Highlights:  

• 0.95m @ 535.26 g/t Ag, 6.43% Pb, 6.26% Zn, 1.37% Cu, and 0.58 g/t Au
• 0.90m @ 721.27 g/t Ag, 1.91% Pb, 2.62% Zn, 1.42% Cu, and 0.98 g/t Au
• 1.90m @ 313.06 g/t Ag, 2.51% Pb, 2.47% Zn, 0.76% Cu, and 1.37 g/t Au
• 0.63m @ 873.82 g/t Ag, 2.50% Pb, 3.23% Zn, 2.09% Cu, and 0.13 g/t Au 

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) (BVL: AGMR) is pleased to announce new results from underground channel sampling at the Reliquias silver mine in Huancavelica, central Peru. To complement the drill campaigns and to facilitate the conversion of additional historic resources into a National Instrument 43-101 – Standards of Disclosure for Mineral Projects compliant mineral resource, an extensive underground mapping and sampling program is being carried out at Reliquias. Several existing drifts, sublevels, and raises were mapped and systematically sampled in channels cut across the exposed veins.

Geochemical assays have been received for 436 rock channel samples taken from Level 480 of the Meteysaca Vein and adjacent workings, including a ramp and a raise that connect to the haulage level 415 located approximately 67 m below (Fig.1). This zone of well-developed mineralization in the Meteysaca Vein is exposed over approximately 148 m horizontally and additionally 30 m along the subvertical raise.

Samples were taken using an electric percussion hammer to produce a channel perpendicular across the veins and mineralized structures. By cutting a continuous channel approximately 3-5 cm deep by 10 cm wide, the channel samples essentially equal a drill core in their significance for future resource estimation. Where the structure is exposed along the back of the drift, channels were cut across the vein systematically every 4 m. Channel lengths range between 0.27 m and 1.97 m.

The underground sampling results from the Meteysaca Vein confirm the continuity of high-grade polymetallic mineralization within the structure, with significant concentrations of silver (Ag), lead (Pb), zinc (Zn), and copper (Cu). Gold grades, ranging on average between 0.38 g/t and 0.98 g/t in zones 2 to 6, correlate well with previously reported values from Level 415 (see news release September 8, 2022). To highlight the consistency of this vein system, the grades and widths of channels were averaged over each of the seven zones shown in Fig. 1.

Alfredo Bazo, President and CEO, commented: “Having completed the sampling program on Levels 415 and 480 of the Meteysaca vein, we are delighted about the consistent development of this structure with regard to grades and vein widths. The stopes between both haulage levels remain intact and were partially developed for extraction (Fig.1 and 2). We are planning to include this zone in the initial mine development work programmed to start in late Q3 2023.”

Torsten Danne, Director of Exploration, added: “To emphasize the potential of this vein to host additional high-grade mineralization, the longitudinal section in Fig. 2 (see below) shows that the Meteysaca structure has seen almost no extraction above Levels 520 and 560. We are presently rehabilitating Level 520, with detailed mapping and sampling programmed to start next month. We expect that this will allow us to add silver ounces beyond the mineralization confirmed to date, which currently extends over 210 m vertically between Level 480 and the deepest hole of our 2022 drill campaign.”

The following table provides more detail regarding the channel sample results from Level 480 of the Meteysaca Vein structure.

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.

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.

All 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 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.

Figure 1: Isometric view of the Level 480, Meteysaca vein, at the Reliquias silver mine, showing the location of systematic channel sampling along the main haulage level, ramp, raise, and adjacent workings. Individual channel samples are shown within seven zones, colour-coded according to Ag values. Length, average thickness, and metal grades of each zone are provided in Table 1 in the text below. In the inset map, underground workings, main mineralized veins, and drill hole traces from the 2022 drill program are displayed, with the location of the Level 480, Meteysaca vein indicated by a grey rectangle. (CNW Group/Silver Mountain Resources Inc.)

Table 1: Weighted assay results from systematic channel sampling along the Meteysaca Vein, calculated for each of the zones displayed in Fig.1. Zones 1-6 are located along Meteysaca vein, while zone 7 is situated on a vein splay. (CNW Group/Silver Mountain Resources Inc.)

Figure 2: Longitudinal section of the Meteysaca vein, Reliquias silver mine, showing the location of systematic channel sampling (indicated by blue rectangles) along the Levels 415 and 480. Pierce points of completed drill holes are shown as blue circles. (CNW Group/Silver Mountain Resources Inc.)

Figure 3: Example of Meteysaca structure exposed along the back of Level 480, displaying a banded quartz vein with visible galena, silver sulpho-salts, sphalerite, and secondary oxides. Field of view is approximately 2.00 m across. (CNW Group/Silver Mountain Resources Inc.)

Table 2: Assay results of systematic channel sampling, Meteysaca Vein, Reliquias mine, on Level 480, adjacent ramp, and raise. Channels shown without a zone ID are located outside the main workings and were not included in the calculation of weighted averages for each zone. (CNW Group/Silver Mountain Resources Inc.)

Table 2: Assay results of systematic channel sampling, Meteysaca Vein, Reliquias mine, on Level 480, adjacent ramp, and raise. Channels shown without a zone ID are located outside the main workings and were not included in the calculation of weighted averages for each zone. (CNW Group/Silver Mountain Resources Inc.)