Key Highlights – Channel sampling at Reliquias – weighted
averages
MTC vein (Level 520): 130m with average vein width of 0.73m @ 553 g/t Ag, 1.27% Pb, 1.37 % Zn,
0.23 % Cu and 0.83 g/t Au
PAS vein (Level 710): 84m with average vein width of 0.86m @ 214 g/t Ag, 0.78% Pb, 1.56% Zn, 0.06% Cu
and 1.51 g/t Au
BEA vein (Level 470): 23m with average vein width of 0.37m @ 727 g/t Ag, 1.35% Pb, 1.21% Zn, 0.24% Cu
and 0.33 g/t Au
TORONTO, Oct. 17,
2023 /CNW/ - Silver Mountain Resources Inc. ("Silver
Mountain" or "the Company") (TSXV: AGMR) (OTCQB: AGMRF) is pleased
to announce that it has received results from underground channel
sampling carried out between June and August
2023, part of its ongoing mine rehabilitation program at its
100% owned Reliquias mine, central Peru.
The Company´s crews have continued to systematically sample the
underground workings as part of the preparation work needed to
restart operations at Reliquias in the future. A total of 3,499
samples were collected from the Sorpresa ("SOR"), Matacaballo
("MTC"), Perseguida ("PER"), Meteysaca ("MTS"), Pozo Rico ("PZR"), Beatita ("BEA"), Pasteur
("PAS") and Vulcano ("VUL") veins. All samples were collected
perpendicular to the veins using portable rock saws.
Alvaro Espinoza, President and
CEO of Silver Mountain, said, "Our crews have continued to work
at full speed rehabilitating and sampling the workings at the
Reliquias Mine. Having readily accessible tunnels and crosscuts
will allow us not only to potentially restart mine production
quickly, but also provide us with sufficient representative data
points to increase the confidence in our resource."
Mr. Espinoza continued, "As Silver Mountain's current
exploration phase nears conclusion, we consistenly see excellent
silver grades in known and new veins. Results from the Beatita
vein, in particular, are very encouraging, as they confirm that
there are multiple parallel NW-SE vein systems with grades similar
to those found at Perseguida. Reliquias continues to deliver, and
we optimistically look forward to the culmination of the current
highly successful exploration phase and the preparation of an
updated mineral resource estimate and publishing a new technical
report".
Channel Sampling Results
Silver Mountain geologists collected 3,499 channel samples from
1,046 channels between June and August
2023, as part of the Company´s plan to systematically sample
the veins exposed in the Reliquias mine workings. Table 1 and Table
2 show the distribution of samples between the veins and vein
systems, and the compiled weighted results respectively and Figure
1 shows the channel sampling coverage to date.
Channel sampling along an 84.40 metre long segment of the
easternmost part of the Pasteur ("PAS") vein, on level 710 and near
the intersection with the Beatita vein ("BEA"), yielded a weighted
average of 13.80 oz/t AgEq, with an average vein thickness of 0.86
metres. Furthermore, channel sampling 700 metres to the northwest
along the BEA vein, on level 470, highlighted a 23 metre long
segment with an average thickness of 0.37 metres grading 26.81 oz/t
AgEq, indicating that high grade silver extends both laterally and
at depth. The Beatita vein is a 2.3 km long northwest-southwest
trending vein, parallel to the Perseguida ("PER") vein system,
where some of the highest grades seen at Reliquias are hosted and
it intersects the Pasteur vein system near the latter´s easternmost
sxtension. The BEA vein is not included in the current mineral
resource estimate. Figure 2 shows the results from the channel
sampling in level 470 of the BEA vein. Figure 3 shows the results
from level 710 of the PAS and BEA
veins.
The Meteysaca ("MYS") vein system continues to show high
grade silver and base metal grades. Results from a 130 metre long
segment along level 520 from the central part of this NW-SE
trending vein shows an average vein width of 0.73 metres with
grades of 553 g/t Ag, 1.27% Pb, 1.37% Zn, 0.23% Cu and 0.85 g/t Au
(22.51 oz/t AgEq). Figure 4 shows the sampling from level 520 of
the MYS vein reported here.
Sampling elsewhere along a 30 metre segment of the Pasteur vein
system ("PAS") on level 642 shows an average vein width of
0.78m with average grade of 10.69
oz/t AgEq. Figure 5 shows the location of this sampling
interval.
Channel sampling of the Reliquias mine workings is part of
the Company´s strategy of expanding the current mineral resource
estimate by incorporating continuous vein samples from multiple
veins in parallel with the mine rehabilitation and underground
diamond drilling programs. Earlier channel sampling results from
samples collected in 2023 were announced on August 16th and May 9th (please visit Silver
Mountain´s website www.agmr.com for more details).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 meter
phase using NQ and HQ diameter core, currently under way and
approaching its conclusion.
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 and 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.