Silver Mountain begins production at Reliquias mine

Silver Mountain Resources Inc. (AGMR) announced the commencement of first bulk and zinc concentrate production at its 100%-owned Reliquias underground silver polymetallic mine in the Castrovirreyna district of Huancavelica, central Peru, in mid-September 2026. The company characterized the milestone as a formal transition from developer to producer.

Initial feed for the operation was derived from approximately 45,000 tonnes of stockpiled material accumulated during underground development and mine preparation, rather than from steady-state mined stopes. The company has targeted a processing throughput of 800 tonnes per day (tpd) during the second half of 2027. This target is significantly below the 2,600 tpd nameplate capacity of the concentrator, which holds initial permits for up to 2,000 tpd, suggesting a staged ramp-up. Initial concentrate shipments are expected to commence in October 2026.

The technical basis for the project is an Amended and Restated NI 43-101 Preliminary Economic Assessment dated October 28, 2024, with an effective date of May 15, 2024. The report was prepared by Steven L. Park, Antonio Cruz Bermudez, and Gerardo Acuna, with Gerardo Acuna, PEng, FAusIMM CP, serving as the Qualified Person.

The release did not disclose tonnes processed, head grades, recoveries, concentrate grades, cash costs, all-in sustaining costs (AISC), or revenue.

Silver Mountain Resources Inc. (AGMR) has confirmed it is on track to restart commercial production at its Reliquias project in the third quarter of 2026. The company’s latest announcement validates a timeline it has guided to repeatedly and consistently for months. Previous updates included a January 14 statement targeting a Q3 2026 restart, a March 2 note that the restart was "firmly in sight," and an April 15 update confirming the project was fully funded with over US$30M in treasury and on track for the same quarter. By May 13, the plant was reported as 75% complete, and by July 9, commissioning had begun with the plant 95% complete.

The current release confirms the guided timeline was met, marking an expected and incremental follow-up to prior communications. The market had been informed of the Q3 2026 production target at least ten months in advance, meaning the event was not genuinely new or unexpected.

Two factors keep the tone measured rather than celebratory. First, production is currently being run off a 45,000-tonne stockpile rather than freshly mined ore. This demonstrates plant operational readiness more than it demonstrates a working, sustainable underground mine. Commercial-grade, steady-state mining, including stope development, grade control, and dilution management, remains the next, harder test. Second, there is no economic disclosure. Without grades, recoveries, and costs, the market cannot judge whether this is profitable production. The stock traded at $4.13 on September 22 versus $4.08 on September 23 close; the release timestamp was 19:50 (after the close), so the market reaction is unknown at the time of writing.

Prior-period context not included in this release notes that the May 1, 2026, annual filing contained an OSC-required correction stating that no mineral reserves had been established at Reliquias, correcting an earlier interim report error. The asset carries NI 43-101 resources only, and the PEA is not a feasibility study. This materially lowers confidence in the reserve-based "producer" narrative.

Silver Mountain Resources Inc. (TSX: AGMR; OTCQB: AGMRF; BVL: AGMR) is a Canadian-listed mining company focused on silver production and exploration in Peru. Its principal asset is the Reliquias mine, a historic polymetallic underground operation in the Castrovirreyna district of Huancavelica. The mine operates on existing permitted infrastructure, supported by an environmental certification valid to 2034 and a 20-year surface-use agreement with the Castrovirreyna and Salcca Santa Ana communities. The broader Castrovirreyna Project also includes the Caudalosa mine, the Colquicuntur breccia target, and the Dorita/El Milagro block.

The value mix at Reliquias per deck consists of 66.4% silver, 13.8% zinc, 9.3% gold, 7.6% lead, and 2.8% copper. Current NI 43-101 resources indicate measured and indicated resources of approximately 12.8 moz AgEq at 304 g/t, and inferred resources of approximately 16.0 moz AgEq at 284 g/t, totaling roughly 28.9 moz AgEq. Caudalosa carries a historic resource of approximately 35.6 moz AgEq. The company expects production of approximately 2.5 moz AgEq per year within 12 months of restart.