TORONTO, Oct. 22, 2026 /CNW/ -- Silver Mountain Resources Inc. ("Silver Mountain" or the "Company") (TSX: AGMR) (OTCQB: AGMRF) (BVL: AGMR) is pleased to report drilling results from its 100%-owned, past-producing Caudalosa underground silver-polymetallic mine, located in the Castrovirreyna district of Huancavelica, central Peru. The Company has received assay results from the first 11,500 metres of its planned 17,500-metre drilling program, which intersected mineralized intervals across multiple veins, including in areas outside the area covered by the historical mineral resource estimate for Caudalosa (see "Historical Estimate" below).
The Company believes these results indicate potential for mineralization at Caudalosa to extend beyond the area covered by the historical mineral resource estimate. The high-grade mineralization intersected at shallow depths, particularly in the Paulinita vein, has led the Company to evaluate the potential for an earlier restart of the historic mine and an earlier increase in mill throughput than previously contemplated. No decision to restart Caudalosa has been made, and any such decision would be subject to further technical evaluation, permitting and other factors. See "Cautionary Note Regarding Forward-Looking Statements".
Drilling Highlights
Paulinita Vein
- SMR-DC26-0019: 3.30 m @ 569 g/t Ag, 0.83 g/t Au, 3.11% Cu, 0.99% Zn and 0.48% Pb.
- Including 0.55 m @ 2,793 g/t Ag, 3.15 g/t Au and 9.83% Cu.
- SMR-DC26-0028: 1.35 m @ 919 g/t Ag, 1.44 g/t Au, 2.66% Cu, 1.13% Zn and 0.54% Pb.
- SMR-DC26-0027: 2.40 m @ 262 g/t Ag, 1.01 g/t Au and 2.49% Cu.
Caudalosa Vein
- SMR-DC26-0008: 3.30 m @ 172 g/t Ag, 0.91 g/t Au, 2.39% Zn and 1.12% Pb.
- SMR-DC26-0009: 2.20 m @ 178 g/t Ag, 1.10 g/t Au, 1.70% Pb and 0.93% Zn.
- SMR-DC26-0001: 2.15 m @ 113 g/t Ag, 2.19 g/t Au, 1.10% Pb and 0.96% Zn.
Cerro de Pasco Vein
- SMR-DC26-0005: 1.15 m @ 240 g/t Ag, 0.98 g/t Au and 3.34% Pb.
All intervals represent drilled core lengths. True widths have not yet been determined.
Alvaro Espinoza, Chief Executive Officer of Silver Mountain, commented: "The results from the first 11,500 metres of our planned 17,500-metre drilling program have exceeded our initial expectations, with high grades and mineralized intervals intersected across multiple veins. We believe these results demonstrate the potential for mineralization at Caudalosa to extend beyond the area covered by the historical estimate, which we intend to test with further drilling.
The identification of high-grade mineralization at shallow depths is particularly encouraging because, with our processing plant already operating, we intend to evaluate whether Caudalosa could be advanced on an accelerated basis to provide an additional source of mill feed in support of Silver Mountain's growth, subject to the results of further technical work."
Exploration Potential
Drilling has intersected high-grade silver-polymetallic mineralization across several veins, including Paulinita, Caudalosa, San Pedro and Cerro de Pasco. The grades and mineralized intervals intersected, together with mineralization intersected outside the area covered by the historical estimate, support the Company's view of Caudalosa's exploration potential. Management is particularly encouraged by the shallow results, given the existing mining infrastructure at Caudalosa and the Company's operating processing plant. Further technical evaluation will be required to determine whether a restart of Caudalosa is feasible and, if so, its timing and requirements.
Drilling Campaign Results
The drilling campaign results reported to date, including assay intervals, composite intervals and drill hole collar information are available at the following link: https://agmr.ca/wp-content/uploads/2026/10/Drilling-Results-and-Drill-Hole-Collar-Tables-1.pdf
About Silver Mountain Resources Inc.
Silver Mountain Resources Inc. is a Canadian mining company operating and advancing silver-polymetallic projects in Peru. The Company's principal asset is the Reliquias Mine, an underground silver-polymetallic mine in the Castrovirreyna district of Huancavelica, which commenced production in Q3 2026. Silver Mountain is committed to creating long-term value for its shareholders through responsible mining, strong community engagement, and sustainable development practices.
Qualified Person
The scientific and technical content in this news release has been reviewed and approved by Antonio Cruz Bermudez, P. Geo. and Registered Member FAIG, who is a "qualified person" (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) and independent of the Company for purposes of Section 1.5 of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Cruz Bermudez has verified the data disclosed in this news release, including the sampling, analytical and test data underlying the drilling results, by reviewing assay certificates, QA/QC results and drill logs. There were no limitations on the verification process.
Scientific and Technical Disclosure
Technical Reports
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, Department of Huancavelica-Perú" 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"). Reference should be made to the full text of the Reliquias PEA, which is available on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile, for the assumptions, qualifications and limitations relating thereto.
Historical Estimate
References in this news release to the historical mineral resource estimate for Caudalosa are to an inferred historical estimate of 1,549 kt grading 14.43 oz/t Ag, 2.80% Zn, 2.79% Pb and 2.12% Cu prepared by Sociedad Minera Reliquias SA, based on RM-Master Pro Quality reports by C. Rodriguez (April 2019 and July 2019), as described in the technical report entitled "Amended and Restated National Instrument 43-101 Technical Report, Castrovirreyna Project Peru" dated November 18, 2021 (with an effective date of August 17, 2021) (the "Caudalosa Technical Report"), which is available on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile. The Company considers the historical estimate relevant to its exploration at Caudalosa and believes it is of reasonable quality for the purposes of exploration programs, but it was not independently calculated. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Company is not treating the historical estimate as current mineral resources or mineral reserves, and the historical estimate should not be relied upon. Additional work, including drilling, verification of historical data and preparation of a new mineral resource estimate, would be required to upgrade or verify the historical estimate as current mineral resources.
Sampling, QA/QC and Analytical Procedures
Drill core of HQ diameter was logged and sampled by Silver Mountain geologists at the Reliquias core storage facility. Sample intervals were selected based on geological contacts and do not exceed 1.45 metres in length. Core was cut in half using a diamond saw, with one half retained for reference and the other half bagged, sealed with a plastic zip tie and identified with a unique sample number pending shipment. Samples were sent by batch to the Bureau Veritas laboratory in Lima, Peru, which is independent of the Company, for preparation and assaying. Silver Mountain independently inserts certified control standards, fine and coarse blanks, and duplicates into the sample stream to monitor data quality, and these 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 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 ore-grade ICP analytical techniques, while high gold values are re-analyzed by fire assay with a gravimetric finish. No material QA/QC issues were identified in respect of the results reported in this news release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements are not guarantees of future performance and, by their nature, require Silver Mountain to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", "objective", "strategy", "target", "potential", "positioned", "on track", and similar expressions, including the negative or grammatical variations thereof, are intended to identify forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements pertaining to: (i) the completion of the planned 17,500-metre drilling program at Caudalosa and the timing of receipt of remaining assay results; (ii) the exploration potential of Caudalosa, including the potential for mineralization to extend beyond the area covered by the historical estimate; (iii) the Company's evaluation of a potential restart of the Caudalosa mine and any increase in mill throughput, including the timing and requirements thereof; (iv) the potential for Caudalosa to provide an additional source of mill feed; (v) the assumptions, qualifications and limitations in the Reliquias PEA; and (vi) the Company's broader strategy to develop and expand its silver-polymetallic operations in central Peru.
The forward-looking statements in this news release are based on certain assumptions, including, but not limited to: the accuracy of assay results and the reliability of the Company's sampling and QA/QC procedures; the accuracy of the Company's geological interpretation of the Caudalosa veins; the availability of drilling contractors and equipment to complete the planned drilling program; the results of further technical evaluation of Caudalosa; the Company's ability to obtain any permits and approvals required to restart Caudalosa; the Company's ability to maintain consistent production rates and achieve the planned throughput ramp-up at the Reliquias Mine; the continued mechanical and operational performance of the processing plant; the stability of silver and other metal prices at levels that support economic production; the availability of skilled labour, equipment, and supplies; favourable operating conditions; the absence of material delays or disruptions; the Company's continued compliance with all applicable regulatory requirements; and favourable political, regulatory, and economic conditions in Peru.
Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Silver Mountain's control, that could cause actual results and events to differ materially from those expressed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: the risk that the production decision at Reliquias is not based on a feasibility study of mineral reserves and therefore involves a higher degree of uncertainty and risk of economic or technical failure; the risk that drilling results may not be representative of the grade, thickness or continuity of mineralization at Caudalosa; the risk that remaining assay results may not be consistent with those reported in this news release; the risk that further technical evaluation may not support a restart of Caudalosa or an increase in mill throughput, or that any restart may be delayed; the absence of current mineral resources or mineral reserves at Caudalosa; the risk that actual production levels may differ from estimated amounts; the risk that the throughput ramp-up may be delayed or may not achieve anticipated rates; fluctuations in commodity prices, including silver, gold, lead, zinc and copper prices; risks related to mineral resource estimates and the absence of mineral reserves; risks related to the Company's ability to obtain and maintain necessary permits and licences; operational risks inherent in mining activities; risks related to operating in Peru, including political, regulatory, and economic uncertainties; general economic, market, and business conditions; and other factors identified in the Company's continuous disclosure record filed on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile, including under the headings (i) "Caution Regarding Forward-Looking Statements" and "Risk Factors" in the Annual Information Form of the Company dated April 30, 2026 for the year ended December 31, 2025; and (ii) "Risk Factors" in the amended and restated short form base shelf prospectus of the Company dated May 8, 2026. Silver Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. New factors emerge from time to time, and it is not possible for Silver Mountain to predict all such factors or to assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
SOURCE Silver Mountain Resources Inc.
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CONTACT INFORMATION: For more information, please visit our website at agmr.ca or contact: Alvaro Espinoza, Chief Executive Officer, Silver Mountain Resources Inc., info@agmr.ca