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TORONTO, Nov. 24,
2022 /CNW/ - Silver Mountain Resources Inc.
(TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) ("Silver
Mountain", "AGMR" or the "Company") is pleased to
report on the status of its exploration campaign at the Company's
Reliquias silver mine in Huancavelica, central Peru. The main focus of the 2022 work program
is the investigation of the Reliquias silver-polymetallic deposit
from existing underground workings. Since the start of the drill
campaign in April of this year, 69 drill holes with a total
meterage of more than 16,500 m have
been completed (Fig.1). Most of the bore holes tested the three
principal veins known at Reliquias, called Matacaballo,
Sacasipuedes, and Meteysaca vein.1 Drill platforms were
prepared in available mine workings, mostly on the lowest existing
levels of the Reliquias mine (390 m
and 415 m-levels). Drill holes
predominantly targeted historic resource blocks defined by the
previous operator, in close proximity to existing haulage levels.
Visual observation of several drill holes designed to test the
depth extension of the main structures showed that well-developed
mineralization extends to at least 150
m below current mine levels (For a summary of reported drill
intercepts, see Background Information below).
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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.
|
Over 5,000 drill core samples were collected so far, while
multi-element assay results have been received for 2,810 samples.
Approximately 2,200 drill core samples are still at the laboratory,
with results expected to be released over the next 4-5 weeks.
Additionally, various batches of samples were sent for
determination of rock density, mineralogical studies, and for
initial metallurgical tests.
To complement the drill campaign and to facilitate the
conversion of additional historic resources into National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") compliant resources, an extensive
underground mapping and sampling program was initiated in
June 2022. Several existing drifts,
sublevels, and raises were mapped and systematically sampled in
channels cut every 4 m across the
exposed veins. So far, approximately 1,700 rock channel samples
were sent for assaying, with results reported for 700 samples. The
Company anticipates that the remaining geochemical results will be
returned by the lab during the coming 4-5 weeks.
In August 2022, the Company
decided to reallocate the exploration funds originally earmarked
for a 13000-m surface drilling campaign. Instead, the ongoing
underground drill program was increased from the originally planned
12000 m to approximately 17500 m. More drill holes were carried out to
extend previously recognized mineralization in the main veins along
strike. Additionally, several holes were added to the program to
test the Pozo Rico, Perseguida, and Vulcano vein systems (Fig.1).
The last two bore holes of this extended campaign will be collared
from drill platform C12 and are expected to be completed by early
December.
Furthermore, the redesigned work plan for H2 2022 included an
increase in the underground channel sampling program. To allow the
detailed evaluation of additional areas where well-developed
mineralization has been indicated by historic drilling, the
rehabilitation of historic mine workings was accelerated. In turn,
this will also facilitate the mine development tasks in 2023,
aiming for an expedited production start-up in late 2023.
Based on geological information compiled from all 2022 drill
core as well as from the underground mapping, the preparation of
lithological, mineralogical, and alteration models of the Reliquias
deposit has started. Historical data available from previous
project operators is also incorporated into the three-dimensional
analysis of the main veins and several smaller structures or vein
splays. This in-house geological model as well as all other
relevant information (drill hole deviation measurements,
topographic surveys, sample certificates, QA/QC procedures, etc.)
will be reviewed by an independent consultant, starting this week.
Work on an updated resource estimation is to commence in late
November. The main objective of this review is to establish a NI
43-101 compliant mineral resource in Q1 2023 that will form the
basis of our production decision in H2 2023.
Background information on
principal vein structures
Since the start of historic mining operations at Reliquias, the
Matacaballo vein has been one of the most important
exploited structures due to its width and contained mineralization.
In general, the Matacaballo vein displays a typical strike
direction of 95°, dipping between 55° and 80° to the north. Its
average width in recent drill holes and in exposures on lower mine
levels is 1.50 m, with a maximum true
width of 4.50 m. Additional vein
splays, cymoid loops, as well as the development of narrow argillic
alteration zones in the wall rocks with mineralized veinlets are
typical for this structure.
The Matacaballo vein is characterized by multiple phases of
quartz veining and hydrothermal brecciation. Sulphides occur
semi-massive, as breccia matrix, or in pods and disseminations
within quartz veinlets (Fig.1). In this vein, assay results of
individual rock or core samples reached maximum values of 98.5 g/t
Au, 1965 g/t Ag, 39.4% Pb, 27.1% Zn, and 3.3% Cu (see previously
published press releases).
The Sacasipuedes vein strikes predominantly in a NW-SE
direction and dips approximately 80° to the northeast. Like all
veins in the Castrovirreyna district, it shows a typical
pinch-and-swell behaviour ("rosary-style"). Its average width is
1.00 m, reaching 2.00 m in certain zones. The Sacasipuedes vein is
characterized by the injection of various pulses of quartz with
disseminated sulphides, but locally displays hydrothermal
brecciation as well. The alteration selvages around this vein are
relatively narrow. Assay results available to date returned maximum
values of 21 g/t Au, 269 g/t Ag, 14.7% Pb, 21.3% Zn, and 1.25 % Cu
in individual drill core samples (see previous press
releases).
The Meteysaca structure is on average narrower than the
previously described veins, but relatively consistent in its width,
with a range of 0.50 to 1.00 m. Its
strike direction is NW-SE, typically around 125°, dipping steeply
to the northeast. This vein exhibits brecciation, irregular banding
and crustiform textures typical of intermediate sulphidation veins.
Sulphide minerals are present as fine veinlets, semi-massive pods,
or in disseminated form. Drill core results for the Meteysaca vein
are still pending, but underground channel samples were reported
for the 415 m level (see press
release September 8, 2022). Maximum
values for individual channel samples reached highs of 2,710 g/t
Ag, 5.8 g/t Au, 17.6% Zn, 14.0 % Pb, and 1.3% Cu.
The principal veins of the Reliquias deposit commonly contain
between 3% to over 25% sulphides, including tetrahedrite and other
silver sulpho-salts, sphalerite, galena, chalcopyrite, and pyrite,
within a matrix composed of at least three generations of quartz,
rhodochrosite, with minor barite and calcite.
Other structures identified during the current drill campaign
include the Sorpresa, Ayayay, and Pozo Rico vein. The
Sorpresa and Ayayay veins are structures subparallel
to the Sacasipuedes vein (Fig.1), displaying widths of 0.25 to
0.70 m. Both structures need to be
better defined by additional infill drilling, but apparently, they
unite with the Matacaballo vein at their southeastern end. The
Pozo Rico vein system is a group of at least 4 structures to
the southwest of the Sacasipuedes vein, which was previously mined
to a limited extent, but which warrants more detailed exploration
due to high-grade silver values reported by the previous operator
on historic longitudinal sections.
The following table lists the assay results of selected
mineralized intercepts encountered in drill holes during the
ongoing campaign. All results shown here were reported in more
detail in previous news releases (available on the Company's
website: www.agmr.ca).
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 NI 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.
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 35,000 hectares in
the district of Castrovirreyna, Huancavelica, Peru.
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 in this news release
include, but are not limited to, statements in respect of the
Company's proposed exploration program, the preparation of a NI
43-101 compliant mineral resource estimate and the timing
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, 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.
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SOURCE Silver Mountain Resources Inc.