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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.
|
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.) 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.)](https://mma.prnewswire.com/media/2018283/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_REPORTS_FINAL_DRI.jpg)
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.
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
info@agmr.ca
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.
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SOURCE Silver Mountain Resources Inc.