TORONTO, Nov. 13, 2017 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") has filed a technical report prepared in
accordance with National Instrument 43-101 ("NI 43-101") on the
Yauricocha Mine (the "Report"). The Report supports the
disclosure made by the Company in its news releases dated
September 28, 2017 entitled "Sierra
Metals Significantly Increases Mineral Resource Estimate for
Yauricocha Mine, Peru." and dated
October 26, 2017 entitled "Sierra
Metals Significantly Increases Mineral Reserve Estimate for
Yauricocha Mine, Peru."
There are no material differences in the mineral reserves and
resources contained in the Report from those disclosed in the news
releases.
The Report included Reserves and Resources for the Yauricocha
Mine with:
- 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 reserve estimate.
- Total Measured and Indicated Contained Metal has
significantly increased by 72% silver, 128% copper, 74% zinc, 64%
lead and 61% gold.
- Total Inferred Contained Metal has significantly increased
by 55% silver, 59% copper, 105% zinc, 42% lead and 83% gold.
- 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 135% tonnage increase compared to the
previous Reserve Estimate. This new Reserve Estimate more than
doubles the previous mine life at current throughput levels when
compared to the previous reserve Estimate.
- Mineral Resources for Yauricocha are 13,206,000 tonnes
averaging 62.3 g/t silver, 1.5% copper, 0.9% lead, 2.8% zinc and
0.6 g/t gold representing a 68% tonnage increase from the previous
resource estimate.
- Total Inferred Mineral Resources for Yauricocha are
6,632,000 tonnes averaging 43.0 g/t silver, 1.2% copper, 0.5% lead,
2.2% zinc and 0.5 g/t gold representing a 77% tonnage increase from
the previous resource estimate.
- Increases to contained copper reflect the discovery and
delineation of new Cu-rich zones in Cuye, Mascota, and Esperanza as
well as a 14% increase in Copper Price compared to the previous
estimate.
- Metal pricing, metallurgical recoveries, costs, and other
modifying factors have been updated to reflect July 31, 2017 actuals and assumptions.
The Report dated November 10, 2017
with and effective date of July 31,
2017 is entitled "NI 43-101 Technical Report on
Resources and Reserves Yauricocha Mine Yauyos Province,
Peru", and was
prepared by independent SRK Consulting (U.S.), Inc.
Signed by Qualified Persons:
Matthew Hastings, MSc Geology, MAusIMM (CP), SRK
Principal Consultant (Resource Geology)
Shannon L. Rhéaume, BASc Mining and Mineral Processing, PEng, SRK
Senior Consultant (Mining Engineer)
Daniel H. Sepulveda, BSc, SME-RM,
SRK Associate Consultant (Metallurgy)
Jeff Osborn, BEng Mining, MMSAQP,
SRK Principal Consultant (Mining Engineer)
John Tinucci, PhD, PE, ISRM, SRK
President/Practice Leader/Principal Consultant (Geotechnical
Engineer)
Reviewed by:
Erik C.
Ronald, MEng, PG, MAusIMM, SRK Principal Consultant
(Resource Geology)
John Tinucci, PhD, PE, ISRM, SRK
President/Practice Leader/Principal Consultant (Geotechnical
Engineer)
Peter Clarke, BSc Mining, MBA, PEng, SRK Principal Consultant
(Mining Engineer)
Notes on Reserve Estimate
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 from
the reserve. 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.
Notes on the Resource Estimate
The procedures and methods supporting the mineral resource
estimation have been developed in conjunction with Minera Corona geological personnel. The
understanding of the geology and mineralization at Yauricocha is
based on a large volume of geologic data as well as a robust
history of production. SRK has reviewed the methods and procedures
for data collection methods supporting the estimate, and notes that
they are reasonable and consistent with industry best practice.
Geology models were generated by Minera
Corona geologists using Datamine Studio or Leapfrog Geo, and
locally vary significantly from those used in previous reports. A
combination of diamond drilling, channel sampling, and mine mapping
have been used to inform these models, and SRK is of the opinion
that they are an accurate interpretation of the mineralization at
Yauricocha. These models, presented as 3D wireframes, are used to
constrain block models, which are flagged with variables such as
bulk density, mine area, depletion, unit value, etc.
The resource estimations presented herein have been conducted or
reviewed by independent consultants using supporting data generated
by the site. SRK conducted independent estimations for the Mina
Central area, Esperanza, Mascota, and the majority of the Cuerpos
Pequenos Area. Cachi Cachi estimations and select Cuerpos Pequenos
estimations were conducted by Minera
Corona personnel and reviewed by SRK. Grade for the five
primary commodities (Ag, Au, Cu, Pb, Zn) is estimated into the
block models using both drilling and channel samples, applying
industry-standard estimation methodology. Interpolation methods
were generally via ordinary kriging or inverse distance depending
on quantities of data. Mineral resources estimated by the
independent consultants are categorized in a manner consistent with
industry best practice, and are reported above reasonable unit
value cut-offs based on actual marginal production costs to satisfy
public reporting criteria.
SRK is of the opinion that the resource estimations are suitable
for public reporting and are a fair representation of the in-situ
contained metal for the Yauricocha deposit.
The Report is available for review on both SEDAR (www.sedar.com)
and the Company's website (www.sierrametals.com).
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".
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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.