Silver Mountain Resources (TSX:AGMR) will evaluate an earlier restart of its Caudalosa silver mine in Peru after drilling returned shallow, ‘high-grade’ intercepts.
The company has received assays from the first 11,500m of a planned 17,500m program at the 100%-owned, past-producing underground mine. Caudalosa sits in the Castrovirreyna district of Huancavelica in central Peru.
The best result came from the Paulinita vein, where hole SMR-DC26-0019 returned 3.3m @ 569 grams per tonne silver (Ag), 0.83g/t gold (Au), 3.11% copper (Cu), 0.99 per cent zinc (Zn) and 0.48% lead (Pb).
That interval includes 0.55m at 2,793g/t Ag, 3.15g/t Au, and 9.83% Cu.
Hole SMR-DC26-0028 hit 1.35m @ 919g/t Ag and 2.66% Cu. The Caudalosa vein returned 3.3m @ 172g/t Ag and 2.39% Zn.
Meanwhile, the Cerro de Pasco vein returned 1.15m @ 240g/t Ag and 3.34% Pb. All intervals are core lengths, and true widths are yet to be determined.
Some intercepts fall outside the area covered by the historical inferred estimate of 1.55 million tonnes. The company does not treat that estimate as a current mineral resource. Notably, a qualified person has not done sufficient work to classify it.
CEO Alvaro Espinoza says the results exceeded initial expectations.
“The identification of high-grade mineralisation 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,” Espinoza notes.
No restart decision has been made. Any decision depends on further technical evaluation and permitting, and the company plans more drilling to test extensions beyond the historical estimate.
Silver Mountain began production at its Reliquias mine in Q3 2026. Its shares closed at C$2.96 ($3.01) on 22 October, giving a market capitalisation of about C$191.41 million.
Silver Mountain Resources is a Canadian silver-polymetallic producer and developer focused on restarting and expanding operations across its district-scale Castrovirreyna Project in Central Peru.
Write to JC Villarba at Mining.com.au
Images: Silver Mountain Resources
