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Highlights:
- Evidence for a porphyry copper system at depth found in an
erosional window over an area of at least 2 x 1 km
- Large lithocap covering 7 x 3 km offers additional potential
to explore for covered porphyry targets
TORONTO, Feb. 23,
2023 /CNW/ - Silver Mountain Resources Inc.
(TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) ("Silver
Mountain", "AGMR" or the "Company") is pleased to
report that a porphyry copper target has been recognized at the
Yahuarcocha and Guanajato zones, within the Company's 20,000-ha
Reliquias property block in Huancavelica, central Peru. The Yahuarcocha – Guanajato sector is
located at an altitude of 4550 to 4800
m, approximately 5 km northwest of the company's Caudalosa
mine camp. An improved dirt road allows access to the area
throughout the whole year.
An extensive alteration zone stretching over an area of
approximately 7 km long and 3 km wide was recognized in the
central-northern portion of the Reliquias claim block (see inset
map in Fig.1). Numerous structurally-controlled silica ledges occur
at higher altitudes, surrounded by quartz-kaolinite alteration. In
an erosional window below this lithocap approximately 200 –
250 m lower in elevation, several
hydrothermal breccia pipes were identified in the Yahuarcocha and
Guanajato areas.
During November 2022,
approximately 2 km2 were mapped at 1:2500-scale, to
provide detailed geological information on the central prospect
area. Additionally, a total of 101 Terraspec analyses were carried
out on rock samples collected across the whole prospect area,
resulting in the identification of alteration minerals.
Furthermore, a total of 908 rock samples were taken to evaluate the
geochemical characteristics of the Yahuarcocha – Guanajato zones
(Fig.1). This total includes surface channel and underground grab
samples collected in 2019.
Based on the geological mapping, the higher parts of the
prospect area are underlain by andesitic lavas and flow breccias of
the Miocene-age Caudalosa Formation. Approximately 200 m below in altitude, dacitic – andesitic
stocks and dykes showing weakly porphyritic textures are
outcropping both in the Yahuarcocha and Guanajato areas. The deeper
erosion along the floor of a glacial valley has exposed a 100 x
60 m-sized hydrothermal breccia
cutting the volcanic rocks in the Guanajato sector (Fig.1). This
breccia body displays quartz-kaolinite-pyrophyllite alteration,
cemented by quartz, enargite, and barite.
![Figure1: Map of the Yahuarcocha – Guanajato prospect area; displaying the most significant lithological units, as well as geochemical values for molybdenum from rock samples. Inset map shows the location of the target area within the Reliquias property block. (CNW Group/Silver Mountain Resources Inc.) Figure1: Map of the Yahuarcocha – Guanajato prospect area; displaying the most significant lithological units, as well as geochemical values for molybdenum from rock samples. Inset map shows the location of the target area within the Reliquias property block. (CNW Group/Silver Mountain Resources Inc.)](https://mma.prnewswire.com/media/2008294/Silver_Mountain_Resources_Inc__SILVER_MOUNTAIN_IDENTIFIES_PORPHY.jpg)
Approximately 1.5 km to the west and another 100 m lower in elevation, the area around the
Yahuarcocha lake is characterized by more widespread outcrops of
andesite-dacite stocks and related hydrothermal breccia pipes. The
dominant feature are three quartz-tourmaline breccia pipes, the
largest one measuring 90 x 90 m. The
andesitic breccia clasts display moderately to strong
silicification and pervasive phyllic alteration, cemented by
quartz, tourmaline, and limonite after pyrite (Fig. 2). This type
of quartz-tourmaline-sericite-pyrite breccia is typical for a
porphyry-copper environment.
Late pulses of structurally-controlled mineralization cut the
older lithologies and structures, resulting in the deposition of
intermediate sulphidation epithermal veins and locally an overprint
of the intersected breccia pipes. These NW-SE and W-E striking
veins show widths of 1-2 m, with
strong silicification and moderate argillic alteration. The veins
contain high-grade sulphide mineralization, predominantly galena,
sphalerite, and chalcopyrite. Assay results returned maximum values
of 3,558 g/t Ag, 20% Pb, 4.1 % Zn, 5.7% Cu, and 5.2 g/t Au for
individual rock samples. Due to their rich metal endowment, some
veins are actively exploited at a small scale by artisanal
miners.
The analysis of hand samples with Terraspec served to better
define the alteration zonation within the prospect area.
Pyrophyllite, sericite, tourmaline, high-Mg chlorite,
high-crystallinity illite, and other minerals indicative of higher
temperatures were identified in the Yahuarcocha and Guanajato
sectors. These alteration minerals are typical for the transition
between the root of a high sulphidation system and a porphyry
intrusion, or – in the case of sericite - for the phyllic halo of a
porphyry copper system. Highly anomalous values for molybdenum (Mo)
were recognized in the geochemical samples, with numerous samples
returning between 20 and 202 ppm Mo. The elevated molybdenum values
are concentrated around the Yahuarcocha lake, also providing a
vector towards a porphyry copper system at depth (Fig.1).
The geological characteristics recognized to date at the wider
Yahuarcocha – Guanajato area indicate the potential presence of a
porphyry copper system at depth. This assessment has been confirmed
earlier by the well-known consultant Richard Sillitoe, during a reconnaissance visit
to the area in 2010. Sillitoe stated in his report: "One or more
porphyry centres are believed to be present in the district, most
likely at depths of 300 m, or
appreciably more, beneath the lithocap. However, size and metal
contents cannot be predicted."1
______________________________
|
1 Richard H.
Sillitoe: Comments on the porphyry copper potential of the
Castrovirreyna district, Peru; Internal Report 2010
|
Torsten Danne, Director of
Exploration, commented: "The evidence found so far clearly
warrants a more detailed exploration campaign, aimed at
encountering a porphyry system at depth, with potentially economic
grades of Cu-Mo(-Au). Apart from detailed mapping and geochemical
vectoring, a geophysical survey using Titan 24 and the execution of
a few exploratory drill holes would be the next logical steps for a
follow-up exploration campaign."
Alfredo Bazo, President and CEO,
stated: "The main value driver for Silver Mountain is the
Reliquias silver mine and the planned production start-up in H2
2024. While we want to stay focused on our main asset Reliquias, we
are evaluating the best way forward to advance the Yahuarcocha –
Guanajato area. As part of our plan, we are looking for
partnerships with major players in the industry with interest in
potentially large porphyry copper systems in Peru".
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 National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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.
Reconnaissance rock samples were collected either as rock chip
samples or along channels with hammer and chisel, typically over a
1–2-meter sample interval. Channel samples 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.