Silver Mountain Resources Inc. [AMGR-TSXV] has released the first assay results from a 12,000-metre underground drilling campaign at the companyâ€™s Reliquias silver mine in central Peru.
Silver Mountain is a silver explorer and mine development company. Its immediate goal is to re-commence production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirrena Project in Huancavelica, Peru.
The company said it has intersected 2.25 metres of 793.56 g/t silver equivalent (AgEq) within a broader interval of 10.40 metres at 446.23 g/t AgEq in the first drill hole at Reliquias.
A second hole intersected 1.00 metre of 718.86 AgEq and 5.70 metres of 208.64 g/t AgEq, including 1.75 metres of 396.01 g/t AgEq.
Silver Mountain, through its subsidiary Sociedad Minera Reliquias SAC, controls over 27,000 hectares in the Castrovirrena mining district, mostly within the Reliquias and Dorita property blocks. The region is known to host significant metal and polymetallic deposits, including Julcani (101 million ounces of past silver production) and San Genaro (over 60 million ounces of past silver production).
Within the Reliquias concession block, epithermal intermediate-sulphidation-style mineralization was previously mined at the Reliquias and Caudalosa Grande deposits from multiple veins. However, the company said both veins remain highly under explored
â€œThe assay results from our first two drill holes have confirmed high-grade silver-lead-zinc mineralization where modelled close to existing mine workings at the Reliquias deposit,â€™â€™ said Silver Mountain President and CEO Alfredo Bazo.
â€œRegarding the vein width, both drill intersections have surpassed our expectations to some extent,â€™â€™ he said. â€œThe drill program is advancing well with two rigs turning, with 18 holes finished to date.â€ More drill results are pending.
On Wednesday, Silver Mountain shares were unchanged at 26.5 cents and currently trade in a 52-week range of 48 cents and 20.5 cents.
Back in February, 2022, the company completed an initial public offering that raised $23 million from the sale of 46 million units of the company priced at 50 cents each.
The company has also issued an additional 6.9 million units at the offering price, generating additional proceeds of $3.45 million in connection with the exercise of the over-allotment option.
Silver Mountain was incorporated in January 2021 as Roxy Mining Corp. but later changed its name to Silver Mountain. Its principal asset is a 99.99% interest Sociedad Minera Reliquias S.A.C. (SMR) owner of 100% of the concessions and holder of more than 27,000 hectares in the district of Castrovirreyna.
The Castrovirreyna Project includes a fully developed underground mine, a 2,000 tonne-per-day concentrator plant and a tailings dam with 2.0 years of capacity at full operation. The company expects to re-commence production at the Castrovirreyna Project in the second quarter of 2023.