Announcement • Apr 29
Silver Mountain Resources Inc. Reports High-Grade Silver Results From Surface Channel Sampling Program Near Reliquias Mine
Silver Mountain Resources Inc. had received assay results from surface channel sampling completed as part of its brownfield exploration program surrounding its 100%-owned Reliquias Mine, located in central Peru. The Company's exploration team is currently evaluating areas surrounding the proposed Reliquias production centre. In parallel with detailed geological field mapping, systematic and representative channel samples are being collected from surface outcrops, a standard methodology used during the evaluation of vein-type structures. All samples are collected perpendicular to the vein structures using percussion tools and manual cutting equipment. The central zone contains white quartz infill with granular texture, cross-cut by veins and patches of silver sulfosalts, galena, sphalerite, and pyrite. Silver Mountain geologists continue to collect channel samples as part of the brownfield exploration program surrounding the Reliquias Mine. (1) True thicknesses are shown where they can be determined. (2) Silver equivalent (AgEq) grades are calculated using metal prices of: silver USD 62.30/oz, gold USD 4,415/oz, copper USD 12,015/t, lead USD 2,028/t, and zinc USD 2,932/t. AgEq (oz/t) = Ag (oz/t) + (Au (g/t) × 1.54) + (Cu (%) × 0.67) + (Pb (%) × 0.31) + (Zn (%) × 0.32), using metallurgical recoveries of 89.6% Ag, 74.7% Au, 89.6% Pb, 85% Zn, and 85.2% Cu. The values in Table 1 above are for illustrative purposes only and do not imply economic viability. See below under the heading "Caution Regarding Channel Sampling". Channel sampling along a 550-metre segment of the central portion of the Seguridad SE vein, located approximately 2.1 kilometres north of the Reliquias Mine, returned a weighted average grade of 2,003 g/t Ag over an average true vein width of 0.45 metres. These results indicate that high-grade silver mineralization may remain open along strike, both at the Seguridad SE vein and in 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. Sampling, QA/QC, and Analytical Procedures Silver Mountain follows systematic and rigorous sampling and analytical protocols in accordance with industry best practices. These protocols are summarized below. Rock channel samples were collected with an electric percussion hammer and do not exceed 1.0 metre 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 Bureau Veritas and Certimin laboratories in Lima, Peru for assaying. Silver Mountain independently inserts certified control standards, 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 core 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) are re-analyzed using precise ore-grade ICP analytical techniques, while high gold values are re-analyzed by fire assay with a gravimetric finish. The scientific and technical information in this news release relating to the Reliquias Mine is supported by the technical report entitled "Amended and Restated NI 43-101 Technical Report: Preliminary Economic Assessment, Reliquias Mine" dated October 28, 2024 (with an effective date of May 15, 2024), prepared for the Company by Steven L. Park, Antonio Cruz Bermudez, and Gerardo Acuña (the "Reliquias PEA").
