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Highlights
- Drill results returned high grade silver-polymetallic
intercepts, with more than one mineralized interval encountered in
various drill holes, including:
- 1.40m @ 205.0 g/t Ag, 13.5%
Pb, 17.8% Zn, 0.76% Cu, and 0.3g/t Au, in drill hole
SMR-16-22-SCS
- 7.58m @ 45.4 g/t Ag, 4.54% Pb,
5.59% Zn, 0.34% Cu, in hole SMR-17-22-MTC, including
-
- 1.48m @ 83.2 g/t Ag, 7.83% Pb,
4.21% Zn, 0.89% Cu, and
- 1.40m @ 116.1 g/t Ag, 12.97%
Pb, 19.77% Zn, 0.55% Cu
- 1.25m @ 161.5 g/t Ag, 17.92%
Pb, 7.84% Zn, 0.77% Cu, in same hole SMR-17-22-MTC
- 5.25m @ 82.5 g/t Ag, 3.41% Pb,
5.42% Zn, 0.56% Cu, and 0.09 g/t Au, in drill hole
SMR-18-22-SCS
TORONTO, Sept. 21,
2022 /CNW/ - Silver Mountain Resources Inc. (TSXV:
AGMR) (OTCQB: AGMRF) (BVL: AGMR) ("Silver Mountain",
"AGMR" or the "Company") is pleased to provide an
update on its underground drilling at the Reliquias silver mine at
the Company's Castrovirreyna Project in Huancavelica, central
Peru. 58 bore holes have been
completed to date, with results of 5 holes drilled to test the
Matacaballo and Sacasipuedes veins included in this release (Table
1). The main objective of the fully funded drill program is to
establish a National Instrument 43-101 – Standard of Disclosure
for Mineral Projects ("NI 43-101") compliant mineral
resource in H1 2023 that will form the basis of our production
decision in H2 2023. In addition, the Company aims to better
characterize and extend the known silver-rich zones at
depth.1
Alfredo Bazo, President and CEO,
commented: "The drill hole results confirm the continuity of
high-grade Ag-Pb-Zn-Cu mineralization in both the Matacaballo and
Sacasipuedes vein, close to existing mine workings at the Reliquias
deposit. We are delighted that various bore holes have
intersected more than one mineralized interval, which appear to
represent additional structures such as the Ayayay vein previously
observed in historic mine workings (see Fig.1). Our geological team
is currently evaluating these intercepts to incorporate them in our
3D geological model."
_________________________________
|
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 at
https://sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00052252.
|
The following table shows the detailed results of mineralized
intercepts encountered in drill holes SMR-15-22-MTC to
SMR-19-22-SCS.
Market Making Agreement
The Company also announces the appointment of Independent
Trading Group ("ITG") to provide market making services in
accordance with the policies of the TSX Venture Exchange (the
"TSXV"). Under the market making services agreement dated
February 2, 2022 (the
"Agreement"), ITG will trade securities of the Company on
the TSXV with the objective of maintaining a reasonable market and
improving the liquidity of the Company's class A common shares. The
Company will pay ITG a monthly cash fee of C$5,000 for a minimum term of three months,
payable at the beginning of each month, and which will
automatically extend for successive one-month terms unless
terminated by either party on thirty days' prior notice. ITG acts
at arm's length to the Company and none of ITG nor its affiliates
or associates has any interest directly or indirectly in the
Company or its securities, or any right or intent to acquire such
an interest. ITG will not receive shares or options as
compensation. ITG will provide the capital used for market-making
activities. The services provided by ITG pursuant to
the Agreement commenced on February
2, 2022. The Agreement remains subject to the approval
of the TSXV.
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 27,000 hectares in
the district of Castrovirreyna, Huancavelica, Peru.
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 in this news release
include, but are not limited to, statements in respect of the
Company's proposed exploration program and the timing and potential
results thereof.
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.