- Mineral Reserves for Yauricocha are 8,917,000 tonnes
averaging 48.3 g/t silver, 1.2% copper, 0.8% lead, 2.4% zinc and
0.5 g/t gold representing a 134% increase to the previous Reserve
Estimate. This new Reserve Estimate more than doubles the previous
mine life at current throughput levels when compares to the
previous August 2016 Reserve
Estimate.
- Total Proven and Probable Contained Metal has significantly
increased by 86% silver, 237% copper, 58% lead, 96% zinc, and 97%
gold as compared to the previous August
2016 reserve estimate.
- Increases to copper contained metal reflect the discovery
and delineation of new Cu-rich zones in Cuye, Mascota, and
Esperanza and a 14% increase in Copper Price.
- The updated Reserve Estimate has incorporated the recent
significant increase to Yauricocha's Mineral Resource (press
released on September
28th, 2017). This Reserve Estimate does not
include the latest drill intercepts reported from Cuye-Mascota
(press released on October 2, 2017)
as they were completed after the cut-off date of the current
report.
- In addition, metal pricing, metallurgical recoveries, costs,
and other factors have been updated to reflect July 31, 2017 actuals and assumptions.
TORONTO, Oct. 26, 2017 /CNW/ - Sierra Metals Inc.
(TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra Metals" or
"the Company") has updated its Mineral Reserves Estimate at the
Company's Yauricocha Mine, located in Yauyos Province,
Peru.
The Reserves Estimate at Yauricocha is the result of the recent
significant increase to Mineral Resource stated in the September 28, 2017 press release.
A Technical Report is currently being prepared by SRK Consulting
(U.S.) Inc. in accordance with NI 43-101 and will be filed on SEDAR
within 45 days of the September 28,
2017 resource update news release.
- Consolidated Yauricocha Reserve Estimate – July 31, 2017
|
|
Reserves - Proven
and Probable
|
Contained
Metal
|
|
|
Tonnes
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
|
|
(000's)
|
g/t
|
%
|
%
|
%
|
g/t
|
M oz
|
M lb
|
M lb
|
M lb
|
K oz
|
Yauricocha
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
1,836
|
46.6
|
1.1
|
0.8
|
2.6
|
0.6
|
2.8
|
43.7
|
33.8
|
105.0
|
37.7
|
|
Probable
|
7,081
|
48.8
|
1.2
|
0.8
|
2.4
|
0.5
|
11.1
|
191.6
|
117.3
|
372.2
|
111.9
|
|
Proven &
Probable
|
8,917
|
48.3
|
1.2
|
0.8
|
2.4
|
0.5
|
13.9
|
235.3
|
151.1
|
477.2
|
149.6
|
|
(1)
|
All figures rounded to
reflect the relative accuracy of the estimates. Total may not sum
due to rounding.
|
(2)
|
The consolidated
Yauricocha Reserve Estimate is comprised of the proven and probable
material in the Mina Central, Esperanza, Cach-Cachi, Mascota, Cuye,
and Cuerpos Pequenos mining areas.
|
(3)
|
Mineral reserves are
reported at unit value cut-offs (COG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable
metallurgical recoveries** as a function of grade and relative
metal distribution in individual concentrates), and variable grade
adjustments*** made to the resource model.
|
|
|
* Metal price
assumptions considered for the calculation of unit values are: Gold
(US$/oz 1,255.00), Silver (US$/oz 17.80), Copper (US$/lb 2.60),
Lead (US$/lb 1.01), and Zinc (US$/lb 1.25)
** Metallurgical recovery assumptions for the Yauricocha Mine are
variable by mineralization style and degree of oxidation. Recovery
is a function of grade and relative metal distribution in
individual concentrates. The assumptions are built in to the unit
values for each area, as a function of the metallurgical recovery
multiplied by the metal price.
***Grade adjustment factors are based on historical mine to mill
reconciliation and are variable by mining area
|
(4)
|
The mining costs are
variable by mining method.
|
(5)
|
Mining recovery and
dilution have been applied and are variable by mining area and
proposed mining method.
|
(6)
|
The unit value
cut-off grades (COG) are variable by mining area and proposed
mining method. The economic COG ranges from US$56-63.
|
Consolidated Yauricocha Resource Estimate – July 31, 2017
|
|
|
|
|
|
|
|
Resources -
Measured and Indicated
|
|
|
|
|
|
|
Contained
Metal
|
|
|
Tonnes
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
|
|
(000's)
|
g/t
|
%
|
%
|
%
|
g/t
|
M oz
|
M lb
|
M lb
|
M lb
|
K oz
|
Yauricocha
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
3,094
|
70.0
|
1.7
|
1.2
|
3.2
|
0.8
|
7.0
|
117.3
|
83.7
|
218.5
|
78.3
|
|
Indicated
|
10,112
|
59.9
|
1.5
|
0.8
|
2.7
|
0.6
|
19.5
|
326.3
|
185.4
|
594.8
|
195.6
|
|
Measured &
Indicated
|
13,206
|
62.3
|
1.5
|
0.9
|
2.8
|
0.6
|
26.4
|
443.6
|
269.1
|
813.3
|
274.0
|
|
Inferred
|
6,632
|
43.0
|
1.2
|
0.5
|
2.2
|
0.5
|
9.2
|
174.7
|
68.0
|
315.2
|
117.0
|
|
(1)
|
Mineral resources are
reported inclusive of ore reserves. Mineral resources are not ore
reserves and do not have demonstrated economic viability. All
figures rounded to reflect the relative accuracy of the estimates.
Gold, silver, copper lead and zinc assays were capped where
appropriate.
|
(2)
|
Mineral resources are
reported at unit value cut-offs grades (COG) based on metal price
assumptions*, variable metallurgical recovery assumptions (variable
metallurgical recoveries** as a function of grade and relative
metal distribution in individual concentrates), generalized
mining/processing costs).
|
|
|
* Metal price
assumptions considered for the calculation of unit values are: Gold
(US$/oz 1,255.00), Silver (US$/oz 17.80), Copper (US$/lb 2.60),
Lead (US$/lb 1.01) and Zinc (US$/lb 1.25)
** Metallurgical
recovery assumptions for the Yauricocha Mine are variable by
mineralization style and degree of oxidation. The assumptions are
built in to the unit values for each area, as a function of the
metallurgical recovery multiplied by the metal price.
|
(3)
|
The unit value COG
are variable, by mining area and proposed mining method. The COG
ranges from US$41-48.
|
"Sierra's management team are extremely pleased with the
significant increases in the proven and probable reserves in this
Reserve Estimate for the Yauricocha mine." stated Igor Gonzales, President and CEO of Sierra
Metals Inc. "This new reserve more than doubles the previous
mine life at current throughput levels and when compared
to the previous estimate from August
2016 the Company has realized a 134% increase to the mineral
reserves for Yauricocha. The mineral reserves now consist of
8,917,000 tonnes averaging 48.3 g/t silver, 1.2% copper, 0.8% lead,
2.4% zinc and 0.5 g/t gold representing a 134% increase to the
previous Reserve Estimate. These increases represent a
significant amount of additional drilling and mine exploration
development work completed at the Yauricocha Mine."
He continued, "The Company remains committed to growth
through brownfield exploration and todays Reserve Estimate and the
September 28, 2017 Resource Estimate
confirm the presence of additional high-quality tonnage at the
Yauricocha Mine and will allow the Company to look at potential
production increases going forward. We will continue our
brownfield exploration programs at the Yauricocha mine over the
next year with an aim of further mineral resource
expansions."
2017 Reserve Estimate % Differences from Prior Estimate
(August 2016):
|
|
% Change from 2016
Reserve Estimate
|
Contained
Metal
|
|
|
Tonnes
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
|
|
(000's)
|
g/t
|
%
|
%
|
%
|
g/t
|
M oz
|
M lb
|
M lb
|
M lb
|
K oz
|
Yauricocha
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
117%
|
-34%
|
84%
|
-48%
|
-8%
|
-2%
|
43%
|
299%
|
14%
|
100%
|
113%
|
|
Probable
|
141%
|
-16%
|
35%
|
-26%
|
-19%
|
-20%
|
101%
|
226%
|
77%
|
94%
|
92%
|
|
Proven &
Probable
|
135%
|
-21%
|
43%
|
-33%
|
-17%
|
-16%
|
86%
|
237%
|
58%
|
96%
|
97%
|
The updated Reserve Estimate varies significantly from the 2016
Technical Report primarily due to the significant increase in
Yauricocha's Mineral Resource.
Mineral Reserve Estimate
Mineral Reserve Estimations
have been conducted or reviewed by the following Qualified
Persons:
- Shannon L. Rhéaume of SRK Consulting (Canada) Inc.; Datamine Studio 5DP™ and
Enhanced Production Scheduler (EPS)™ Software
The procedures and methods supporting the mineral reserve
estimations have been developed in conjunction with Sierra Metals
mine planning personnel. The reserve estimates presented herein
have been conducted by Sierra Metals and reviewed by SRK using
supporting data generated by the site. SRK notes that the methods
and procedures are reasonable and consistent with industry best
practice. Each mining area was evaluated using reasonable mining
block shapes based on the mining method applicable to the zone.
Data and information supporting the mining recovery, mining
dilution, reconciliation-based grade adjustments, metallurgical
recoveries, consensus commodity pricing, and treatment and refining
charges have been provided by Sierra Metals and reviewed by SRK.
These factors are used to calculate unit values for the blocks in
the models. Historic and expected direct and indirect mining,
processing, and general and administrative costs were provided by
Sierra Metals. To be considered economic, the Net Smelter Return
(NSR) value of the mining block must be greater than the economic
cutoff. Blocks below the economic cutoff but above the marginal
cutoff are, in some cases, included in the reserve where they are
in between or immediately adjacent to an economic block, and it is
reasonable to expect that no significant additional development
would be required to extract the marginal block. Isolated blocks,
defined as blocks with no defined access, have been excluded. Mined
out areas were provided by Sierra Metals personnel.
SRK is of the opinion that the reserve estimations are suitable
for public reporting and are a fair representation of the mill feed
tonnes, grade, and metal for the Yauricocha deposit.
Qualified Persons
The technical content of this news release has been reviewed and
approved by Gordon Babcock P.Eng.,
Chief Operating Officer and a Qualified Person under National
Instrument 43-101 Standards of Disclosure for Mineral
Projects.
Americo Zuzunaga, MAusIMM
CP(Mining Engineer) and Vice President of Corporate Planning is a
Qualified Person and chartered professional qualifying as a
Competent Person under the Joint Ore Reserves Committee (JORC)
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Augusto Chung, FAusIMM
CP(Metallurgist) and Consultant to Sierra Metals is a Qualified
Person and chartered professional qualifying as a competent person
on metallurgical processes.
About Sierra Metals
Sierra Metals Inc. is Canadian based growing polymetallic mining
company with production from its Yauricocha Mine in Peru, and its Bolivar and Cusi Mines in Mexico. The Company is focused on increasing
production volume and growing mineral resources. Sierra Metals has
recently had several new key discoveries and still has many more
exciting brownfield exploration opportunities at all three Mines in
Peru and Mexico that are within close proximity to the
existing mines. Additionally, the Company also has large land
packages at all three mines with several prospective regional
targets providing longer term exploration upside and mineral
resource growth potential.
The Company's Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock
Exchange under the symbol "SMT" and on the NYSE American Exchange
under the symbol "SMTS".
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals
| Facebook: SierraMetalsInc | LinkedIn: Sierra Metals
Inc.
Forward-Looking Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of Canadian and
U.S. securities laws related to the Company (collectively,
"forward-looking information"). Forward-looking information
includes, but is not limited to, statements with respect to the
Company's operations, including the anticipated developments in the
Company's operations in future periods, the Company's planned
exploration activities, the adequacy of the Company's financial
resources, and other events or conditions that may occur in the
future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties
are developed or further developed. These statements relate to
analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives",
"potential" or variations thereof, or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking information.
Forward-looking information is subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking information, including,
without limitation, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions,
cave-ins, weather conditions and criminal activity; commodity price
fluctuations; higher operating and/or capital costs; lack of
available infrastructure; the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; risks associated with the estimation of
mineral resources and the geology, grade and continuity of mineral
deposits and the inability to replace reserves; fluctuations in the
price of commodities used in the Company's operations; risks
related to foreign operations; changes in laws or policies, foreign
taxation, delays or the inability to obtain necessary governmental
permits; risks relating to outstanding borrowings; issues regarding
title to the Company's properties; risks related to environmental
regulation; litigation risks; risks related to uninsured hazards;
the impact of competition; volatility in the price of the Company's
securities; global financial risks; inability to attract or retain
qualified employees; potential conflicts of interest; risks related
to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral
reserves and resources; potential dilutive transactions; foreign
currency risks; risks related to business cycles; liquidity risks;
reliance on internal control systems; credit risks, including risks
related to the Company's compliance with covenants with respect to
its BCP Facility; uncertainty of production and cost estimates for
the Yauricocha Mine, the Bolivar Mine and the Cusi Mine; and other
risks identified in the Company's filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission ("SEC"),
which filings are available at www.sedar.com and www.sec.gov,
respectively.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking information. Forward-looking
information includes statements about the future and are inherently
uncertain, and the Company's actual achievements or other future
events or conditions may differ materially from those reflected in
the forward-looking information due to a variety of risks,
uncertainties and other factors. The Company's statements
containing forward-looking information are based on the beliefs,
expectations, and opinions of management on the date the statements
are made, and the Company does not assume any obligation to update
forward-looking information if circumstances or management's
beliefs, expectations or opinions should change, other than as
required by applicable law. For the reasons set forth above, one
should not place undue reliance on forward-looking information.
Note Regarding Reserve and Resource Estimates
All reserve and resource estimates reported by the Company are
calculated in accordance with the Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects and the
Canadian Institute of Mining and Metallurgy Classification system.
These standards differ significantly from the requirements of the
SEC. The differences between these standards are discussed in our
SEC filings. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.
SOURCE Sierra Metals Inc.