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• Extensive zones of gold and silver mineralization identified in channel sampling at the Dorita Claim Block
• Encouraging results include:
  • 5.01 m @ 2.2 g/t Au and 36.44 g/t Ag
  • 5.46 m @ 1.49 g/t Au and 17.61 g/t Ag
  • 2.83 m @ 1.95 g/t Au and 64.49 g/t Ag
• Highly elevated gold and silver anomalies correlate with interpreted regional structures
• Newly identified sub-parallel zone of mineralization at North Dorita

Toronto, Ontario, July 7, 2022 – Silver Mountain Resources Inc. (“Silver Mountain“, “AGMR” or the “Company“) is pleased to announce initial results from surface sampling at the Company’s Dorita property in Huancavelica, central Peru (Fig. 1).

Assays have been received for 980 rock channel samples taken from key areas across the Dorita and Dorita North vein systems (Fig. 1 and Fig. 2). The work was undertaken to assist the Company in focusing a future drill program, with the new results providing positive support for further exploration in this mineral rich district.

Samples were taken using an electric saw to produce a continuous channel perpendicular across the veins and mineralized structures; with channel widths varying between 0.36 m and 9.79 m.

The channel sample results include significant concentrations of gold (Au) and silver (Ag), and anomalous concentrations of multi-metal pathfinder elements such as arsenic (As), antimony (Sb), and lead (Pb). The new results confirm the geometry of interpreted mineralized structures and demonstrate the potential to identify further extensions and repeat structures along strike at the Dorita Project.

The Dorita vein system has been recognized over a strike length of 1.8 km, extending north-east from the historic Dorita mine, with mineralized veins up to 2.8 m wide (Fig.1). The results from the channel sampling indicate the system is open along strike, and potentially at depth. The San Francisco breccia is located to the north-east of the Dorita mine and is characterized by a significant increase in mineralized vein thickness, with widths up to 9.8 m.

A new subparallel vein system has been identified at North Dorita, approximately 1 km north of the Dorita mine, were an east-west oriented vein has been recognized over 1.4 km. This mineralized vein is intersected by a north-east – south-west trending, 1 km-long mineralized structure. Both veins in the North Dorita area have average widths of 2.48 m and 1.62 m, respectively and are open in both directions.

The structures are associated with encouraging sulphide mineralization comprising galena, various silver sulpho-salts, sphalerite, chalcopyrite and stibnite. Other accessory minerals include pyrite, quartz, chalcedony, and barite.

The following table provides more detail regarding selected channel sampling results:

Table 1: Results of channel sampling from surface outcrops at Dorita – San Francisco vein system and Dorita North vein system, Dorita project. Assays shown are weighted average over complete channel width. Table lists only selected channels as displayed in Fig. 1 and 2.

Background to the Dorita Project

The Huancavelica region, and especially the Castrovirreyna mining district, is known to host significant precious metal and polymetallic deposits, such as Julcani (101 Moz Ag past production) and San Genaro (>60 Moz Ag past production).^[1]

The large Dorita concession block is located approximately 25 km northwest of the Reliquias mine. At Dorita, small-scale underground exploitation was carried out in the 1980s by a previous operator, based on silver-rich polymetallic veins that appear to transition from high to intermediate sulphidation style mineralization. The historic production from several veins reached up to 150t/d and reportedly averaged grades of 320-460 g/t Ag, 2% Pb, 0.9% Zn, and 1% Cu.[2]  According to historic mine plans, the main Dorita vein was exploited on 4 levels down to 140 m below surface, with mineralization remaining open laterally along strike and to depth. Historic information from drifts developed on the Dorita and San Francisco structures indicates that the Ag-Pb-Zn content of these veins increases rapidly at depth.[3]

In early 2022, Silver Mountain started a systematic exploration program to assess the large Dorita land package, including 1:2000-scale geological mapping and detailed geochemical sampling.

Fig.1: Map of Dorita and North Dorita vein systems, displaying vein traces, gold values of surface channel samples, and location of channels listed in table 1. Inset map shows Dorita property block with enlarged area indicated in grey.

Fig.2: Map of Dorita and North Dorita vein systems, displaying vein traces, silver values of surface channel samples and location of channels listed in table 1. Inset map shows Dorita property block with enlarged area indicated in grey.