Silver Mountain Resources Inc. [AGMR-TSXV, BVL; AGMRF-OTCQB] provided an update on its underground drilling at the Reliquias silver mine at the company’s Castrovirreyna project in Huancavelica, central Peru. Fifty-eight bore holes have been completed to date, with results of five holes drilled to test the Matacaballo and Sacasipuedes veins included in this release.
The main objective of the fully financed drill program is to establish a NI 43-101 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.
Drill results returned high-grade silver-polymetallic intercepts, with more than one mineralized interval encountered in various drill holes, including 1.4 metres at 205 g/t silver (Ag), 13.5% lead (Pb), 17.8% zinc (Zn), 0.76% copper (Cu) and 0.3 g/t gold (Au) in drill hole SMR-16-22-SCS.
Hole SMR-17-22-MTC returned 7.58 metres at 45.4 g/t Ag, 4.54% Pb, 5.59% Zn, 0.34% Cu, including 1.48 metres at 83.2 g/t Ag, 7.83% Pb, 4.21% Zn, 0.89% Cu, and 1.40 metres at 116.1 g/t Ag, 12.97% Pb, 19.77% Zn and 0.55% Cu as well as 1.25 metes at 161.5 g/t Ag, 17.92% Pb, 7.84% Zn, 0.77% Cu, in same hole SMR-17-22-MTC.
Hole SMR-18-22-SCS returned 5.25 metres at 82.5 g/t Ag, 3.41% Pb, 5.42% Zn, 0.56% Cu, and 0.09 g/t Au.
Alfredo Bazo, President and CEO, commented: “The drill hole results confirm the continuity of high-grade Ag-Pb-Zn-Cu mineralization in both the Matacaballo and Sacasipuedes vein, close to existing mine workings at the Reliquias deposit. We are delighted that various bore holes have intersected more than one mineralized interval, which appear to represent additional structures such as the Ayayay vein previously observed in historic mine workings. Our geological team is currently evaluating these intercepts to incorporate them in our 3D geological model.”
The company also announces the appointment of Independent Trading Group (ITG) to provide market making services. ITG will trade securities of the company on the TSXV with the objective of maintaining a reasonable market and improving the liquidity of the company’s class A common shares. The company will pay ITG a monthly cash fee of C$5,000 for a minimum term of three months, payable at the beginning of each month, and which will automatically extend for successive one-month terms unless terminated by either party on thirty days’ prior notice.
Silver Mountain 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 S.A.C. owns 100% of its concessions and holds more than 27,000 hectares in the district of Castrovirreyna, Huancavelica, Peru.