Key Highlights – Infill drilling and mine rehabilitation at
Reliquias
Hole SMR97BQ-23-SCS
- 9.45 m @ 75.63 g/t Ag, 1.99% Pb,
3.09% Zn, 0.22% Cu and 0.22 g/t Au
-
- Including 1.95 metres at 118.43 g/t Ag, 2.67% Pb, 5.05%
Zn, 0.87% Cu and 0.18 g/t Au
Hole SMR103BQ-23-MTS
- 1.00 m @ 17.80 g/t Ag, 0.08% Pb,
3.09% Zn, 0.01% Cu and 28.30 g/t Au
-
- And 0.80 m @ 482.00 g/t Ag, 1.10%
Pb, 3.10% Zn, 0.34% Cu and 4.02 g/t Au
Hole SMR118BQ-23-PAS
- 0.60 m @ 629.00 g/t Ag, 1.20% Pb,
2.60% Zn, 0.08% Cu and 1.14 g/t Au
Hole SMR126BQ-23-PER
- 1.75 m @ 773.17 g/t Ag, 1.31% Pb,
1.28% Zn, 0.14% Cu and 5.23 g/t Au
11.37 km of tunnels have been rehabilitated to date,
representing 77.7% of the overall program.
TORONTO, July 19,
2023 /CNW/ - Silver Mountain Resources Inc.
("Silver Mountain" or "the Company") (TSXV: AGMR) (OTCQB: AGMRF) is
pleased to announce results from 32 drill holes completed between
December 2022 and May 2023 as part of the first phase of infill and
resource expansion drilling program at its 100% owned Reliquias
mine, central Peru. These drill
holes are not included in the current mineral resource estimate
announced on April 12th,
2023. The Company also provides an update on its ongoing mine
rehabilitation program, aimed at a future re-start of production
from this historic silver-zinc-lead deposit, located in one of the
most prolific metallogenic belts in the world.
The Company has successfully completed a first phase, 55 hole
and 3,500 metre underground drill program at Reliquias, focusing on
both infilling the high-grade portions of the current resource, and
stepping out along strike of the highest-grade veins identified to
date. Ongoing mine rehabilitation remains on track, with 11.37
kilometres completed so far. The Company plans to complete, before
the end of 2023, the rehabilitation work of all main ramps and
tunnels necessary to re-start production. Drilling continues with 3
rigs working on underground drill pads, and results will be
announced as they come in.
Alvaro Espinoza, CEO of Silver
Mountain, commented, "These drilling results are very
encouraging and, together with the rapid progress of our mine
rehabilitation program, provide us with a clear way forward at
Reliquias. We are working on a two-pronged strategy, infilling and
expanding our resource base, and getting the historical mine
workings ready for a quick re-start once a new resource is
completed, full permits are received, and funding is secured. The
high-grade gold results obtained in hole SMR103BQ-23-MTS are
particularly encouraging and support the concept that the Reliquias
vein systems host high grade gold as well as the polymetallic
mineralization it is well known for. We are also pleased with the
results from the Perseguida vein system, where we have hit some of
the best silver-gold mineralization found to date, proving once
again that Reliquias´ mix of base and precious metals
mineralization makes it one of the most exciting projects in
central Peru."
Mr. Espinoza continued, "Silver Mountain´s crews have rapidly
advanced the Reliquias project over the past 12 months. As a first
step, the Company published a National Instrument 43-101 compliant
resource estimate on April
12th 2023 (see
https://agmr.ca/silver-mountain-delivers-initial-ni-43-101-compliant-mineral-resource-estimate-for-reliquias-mine/)
which focused on confirming a portion of the historical resources
and provides the resource base for the initial phase of future
production. Some of the historical resource at Reliquias remains
outside of the current resource estimate, as it was not drill
tested by us. The Company plans to incorporate those resources into
a current mineral inventory at Reliquias as soon as practicable.
Furthermore, once the tunnel rehabilitation program is completed,
the Company will start the engineering work needed to ready the
existing processing facility for future production. Finally,
Company geologists will continue to explore the multiple
outcropping veins found on our 60,000 hectares land package. We
look forward to updating our shareholders on the timeline of this
work once the underground rehabilitation phase is
completed."
Discussion on the results from the
Reliquias deposit
The first phase of infill and resource expansion drilling began
in December 2022 and consisted of
3,500 metres of BQ diameter drilling from underground drill
platforms, with the final 1,805 metres of BQ diameter drilling,
from 32 drill holes, along the Sacasipuedes ("SCS"), Meteysaca
("MTS"), Matacaballo ("MTC"), Pozo
Rico ("PZR"), Vulcano ("VUL"), Perseguida ("PER") and
Pasteur ("PAS") veins or vein systems, reported here. This drilling
is in addition to the approximately 13,600 metres of drilling
completed by November 2022 which were
used for the current mineral resource estimate. Drilling recoveries
were, on average, above 85% for all drill holes. Figure 1 shows the
location of the reported drill holes, and Table 1 details the
results and the veins targeted by each drill hole.
Notes:
|
1 Silver equivalent (Ag_Eq) grades
are calculated using metal prices of: silver US$23.30/oz., gold
US$1764/oz, copper US$9419/tm, lead US$2188/tm and zinc US$2813/tm.
Silver equivalent grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t)
+ (Au (g/t) * 2.40) + (Cu (%) * 2.70) + (Pb (%) * 0.80) + (Zn (%) *
0.80). Metal recoveries have not been applied in the silver
equivalent value calculation.
|
Drill hole SMR103BQ-23-MTS, an infill hole in the central
portion of the Meteysaca (MTS) vein, reports some of the highest
gold grades identified to date at Reliquias, confirming the
presence of high-grade gold grades in some of the veins.
Drill hole SMR118BQ-23-PAS was drilled along the easternmost
segment of the Matacaballo (MTC) vein system drill tested to date
and extends the high-grade silver mineralization further east than
the current block model. This mineralization remains open to the
east and at depth.
Drill hole SMR126BQ-23-PER was drilled on the northwestern
extension of the Perseguida (PER) vein and has hit some of the
highest grade silver and base metal mineralization found to date.
The mineralization remains open to the northwest and at depth.
Infill Drilling on the SCS vein system confirms the current
block model and will be used for detailed mine planning in the
upcoming engineering phase of project development. Figures 2 and 3
show longitudinal sections along the MTC and PER veins
respectively, both of which remain open along strike and at
depth.
Operational Update and
outlook
Mine crews have continued to rehabilitate the underground
workings, preparing them for future mining by the Company. So far,
11.37 km out of 14.63 km of underground workings, including ramps,
sublevels, and crosscuts, have been rehabilitated using two scoop
trams. The Company expects to complete the remaining 3.26 km of
mine rehabilitation by the end of Q4 2023. Table 2 shows the
advance percentages in each sector of the mine:
Zone
|
Total Workings
(km)
|
Total
Rehabilitated
(km)
|
Total Pending
(km)
|
Completion
(%)
|
SCS
|
2.35
|
1.72
|
0.63
|
73.2
|
MTC
|
6.37
|
4.97
|
1.40
|
78.0
|
MTS
|
2.45
|
2.44
|
0.01
|
99.6
|
PER
|
0.58
|
0.58
|
0.00
|
100.0
|
PZR
|
0.82
|
0.55
|
0.27
|
67.1
|
VUL
|
0.69
|
0.47
|
0.22
|
68.1
|
PAS
|
0.73
|
0.48
|
0.25
|
65.8
|
BEA
|
0.44
|
0.04
|
0.40
|
9.1
|
AYA
|
0.20
|
0.12
|
0.08
|
60.0
|
Total
|
14.63
|
11.37
|
3.26
|
77.7
|
Table 2: Completion
rate of the underground rehabilitation program at
Reliquias.
|
Once the rehabilitation work is completed, the Company will have
access to the highest grade blocks from the current resource, as
well as the shallower levels our current infill drill program
is targeting. Coupled with the existing mine infrastructure, such
as processing plant and tailings facilities, these upgraded tunnels
position the Reliquias project as a near term producer, with
significant exploration upside.
The 2023 drill program consists of two phases: an initial 3,500
metre phase using BQ diameter core (now completed); and a second
12,500 meters phase using NQ and HQ diameter core. Full results
from the BQ diameter drilling have now been announced (see also
March 29th news release at
https://agmr.ca/delineation-drilling-at-agmrs-reliquias-mine-confirms-high-grade-intercepts/).
The second phase of infill drilling started in June 2023 and continues with 3 rigs working in
the upper levels of the MTC (Matacaballo), MTS (Meteysaca), and SCS
(Sacasipuedes) vein systems, where high grade historical resource
blocks remain outside of the current resource estimate. The Company
plans to incorporate these high-grade blocks in future resource
estimates. Results will be announced as they become available.
The Company will review the full results from its ongoing
drilling, channel sampling and rehabilitation programs once it
receives them and it looks forward to informing shareholders on its
development schedule and the next steps at Reliquias.
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 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.
SOURCE Silver Mountain Resources Inc.