Key Highlights – Underground diamond drilling at
Reliquias
Drill Hole SMR169-23-PAS (PAS vein)
- 2.55 m @ 492 g/t Ag, 1.05% Pb,
2.38% Zn, 0.09% Cu and 2.06 g/t Au, including
- 0.20 m @ 2,558 g/t Ag, 6.37% Pb, 16.49% Zn, 0.41% Cu
and 18.61 g/t Au
Drill Hole SMR153-23-SCS (NAT vein)
- 1.60 m @ 33 g/t Ag, 2.74% Pb,
7.02% Zn, 0.51% Cu and 0.04 g/t Au, including
- o 0.35 m @ 77 g/t Ag,
8.37% Pb, 21.53% Zn, 1.03% Cu and 0.09 g/t Au
Drill Hole SMR166-23-VUL (VUL vein)
- 0.85 m @ 14 g/t Ag, 1.18% Pb,
2.21% Zn, 0.06% Cu and 3.50 g/t Au, including
- 0.55 m @ 16 g/t Ag, 1.42% Pb, 2.82% Zn, 0.08% Cu and 5.09
g/t Au
TORONTO, Nov. 21,
2023 /CNW/ - Silver Mountain Resources Inc.
("Silver Mountain" or "the Company") (TSXV: AGMR) (OTCQB:
AGMRF) is pleased to announce the final batch of results from the
second phase of its 2023 underground drilling campaign at its 100%
owned Reliquias mine, central Peru. Drill rigs have now been demobilized,
and the Company's geologists are finalizing the database to be used
in the upcoming resource update incorporating all results from the
work carried to date.
Alvaro Espinoza, President and
CEO of Silver Mountain, commented: "The past few months have
been transformational for Silver Mountain. Not only have we
advanced with our mine rehabilitation program, preparing the
Project for the next stage in its development, but we have
completed the 2023 drill program on time and in line with our
budget. We have confirmed and expanded the high grade zones on our
known vein systems, and we have discovered new veins such as
Natividad. This last batch of results include some of the best
silver and base metal ones seen in this program, and we very much
look forward to delivering the updated database to our consultants
for preparation of an updated mineral resource estimate which, in
turn, will be used to prepare a Preliminary Economic Assessment for
Reliquias."
Mr Espinoza concluded: "Silver Mountain is committed to
restarting operations at Reliquias during the first half of 2025,
and completing this drill program fits neatly with this strategy.
We look forward to updating our shareholders on our progress
towards production."
Discussion of 2023 Drilling
Results
The second phase of the 2023 drill program consisted of 45
underground diamond drill holes totaling 12,140 metres of HQ and NQ
diameter drilling from 6 platforms targeting the Sacasipuedes,
Perseguida, Pasteur, Vulcano, Natividad, Matacaballo and Beatita
veins. The Company has now received results from all completed
drill holes and details on the location of the underground
drill platforms and drill traces are found in Figure 1. Table 1
also shows a summary of the results announced in this news release.
Details from all drill holes announced to date will be posted on
the Company's website (https://agmr.ca/)
Drilling during the last part of Phase 2 of the 2023 drill
program focused on the eastern extension of the Matacaballo vein
system, near the intersection with the Pasteur, Beatita and Vulcano
veins, all three of which are northwest-southeast trending
structures which were not incorporated into the current mineral
resource estimate. Drilling was aimed at stepping out on known
veins, tightening the drillhole spacing so as to incorporate them
into the mineral resource estimate, and testing the continuity of
previously undrilled or unknown veins such as Vulcano and Natividad
respectively.
At the newly discovered Natividad vein, drill Hole
SMR-153-23-SCS hit the vein at approximately 50 metres above the
intercept in drill hole SMR-140-23-SCS (2.20
m @ 42 g/t Ag, 2.79% Pb, 3.84% Zn, 0.75% Cu and 0.06 g/t Au
– see news release date September 27,
2023). The very high lead and zinc grades, within a wide
vein interval, confirm Natividad´s potential to host a significant
base metal resource. The zone remains open along strike and at
depth. Figure 2 shows a long section of the Natividad vein with the
intercepts hit to date.
Drilling on the Pasteur vein has found high grade silver and
gold mineralization below existing workings, and has extended
the mineralized structure approximately 80 metres to the northwest.
The highest grade zone remains open along strike to the northwest
and at depth. Figure 3 shows an updated long section of the Pasteur
vein. Twelve of the drill holes reported here intersected the
Vulcano vein, one of several parallel structures to Pasteur,
including the Beatita vein ("BEA"). Drilling tested approximately
700 metres of strike length and 300 metres of down dip extension
along the VUL vein, with the best gold and silver results found
near the deepest intercepts on hole SMR166-23-VUL. Figure 4 shows a
long section of the VUL vein.
The 2023 drill program consisted of two phases: an initial
3,500 metre phase using BQ diameter core (now completed); and
a second 12,140 meter phase using NQ and HQ diameter core. Full
results from the BQ diameter drilling have been announced (see also
March 29th and July 19th news release
at https://agmr.ca/news/). The second phase of infill drilling
started in June 2023 and was
completed in October 2023. The
Company plans to incorporate all of this drilling in an upcoming
mineral resource estimate. Full results have now been received and
announced.
On Behalf of the Board of Directors of Silver Mountain Resources
Inc.
Alvaro Espinoza, Chief Executive
Officer
Qualified Person
Antonio Cruz Bermudez, , P.
Geo. Registered Member MAIG is 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 NI
43-101 Technical Report Mineral Resource Estimate for the Reliquias
Mine, Huancavelica- Peru, dated
March 27, 2023, effective date
March 18, 2023, 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 60,000 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 BQ, 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 or Certimin laboratories 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.
SOURCE Silver Mountain Resources Inc.