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TORONTO, June 7, 2022
/CNW/ - Silver Mountain Resources Inc. ("Silver Mountain",
"AGMR" or the "Company") is pleased to announce that
diamond drilling is well underway at its Reliquias underground
silver mine in Huancavelica, central Peru, with the first holes intersecting
Ag-Pb-Zn mineralization in the Matacaballo Vein resource area and
samples having been sent to the lab for assaying. The Huancavelica
region, and especially the Castrovirreyna mining district, is known
to host significant precious metal and polymetallic deposits, such
as Julcani (101 Moz Ag past
production) and San Genaro (>60 Moz
Ag past production).1 Silver
Mountain, through its subsidiary Sociedad Minera Reliquias S.A.C.,
controls over of 27,000 hectares in this belt, mostly within the
prospective Reliquias and Dorita property blocks.
Alfredo Bazo, President & CEO
comments: "We are delighted to report that underground drilling
is progressing well at Reliquias with two drills operating, and 14
holes completed to date. Encouraging is that the first holes
designed to confirm historical resources have intersected Ag-Pb-Zn
mineralization where modelled close to existing mine workings, in
zones where historic sampling by the previous operator consistently
returned values between 10 and 30 oz AgEq in the same vein. We
expect to have full assays in the coming weeks to hopefully
validate these grades, for now we remain encouraged by this first
round of confirmatory drilling."
The fully funded 2022 drill program will total 12,000 m of diamond core from 70 holes averaging
150 - 200 m in depth. Drilling has
started on April 22 from platform 7
(Fig.2) with the first drill rig, to test the Matacaballo
vein. Upon completion of the first hole, this rig continued to
investigate different sections of the same mineralized structure
with additional drill holes.
![Fig.1: Close-up view of mineralized intervals of drill hole SMR-01-22-MTC; photo A: brecciated vein, multiple quartz generations, matrix consists of tetrahedrite, sphalerite, galena, rhodochrosite, 260.20 m depth; photo B: quartz – sulphide vein displaying brecciation and late quartz / rhodochrosite veining, visible sulphides include tetrahedrite, galena, sphalerite, 264.15 m depth (CNW Group/Silver Mountain Resources Inc.) Fig.1: Close-up view of mineralized intervals of drill hole SMR-01-22-MTC; photo A: brecciated vein, multiple quartz generations, matrix consists of tetrahedrite, sphalerite, galena, rhodochrosite, 260.20 m depth; photo B: quartz – sulphide vein displaying brecciation and late quartz / rhodochrosite veining, visible sulphides include tetrahedrite, galena, sphalerite, 264.15 m depth (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/1834609/Fig_1.jpg)
A second drill rig was mobilized and commenced drilling on
April 25 from drill chamber 2, aimed
at testing the Sacasipuedes vein (Fig.2). By utilizing two
drill rigs, Silver Mountain strives for completion of the program
by approximately end of October 2022.
The main objective of this program is to convert current historical
resources of 80.8 Moz Ag (3.02 Mt @
384 g/t Ag, 3.2% Zn, 2.7% Pb, and 1.4% Cu) into NI 43-101 compliant
mineral resources in H1 2023 that will form the basis of our
restart decision in H2 2023. In addition, the Company aims to
better characterize and extend the known silver-rich zones at depth
(Fig.3 and 4). 2
The Company's first drill hole, SMR-01-22-MTC, intercepted the
Matacaballo vein approximately 28
m vertically below the closest existing mine level, sublevel
745-2. Based on initial observations of the drill core, the
mineralized structure is best developed between 258.20 m and 270.15
m down-hole (estimated true width 11.2 m), within a wider interval showing
silicification and argillic alteration of the andesitic host rocks
(Fig.5).
In this intersection, the Matacaballo structure displays several
phases of quartz veining and brecciation. Sulphides occur as
breccia matrix together with grey to milky quartz, or in pods and
disseminations within quartz veinlets (Fig.1). Based on visual
estimates, total sulphide content varies from 3% to over 20%,
containing tetrahedrite and other silver sulpho-salts, sphalerite,
galena, and minor chalcopyrite.
Since drill holes SMR-01-22-MTC and SMR-02-2022-SCS were
completed in early May 2022,
geochemical assays are not available yet. Only for the purpose of
comparison, historic sampling by the previous operator along
sublevels 745-2 and 290-2 respectively, the nearest underground
drifts, consistently returned values between 10 and 30 oz AgEq in
the same vein. After completion of detailed logging and sampling of
these and subsequent bore holes, the drill core samples will be
shipped to ALS Ltd., one of the leading commercial laboratories,
for preparation and analytical geochemistry services. Geochemical
assay results will be published as soon as they become
available.
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 Jose Vizquerra, a Director of the Company and a
Qualified Person within the meaning of National Instrument
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.
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.
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. 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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1 Acosta
Ale, J., Santisteban, A., & Huanacuni, D. (2015). Lead and
Zinc in Peru: Resources and Supply Trends. Instituto Geológico
Minero Y Metalúrgico
- https://repositorio.ingemmet.gob.pe/handle/20.500.12544/3350
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2 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.
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SOURCE Silver Mountain Resources Inc.