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Highlights:
- 2.87m @ 476 g/t Ag, 15.34 g/t
Au, 5.71% Pb, 6.21% Zn, and 0.24% Cu
- 1.94m @ 544 g/t Ag, 1.62 g/t
Au, 12.83% Pb, 18.26% Zn, and 1.62% Cu
- 1.16m @ 157 g/t Ag, 8.16 g/t
Au, 7.67% Pb, 12.79% Zn, and 1.20% Cu
TORONTO, Dec. 7, 2022
/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB: AGMRF)
(BVL: AGMR) ("Silver Mountain", "AGMR" or the
"Company") is pleased to announce new results from
underground channel sampling at the Reliquias silver mine in
Huancavelica, central Peru. To
complement the drill campaign and to facilitate the conversion of
additional historic resources into a National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101")
compliant mineral resource, an extensive underground mapping and
sampling program is in progress at Reliquias. Several existing
drifts, sublevels, and raises were mapped and systematically
sampled in channels cut across the exposed veins.
Assays have been received for 263 rock channel samples taken
from three zones along Sublevel 735-1, part of the 390 m level of the Matacaballo structure (Fig.1
to 3). This zone of well-developed mineralization in the
Matacaballo Vein is exposed over 112
m along sublevel 735-1. The unmined stopes of this drift are
located above the main 390 m level
and have already been developed for mining (Fig.1). The extensions
of the Matacaballo vein to the west and east at the same depth were
exploited in the past, which indicates that well-developed
mineralization was present along strike as well.
![Figure1: Oblique three-dimensional view of the 390 m – level, Matacaballo Vein, and the two sublevels 735-1 and 735-2 developed above. The location of channel samples collected across the back of the drifts are indicated in green. Surveying of underground workings was carried out utilizing a drone-based LIDAR system (3D laser scanning). Inset map shows location of detailed view within the Reliquias mine. (CNW Group/Silver Mountain Resources Inc.) Figure1: Oblique three-dimensional view of the 390 m – level, Matacaballo Vein, and the two sublevels 735-1 and 735-2 developed above. The location of channel samples collected across the back of the drifts are indicated in green. Surveying of underground workings was carried out utilizing a drone-based LIDAR system (3D laser scanning). Inset map shows location of detailed view within the Reliquias mine. (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/1963002/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_REPORTS_NEW_UNDER.jpg)
Samples were taken using an electric percussion hammer to
produce a channel perpendicular across the veins and mineralized
structures. By cutting a continuous channel approximately 3-5 cm
deep by 10 cm wide, the channel samples are essentially equal to a
drill core in their significance for future resource estimation.
Where the structure is exposed along the back of the drift,
channels were cut across the vein systematically every 4 m. Channel lengths range between 0.87 m and 2.88
m.
The underground sampling results from this part of the
Matacaballo Vein confirm the continuity of well-developed
polymetallic mineralization within the structure, with significant
concentrations of silver (Ag), lead (Pb), zinc (Zn), and copper
(Cu). To highlight the continuity of this vein system, the grades
and widths of channels were averaged over each of the three zones
shown in Fig. 2 and 3. Weighted gold grades over sample channels –
on average 2.49 g/t Au in zone 1– were higher than expected,
ranging between 0.07 g/t and 15.34 g/t (data uncapped). A total of
26 individual rock channel samples returned over 1 g/t Au, with a
maximum value of 98.5 g/t Au. When applying a cap of 30 g/t Au to
the sample results to avoid overestimation of the gold content, the
average gold grade for zone 1 still reaches 1.76 g/t Au
(Tab.1).
Alfredo Bazo, President and CEO,
commented: "The underground sample results from sublevel 735-1
provide verification of the continuity of high-grade Ag-Pb-Zn-Cu
mineralization in the Matacaballo Vein. We are strongly encouraged
by the encountered gold grades, which most likely will positively
impact the results of our future resource estimate. Since this
sublevel of the Matacaballo structure is already developed for
extraction, it will certainly be considered for the mine start-up
in late 2023."
![Table 1: Weighted assay results from systematic channel sampling in Sublevel 735-1 along the Matacaballo Vein, calculated for each of the zones displayed in Fig.1. To calculate the average gold value for Zone 1, a cap of 30 g/t Au was used. (CNW Group/Silver Mountain Resources Inc.) Table 1: Weighted assay results from systematic channel sampling in Sublevel 735-1 along the Matacaballo Vein, calculated for each of the zones displayed in Fig.1. To calculate the average gold value for Zone 1, a cap of 30 g/t Au was used. (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/1963003/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_REPORTS_NEW_UNDER.jpg)
The Matacaballo structure exhibits brecciation, irregular
banding and crustiform textures typical of intermediate
sulphidation veins. Sulphide minerals are present as semi-massive
pods, fine veinlets, or in disseminated form, within a matrix
composed of several generations of quartz, with minor
rhodochrosite. Galena, sphalerite, silver sulpho-salts,
chalcopyrite, and minor pyrite were encountered. In the hanging as
well as the foot wall, the central Matacaballo vein is accompanied
by 20 to 50 cm wide splays, which show brecciation and contain
sulphides as matrix or in cockade textures around argillized wall
rock clasts.
The following table provides more detail regarding the channel
sample results from sublevel 735-1 of the Matacaballo Vein
structure.
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.
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 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 assaying.
Silver Mountain independently inserts certified control standards
(purchased from OREAS and Target Rocks), 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 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, Au) 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.
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SOURCE Silver Mountain Resources Inc.