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DISSEMINATION IN OR INTO THE UNITED
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TORONTO, April 11,
2023 /CNW/ - Silver Mountain Resources Inc.
(TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) ("Silver Mountain",
"AGMR" or the "Company") is pleased to provide a
first National Instrument 43-101 compliant mineral resource
estimate ("MRE") for its 100% owned Reliquias mine in Huancavelica,
central Peru.
Highlights
- Measured & Indicated Resources: 861,300 tons containing
2.78 million ounces of silver, 7,100 ounces of gold, 28,800 tons of
zinc, 21,400 tons of lead, and 3,400 tons of copper
- Inferred Resources: 969,000 tons containing 3.10 million
ounces of silver, 6,600 ounces of gold, 26,100 tons of zinc, 18,800
tons of lead, and 3,300 tons of copper
- Mineralization in all three main vein structures is open
along strike and at depth, showing excellent potential to grow with
future drilling and underground sampling.
Alvaro Espinoza, CEO, commented:
"We are very pleased to deliver on one of the milestones
outlined for early 2023. Within a short timeframe and in a
cost-effective manner, our team has added substantial value to the
Reliquias mine. We are delighted to announce that NI 43-101
compliant mineral resources now include 2.78 Moz Ag in the measured & indicated category
and 3.10 Moz Ag in the inferred
category, plus significant amounts of base metals. Our ongoing 2023
drill program already indicates strong growth potential beyond this
maiden mineral resource estimate, to be incorporated in an updated
estimate as part of the PEA planned for Q3 2023, advancing the
Company closer to production."
Torsten Danne, Director of
Exploration, added: "Our phase I drilling was highly successful in
confirming and expanding historic resources in three of the main
veins. With drilling and underground sampling of several other
known vein structures currently underway, we see excellent
potential to further expand the mineral resources at Reliquias.
Additional opportunities to grow high-grade silver resources exist
through the ongoing rehabilitation of upper mine levels, which will
enable us to evaluate zones of remaining historic resources (see
Fig.2 to 4)."
A maiden NI 43-101 compliant Mineral Resource
Estimate
This MRE is based on 60 diamond drill holes, with a total of
13,640.80 metres, completed by the Company between April and
October 2022. The MRE was prepared
using assays sourced from a total of 4,672 core samples (including
QA/QC samples) with interval lengths varying between 0.5 and
1.5 m. Additionally, the analyses of
1,416 rock samples (including QA/QC samples) taken during
systematic sampling of underground workings were included in the
database to calculate the mineral resources. The MRE was
independently prepared by RREMIN S.A.C. (RREMIN) in accordance with
NI 43-101, with an effective date of March
18, 2023, and using a database current as of December 15, 2022. The full technical report,
which is being prepared in accordance with NI 43-101 will be filed
on SEDAR (www.sedar.com) under the Company's issuer profile within
45 days of the date of this news release.
Table 1: Mineral Resource Estimate for the Reliquias mine
Notes:
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1.
|
Mineral Resources
described above have been prepared in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM)) Standards on
Mineral Resources and Mineral Reserves, 2014.
|
2.
|
The independent
qualified persons responsible for the preparation of the technical
report supporting the MRE are Antonio Cruz Bermudez, P.Geo., member
of the Australian Institute of Geoscientists (member #7065), and
Gerardo Acuña, P.Eng., fellow of the Australasian Institute of
Mining and Metallurgy (member #337049, CP Mining), both of RREMIN
S.A.C., Lima, Peru.
|
3.
|
Mineral Resources
have an effective date of March 18, 2023, using a database current
as of December 15, 2022. Antonio Cruz Bermudez is the independent
qualified person responsible for the Mineral Resources
estimate.
|
4.
|
The Mineral
Resources are not Mineral Reserves and do not have demonstrated
economic viability.
|
5.
|
There is no
certainty that all or part of the estimated Mineral Resources will
be converted to Mineral Reserves.
|
6.
|
Mineral Resources
are reported at US$36.34 NSR cut-off for the polymetallic veins and
the long-term prices of the metals considered were Silver US$ 23.29
/oz, Copper US$ 9,419 /t, Zinc US$ 2,813 /t, and Lead US$ 2,188
/t.
|
7.
|
Metallurgical
recoveries for polymetallic veins are based on historical recovery
by the previous operator CMC: Ag= 73.00%, Pb= 83.00%, Zn= 71.00%,
Cu= 85.00%. Initial metallurgical test work carried out by Silver
Mountain in 2022 indicates potential to achieve significantly
higher recoveries.
|
8.
|
The average density
was calculated from drill core samples for all the veins and the
average value used for the calculation of tonnage is 2.76
t/m3.
|
9.
|
The MRE is based on
block model with a block size of 2.0 m x 2.0 m x 2.0
m.
|
10.
|
Tonnage has been
expressed in the metric system, and the precious metal content (Ag,
Au) has been expressed in troy ounces.
|
11.
|
Mineral Resource
tonnes are rounded to the nearest 1,000 tonne and precious metal
content has been rounded to the nearest 1,000 oz. Totals may not
add due to rounding.
|
12.
|
The reported Mineral
Resources are not diluted.
|
13.
|
The Mineral
Resources reported do not include mined-out areas.
|
14.
|
Antonio Cruz
Bermudez is not aware of factors or issues that could materially
affect the mineral resource estimate other than normal risks faced
by mining projects, in terms of environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant
factors, and additional risk factors regarding inferred
resources.
|
The estimated tonnage considered for the MRE is contained in
five main veins (Matacaballo, Sacasipuedes, Meteysaca, Ayayay, and
Sorpresa) and 14 vein splays. The average true thickness of these
structures varies between 0.1 and 2.0
m. The NI 43-101 compliant resources reported in this
release are located predominantly below Level 480 of the Reliquias
deposit, due to restricted accessibility of underground workings
during the 2022 drilling campaign.
Wireframes representing mineralization were produced from plans,
core logging, systematic sections, underground mapping, and
interpretations. The domains have been defined as mineralized
structures based on the continuity of Ag-Pb-Zn-Cu-Au
mineralization, represented by the five mentioned veins and
associated secondary structures. Assay capping thresholds were
chosen based on probability and variance plots and vary between
different structures. The block model was constructed using
2 m x 2
m x 2 m blocks, based on the
appropriate selective mining unit for mineralized structures at
Reliquias. Metal grades were interpolated with 1 m composites using Ordinary Kriging (OK) and
Nearest Neighbour (NN) methods. The classification of the resources
is based on qualitative characteristics and the distance to
drilling / sampling.
Discussion of the results of the Mineral Resource
Estimate
In the 2021 NI 43-101 Technical Report of the Castrovirreyna
project[1], historic resources were calculated for the Reliquias
and the Caudalosa mine (Fig.1, graph on left side)[2]. The 2022
exploration campaign focussed on the Reliquias mine, successfully
converting a significative percentage of the historic
resources into NI 43-101 compliant mineral resources.
Furthermore, the drilling and sampling program delineated
additional resources at depth and to a lesser extent along strike
of the three main veins. The results reported in today's new
release include both converted and new resources (Fig.1,
graph on right side).
Areas of high-grade mineralization remain along the upper mine
levels at Reliquias, categorized as historic resources in the 2021
Technical report (Fig.1, graph on right side). Likewise, more than
22.3 Moz of Ag plus significant amounts of base metals remain as
historical resources in the Caudalosa mine, which has not been
included in the rehabilitation work so far.
![Table 1: Mineral Resource Estimate for the Reliquias mine (CNW Group/Silver Mountain Resources Inc.) Table 1: Mineral Resource Estimate for the Reliquias mine (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/2052082/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_DELIVERS_INITIAL.jpg)
__________________________________
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1 For
additional information regarding the historical resources 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.
|
|
2 (i)
Historical resource estimates have been classified in accordance
with the CIM Definition Standards; (ii) Historical resource
estimates are not Mineral Reserves or Mineral Resources and do not
have demonstrated economic viability. All figures are rounded to
reflect the relative accuracy of the estimates; (iii) Information
is as of July, 2019 Source: Sociedad Minera Reliquias SAC, the
information is based on RM-Master Pro Quality, C. Rodriguez, Abril
2019; RM-Master Pro Quality, C. Rodriguez, Jul19; (iv) Antonio Cruz
Bermudez, a "qualified person" (as defined in NI 43-101) considers
that the historical resource estimates are relevant for the proper
understanding of the Castrovirreyna Project and additional
exploration, including drilling, could be needed to verify the
historical estimate as current Mineral Resources; (v) A qualified
person has not done sufficient work to classify the historical
estimate as current Mineral Resources or Mineral Reserves; and (vi)
The Company is not treating the historical estimate
as current Mineral Resources or
Mineral Reserves.
|
Based on a thorough review of the results of the MRE presented in
this release, Fig. 2 to 4 indicate in detail the areas of converted
resources and newly added resources for each of the main vein
structures. As expected, by drilling mostly from Levels 390 and 415
of the Reliquias mine, a considerable amount of mineralized
material previously classified as historic resources was converted
into NI 43-101 compliant mineral resources. New mineral resources
were added at depth and along strike at all three veins. As shown
in Fig.2, the drilling campaign was especially successful in that
regard at the Matacaballo vein, converting 360,000 t into
compliant resources and identifying another 417,000 tons of new
mineral resources. This structure now reports 491,000 tons in the
measured and indicated category, with 286,000 tons in the inferred
category.
![Fig.1: Diagram contrasting the 2021 estimate of historic resources with the MRE inventory. For discussion, see text. Data is displayed using a logarithmic scale. 2 (i) Historical resource estimates have been classified in accordance with the CIM Definition Standards; (ii) Historical resource estimates are not Mineral Reserves or Mineral Resources and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates; (iii) Information is as of July, 2019 Source: Sociedad Minera Reliquias SAC, the information is based on RM-Master Pro Quality, C. Rodriguez, Abril 2019; RM-Master Pro Quality, C. Rodriguez, Jul19; (iv) Antonio Cruz Bermudez, a "qualified person" (as defined in NI 43-101) considers (CNW Group/Silver Mountain Resources Inc.) Fig.1: Diagram contrasting the 2021 estimate of historic resources with the MRE inventory. For discussion, see text. Data is displayed using a logarithmic scale. 2 (i) Historical resource estimates have been classified in accordance with the CIM Definition Standards; (ii) Historical resource estimates are not Mineral Reserves or Mineral Resources and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates; (iii) Information is as of July, 2019 Source: Sociedad Minera Reliquias SAC, the information is based on RM-Master Pro Quality, C. Rodriguez, Abril 2019; RM-Master Pro Quality, C. Rodriguez, Jul19; (iv) Antonio Cruz Bermudez, a "qualified person" (as defined in NI 43-101) considers (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/2052075/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_DELIVERS_INITIAL.jpg)
![Fig.2: Cross section of the Matacaballo vein, at the Reliquias mine, showing areas of converted resources in light blue and newly added resources in light green. Zones containing historic resources (shown in yellow) remain on upper mine levels. The graphs below display the tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE. (CNW Group/Silver Mountain Resources Inc.) Fig.2: Cross section of the Matacaballo vein, at the Reliquias mine, showing areas of converted resources in light blue and newly added resources in light green. Zones containing historic resources (shown in yellow) remain on upper mine levels. The graphs below display the tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE. (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/2052076/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_DELIVERS_INITIAL.jpg)
At the Sacasipuedes vein, the cross section (Fig.3) shows
that larger zones on the southeastern side of the structure,
containing 291,000 tons of historic resources, remain to be
evaluated and re-categorized through future exploration. Converted
and newly added resources extend for approximately 300 m vertically below Level 440, holding 253,000
tons of indicated and 184,000 tons of inferred resources.
At the Meteysaca structure (Fig.4), the drilling and
underground sampling campaign effectively converted high-grade
silver-polymetallic resources below Level 480, while also
increasing the resources along strike and towards depth. Measured
and indicated resources within the Meteysaca vein amount to 102,000
tons, whereas inferred resources reach 88,000
tons.
On Behalf of the Board of Directors of Silver Mountain Resources
Inc.
Alvaro Espinoza, Chief Executive
Officer
Qualified Person
Antonio Cruz Bermudez, an
independent consultant of the Company and the Qualified Person
(within the meaning of NI 43-101) responsible for the MRE, has
reviewed and approved the scientific and technical information
contained in this news release.
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.
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.
Rock channel samples were collected with an electric percussion
hammer and do not exceed 1.0 m in
length. Channels are broken at obvious geologic boundaries to
correctly separate rock types and mineralization styles. The sample
bags were sealed with a plastic zip tie and identified with a
unique sample number, 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.
![Fig.4: Cross section of the Meteysaca vein, at the Reliquias mine, showing areas of converted resources in light blue and newly added resources in light green. Zones containing historic resources (shown in yellow) remain along strike and on upper mine levels. The graphs below right display the tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE. (CNW Group/Silver Mountain Resources Inc.) Fig.4: Cross section of the Meteysaca vein, at the Reliquias mine, showing areas of converted resources in light blue and newly added resources in light green. Zones containing historic resources (shown in yellow) remain along strike and on upper mine levels. The graphs below right display the tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE. (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/2052081/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_DELIVERS_INITIAL.jpg)
![Silver Mountain Resources Inc. Logo (CNW Group/Silver Mountain Resources Inc.) Silver Mountain Resources Inc. Logo (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/2052056/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_DELIVERS_INITIAL.jpg)
SOURCE Silver Mountain Resources Inc.