Silver Mountain drills 75.63 g/t silver over 9.45 metres at Reliquias, Peru

Silver Mountain Resources Inc. [AGMR-TSXV; AGMRF-OTCQB] reported results from 32 drill holes completed between December 2022, and May 2023, as part of the first phase of infill and resource expansion drilling program at its 100-per-cent-owned Reliquias mine, central Peru. These drill holes are not included in the current mineral resource estimate announced on April 12, 2023. The company also provides an update on its continuing mine rehabilitation program, aimed at a future re-start of production from this historic silver-zinc-lead deposit, located in one of the most prolific metallogenic belts in the world.

Key highlights – infill drilling and mine rehabilitation at Reliquias: Hole SMR97BQ-23-SCS returned 9.45 metres at 75.63 g/t silver, 1.99% lead, 3.09% zinc, 0.22% copper and 0.22 g/t gold, including 1.95 metres at 118.43 g/t Ag, 2.67% Pb, 5.05% Zn, 0.87% Cu and 0.18 g/t Au.

Hole SMR103BQ-23-MTS returned 1.00 metre at 17.80 g/t Ag, 0.08% Pb, 3.09% Zn, 0.01% Cu and 28.30 g/t Au; and 0.80 metres at 482.00 g/t Ag, 1.10% Pb, 3.10% Zn, 0.34% Cu and 4.02 g/t Au.

Hole SMR118BQ-23-PAS returned 0.60 metres at 629.00 g/t Ag, 1.20% Pb, 2.60% Zn, 0.08% Cu and 1.14 g/t Au.

Hole SMR126BQ-23-PER returned 1.75 metres at 773.17 g/t Ag, 1.31% Pb, 1.28% Zn, 0.14% Cu and 5.23 g/t Au.

The company has rehabilitated 11.37 km of tunnels have been rehabilitated to date, representing 77.7% of the overall program.

The company has successfully completed a first-phase, 55-hole and 3,500-metre underground drill program at Reliquias, focusing on both infilling the high-grade portions of the current resource, and stepping out along strike of the highest-grade veins identified to date. Continuing mine rehabilitation remains on track, with 11.37 km completed so far. The company plans to complete, before the end of 2023, the rehabilitation work of all main ramps and tunnels necessary to restart production. Drilling continues with three rigs working on underground drill pads, and results will be announced as they come in.

Alvaro Espinoza, CEO, commented: “These drilling results are very encouraging and, together with the rapid progress of our mine rehabilitation program, provide us with a clear way forward at Reliquias. We are working on a two-pronged strategy, infilling and expanding our resource base, and getting the historical mine workings ready for a quick restart once a new resource is completed, full permits are received and funding is secured. The high-grade gold results obtained in hole SMR103BQ-23-MTS are particularly encouraging and support the concept that the Reliquias vein systems host high-grade gold as well as the polymetallic mineralization it is well known for. We are also pleased with the results from the Perseguida vein system, where we have hit some of the best silver-gold mineralization found to date, proving once again that Reliquias mix of base and precious metals mineralization makes it one of the most exciting projects in central Peru.”

Espinoza continued, “Silver Mountain’s crews have rapidly advanced the Reliquias project over the past 12 months. As a first step, the company published a NI 43-101-compliant resource estimate on April 12, 2023.

Mine crews have continued to rehabilitate the underground workings, preparing them for future mining by the company. So far, 11.37 km out of 14.63 km of underground workings, including ramps, sublevels and crosscuts, have been rehabilitated using two scoop trams. The company expects to complete the remaining 3.26 km of mine rehabilitation by the end of Q4 2023.

Once the rehabilitation work is completed, the company will have access to the highest grade blocks from the current resource, as well as the shallower levels its current infill drill program is targeting. Coupled with the existing mine infrastructure, such as processing plant and tailings facilities, these upgraded tunnels position the Reliquias project as a near-term producer, with significant exploration upside.

Silver Mountain Resources 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 SAC owns 100% of its concessions and holds more than 60,000 hectares in the district of Castrovirreyna, Huancavelica, Peru.