Silver Mountain eyes Q3 production start at Peru mine
Silver Mountain Resources Inc. [AGMR-TSX] has released a development update at its flagship Reliquias polymetallic underground mine in central Peru and related concentrator plant.
The company said rehabilitation of the concentrator plant at the past-producing silver-rich mine is 95% complete, and production is expected to commence in the third quarter of 2026, on track with previous estimates.
Meanwhile, a mineral resources estimate and an updated preliminary economic analysis (PEA) at Reliquias are expected in the fourth quarter of 2026. A PEA released in May, 2024, envisages average annual production of 2.2 million ounces of silver equivalent annually. The initial capital spend is estimated at US$24.8 million. Total sustaining capital is pegged at US$32.3 million over a nine-year mine life.
Silver Mountain shares advanced on the news, rising 4.9% or 15 cents to $3.20. The shares trade in a 52-week range of $6.16 and 80 cents.
The company has said it plans to restart the underground mine and aggressively explore a highly prospective silver camp where it owns a 2,000 tonne-per-day processing plant, an operating tailings dam with enough capacity for at least two years with maximum throughput.
In parallel to restarting production at Reliquias, Silver Mountain is exploring for new mineral deposits in its large land package, which covers more than 60,000 hectares and contains a tailings storage facility.
In a press release on April 27, 2026, the company said it has received assay results from surface channel sampling completed as part of its brownfield exploration program surrounding the Reliquias mine. Channel sampling along a 550-metre segment of the central portion of the Seguridad SE vein, located approximately 2.1 kilometres north of the mine, returned a weighted average grade of 2,003 g/t silver over an average true vein width of 0.45 metres.
The company said these results indicated that high-grade silver mineralization may remain open along strike, both at the Seguridad SE vein and near other nearby veins belonging to the same structural system.
The Seguridad SE vein may represent the southern extension of the historical Seguridad Mine. If confirmed through further exploration, the structure could exceed 2.7 kilometres in total strike length, open toward the southeast, and would run parallel to the Sacasipuedes and Caudalosa vein systems which are the main mineralized structures hosting the majority of the Reliquias Mine’s silver resources.
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.
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