New Underground Channel Sampling Results From Sacasipuedes and Matacaballo Veins

TORONTO - Silver Mountain Resources Inc. reported new results from underground channel sampling at the Reliquias silver mine in Huancavelica, central Peru. To complement the drill campaigns and to facilitate the conversion of additional historic resources into an updated National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) compliant mineral resource in Q1 2024, an extensive underground mapping and sampling program is continuing at Reliquias. Several existing drifts and sub-levels were mapped and systematically sampled along channels cut across the exposed veins.

The best channel results were obtained from the Sacasipuedes structure on sub-level 290, which is currently accessible over 16 m of strike length. The mineralization is well developed over the exposed shoot, with the vein thickness averaging 1.93 m. The weighted average assay results returned 210.90 g/t Ag, 6.25% Pb, 7.14% Zn, 2.14% Cu, and 0.34 g/t Au.

Along the sampled levels of the Matacaballo vein, the mineralization is best developed in Zone 5 on Level 390, which extends over 51 m along strike, with a weighted average of 194.74 g/t Ag, 4.67% Pb, 5.85% Zn, 1.17% Cu, and 0.33 g/t Au over an average vein width of 1.29 m.

The underground channel for the Sacasipuedes vein on sub-level 290 is situated approximately 60 m below the main haulage level 390. On this and other sampled mine levels, various zones returned high-grade Pb and Zn grades, moderately high Ag and Cu values, and promising Au values (8 individual channel samples above 1 g/t Au, with highs of 13.75 and 15.55 g/t Au).

On levels 390 and 365 of the Matacaballo vein, various zones of well-developed mineralization are exposed over approximately 210 m in a horizontal direction and additionally 25 m vertically. The central part of Level 365 was exploited in the past, indicating prior occurrence of economic mineralization. The underground sampling results from the Matacaballo vein confirm the continuity of high- to medium-grade polymetallic mineralization within the structure, with significant concentrations of silver (Ag), lead (Pb), zinc (Zn), and copper (Cu). Gold grades, ranging on average between 0.16 g/t and 1.02 g/t on both levels 365 and 390, correlate well with previously reported values from Sub-level 735-1 located above and to the east.

Alvaro Espinoza, CEO, said, "We are delighted about these sampling results, proving moderate- to high-grade polymetallic mineralization over several levels in two of our most important vein structures. The sampled sub-levels are located close to existing infrastructure, most significantly the main haulage level 390. The grades encountered on Level 290 of the Sacasipuedes vein over the exposed strike length of 16 m, with an average vein thickness of 1.93 m averaging 210.9 g/t Ag, 6.25% Pb, 7.14% Zn, 2.14% Cu, and 0.34 g/t Au, are especially promising. The 290 level is currently the lowest working of the Reliquias mine, which emphasizes the potential of adding high-grade mineralization in this structure further towards depth."