Highlights  

• Drill results returned silver-polymetallic intercepts in the main Sacasipuedes and Matacaballo vein, and various intervals in the Ayayay and Sorpresa veins, including:
• 4.20m @ 117.3 g/t Ag, 1.5% Pb, 2.1% Zn, 1.08% Cu, and 0.04 g/t Au in Ayayay vein, in drill hole SMR-36-22-MTC
• 1.00m @ 80.7 g/t Ag, 2.2% Pb, 2.9% Zn, 0.43% Cu, and 2.56 g/t Au, in Sorpresa vein, in hole SMR-24-22-SCS, including
  • 0.40m @ 155.0 g/t Ag, 4.7% Pb, 6.5% Zn, 1.0% Cu, and 5.86 g/t Au
• 1.85m @ 49.3 g/t Ag, 3.6% Pb, 2.8% Zn, 0.21% Cu, and 0.09 g/t Au, in Sacasipuedes vein, hole SMR-22-22-SCS, including
  • 0.45m @ 162.0 g/t Ag, 10.5% Pb, 7.6% Zn, 0.78% Cu, and 0.22 g/t Au; and
• 0.65m @ 132.0 g/t Ag, 8.6% Pb, 9.3% Zn, 0.42% Cu, and 0.19 g/t Au, in Ayayay vein, in same drill hole SMR-22-22-SCS
• 1.95m @ 48.1 g/t Ag, 2.1% Pb, 4.5% Zn, 0.37% Cu, and 0.08 g/t Au, in Sacasipuedes vein, in drill hole SMR-26-22-SCS

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) (BVL: AGMR) is pleased to provide an update on its underground drilling at the Company’s Reliquias silver mine in Huancavelica, central Peru. The drill program to date has surpassed a total of 16100 metres, drilled in 68 bore holes. The assay results of 6 holes drilled to test the Sacasipuedes and Matacaballo veins are reported in this release (Table 1). The main objective of the fully funded drill program is to establish a National Instrument 43-101 – Standards of Disclosure for Mineral Projects compliant mineral resource in H1 2023 that will form the basis of our production decision in H2 2023. In addition, the Company aims to better characterize and extend the known silver-rich zones at depth.¹

Alfredo Bazo, President and CEO, commented: “The drill holes reported today are located in one of the significant parts of the mineralized system. Apart from providing important data for the zone where the Matacaballo and Sacasipuedes veins join, these holes also identified very promising intercepts in the Ayayay and Sorpresa veins. Especially worth mentioning are the gold values in a number of intercepts. A split of the Matacaballo vein encountered in hole SMR-36-22-MTC returned 11.1 g/t Au, 33.2 g/t Ag, 1.3% Pb and 2.1% Zn over 0.65 m down-hole. In hole SMR-21-22-SCS, a drill interval of 0.45 m showed an exceptional grade of 21.2 g/t Au, apparently related to a separate mineralization phase, based on the lack of base metals in this particular intercept.”

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1} 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 on the Company’s profile on www.sedar.com.

The following table shows the detailed results of mineralized intercepts encountered in the drill holes reported in this news release.

Update Regarding Advertising Agreement

The Company previously announced that it had entered into an advertising agreement dated September 12, 2022 with Gold Standard Media, LLC  whereby Gold Standard, together with certain of its affiliates, has agreed to provide certain promotional and advertising services to the Company.  The Advertising Agreement is effective as of February 2, 2022 and is valid until February 2, 2024. Pursuant to the Advertising Agreement, Gold Standard commenced work on September 12, 2022 by assisting the Company with the creation of landing pages, native advertisements, email marketing, influencer endorsement and publications for increasing awareness about the Company. The Services are to be provided by Gold Standard together with its affiliates, Future Money Trends LLC, Wealth Research Group LLC and Portfolio Wealth Global LLC.  The Company wishes to clarify that it has pre-paid the Service Providers, for the Services, in full, by paying $1,000,000 in the first quarter of 2022 and US$500,000 in June 2022.  Such fees are based on a monthly payment schedule pursuant to the terms of the Advertising Agreement.

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 NI 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.

Figure1: Plan view of underground drilling program at the Reliquias silver mine, showing traces of drill holes completed to date (in blue) as well as the subsequently programmed bore holes. The six holes reported in this release are labelled and highlighted in bold blue lines. Additionally, underground workings, main mineralized veins, and drill platforms are displayed. Inset map shows Reliquias property block with locations of both silver mines and the processing plant. (CNW Group/Silver Mountain Resources Inc.)

Table 1: Weighted assay results of six drill holes testing the Sacasipuedes, Matacaballo, Ayayay, and Sorpresa veins (CNW Group/Silver Mountain Resources Inc.)

Fig.2: Close-up view of mineralized intervals of drill core; photo A: brecciated quartz vein, locally jigsaw texture, multiple vein generations, drusy quartz, disseminated sulphides, with minor carbonate gangue, Sacasipuedes vein, hole SMR-28-22-SCS, 172.05 -172.32 m depth; photo B: sulphide-rich interval of banded vein with multiple quartz vein generations, showing galena, sphalerite, chalcopyrite, probable split of Matacaballo vein, hole SMR-36-22-MTC, 187.25 – 187.50 m depth. (CNW Group/Silver Mountain Resources Inc.)

Fig.2: Close-up view of mineralized intervals of drill core; photo A: brecciated quartz vein, locally jigsaw texture, multiple vein generations, drusy quartz, disseminated sulphides, with minor carbonate gangue, Sacasipuedes vein, hole SMR-28-22-SCS, 172.05 -172.32 m depth; photo B: sulphide-rich interval of banded vein with multiple quartz vein generations, showing galena, sphalerite, chalcopyrite, probable split of Matacaballo vein, hole SMR-36-22-MTC, 187.25 – 187.50 m depth. (CNW Group/Silver Mountain Resources Inc.)