TORONTO, Nov. 3, 2022 /CNW/ – Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) (“Silver Mountain”, “AGMR” or the “Company”) is pleased to announce that it has entered into a purchase agreement to acquire a 100% interest in the Lira Project from Pan American Silver Corp. (“Pan American Silver”), which comprises a set of 14 mining concessions. The agreement was signed with a local subsidiary of Pan American Silver (Pan American Silver Peru SAC), which held the mining title to the 14 claims covering a total area of ​​799.5078 hectares. The Lira de Plata mining concessions are located near the Companhia Reliquias silver mine in Huancavelica, central Peru (Fig.1).

Alfredo Bazo, President and CEO of the company, said: “This acquisition represents a great addition to our lands, as the claims acquired allow us to further consolidate our block held by Reliquias. Additionally, the Lira de Plata mining concessions are considered highly prospective for mineralized structures with high silver and base metal potential, similar to the silver-lead-zinc-copper veins we are currently exploring at our Reliquias mine. . »

As part of Silver Mountain’s acquisition of the Lira de Plata project, certain geological information collected by Pan American Silver during early exploration activities on the mineral properties has been transferred. This includes a 1:10,000 scale geological map of the area surrounding the claims and geochemical testing of 130 rock channel samples. During reconnaissance work on the property, Pan American Silver identified several outcropping epithermal veins, of which the Lira and Cerro Sanchez structures were considered the most significant.¹ Average grades of 0.59 g/t Au and 176 g/t Ag were reported for the Lira vein, while assays on samples from the Cerro Sanchez vein returned an average of 0.32 g/t Au, 305 g/t Ag, 2.5% Pb and 1.81% Zn. As the reported results are based on a limited number of channel samples taken primarily from surface exposures, these values ​​may not be representative of the vein material present at depth. Nevertheless, testing indicates the possibility of finding additional structures with well-developed base and precious metal mineralization within the Lira de Plata properties.

As part of its ongoing brownfields exploration program, Silver Mountain plans to complete geological mapping and sampling of the newly acquired claims, with the goal of identifying drill targets to follow in 2024.

Basic information

The name of the Lira de Plata project derives from the abandoned Lira mine, located in the La Virreyna area, at the western end of the historic Castrovirreyna mining district (Fig.1). Mineral deposits in the La Virreyna area were discovered in the early 17th century (Lewis 1964).^{of them} The near-surface silver-rich vein material was mined intermittently over the following centuries. In the late 1950s, two mining operations were active in the La Virreyna area: Lira and Carmen (Lewis 1964), which apparently ceased operations in the late 1970s. At least nine main veins were then recognized, including San Pablo, Caldero, Sanchez Cerro, San Antonio, Lira, Carmen – Constante and Beatita, with branch lengths between 100 m and 575 m. Based on Lewis’ description, the mineralized structures vary between 0.2 and 3.0 m in width. Ore mined in the late 1950s contained sphalerite, galena, tetrahedrite and chalcopyrite as the main minerals, along with quartz, pyrite, rhodochrosite and minor clay minerals (Lewis 1964).

transaction details

Silver Mountain has entered into a property purchase agreement to acquire a 100% interest in the Lira de Plata property. The cash consideration to be paid by Silver Mountain to Pan American Silver for the transfer of the mining titles consists of the payment of US$80,000. Pan American Silver does not retain any equity or net smelter returns in the Lira de Plata claims. The effective date of the transaction is October 26, 2022.

On behalf of the Board of Directors of Silver Mountain Resources Inc.

Alfredo Bazo, Chairman and CEO and Director

qualified person

The scientific and technical information contained in this press release has been reviewed and approved by Antonio Cruz, an independent consultant to the Company and a qualified person in accordance with National Instrument 43-101 – Disclosure Standards for Value Manager Mining Projects Canadian securities.

About Silver Mountain

Silver Mountain Resources Inc. is a silver explorer and mining developer that plans to restart production at the Reliquias underground mine and conduct exploration activities at its Castrovirreyna Project silver fields in Huancavelica, Peru.

For additional information regarding the Castrovirreyna Project, please refer to the Company’s National Instrument Technical Report 43-101—Castrovirreyna Project, Peru, dated October 6, 2021, as amended November 18, 2021, effective August 17. 2021, available at https://sedar.com.

For more information on our drilling program, including main shaft cross-sections with hole locations, please see our corporate presentation, available on our website at www.agmr.ca.

Silver Mountain’s subsidiary, Sociedad Minera Reliquias SAC, owns 100% of its concessions and owns over 30,000 hectares in the district of Castrovirreyna, Huancavelica, Peru.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forecast readings

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities law (collectively, “forward-looking statements”) that relate to Silver Mountain’s current expectations and beliefs about future events. Any statement that expresses or implies discussions of expectations, beliefs, plans, goals, assumptions, or future events or performance (usually, but not always, through the use of words or phrases such as “will work probably”, “should”, “expect”, “will continue”, “is planned”, “anticipates”, “believes”, “estimates”, “intends”, “plans”, “anticipates”, ” projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in these forward-looking statements. No guarantee can be given that these expectations will prove to be correct and the forward-looking statements included in this press release should not be misinterpreted. These statements speak only as of the date of this press release. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s proposed exploration program, and the timing and potential results thereof.

Forward-looking statements are based on various assumptions and are subject to various risks and uncertainties, many of which are beyond Silver Mountain’s control, which could cause actual results and events to differ materially from those disclosed or implied by these forward-looking statements. . These risks and uncertainties include, but are not limited to, the factors set forth in the “Forward-Looking Statements” and “Risk Factors” in the Company’s final prospectus dated January 26, 2022 and other disclosure documents available at Company profile at www.sedar.com. Silver Mountain undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New factors arise from time to time, and it is not possible for Silver Mountain to predict all of them or to assess the impact of each of these factors or the extent to which any one factor, or combination of factors, could cause results to differ materially from those contained in any forward-looking statement. All forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.