SILVER MOUNTAIN MINES REPORTS

HIGH GRADE ASSAYS FROM GRAB SAMPLES RANGE INCLUDING: 308 g/t Ag (9.00 oz/T Ag) & 12,346 g/t Ag (360.85 oz/T Ag) FROM GEOCHEMICAL SAMPLING ON ITS PTARMIGAN PROPERTY

 

DECEMBER 4, 2012, Calgary, Alberta - Silver Mountain Mines Inc. (TSX-V:SMM) (“Silver Mountain” or the "Company") is pleased to report the results of its soil, silt and rock sampling completed during the  2012 exploration program on its 100% owned Ptarmigan Property near Radium, British Columbia (the “Property”).  The program continued the Company’s geochemical initiative to identify new, and extend known, mineralized areas on the Property having potential for high grade, silver-bearing vein and semi-massive to massive pyrite-enriched, manto-style mineralization.

The 2012 rock, soil and silt geochemical sampling program on the Ptarmigan Property resulted in several significant Gold (“Au”), Silver (“Ag”), Copper (“Cu”), Lead (“Pb”) and Zinc (“Zn”) anomalies that warrant follow-up work in 2013.

Noteworthy 2012 analyses include a grab sample that ran 12,346 grams per tonne (g/t) Ag, 6.91 g/t Au and 6.23% Cu collected from float in a talus chute west of the Ptarmigan Mine identifying greater mineralization potential.  Additional outcrop sampling of the North Ridge and West Vein area returned values ranging from 29 g/t Ag to 1,376 g/t Ag and  1.83 g/t Au, 0.767% Cu and 3.81% Pb. This area lies along the projected trend of a series of northwest trending faults which pass through the Ptarmigan Mine area (see Fault Mineralization Map @ http://www.silvermountainmines.com).  In particular, the Adit #3 fault extends north from the Iron Cap Trend through the Upper Ptarmigan Zone, the Ptarmigan Mine and may extend north to the West Vein.  Mineralization has been identified and associated with a north-trending fault system, over a horizontal distance of 1,400 meters (m) from north to south, a vertical thickness of 250 meters and remains open along strike and to depth.

Historical high grade, silver-bearing vein and manto-style mineralization was mined in the Ptarmigan Mine area with known production from Adit #3 reported at  520 Tons (“T”) with silver-rich ore grades averaging 77 oz/T of (Ag). Mineralization is hosted in interconnected and irregular veins with silver-bearing minerals; silver sulphides, argentiferous galena and sulphosalts in quartz of large pods or pyritic lenses with tetrahedrite.

The 2012 sampling program resulted in recovery of a total of 304 soil, 25 silt and 94 rock samples from three main areas on the Ptarmigan Property; the McDonald, Gopher and Law Creek drainages.  The following is a tabulation of anomalous rock samples recovered during 2012 (see 2012 Geochemistry Sampling Map @ http://www.silvermountainmines.com).

Yellowhead's Harper Creek Project

Mining Talk
Yellowhead is going to be a mine. Will the share price grow as they head towards production? There will be some gains to be had. Given the abuse non-producers are taking I've lowered my expectations to $1.06 by next year. On a take out I would expect $1.50

about 3.5 billion pounds of copper
about 53 Million shares
about 66 pounds per share
Share Price 66 cents. So about a penny per pound.
The credits do have an impact of about $20 a ton but I'm not going into that much detail. By comparison Copper Fox's Schaft Creek on an eq basis is 50 pounds per share or a value of 2 cents a pound. (CUU has an option agreement with Teck)

Why so cheap?
Outlook:

• Submission of the Company's Environmental Assessment application for the Harper Creek project;
• Preparation and submission of the Company's application for a British Columbia Mines Act Permit for Harper Creek;
• Ongoing consultation with the First Nations and local communities to address any potential environmental and socio-economic impacts of Harper Creek and the Company's mitigation strategies;
• Continue exploration activities to better define the resource/reserve at Harper Creek;
• The Company is seeking strategic partners, project financing and equipment financing to facilitate equipment orders and construction financing when permits are in place.

These are the reasons the market isn't responding. The co has to raise big money and get the enviro's through. Just on these two items we see a bargain price in a safe jurisdiction. Looking at this you'd think it was a company in a banana republic but it's in BC. A look at the global copper mining costs shows that BC is one of the better places to mine. Sure there are other very cheap place to mine copper but those come with stability prices. Since copper mines are typically around for a quarter century the small price for stability often outweighs the gains from short term thinking as applied to many other countries.

A lot of people think that when a company comes off the speculation curve that there won't be much to gain. This is wrong. What's at stake is the ability to produce. Even this mine could fail to produce. It's very unlikely but possible. And, this is why a major will pay a premium for a fully permitted operating mine. They will pay more if it's in a safe place. Keep your eye on this co's institutional holdings.

Yellowhead's Harper Creek Project is a copper-gold-silver volcanogenic sulphide deposit located in south-central British Columbia, approximately 150 kilometers by highway north of Kamloops.  Feasibility Study results announced on March 2, 2012 showed a pre-tax NPV₈ of $749.7 million with an IRR of 20.2% based on long-term metal price projections of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and a US$:Cdn$ exchange rate of 0.86:1.  The Feasibility Study demonstrated a 28 year project life at a milling rate of 70,000 tpd (25.55Mt/y). The project as designed is expected to produce a total of 3.63 billion pounds of copper, 372,000 ounces of gold and 14 million ounces of silver contained in concentrate.

At a 0.14% Cu cutoff,  Proven Reserves are estimated at 401.18Mt @ 0.272% Cu, 0.031g/t Au and 1.15g/t Ag; Probable Reserves 303.22Mt @ 0.248% Cu, 0.027g/t Au and 1.13g/t for a total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu, 0.029g/t Au and 1.14g/t Ag.

The Feasibility Study is based on an updated resource (refer to news release dated February 16, 2012).  At a 0.20% Cu cutoff Measured Resources are estimated at 348.5Mt at 0.31 % Cu, 0.034g/t Au, 1.3g/t Ag; Indicated Resources at 466.5Mt at 0.28% Cu, 0.03g/t Au, 1.3g/t Ag for a total Measured and Indicated Resource of 815Mt at 0.29% Cu, 0.032g/t Au and 1.3g/t Ag (5.26 billion pounds of copper contained).  A further 80.17Mt at 0.30% Cu, 0.033g/t Au, and 1.4g/t Ag are estimated in the Inferred Resource category (0.53 billion pounds of copper contained) and is reported as waste in the mine production schedule until it can be upgraded by additional infill drilling.

Yellowhead has a 100% interest in the Harper Creek Project (subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 1.5 Mt of ore which is expected to be mined beginning in year 16 of the Feasibility Study mine plan).