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TORONTO, March 21,
2023 /CNW/ - Silver Mountain Resources Inc.
(TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) ("Silver Mountain",
"AGMR" or the "Company") is pleased to provide its
outlook for 2023 in addition to a brief review of 2022.
2022 Highlights
- Completion of a 72-hole underground drill program at the
Reliquias mine for a total of 16,955.3
m. The objective of this campaign was to validate historical
resources within the most promising structures, primarily the
Matacaballo, Sacasipuedes, and Meteysaca veins (typical cross
sections of the principal veins with assay results are shown in
Fig.1 to 3). The Matacaballo vein was investigated over
650 m along strike and drilled to a
depth of 130 m below the currently
lowest mine level. The Sacasipuedes structure was shown to extent
at least 160 m below the lowest
existing exploitation drift, while drilling tested the vein over a
horizontal distance of 480 m. At the
Meteysaca vein, drilling confirmed silver-rich mineralization for
at least another 165 m to depth below
the lowest existing mine level and over 425
m along strike. Several vein splays were identified during
drilling and incorporated into the geological model. The
mineralization at all principal veins in the Reliquias mine remains
open at depth and along strike.
- The last eleven bore holes of the 2022 program were aimed at
exploring additional structures with limited historic exploitation
and included step-out drill holes >400
m from previous drill sites (press release – March 8, 2023). Promising intercepts were
identified in the Perseguida and Pozo Rico vein systems, which
warrant follow-up drilling during the 2023 campaign.
- Facilitated by the rehabilitation of 5,925 m of underground workings, an extensive
underground mapping and sampling program in the historic mine
workings was carried out to update the 3D geological - structural
model for future mineral resource estimations. 2400 channel samples
were collected from existing and rehabilitated workings at
Reliquias. The detailed sampling identified various zones of
high-grade mineralization (press releases, September 8, October
4, and December 7, 2022) that
will be incorporated into the initial mine development work
programmed to start in Q3 2023.
- Purchase of a 100% interest in the Lira de Plata project from
Pan American Silver (news release, November
3, 2022), securing close to 800 ha of highly prospective
ground in the vicinity of Reliquias and consolidating the Company´s
position in the Castrovirreyna district.
- Started a brownfield exploration program around the Reliquias
mine, including reconnaissance mapping and sampling of the newly
acquired Lira de Plata claims, as well as the Pozo Rico, Anabel,
and Dollar prospects adjacent to Reliquias. Several prospective
zones with high-grade Ag-Pb-Zn-Cu-Au mineralization on surface were
recognized, but require follow-up work to determine the most
promising drill targets.
- Identification of a concealed porphyry copper target at the
Yahuarcocha and Guanajato zones, in the central part of the
Reliquias claim block (press release – February 23, 2023). Geological and geochemical
characteristics as well as alteration features indicate the
presence of a porphyry copper system at depth. A 7x3 km-sized,
untested lithocap with advanced argillic alteration at
Poetas-Carmela offers further exploration potential.
- At the Dorita concession block, 25 km to the northwest of
Reliquias, more than 14 km2 were mapped at 1:2000 scale,
covering the Dorita, Pucasora, and Huancarpusca targets. Extensive
zones of intermediate sulphidation-style mineralization with highly
elevated gold and silver anomalies were identified at the Dorita
Mine and Dorita North zones (press
release - July 7, 2022). At Pucasora,
a high-sulphidation epithermal Au-Ag target was recognized over an
area of 2.0 x 1.2 km (press release - September 14, 2022).
- Environmental Permitting: Obtained archaeological permits
(CIRA) for the entire Dorita claim block, a pre-requisite for
achieving the approval of a surface drilling permit.
- A National Instrument 43-101 – Standards of Disclosure for
Mineral Projects ("NI 43-101") compliant technical report on the El
Milagro project was finalized, declaring 873,250 t @ 2.01 oz/t Ag,
2.78% Zn, and 1.1% Pb in historic resources in the inferred
category. Please refer to the Company's technical report entitled
"NI 43-101 Technical Report for El Milagro Project, Huancavelica
and Ayacucho Regions, Peru", dated
October 17, 2022 and available on the
Company's profile on www.sedar.com.
Outlook 2023
- Based on the information compiled during the successful 2022
exploration campaign, an initial NI 43-101 compliant resource
estimate of the Reliquias deposit is expected to be published in
early Q2 2023.
- In 2023, exploration efforts will be focused on expanding the
identified resource base, to be incorporated into a subsequent
resource update as part of the planned Preliminary Economic
Analysis ("PEA"). This includes at least 14,500 m of diamond drilling, divided into:
-
- Underground drilling program with a total of 8,000 m of HQ/NQ diameter holes, to identify
near-resource additions along strike within the principal veins and
to add mineral resources in other vein structures such as Pozo
Rico, Perseguida, Escondida Pasteur, and Vulcano.
- Underground drilling campaign of approximately 3,500 m, utilizing smaller rigs that are able to
operate in sublevels and other narrow workings. This 60-hole drill
program with BQ and XRP diameter core is targeting subparallel vein
splays and tensional structures, as well as providing infill
drilling in certain areas.
- Once the respective permits have been granted, a 3,000 m surface drill program will be carried
out. It has the objective of testing the Pasteur, Vulcano, and
Matacaballo veins in the upper part of the deposit, to evaluate the
potential for near-surface resources amenable to open-pit
mining.
- Together with ongoing mine rehabilitation and development, the
detailed underground mapping and channel sampling program will
continue. It is planned to incorporate newly rehabilitated levels
and additional vein structures, to add further mineral
resources.
- The development of the principal underground infrastructure
such as haulage levels, drifts, and access ramps is programmed to
commence in Q2 2023. In H2 2023, this will be followed by starting
to prepare the blocks of economically viable mineralization for
future exploitation.
- The refurbishment of the existing plant at Caudalosa will
continue during 2023. Building on initial metallurgical test-work
started in 2022, additional metallurgical optimization studies are
planned.
- Further studies planned for 2023 include a hydrological
evaluation of the Reliquias area, a geotechnical study of the
Reliquias mine, an update of existing studies on the stability of
the tailings dams, and environmental baseline studies.
- All the studies mentioned above will be incorporated into a
PEA, programmed for Q3 2023. The PEA will include an update of the
applicable resource estimate, determination of economically viable
mineralization, mine plan and design.
- The Company intends to expand the brownfield exploration
program around the large, underexplored Reliquias and Caudalosa
concession block. This includes advancing the highly prospective
Yahuarcocha – Guanajato target.
Alfredo Bazo, President and CEO,
commented: "In 2022, our team set itself ambitious milestones to
advance the Company´s projects, at both the Reliquias and Dorita
claim blocks. The team´s consistent efforts to deliver on our goals
show our commitment to our shareholders and stakeholders. We are
convinced that with the planned exploration program, the potential
resources at the Reliquias deposit will continue to grow,
facilitating a mine start-up envisioned for H2 2024."
Silver Mountain Announces Amended
Advertising Agreement
The Company announces that, further to its previous press
release dated September 12, 2022, the
Company has entered into an amended and restated advertising
agreement dated March 20, 2023 (the
"Agreement") with Gold Standard Media, LLC ("Gold Standard"),
amending and restating the Company's prior advertising agreement
with Gold Standard dated September 12,
2022 (the "Original Agreement"). Pursuant to the Agreement,
Gold Standard has agreed to provide the Company with certain
additional advertising services (the "Additional Services"). In
consideration for the Additional Services, the Company has agreed
to pay an aggregate fee of USD$200,000 (the "Additional Fee"), which
Additional Fee shall be payable in six (6) installments of
USD$33,333 (with the sixth and final
installment in the amount of USD$33,335), payable weekly during each of the
first six (6) weeks following the date of the Agreement. Aside from
the provision of the Additional Services and the payment of the
Additional Fee, the terms and conditions of the Original Agreement
remain unchanged. The provision of the Additional Services and
payment of the Additional Fee are subject to the approval of the
TSX Venture Exchange.
The Additional Services are to be provided by Gold Standard
together with its affiliates, Future Money Trends LLC, Wealth
Research Group LLC and Portfolio Wealth Global LLC (collectively,
the "Service Providers"). The individual providing the
Additional Services on behalf of the Service Providers is
Kenneth Ameduri located at 723 W.
University Ave. Ste 110-283, Georgetown
TX 78626. Mr. Ameduri can be reached by telephone at (626)
733-3678 or by email at Kennethameduri@gmail.com. To the knowledge
of the Company, the Service Providers together with certain
affiliates or entities controlled by Mr. Ameduri currently own
750,000 class A common shares of the Company.
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 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.
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.