
personnel, operating employees and drilling contractor. Silver Storm completed 18,626 metres (“m”)
of underground drilling, demonstrating that the previously mined zones continue down plunge and in
certain cases even show improved grade and thickness at depth. This significant growth in Mineral
Resources enhances the potential of our project , supports our goal to restart the mine and join the
exclusive rank of silver producers.”
The wireframe models of the veins contributing to the updated Mineral Resource Estimate of Rosarios
and Quebradillas mines are presented in Figure 1 and Figure 2, respectively.
Figure 1: Plan View of Mineral Resource Estimate Vein Wireframes at the Rosarios Mine
Figure 2: Plan View of Mineral Resource Estimate Vein Wireframes at the Quebradillas Mine
Mineral Resources Summary
Indicated Mineral Resources are estimated at 1,197,000 tonnes (“t”) grading 280 g/t Ag.Eq* (187 g/t
Ag, 0.10 g/t Au, 1.56% Pb, 1.69% Zn) which equates to 7.2 million ounces (“ Moz”) Ag, 3,900 ounces
(“oz”) Au, 18,600 t Pb, and 20,300 t Zn or 10.8 Moz Ag.Eq.
Inferred Mineral Resources are estimated at 1,988,000 t grading 255 g/t Ag.Eq (175 g/t Ag, 0.12 g/t
Au, 1.27% Pb, 1.42% Zn) which equates to 11.2 Moz Ag, 7,700 oz Au, 25,300 t Pb, and 28,200 t Zn
or 16.3 Moz Ag.Eq.
The Updated Mineral Resource Estimate includes an additional 138 core boreholes, totaling 18,626
m, as well as an exhaustive reinterpretation of the mineralized structures, completed after the
acquisition of La Parrilla in August 2023. The increased inform ation and understanding of the
geological framework resulted in an increase of 74% of the interpreted mineralization volume, which
includes 23 additional mineralized structures to the 22 reported mineralized structures in 2023 (Figures
1 & 2).
The Mineral Resource estimation process at La Parrilla is aligned with generally accepted CIM
Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines (November 2019) .
The Independent qualified person ( QP) has applied particular care in the incorporation of the
reasonable prospects for eventual economic extraction (“RPEEE”) to Mineral Resources. The QP used
a stope optimizer to identify those portions of the block model that can be reasonably expected to be
extracted using selective underground mining methods.
Table 1 represents the Mineral Resource Statement for the La Parrilla Mine , effective December 31,
2024.
Figure 3 summarizes the contained metal (Ag.Eq) changes in the Mineral Resources Statement from
2023 to 2024. Additional drilling in 2023 and 2024 confirmed the continuity of vein mineralization,
increasing the Indicated Resources Ag.Eq metal content by 107% and increasing Inferred Resources
by 22%. respectively. The 23 newly interpreted mineralized structures, enhanced by new drilling and
a thorough review of the legacy First Majestic Silver Mineral Resources database, contributed an
additional 22% and 44% to the Ag.Eq metal content in Indicated and Inferred Resources, respectively.
Since 2023, the Company has collected significant specific gravity (SG) data, improving confidence in
the in-situ density of mineralization in oxidized and sulphide materials, distinct from host rock density.
This update has increased the estimated Ag -Eq metal content by over 10%, though these gains are
largely offset by updated cut -off grades. Refreshed RPEEE criteria, with revised costs, metal prices
and optimization parameters, led to slight reduction of 15% and 10% in the Ag -Eq metal content of
Indicated and Inferred Resources, respectively.
Table 1 : Mineral Resource Statement *, La Parrilla Mine, Durango, Mexico. SRK Consulting
(Canada) Inc., December 31, 2024.
Category &
Mineral
Type Mine
Quantity
(kt)
Grade Contained Metal
Silver Gold Lead Zinc Ag-Eq Silver Gold Lead Zinc Ag.Eq
(g/t) (g/t) (%) (%) (g/t) (koz) (koz) (kt) (kt) (koz)
Indicated Mineral Resource
Oxides
Rosarios 17 636 0.07 0.00 0.00 643 341 0.0 0.0 0.0 345
San Marcos 100 253 0.16 0.00 0.00 269 818 0.5 0.0 0.0 867
Quebradillas 0.4 188 0.10 0.00 0.00 197 2 0.0 0.0 0.0 3
Subtotal Indicated
Oxides 117 308 0.15 0.00 0.00 322 1,162 0.6 0.0 0.0 1,215
Sulphides
Rosarios 476 157 0.13 1.53 1.38 243 2,403 2.1 7.3 6.6 3,723
San Marcos 73 302 0.17 1.13 0.83 367 708 0.4 0.8 0.6 861
Quebradillas 531 172 0.05 1.99 2.47 291 2,926 0.9 10.5 13.1 4,966
Subtotal Indicated
Sulphides 1,079 174 0.10 1.73 1.88 275 6,037 3.4 18.6 20.3 9,550
Total Indicated
Resources 1,197 187 0.10 1.56 1.69 280 7,199 3.9 18.6 20.3 10,765
Inferred Mineral Resource
Oxides
Rosarios 22 297 0.08 0.00 0.00 304 207 0.1 0.0 0.0 212
San Marcos 220 281 0.14 0.00 0.00 294 1,988 1.0 0.0 0.0 2,080
Quebradillas 17 221 0.09 0.00 0.00 229 123 0.0 0.0 0.0 128
Subtotal Inferred Oxides 259 278 0.13 0.00 0.00 290 2,318 1.1 0.0 0.0 2,419
Sulphides
Rosarios 864 144 0.13 1.46 1.33 228 4,009 3.7 12.6 11.5 6,319
San Marcos 151 220 0.22 1.09 0.69 284 1,071 1.1 1.7 1.0 1,383
Quebradillas 714 164 0.08 1.54 2.20 268 3,772 1.9 11.0 15.7 6,149
Subtotal Inferred
Sulphides 1,729 159 0.12 1.46 1.63 249 8,852 6.7 25.3 28.2 13,850
Total Inferred
Resources 1,988 175 0.12 1.27 1.42 255 11,169 7.7 25.3 28.2 16,269
*(1) Block model estimates audited by David F. Machuca -Mory, PhD, PEng, Principal Consultant (Geostatistics), SRK
Consulting Canada Inc.
(2) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
(3) Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves.
(4) All figures rounded to reflect the relative accuracy of the estimates.
(5) Reasonable prospects of eventual economic extraction were considered by applying appropriate cut -off grades,
removing unrecoverable portions of the estimates, and reporting within potentially mineable shapes.
(6) Metal prices considered were US$24.00 /oz Ag, US$2,000 /oz Au, US$1.00 /lb Pb and US$1.35 /lb zinc.
(7) Cut-off grade considered for oxide and sulphide block model estimates were, respectively 165 g/t Ag -Eq and 145 g/t
Ag-Eq. They are based on 2017 costs adjusted by the inflation rate and include sustaining costs.
(8) Metallurgical recovery used for oxides based on weighted 2015-2017 actuals was 70.1% for silver and 82.8% for gold
(9) Metallurgical recovery used for sulphides based on weighted 2015-2017 actuals was 79.6% for silver, 80.1% for gold,
74.7% for lead and 58.8% for zinc.
(10) Metal payable applied was 99.6% for silver and 95% for gold in doré produced from oxides.
(11) Metal payable applied was 95% for silver, gold, and lead and 85% for zinc in concentrates produced from sulphides
(12) Silver equivalent grade is estimated as: Ag.Eq = Ag Grade + [ (Au Grade x Au Recovery x Au Payable x Au Price /
31.1035) + (Pb Grade x Pb Recovery x Pb Payable x Pb Price x 2204.62) + (Zn Grade x Zn Recovery x Zn Payable
x Zn Price x 2204.62)] / (Ag Recovery x Ag Payable x Ag Price / 31.1035)
(13) Tonnage is expressed in thousands of tonnes; metal content is expressed in thousands of ounces or thousands of
tonnes
(14) Totals may not add up due to rounding
Figure 3: Reconciliation between the 2023 and 2024 Mineral Resources Statements of the La
Parrilla Mine
Sensitivity Analysis
In addition to the base case scenario presented in Table 1, Table s 2 through Table 5 below, provide
sensitivity analyses which demonstrate the variation in grade, tonnage and contained metal for the
Updated Mineral Resource estimate at various cut-off grades for both sulphide and oxide material at
La Parrilla. The sensitivity analysis shows the resiliency of the Mineral Resource to changes in the cut-
off grade, which reflect the operating cost and metal pricing environment.
Table 2: La Parrilla Silver Mine – Block Model Quantities and Grade Estimates(*) at Various Cut-
Off Grades for Indicated Oxide Material (SRK, 2024)
Cut-off
Grade
Ag.Eq (g/t)
Quantity
(kt)
Grade Metal Content
Silver
(g/t)
Gold
(g/t)
Ag.Eq
(g/t)
Silver
(koz)
Gold
(koz)
Ag.Eq
(koz)
135 163 263 0.15 277 1,379 0.8 1,454
140 155 270 0.15 284 1,343 0.7 1,414
145 148 276 0.15 290 1,311 0.7 1,379
150 140 283 0.15 297 1,274 0.7 1,339
160 124 300 0.15 314 1,196 0.6 1,252
165 117 308 0.15 322 1,162 0.6 1,215
170 110 317 0.15 331 1,125 0.5 1,174
180 98 336 0.14 349 1,054 0.5 1,096
190 86 356 0.14 370 984 0.4 1,020
200 78 373 0.14 386 934 0.4 967
210 69 394 0.14 407 873 0.3 901
(*) Figures in this table should not be misconstrued for a Mineral Resource Statement. The figures are only presented to show the
sensitivity of the block model estimates to the selection of a cut-off grade.
Table 3: La Parrilla Silver Mine – Block Model Quantities and Grade Estimates(*) at Various Cut-
Off Grades for Indicated Sulphide Material (SRK, 2024)
Cut-off
Grade
Ag.Eq
(g/t)
Quantity
(kt)
Grade Metal Content
Silver
(g/t)
Gold
(g/t)
Lead
(%)
Zinc
(%)
Ag.Eq
(g/t)
Silver
(koz)
Gold
(koz)
Lead
(kt)
Zinc
(kt)
Ag.Eq
(kozt)
120 1,255 161 0.10 1.60 1.74 255 6,494 3.9 20.1 21.9 10,303
125 1,219 164 0.10 1.62 1.77 259 6,411 3.8 19.8 21.5 10,159
130 1,185 166 0.10 1.65 1.79 263 6,327 3.7 19.5 21.2 10,022
135 1,151 169 0.10 1.67 1.82 267 6,235 3.6 19.3 20.9 9,873
140 1,115 171 0.10 1.70 1.85 271 6,142 3.5 18.9 20.6 9,715
145 1,079 174 0.10 1.73 1.88 275 6,037 3.4 18.6 20.3 9,550
150 1,044 177 0.10 1.75 1.91 279 5,933 3.2 18.3 19.9 9,383
160 979 182 0.10 1.81 1.96 288 5,734 3.1 17.7 19.2 9,057
165 946 185 0.10 1.84 1.99 292 5,622 3.0 17.4 18.9 8,880
170 906 189 0.10 1.87 2.03 298 5,489 2.8 16.9 18.4 8,664
180 842 195 0.10 1.93 2.09 307 5,268 2.6 16.3 17.6 8,301
(*) Figures in this table should not be misconstrued for a Mineral Resource Statement. The figures are only presented to show the
sensitivity of the block model estimates to the selection of a cut-off grade.
Table 4: La Parrilla Silver Mine – Block Model Quantities and Grade Estimates(*) at Various Cut-
Off Grades for Inferred Oxide Material (SRK, 2024)
Cut-off
Grade
Ag.Eq (g/t)
Quantity
(kt)
Grade Metal Content
Silver
(g/t)
Gold
(g/t)
Ag.Eq
(g/t)
Silver
(koz)
Gold
(koz)
Ag.Eq
(koz)
135 376 235 0.12 246 2,843 1.5 2,983
140 355 241 0.12 253 2,756 1.4 2,889
145 334 248 0.12 260 2,667 1.3 2,793
150 315 255 0.13 267 2,584 1.3 2,704
160 277 270 0.13 282 2,406 1.1 2,514
165 259 278 0.13 290 2,318 1.1 2,419
170 238 289 0.13 301 2,210 1.0 2,305
180 209 306 0.13 319 2,059 0.9 2,141
190 187 322 0.13 334 1,938 0.8 2,010
200 166 340 0.13 352 1,816 0.7 1,881
210 147 359 0.13 371 1,699 0.6 1,754
(*) Figures in this table should not be misconstrued for a Mineral Resource Statement. The figures are only presented to show the
sensitivity of the block model estimates to the selection of a cut-off grade.
Table 5: La Parrilla Silver Mine – Block Model Quantities and Grade Estimates(*) at Various Cut-
Off Grades for Inferred Sulphide Material (SRK, 2024)
Cut-off
Grade
Ag.Eq
(g/t)
Quantity
(kt)
Grade Metal Content
Silver
(g/t)
Gold
(g/t)
Lead
(%)
Zinc
(%)
Ag.Eq
(g/t)
Silver
(koz)
Gold
(koz)
Lead
(kt)
Zinc
(kt)
Ag.Eq
(kozt)
120 2,112 145 0.12 1.34 1.49 228 9,867 8.0 28.2 31.4 15,493
125 2,030 148 0.12 1.36 1.52 232 9,669 7.7 27.6 30.8 15,171
130 1,955 151 0.12 1.38 1.54 236 9,479 7.5 27.1 30.2 14,859
135 1,884 153 0.12 1.41 1.57 240 9,283 7.2 26.5 29.6 14,551
140 1,799 157 0.12 1.44 1.60 245 9,057 6.9 25.8 28.8 14,175
145 1,729 159 0.12 1.46 1.63 249 8,852 6.7 25.3 28.2 13,850
150 1,649 163 0.12 1.49 1.66 254 8,620 6.4 24.6 27.3 13,465
160 1,501 169 0.12 1.54 1.71 264 8,169 5.9 23.2 25.7 12,724
165 1,431 173 0.12 1.57 1.74 269 7,944 5.6 22.5 24.9 12,351
170 1,368 176 0.12 1.60 1.77 273 7,733 5.4 21.9 24.2 12,012
180 1,227 184 0.12 1.66 1.83 284 7,253 4.8 20.3 22.5 11,211
(*) Figures in this table should not be misconstrued for a Mineral Resource Statement. The figures are only presented to show the
sensitivity of the block model estimates to the selection of a cut-off grade.
A technical report is being prepared to support the Updated Mineral Resource Estimate in accordance
with NI 43-101 and will be available on the Company's website and SEDAR within 45 days of the date
of this release
Quality Assurance / Quality Control
Silver Storm uses a quality assurance/quality control (QA/QC) program that monitors the chain of
custody of samples and includes the insertion of blanks, duplicates, and reference standards in each
batch of samples sent for analysis. The drill core is phot ographed, logged, and cut in half, with one
half retained in a secured location for verification purposes and one half shipped for analysis. Sample
preparation (crushing and pulverizing) is performed at ALS Geochemistry, an independent ISO
9001:2001 certif ied laboratory, in Zacatecas, Mexico and pulps are sent to ALS Geochemistry in
Vancouver, Canada for analysis. The entire sample is crushed to 70% passing -2 mm, and a riffle split
of 250 grams is taken and pulverized to better than 85% passing 75 microns. Samples are analyzed
for gold using a standard fire assay with Atomic Absorption Spectrometry (AAS) (Au-AA23) from a 30-
gram pulp. Gold assays greater than 10 g/t are re -analyzed on a 30 -gram pulp by fire assay with a
gravimetric finish (Au -GRA21). Samples are also analyzed using a 34 element inductively coupled
plasma (ICP) method with atomic emission spectroscopy (AES) on a pulp digested by four acids (ME-
ICP61). Overlimit sample values for silver (>100 g/t), lead (>1%), zinc (>1%), and copper (>1%) are
re-assayed using a four-acid digestion overlimit method with ICP -AES (ME-OG62). For silver values
greater than 1,500 g/t, samples are re-assayed using a fire assay with gravimetric finish on a 30-gram
pulp (Ag-GRA21). Samples with lead values over 20% are re-assayed using volumetric titration with
EDTA on a 1-gram pulp (Pb-VOL70). No QA/QC issues were noted with the 2023-24 drill results.
From 2007 to 2012, First Majestic Silver (“ FMS”) implemented a quality control program to evaluate
silver assay results from La Parrilla Laboratory for chip and core samples by submitting one core
sample for every 20 original samples to Inspectorate in Reno, Nevada for duplicate check assaying.
Check assays of channel samples were performed by SGS Durango. From 2013 to 2014, quality
control samples included duplicates, in-house standard reference materials (SRMs) and blanks, with
an overall quality control insertion rate of about 5%. The quality control procedure was updated in
2015 to include quarter core field duplicates, coarse and pulp duplicates, certified reference materials
(CRMs) and blanks, with an overall quality control insertion rate of about 16%.
In the opinion of the Independent QP, the quality of the analytical data collected for silver, gold, lead
and zinc from San Marcos, Rosarios, and Quebradillas resource areas is sufficiently reliable to support
Mineral Resource estimation. Sample preparatio n, analysis, and security by Silver Storm and FMS
are generally performed in accordance with industry best practice standards.
In the opinion of the Independent QP, a reasonable level of verification has been completed and no
material issues would have been left unidentified from the verification programs undertaken. Drill data
are typically verified prior to Mineral Resource esti mation through software program checks,
comparison to original hard copy data, and peer review. The quality of the drill data is sufficiently
reliable to support Mineral Resource estimation.
Qualified Person
The Independent Qualified Person for the Mineral Resource Estimate disclosure is Dr. David
Machuca-Mory, PEng, of SRK Consulting (Canada) Inc., who has reviewed and approved the contents
of this release. In accordance with NI 43 -101 Standards of Disclosure for Mineral Projects, Bruce
Robbins, PGeo, is the Qualified Person for the Company and has validated and approved the technical
and scientific content of this news release.
Information Concerning Estimates of Mineral Resources
The scientific and technical information in this news release was prepared in accordance with NI 43 -
101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission
(the “SEC”). The terms "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred
Mineral Resource" used in this news release are in reference to the mining terms defined in the
Canadian Institute of Mining, Metallurgy and Petroleum Standards (the “CIM Definition Standards”),
which definitions hav e been adopted by NI 43 -101. Accordingly, information contained in this news
release providing descriptions of our mineral deposits in accordance with NI 43 -101 may not be
comparable to similar information made public by other U.S. companies subject to the United States
federal securities laws and the rules and regulations thereunder.
You are cautioned not to assume that any part or all of Mineral Resources will ever be converted into
Reserves. Pursuant to CIM Definition Standards, “Inferred Mineral Resources” are that part of a
Mineral Resource for which quantity and grade or quality a re estimated on the basis of limited
geological evidence and sampling. Such geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral Resource and can not be converted to a Mineral
Reserve. However, it is reasonably expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration. Under Canadian reporting
guidelines, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre -
feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of
an Inferred Mineral Resource is economically or legally mineable. Disclosure of “contained ounces” in
a Mineral Resource is permitted disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not constitute “Reserves” by SEC standards as
in place tonnage and grade without reference to unit measures.
Canadian standards, including the CIM Definition Standards and NI 43 -101, differ significantly from
standards in the SEC Industry Guide 7. Effective February 25, 2019, the SEC adopted new mining
disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as
amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning
on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure
requirements included in SEC Industry Guide 7. As a result of the adoption of the SEC Modernization
Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral
Resources” and “Inferred Mineral Resources”. Information regarding Mineral Resources contained or