Key Highlights – Initial drilling on the Natividad Vein and
mineral resource expansion drilling at Sacasipuedes vein
system
Drill Hole SMR135-23-SCS (newly identified Natividad, or "NAT"
vein)
1.55 m @ 81 g/t
Ag, 2.51% Pb, 4.57% Zn, 1.80% Cu and 0.25 g/t Au, including
1.00 m @ 106 g/t
Ag, 3.37% Pb, 5.84% Zn, 2.56% Cu and 0.09 g/t Au
Drill Hole SMR140-23-SCS (NAT vein)
2.20 m @ 42 g/t
Ag, 2.79% Pb, 3.84% Zn, 0.75% Cu and 0.06 g/t Au, including
1.00 m @ 62 g/t
Ag, 5.40% Pb, 4.70% Zn, 0.98% Cu and 0.06 g/t Au
Drill Hole SMR140-23-SCS (mineralized breccia)
0.60 m @ 1,319.55
g/t Ag, 0.86% Pb, 2.82% Zn, 0.03% Cu and 6.19 g/t Au, including
0.30 m @ 2,623.00
g/t Ag, 1.68% Pb, 5.60% Zn, 0.06% Cu and 12.20 g/t Au
TORONTO, Sept. 27,
2023 /CNW/ - Silver Mountain Resources Inc.
("Silver Mountain" or "the Company") (TSXV: AGMR) (OTCQB: AGMRF) is
pleased to announce the discovery of the Natividad vein, a new
copper rich vein at its 100% owned Reliquias mine, central
Peru. Results from three of the
initial four drill holes completed at Natividad have been received,
all part of Phase 2 of the Company´s 2023 infill and resource
expansion program. Drilling has also hit very high gold and silver
grades near the Sacasipuedes vein, within a mineralized breccia
body with strong argillic alteration.
Alvaro Espinoza, CEO of Silver
Mountain, stated, "It is very exciting to have discovered a new
mineralized vein, which has been named by our technical team as
Natividad (or "NAT"). It is early days still, and the high grade
copper values and true thickness observed augur well for its
possible incorporation into a future mine plan. Our geologists are
adapting the program to further test this structure along strike
and at depth, and we will provide results as we receive them.
Discovering a new vein in a historic district such as Reliquias
proves once again that this project not only has a solid resource
base on which to prepare a mine plan to re-start operations, but
also has significant exploration upside to grow it
further."
Mr Espinoza continued, "The extremely high silver and gold
grades found above the main Sacasipuedes vein is also exciting as
it proves, once again, that bonanza type grades exist outside of
the current mineral resource boundaries. We look forward to test
the continuity of this new high grade hit in our ongoing
underground drill program."
Phase 2 of the 2023 drill program consists of 12,500 metres of
NQ and HQ drilling aimed at infilling and growing the Company´s
current mineral resource estimate (see news release dated
April 12th, 2023 ). So
far, drilling crews have completed approximately 7,600 metres of
this program with two underground rigs, and the Company has
received results from 18 drill holes (see also news releases dated
July 19th and August 16th, 2023).
Discussion of 2023 Drilling
Results
The Company has so far completed 22 drill holes on the
Sacasipuedes and Perseguida vein systems from three underground
drill platforms, two from Sacasipuedes and one from Perseguida. The
Natividad discovery was made through drilling originally aimed at
the Sacasipuedes vein, the results of which are also included in
this release. 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.
Number
|
Drill
Platform
|
Hole
ID
|
From
|
To
|
Interval
|
True
Width1
|
Gold
|
Silver
|
Lead
|
Zinc
|
Copper
|
Ag_Eq2
|
Vein
|
Number
|
Drill
Platform
|
Drill
hole
|
m
|
m
|
m
|
m
|
g/t
|
g/t
|
%
|
%
|
%
|
Oz/t
|
|
9
|
C-39
|
SMR-135-23-SCS
|
427.25
|
428.00
|
0.75
|
0.67
|
1.11
|
5.63
|
0.30
|
0.59
|
0.06
|
3.70
|
SCS
|
including
|
427.60
|
428.00
|
0.40
|
|
2.05
|
3.90
|
0.24
|
0.42
|
0.05
|
5.72
|
|
|
493.95
|
495.50
|
1.55
|
1.36
|
0.25
|
80.98
|
2.51
|
4.57
|
1.80
|
13.58
|
NAT
|
including
|
493.95
|
494.95
|
1.00
|
|
0.09
|
106.00
|
3.37
|
5.84
|
2.56
|
17.67
|
|
14
|
C-39
|
SMR-140-23-SCS
|
105.25
|
105.85
|
0.60
|
|
6.19
|
1319.55
|
0.86
|
2.82
|
0.03
|
60.31
|
|
including
|
105.25
|
105.55
|
0.30
|
|
12.20
|
2623.00
|
1.68
|
5.60
|
0.06
|
119.63
|
|
|
443.95
|
444.45
|
0.50
|
0.41
|
0.06
|
79.10
|
7.39
|
13.19
|
0.43
|
20.07
|
SCS
|
|
540.25
|
542.45
|
2.20
|
1.76
|
0.06
|
42.03
|
2.79
|
3.84
|
0.75
|
8.69
|
NAT
|
including
|
540.25
|
541.25
|
1.00
|
0.80
|
0.06
|
61.80
|
5.40
|
4.70
|
0.98
|
12.61
|
|
19
|
C-33
|
SMR-146-23-SCS
|
303.00
|
303.65
|
0.65
|
0.49
|
0.04
|
28.50
|
0.25
|
0.34
|
0.17
|
1.94
|
SCS
|
|
462.55
|
463.20
|
0.65
|
0.62
|
0.04
|
49.60
|
4.36
|
2.20
|
0.40
|
7.83
|
NAT
|
Notes
|
1True
thicknesses are shown only where they can be determined.
|
2 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.
|
Table 1: Location and summary of results from the Natividad
vein
The Natividad vein is a newly identified mineralized structure
found up to 100 metres below the Sacasipuedes vein ("SCS"). Company
geologists believe that Natividad´s strike is oblique to the SCS
vein, likely subparallel to the Matacaballo vein, and with a
northerly dip. The mineralization is similar to the other veins in
Reliquias, but with significantly higher quantities of chalcopyrite
resulting in much higher grade copper grades than observed
elsewhere. Company geologists interpret this style of
mineralization as a separate event to the other veins drilled so
far at Reliquias, suggesting that this deposit hosts a long-lived
and multi-phase mineralization system. The Natividad vein has now
been identified in four drill holes, spaced up to approximately 85
metres apart, and further drilling along strike and at depth is
planned. Drilling has so far tested approximately 150 metres of
strike length of Natividad, and it remains open laterally and
vertically. Results from three drill holes have been received and
are shown in Figure 2, a longitudinal section of the Natividad vein
with the four completed drill holes.
Before hitting the Natividad vein, drill hole SMS-140-23-SCS
intersected very high grade silver-gold at a shallow depth and high
grade zinc-lead mineralization on the Sacasipuedes ("SCS"). The
shallower precious metal mineralization is hosted in an
argillically altered breccia with disseminated sulfides (see Figure
3), yielding some of the highest grade silver-gold grades seen so
far at Reliquias, with a silver equivalent grade of approximately
120 oz/t AgEq. Company geologists are currently working on the
interpretation of this style of mineralization. Further drilling
will be needed to determine if this breccia is linked to the the
Sacasipuedes vein system, or if it represents a new style of
mineralization. The main Sacasipuedes intercept sits approximately
500 metres to the southeast of the outer limit of the current
mineral resource, and below the lowest levels of the Reliquias mine
historical workings. The SCS vein intercept of 0.50 metres with a
combined Pb+Zn grade of 20.58%, is one the highest grade
polymetallic results found to date. Further drilling is planned to
test the lateral and down dip extensions of this intercept. Figure
4 shows a longitudinal section of the SCS vein with the location of
this drill hole.
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.
|
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.
|
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. Full
results from the BQ diameter drilling have now 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 continues with 3
rigs working in the upper levels of the MTC (Matacaballo), MTS
(Meteysaca), PER (Perseguida), 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.
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 currently exploring its 100% owned
Castrovirreyna Project, consisting of over 60,000 hectares of
highly prospective mineral claims and concessions located in the
Huancavelica Region, central Peru.
For additional information regarding 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
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 "Caution Regarding Forward-Looking
Statements" and "Risk Factors" in the Company's Annual
Information Form dated August 14,
2023, and other disclosure documents available on the
Company's profile on SEDAR+ at www.sedarplus.ca. 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.