Silver Storm Announces Several Intercepts > 1,000 g/t Ag.Eq From the La Estrella Zone

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Published Nov 19, 2024  •  18 minute read

Figure 1: Cross Section View of Quebradillas Mine Toward NNW Business Wire

TORONTO — Silver Storm Mining Ltd. (“Silver Storm” or the “Company“) (TSX.V: SVRS | OTC: SVRSF | FSE: SVR), is pleased to announce further drill results from its Phase 2 diamond drilling program at the Company’s 100% owned La Parrilla Silver Mine Complex, located in Durango Mexico. Results from the nine holes contained within this release are from the La Estrella Zones and San Rafael Zones in the Quebradillas mine. These zones were not modeled or included in the NI-43-101 Mineral Resource Estimate prepared by SRK for the La Parrilla Silver Mine Complex published on August 10, 2023.

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An overview video on the La Parrilla Project is available at: www.youtube.com/watch?v=dybgKXcGrYo

Key highlights include:

Numerous high-grade intercepts were encountered with the La Estrella (“VES”) and San Rafael (“VSR”) Zones in proximity to previous mined stopes. The current drill results, when combined with historical holes drilled by First Majestic (“FM”), are expected to have a positive impact on future Mineral Resources.

• Hole Q-24-039 returned 1,546 g/t Ag.Eq¹ over 0.49 metres (“m”), 2,550 g/t Ag.Eq over 0.50 m, and 1,034 g/t Ag.Eq over 0.94 m within a broader interval of 768 g/t Ag.Eq over 7.26 m from the interpreted intersection of the VES and VSR Zones.

– This high-grade intercept is located ~25 m below a previously mined stope

• Hole Q-24-031 returned 2,495 g/t Ag.Eq over 0.40 m and 640 g/t Ag.Eq over 1.56 m within a broader interval of 382 g/t Ag.Eq over 3.50 m from the interpreted intersection of the VES-A, Quebradillas Bajo, and C1524 Zones.

– These high-grade intercepts are located ~10 m to the east of a previously mined stope

• Hole Q-24-035 returned 1,313 g/t Ag.Eq over 0.50 m and 502 g/t Ag.Eq over 0.50 m within a broader interval of 361 g/t Ag.Eq over 5.00 m from the VES Zone and 1,019 g/t Ag.Eq over 0.90 m within a broader interval of 422 g/t Ag.Eq over 4.36 m from the interpreted intersection of the VES-B and Quebradillas Zones.

– These high-grade intercepts are located ~80 m above a previously mined stope

• Hole Q-24-036 returned 1,690 g/t Ag.Eq over 0.50 m within a broader interval of 333 g/t Ag.Eq over 5.75 m from the VES-A Zone.

– This high-grade intercept is located ~80 m above a previously mined stope

• Hole Q-24-038 returned 1,248 g/t Ag.Eq over 1.12 m within a broader interval of 482 g/t Ag.Eq over 8.19 m from the VSR Zone.

– This high-grade intercept is located ~40 m to the east of a previously mined stope

Greg McKenzie, President and CEO, commented: “We are pleased with the high-grade results from the La Estrella and San Rafael Zones. High-grade mineralization can be traced at La Estrella over a strike length of 225 m, vertical extent of 175 m, and true thickness of up to 6 m. Limited mining was previously conducted by First Majestic within these zones, and they were not included in the August 2023 Resource Estimate. We anticipate these results will have a positive impact on future Mineral Resource updates.”

La Estrella Zone

The La Estrella Zone is a sulphide-bearing hydrothermal breccia within a fault striking 274 degrees and dipping 80 degrees to the south over an approximate strike length of 225 m. There are two sub-parallel splay zones VES-A and VES-B which branch off the main zone. Prior to placing the mine on care and maintenance (Q4-2019) FM successfully mined one level in the VES Zone with excellent results – the composited weighted average grade of historical channel samples within the 1967 EL Stope returned 584 g/t Ag.Eq over a strike length of 71 m and average width of 1.89 m (Table 2).

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Results from holes Q-23-029A to Q-24-039 (11 holes), when combined with historical holes in proximity (Figures 1, 2 & Table 1), have identified a high-grade mineralized zone over a vertical extent of 175 m, strike length of 225 m, and true width varying up to 6 m. Drill results from holes Q-23-029A & 030 were previously reported in the Company’s news release dated May 7, 2024.

Hole Q-24-031 successfully intersected the interpreted intersection of the VES-A, Quebradillas Bajo, and C1524 Zones returning 2,495 g/t Ag.Eq over 0.40 m (41.30 to 41.70 m) and 640 g/t Ag.Eq over 1.56 m within a broader interval of 382 g/t Ag.Eq over 3.50 m (45.00 to 48.50 m) approximately 10 m along strike to the east of a previously mined VES stope at 1967 EL. The composited weighted average grade of historical channel samples from the 1967 EL VES stope is 584 g/t Ag.Eq over a strike length of 71 m and an average width of 1.89 m (Table 2).

Hole Q-24-035 returned 1,313 g/t Ag.Eq over 0.50 m and 502 g/t Ag.Eq over 0.50 m within a broader interval of 361 g/t Ag.Eq over 5.00 m (101.90 to 106.90 m) from the VES Zone and 1,019 g/t Ag.Eq over 0.90 m within a broader interval of 422 g/t Ag.Eq over 4.36 m (125.60 to 129.96 m) from the interpreted intersection of the VES-B and Quebradillas Zones. These intercepts lie approximately 80 m above the previously mined VES stope at 1967 EL.

Hole Q-24-036 returned 1,690 g/t Ag.Eq over 0.50 m within a broader interval of 333 g/t Ag.Eq over 5.75 m (95.40 to 101.15 m) from the VES-A Zone. This intercept lies approximately 80 m above the previously mined VES stope at 1967 EL.

Hole Q-24-039 returned 1,546 g/t Ag.Eq over 0.49 m, 2,550 g/t Ag.Eq over 0.50 m, and 1,034 g/t Ag.Eq over 0.94 m within a broader interval of 768 g/t Ag.Eq over 7.26 m (32.74 to 40.00 m) from the interpreted intersection of the VES and VSR Zones. This intercept lies approximately 25 m below the previously mined VES stope at 1956 EL. The composited weighted average grade of historical channel samples from the 1956 EL VES stope is 367 g/t Ag.Eq over a strike length of 33 m and an average width of 1.57 m (Table 2).

Hole Q-24-032 returned 178 g/t Ag.Eq over 0.50 m (61.65 to 62.15 m) from the VES-A Zone and 445 g/t Ag.Eq over 0.50 m (80.38 to 80.88 m) from the VES-B Zone.

Hole Q-24-033 returned 149 g/t Ag.Eq over 0.50 m (108.65 to 109.15 m) from the VES Zone and 203 g/t Ag.Eq over 4.20 m (136.80 to 141.00 m) from the VES-B Zone approximately 100 m above the previously mined VES stope at 1967 EL.

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As was previously reported in the Company’s news release dated May 7, 2024, hole Q-23-029A returned 321 g/t Ag.Eq over 7.50 m (57.80 to 65.30 m) including 463 g/t Ag.Eq over 1.12 m and 708 g/t Ag.Eq over 1.38 m from the VES Zone approximately 22 m above the previously developed 1967 EL VES stope and 376 g/t Ag.Eq over 3.93 m (46.12 to 50.05 m) including 811 g/t Ag.Eq over 1.01 m from the VES-A Zone. Hole Q-23-030 returned 455 g/t Ag.Eq over 4.13 m (103.61 to 107.74 m) including 1,617 g/t Ag.Eq over 0.60 m from the VES Zone approximately 87 m above the previously developed 1967 EL VES stope.

San Rafael Zone

The San Rafael Zone is a sulphide-bearing tectonic breccia zone striking 299 degrees and dipping 68 degrees to the north-northeast with a known strike length of approximately 120 m. The zone is mineralized over a known vertical extent of 80 m and its true width varies up to 7.5 m. Drill results from holes Q-23-027 and 028 were previously reported in the Company’s news release dated May 7, 2024.

Hole Q-24-038 returned 1,248 g/t Ag.Eq over 1.12 m within a broader interval of 482 g/t Ag.Eq over 8.19 m (37.55 to 45.74 m). This intercept lies approximately 40 m along strike to the east of the previously mined VSR stope at 1945 EL. The composited weighted average grade of historical channel samples from the 1945 EL VSR stope is 930 g/t Ag.Eq over a strike length of 11 m and an average width of 2.28 m (Table 2).

As mentioned previously, hole Q-24-039 returned 1,546 g/t Ag.Eq over 0.49 m, 2,550 g/t Ag.Eq over 0.50 m, and 1,034 g/t Ag.Eq over 0.94 m within a broader interval of 768 g/t Ag.Eq over 7.26 m (32.74 to 40.00 m) from the interpreted intersection of the VES and San VSR Zones. This intercept lies approximately 10 m below the previously mined VSR stope at 1945 EL.

Hole Q-24-032 returned 378 g/t Ag.Eq over 0.80 m (88.35 to 89.15 m) and 243 g/t Ag.Eq over 0.50 m (101.55 to 102.05 m) from the VSR Zone. These intercepts lie approximately 36 m along strike to the east of the previously mined VSR stope at 1958 EL. The composited weighted average grade of historical channel samples from the 1958 EL VSR stope is 259 g/t Ag.Eq over a strike length of 36 m and an average width of 1.35 m (Table 2).

As was previously reported in the Company’s news release dated May 7, 2024, hole Q-23-027 returned 708 g/t Ag.Eq over 2.36 m (0.49 to 2.85 m), including 1,673 g/t Ag.Eq over 0.57 m from the VSR Zone approximately 17 m along strike to the southwest of the previously mined VSR stope at 1945 EL. Hole Q-23-028 returned 540 g/t Ag.Eq over 1.21 m (0 to 1.21 m) from the VSR Zone.

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Table 1 – Select Assay Intervals from Holes Q-24-031 to 039 and Historical Results

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Table 2 – Historical Channel Sample Results ⁽²⁾ –La Estrella & San Rafael Zones

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Sample Analysis and QA/QC Program

Silver Storm uses a quality assurance/quality control (QA/QC) program that monitors the chain of custody of samples and includes the insertion of blanks, duplicates, and reference standards in each batch of samples sent for analysis. The drill core is photographed, logged, and cut in half, with one half retained in a secured location for verification purposes and one half shipped for analysis. Sample preparation (crushing and pulverizing) is performed at ALS Geochemistry, an independent ISO 9001:2001 certified laboratory, in Zacatecas, Mexico and pulps are sent to ALS Geochemistry in Vancouver, Canada for analysis. The entire sample is crushed to 70% passing -2 mm, and a riffle split of 250 grams is taken and pulverized to better than 85% passing 75 microns. Samples are analyzed for gold using a standard fire assay with Atomic Absorption Spectrometry (AAS) (Au-AA23) from a 30-gram pulp. Gold assays greater than 10 g/t are re-analyzed on a 30-gram pulp by fire assay with a gravimetric finish (Au-GRA21). Samples are also analyzed using a 34 element inductively coupled plasma (ICP) method with atomic emission spectroscopy (AES) on a pulp digested by four acids (ME-ICP61). Overlimit sample values for silver (>100 g/t), lead (>1%), zinc (>1%), and copper (>1%) are re-assayed using a four-acid digestion overlimit method with ICP-AES (ME-OG62). For silver values greater than 1,500 g/t, samples are re-assayed using a fire assay with gravimetric finish on a 30-gram pulp (Ag-GRA21). Samples with lead values over 20% are re-assayed using volumetric titration with EDTA on a 1-gram pulp (Pb-VOL70). No QA/QC issues were noted with the results reported herein.

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Review by Qualified Person and QA/QC

The scientific and technical information in this document has been reviewed and approved by Bruce Robbins, P.Geo., a Qualified Person as defined by National Instrument 43-101.

About Silver Storm Mining Ltd.

Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Silver Storm recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd mill as well as five underground mines and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico. For more information regarding the Company and its projects, please visit our website at www.silverstorm.ca.

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

Cautionary Note Regarding Forward Looking Statements:

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management and Qualified Persons (in the case of technical and scientific information) expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the future exploration performance at La Parrilla, the timing and extent of current and future drill programs, the ability to increase Mineral Resources therein, and the ability to eventually place the La Parrilla Complex back into production.

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In making the forward-looking statements included in this news release, the Company and Qualified Persons (in the case of technical and scientific information) have applied several material assumptions, including that the Company´s financial condition and development plans do not change because of unforeseen events, that future metal prices and the demand and market outlook for metals will remain stable or improve, management’s ability to execute its business strategy and no unexpected or adverse regulatory changes with respect to La Parrilla. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, there being no assurance that the Company’s current and future exploration programs will grow the Mineral Resource base or upgrade Mineral Resource confidence, the risk that the assumptions referred to above prove not to be valid or reliable, the risk that the Company is unable to achieve its goal of placing La Parrilla back into production; market conditions and volatility and global economic conditions including increased volatility and potentially negative capital raising conditions resulting from the continued or escalation of the COVID-19 pandemic, risk of delay and/or cessation in planned work or changes in the Company’s financial condition and development plans; risks associated with the interpretation of data (including in respect of third party mineralized material) regarding the geology, grade and continuity of mineral deposits, the uncertainty of the geology, grade and continuity of mineral deposits and the risk of unexpected variations in Mineral Resources, grade and/or recovery rates; risks related to gold, silver and other commodity price fluctuations; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour, the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining, including the Mexican mining reforms; risks relating to environmental regulation and liability; the possibility that results will not be consistent with the Company’s expectations.

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Such forward-looking information represents managements and Qualified Persons (in the case of technical and scientific information) best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241119510702/en/

Contacts

For additional information, please contact:
Greg McKenzie, President & CEO
Ph: +1 (416) 504-2024
[email protected]

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