TORONTO–(BUSINESS WIRE)–Silver Storm Mining Ltd. (“Silver Storm” or the “Company“) (TSX.V: SVRS | OTC: SVRSF | FSE: SVR), is pleased to announce 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 10 holes (1,406 metres (“m”)) contained within this release are from the C460 Zone, within the Quebradillas mine. The Company also provides an update on its non-brokered private placement offering (the “Offering”).

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 within the C460 Zone up to 138 m beyond the last mined levels where the following channel samples and mining widths were observed (Figures 2 & 3):

• 1767 EL graded 974 g/t Ag.Eq¹ over a strike length of 23 m and an average width of 2.9 m.
• 1743 EL graded 552 g/t Ag.Eq over a strike length of 50 m and an average width of 1.4 m.
• 1740 EL graded 928 g/t Ag.Eq over a strike length of 31 m and an average width of 1.9 m.
• 1725 EL graded 780 g/t Ag.Eq over a strike length of 43 m and an average width of 1.8 m.

The current drill results, when combined with historical holes drilled by First Majestic Silver Corp., are expected to have a positive impact on future Mineral Resources.

• Hole Q-24-047 successfully returned 1,335 g/t Ag.Eq over 3.68 m, 1,569 g/t Ag.Eq over 2.10 m, and 913 g/t Ag.Eq over 2.55 m within a broader interval of 618 g/t Ag.Eq over 18.04 m approximately 20 m down dip from the 1725 EL stope, and 25 m down dip from hole Q-23-023 which returned 347 g/t Ag.Eq over 9.65 m.
• Hole Q-24-049 returned 1,781 g/t Ag.Eq over 1.03 m within a broader interval of 958 g/t Ag.Eq over 2.03 m, and 549 g/t Ag.Eq over 0.44 m and 680 g/t Ag.Eq over 0.42 m within a broader interval of 322 g/t Ag.Eq over 1.70 m, approximately 25 m down dip from the 1743 EL stope.
• Hole Q-24-048 returned 457 g/t Ag.Eq over 0.90 m and 439 g/t Ag.Eq over 1.35 m approximately 37 m down dip from the 1740 EL stope and 24 m up dip and to the north of Q-24-047.
• Hole Q-24-053 returned 759 g/t Ag.Eq over 2.00 m within a broader interval of 380 g/t Ag.Eq over 7.00 m approximately 67 m down dip from the 1725 EL stope.
• Hole Q-24-057 returned 696 g/t Ag.Eq over 2.02 m within a broader interval of 396 g/t over 5.52 m approximately 50 m down dip and south of hole Q-23-022A which returned 2,361 g/t Ag.Eq over 2.60 m and 1,266 g/t Ag.Eq over 2.15 m within a broader interval of 911 g/t Ag.Eq over 13.05 m. This intercept is located approximately 138 m down dip from the 1767 EL stope where the composited weighted average grades from historical channel samples, which are representative of the mineralization mined from this area, returned 974 g/t Ag.Eq over a strike length of 23 m and an average width of 2.9 m.

Greg McKenzie, President and CEO, commented: “The C460 Zone drill results reported today are indicative of the importance of this zone in a restart of operations. Hole Q-24-057 returned 696 g/t Ag.Eq over 2.02 m approximately 138 m below the 1767 EL stope, combined with previously reported holes Q-23-020 grading 1,810 g/t Ag.Eq over 14.6 m and Q-23-022A grading 911 g/t Ag.Eq over 13.05 m, also beneath the 1767 EL stope, demonstrate the high-grade potential of this undeveloped 138 m section of the southern C460 Zone. Our excellent follow-up high-grade drill results to date, which are in proximity to previous production stopes with high-grade historical channel samples, shows the potential for expansion of high-grade mining in C460.”

C460 Zone

The C460 Zone is a sulphide replacement vein striking 344 degrees and dipping 63 degrees to the northeast with a known strike length of 425 m (Figure 1). The zone is mineralized over a vertical extent of 570 m and its thickness varies up to 8.5 m. The replacement vein is concordant to bedding in the sediments and mineralization is comprised of pyrite, pyrrhotite, galena, sphalerite, arsenopyrite, acanthite, and freibergite. Phase 2 drilling consisted of 10 diamond drill holes (1,406 m) following up on the success of holes Q-23-020, reported in the Company’s news release dated January 4, 2024, and Q-23-021 to Q-23-023, reported in the Company’s news release dated February 22, 2024.

Hole Q-24-047 successfully returned 1,335 g/t Ag.Eq over 3.68 m, 1,569 g/t Ag.Eq over 2.10 m, and 913 g/t Ag.Eq over 2.55 m within a broader interval of 618 g/t Ag.Eq over 18.04 m (78.26 to 96.30 m), 25 m down dip from hole Q-23-023 which returned 347 g/t Ag.Eq over 9.65 m (see Company news release February 22, 2024). This intercept is located approximately 20 m down dip from the 1725 EL stope where the composited weighted average grades from historical channel samples, which are representative of the mineralization mined from this area, returned 780 g/t Ag.Eq over a strike length of 43 m and an average width of 1.8 m (Figures 2 & 3; Table 2).

Hole Q-24-048 returned 457 g/t Ag.Eq over 0.90 m (71.10 to 72.00 m) and 439 g/t Ag.Eq over 1.35 m (81.20 to 82.55 m), 24 m up dip and to the north of Q-24-047. This intercept is located approximately 37 m down dip from the 1740 EL stope where the composited weighted average grades from historical channel samples returned 928 g/t Ag.Eq over a strike length of 31 m and an average width of 1.9 m.

Hole Q-24-049 returned 194 g/t Ag.Eq over 2.20 m (63.21 to 65.41 m) including 334 g/t Ag.Eq over 0.50 m, 1,781 g/t Ag.Eq over 1.03 m within a broader interval of 958 g/t Ag.Eq over 2.03 m (68.76 to 70.79 m), and 549 g/t Ag.Eq over 0.44 m and 680 g/t Ag.Eq over 0.42 m within a broader interval of 322 g/t Ag.Eq over 1.70 m (83.61 to 85.31 m). This intercept is located approximately 25 m down dip from the 1743 EL stope where the composited weighted average grades from historical channel samples returned 552 g/t Ag.Eq over a strike length of 50 m and an average width of 1.4 m.

Hole Q-24-053 returned 759 g/t Ag.Eq over 2.00 m within a broader interval of 380 g/t Ag.Eq over 7.00 m (152.63 to 159.63 m). This intercept is located approximately 67 m down dip from the 1725 EL stope where the composited weighted average grades from historical channel samples returned 780 g/t Ag.Eq over a strike length of 43 m and an average width of 1.8 m.

Hole Q-24-057 returned 696 g/t Ag.Eq over 2.02 m within a broader interval of 396 g/t over 5.52 m (195.00 to 200.52 m), 50 m down dip and south of hole Q-23-022A which returned 2,361 g/t Ag.Eq over 2.60 m and 1,266 g/t Ag.Eq over 2.15 m within a broader interval of 911 g/t Ag.Eq over 13.05 m (see Company news release February 22, 2024). This intercept is located approximately 138 m down dip from the 1767 EL stope where the composited weighted average grades from historical channel samples returned 974 g/t Ag.Eq over a strike length of 23 m and an average width of 2.9 m.

For further information, the NI 43-101 Technical Report entitled “Independent Technical Report for the La Parrilla Silver Mine, Durango State, Mexico” with an effective date of May 31, 2023 is available for review on SEDAR (www.sedarplus.ca) and on the Company’s website (www.silverstorm.ca).

Table 1 – Select Assay Intervals from Holes Q-24-047 to Q-24-059

Table 2 – Historical Channel Sample Results ⁽²⁾ – C460 Zone

1. All results in this release are rounded. Assays are uncut and undiluted. Widths are core-lengths, not true widths. Silver equivalent: Ag.Eq g/t was calculated using commodity prices of US$22.50 /oz Ag, US$1,800 /oz Au, US$0.94 /lb Pb, and US$1.35 /lb Zn applying metallurgical recoveries of 70.1% for silver and 82.8% for gold in oxides and 79.6% for silver, 80.1% for gold, 74.7% for lead and 58.8% for zinc in sulphides. Metal payable used was 99.6% for silver and 95% for gold in doré produced from oxides, and 95% for silver, gold, and lead and 85% for zinc in concentrates produced from sulphides. Cut-off grades considered for oxide and sulphide were, respectively 140 g/t Ag.Eq and 125 g/t Ag.Eq and are based on 2017 costs adjusted by the inflation rate and include sustaining costs.
2. Weighted average grades were calculated over the mineralized widths of each channel across the stope (Figures 2 & 3).

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.

Correction to January 6, 2025 News Release

The Company wishes to issue a correction regarding the number of Units issued under the Second Tranche of its Offering. The Company received subscriptions for 2,197,778 Units and closed on 447,778 Units. The total gross proceeds raised in the Second Tranche amounted to $40,300.02.

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. In August 2023 Silver Storm 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.

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.

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.

Contacts

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

Original Article: https://www.businesswire.com/news/home/20250109367370/en/Silver-Storm-Drills-1335-gt-Ag.Eq-Over-3.7-m-Within-Broader-Interval-of-618-gt-Ag.Eq-Over-18-m-in-C460-Zone-and-Extends-High-Grade-Zone-138-m-at-Depth