Silver Mountain Resources reports first concentrate sale worth about US$2.7M
Reliquias targets throughput of 800 tonnes a day in the second half of 2027, with its next operational update expected in January.
Mara Quinlan
Silver Mountain Resources Inc. TSEAGMR OTCMKTSAGMRF said on Thursday it had agreed its first concentrate sale and completed a shipment from Reliquias in Peru, with an estimated provisional value of US$2.7 million. The shipment starts revenue generation after September's production restart, while the company targets processing 800 tonnes a day in the second half of 2027.
Shares on the TSEAGMR listing fell 2.36 per cent to C$2.90 in Toronto at 4:00 p.m. EST on Wednesday, before Thursday's announcement.
The bulk and zinc concentrates came from the company's wholly owned silver-polymetallic mine in the Castrovirreyna district of central Peru. Final weights, assays, applicable metal prices, contractual deductions and customary settlement adjustments will determine the final sales value.
The Nov. 12 sale disclosure gives no concentrate tonnage, payable metal volumes, buyer or payment schedule. Silver Mountain remains in ramp-up toward commercial production and expects to provide its next operational update in January 2027, without specifying a date for another shipment.
"Our first concentrate shipment, representing approximately US$2.7 million in estimated provisional sales value, marks an important milestone for Silver Mountain as we begin generating revenue from Reliquias," chief executive Alvaro Espinoza said in Thursday's release.
The provisional estimate is based on preliminary shipment information, and actual revenue recognized may differ, the company said on Nov. 12. The announcement marks an agreed sale and completed shipment but does not establish the amount or timing of cash receipts.
Silver Mountain's Sept. 21 restart announcement said approximately 45,000 tonnes of stockpiled material were available to support processing. That material had accumulated during underground development and mine preparation, and initial plant feed came from the stockpile.
The September announcement had targeted concentrate shipments beginning in October. Thursday's release confirms the first shipment has been completed but does not give its departure date.
Processing is expected to shift progressively from stockpiled material to newly mined ore as throughput increases. Silver Mountain said it remains focused on underground mine development and continues to evaluate opportunities to expand resources across its land package, including exploration at Caudalosa.
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The restart carries a study qualification: the production decision was not based on a prefeasibility or feasibility study of mineral reserves demonstrating economic and technical viability. Reliquias has no defined mineral reserves, and the company warns of greater uncertainty and risk of economic or technical failure.
The preliminary economic assessment supporting the operation includes inferred resources considered too speculative to be classified as reserves. Silver Mountain cautions that resources have no demonstrated economic viability and that the study's results may not be realized.
The next scheduled operational update is due in January 2027.
