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- Extensive zones of gold and silver mineralization identified
in channel sampling at the Dorita Claim Block
- Encouraging results include:
- 5.01 m @ 2.2 g/t Au and 36.44
g/t Ag
- 5.46 m @ 1.49 g/t Au and 17.61
g/t Ag
- 2.83 m @ 1.95 g/t Au and 64.49
g/t Ag
- Highly elevated gold and silver anomalies correlate with
interpreted regional structures
- Newly identified sub-parallel zone of mineralization at
North Dorita
TORONTO, July 7, 2022
/CNW/ - Silver Mountain Resources Inc. ("Silver Mountain",
"AGMR" or the "Company") is pleased to announce
initial results from surface sampling at the Company's Dorita
property in Huancavelica, central Peru (Fig. 1).
Assays have been received for 980 rock channel samples taken
from key areas across the Dorita and Dorita North vein systems
(Fig. 1 and Fig. 2). The work was undertaken to assist the Company
in focusing a future drill program, with the new results providing
positive support for further exploration in this mineral rich
district.
Samples were taken using an electric saw to produce a continuous
channel perpendicular across the veins and mineralized structures;
with channel widths varying between 0.36
m and 9.79 m.
The channel sample results include significant concentrations of
gold (Au) and silver (Ag), and anomalous concentrations of
multi-metal pathfinder elements such as arsenic (As), antimony
(Sb), and lead (Pb). The new results confirm the geometry of
interpreted mineralized structures and demonstrate the potential to
identify further extensions and repeat structures along strike at
the Dorita Project.
The Dorita vein system has been recognized over a strike length
of 1.8 km, extending north-east from the historic Dorita mine, with
mineralized veins up to 2.8 m wide
(Fig.1). The results from the channel sampling indicate the system
is open along strike, and potentially at depth. The San Francisco breccia is located to the
north-east of the Dorita mine and is characterized by a significant
increase in mineralized vein thickness, with widths up to
9.8 m.
A new subparallel vein system has been identified at North
Dorita, approximately 1 km north of the Dorita mine, were an
east-west oriented vein has been recognized over 1.4 km. This
mineralized vein is intersected by a north-east – south-west
trending, 1 km-long mineralized structure. Both veins in the North
Dorita area have average widths of 2.48
m and 1.62 m, respectively and
are open in both directions.
The structures are associated with encouraging sulphide
mineralization comprising galena, various silver sulpho-salts,
sphalerite, chalcopyrite and stibnite. Other accessory minerals
include pyrite, quartz, chalcedony, and barite.
The following table provides more detail regarding selected
channel sampling results:
Channel
|
Width (m)
|
Au g/t
|
Ag g/t
|
Cu ppm
|
Pb ppm
|
Zn ppm
|
CN-19
|
1.87
|
1.58
|
19.47
|
38.22
|
13.56
|
36.74
|
CN-22
|
2.87
|
0.72
|
8.46
|
96.12
|
16.12
|
11.20
|
CN-27
|
5.46
|
1.49
|
17.61
|
35.36
|
13.06
|
26.36
|
CN-29
|
6.96
|
1.05
|
10.60
|
36.99
|
22.75
|
18.07
|
CN-35
|
1.01
|
2.91
|
44.18
|
33.33
|
3.79
|
17.88
|
CN-37
|
1.90
|
0.77
|
13.01
|
62.96
|
24.56
|
24.25
|
CN-44
|
5.01
|
2.20
|
36.22
|
96.06
|
3769.85
|
294.13
|
CN-50
|
5.76
|
1.60
|
17.13
|
32.09
|
1361.42
|
413.11
|
CN-69
|
2.83
|
1.95
|
64.49
|
38.99
|
166.29
|
179.64
|
Table
1:
|
Results of channel
sampling from surface outcrops at Dorita - San Francisco vein
system and Dorita North vein system, Dorita project. Assays shown
are weighted average over complete channel width. Table lists only
selected channels as displayed in Fig. 1 and 2.
|
Background to the Dorita
Project
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
_______________________________________________
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
|
The large Dorita concession block is located approximately 25 km
northwest of the Reliquias mine. At Dorita, small-scale underground
exploitation was carried out in the 1980s by a previous operator,
based on silver-rich polymetallic veins that appear to transition
from high to intermediate sulphidation style mineralization. The
historic production from several veins reached up to 150t/d and
reportedly averaged grades of 320-460 oz/t Ag, 2% Pb, 0.9% Zn, and
1% Cu.2 According to historic mine plans, the main
Dorita vein was exploited on 4 levels down to 140 m below surface, with mineralization
remaining open laterally along strike and to depth. Historic
information from drifts developed on the Dorita and San Francisco structures indicates that the
Ag-Pb-Zn content of these veins increases rapidly at
depth.3
In early 2022, Silver Mountain started a systematic exploration
program to assess the large Dorita land package, including
1:2000-scale geological mapping and detailed geochemical
sampling.
_______________________________________________
2
|
Consultora Minera Anglo
Peruana SA (2006): El prospecto Dorita, Internal report prepared
for Corporación Minera Castrovirreyna SA
|
3
|
Consultora Minera Anglo
Peruana SA (2006): El prospecto Dorita, Internal report prepared
for Corporación Minera Castrovirreyna SA
|
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 –
Standards of Disclosure for Mineral Projects of the Canadian
Securities Administrators.
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 and Analytical
Procedures
Silver Mountain follows systematic and rigorous sampling and
analytical protocols which meet industry standards. These protocols
are summarized below.
All surface rock samples were collected with an electric diamond
saw, typically over a 1-meter sample interval. 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,
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) 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 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.