- Total Measured and Indicated Resources increased 129% to
4,557,000 tonnes from 1,990,000 tonnes previously reported; and
Total Inferred Resources increased 36% to 1,633,000 tonnes from
1,200,000 tonnes previously reported
- Total Measured Mineral Resources for Cusi are 362,000 tonnes
averaging 225g/t silver, 0.55% lead, 0.68% zinc, 0.13 g/t gold for
a total 268 g/t Ag Eq
- Total Indicated Mineral Resources for Cusi are 4,195,000 tonnes
averaging 217 g/t silver, 0.64% lead, 0.66% zinc, 0.21 g/t gold and
267 g/t AgEq
- Total Inferred Mineral Resources for Cusi are 1,633,000 tonnes
averaging 158 g/t silver, 0.54% lead, 0.84% zinc, 0.16 g/t gold and
207 g/t AgEq
- The updated Resource Estimate varies from the previous 2017
Technical Report due to a variety of factors, including the use of
silver equivalent cut-off grade and depletion by production since
the previous Report was completed
- The updated Resource Estimate has incorporated new exploration
drilling, sampling, and underground mapping information into the
geologic interpretation and grade estimations providing more
refined resource models in the areas of San Nicolas and Promontorio
TORONTO, Dec. 29, 2017 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") has updated its Mineral Resource Estimate
at the Company's Cusi Mine, located in Chihuahua State,
Mexico.
The updated Mineral Resource Estimate disclosed herein is the
result of drilling programs completed between January 2014 and August
2017. Subsequent to the cut-off date of August 31, 2017 the updated Resource statement
includes additional 48,684 metre drilling program that was focused
on the high-grade Santa Rosa de
Lima zone and Promontorio.
The Company believes that the Santa
Rosa de Lima zone demonstrates strong potential for further
structural extensions of high-grade zones at the Company's Cusi
Mine. Conversion of some of the higher grade to measured and
indicated resources has been the priority for the Cusi exploration
efforts.
A Technical Report prepared by SRK Consulting (U.S.) Inc. in
accordance with NI 43-101 standards of disclosure has been
completed and will be filed on SEDAR within 45 days of this news
release.
"Sierra's management team is extremely pleased with the
significant increases realized in the measured and indicated
resource, and the increase in inferred resources reported in this
resource estimate for the Cusi Mine" stated Igor Gonzales, President and CEO of Sierra
Metals Inc. "When compared to the previous estimate from
January 2017, the Company saw a 129%
increase to the measured and indicated resource tonnage and a 36%
increase in the inferred resource tonnage. These increases
represent a significant amount of additional drilling and mine
exploration development work completed at the Cusi Mine which
included the Santa Rosa de Lima Zone which has strong potential for
further structural extensions of high-grade zones. Furthermore, the
increased resource tonnage volume is a result of wider,
higher-grade silver zones which are the foundation for the
Company's new operating plan which should significantly improve the
cashflow prospects for Cusi in 2018 and beyond."
He continued, "The Company remains committed to resource
growth through brownfield exploration and this resource estimate
confirms the presence of additional high-quality tonnage at the
Cusi Mine allowing the Company to study the potential for
production increases going forward. We remain committed to
brownfield exploration programs at the Cusi mine over the next year
with the aim of further mineral resource expansions."
Mineral Resource Estimate
The update of the Mineral Resource Estimations have been
conducted by Giovanny Ortiz of SRK
Consulting (U.S.) Inc., a Qualified Person under National
Instrument 43-101 – Standards of Disclosure for Mineral Projects,
using Maptek Vulcan™ and Leapfrog Geo™ software.
This release features mineral resources reported from models
reviewed and estimated by SRK using criteria determined by the
Company and SRK to be reasonable for reporting of these
resources.
SRK has worked with the Company's personnel to review the
geology models, and independently estimated and reported the
mineral resources for Cusi. Geology models were developed
internally by the Company's geologists and were reviewed by SRK. In
all, there are thirty-eight individual mineralized bodies
identified through drilling and mine development. These were used
as hard boundaries for the purposes of the estimation. The resource
is supported by a database featuring over 233,750m of drilling and over 23,800m of channel sampling in mine development.
The block models were created by SRK, and have been estimated using
inverse distance squared methods. SRK has validated the estimation
for each model using a variety of methods considered to be industry
standard. These include a visual comparison of the blocks versus
the composites, an assessment of the quality of the estimate, and
comparative statistics of block estimates vs. composites. The
models have been depleted for previous production and reported
within the boundaries of Sierra Metal's mineral titles. The mineral
resources have been estimated and reported in conformity with
generally accepted CIM "Estimation of Mineral Resource and Mineral
Reserves Best Practices" guidelines.
The August 31, 2017, consolidated
mineral resource statement for the Cusi Mine area is presented in
Table 1.
Table 1: Consolidated Cusi Mineral Resource Estimate as at
August 31, 2017 – SRK Consulting
(U.S.), Inc.
Category
|
Tonnes
(000's)
|
Ag
(g/t)
|
Au
(g/t)
|
Pb
(%)
|
Zn
(%)
|
AgEq
(g/t)
|
Ag
Moz
|
Au
Koz
|
Pb
Mlb
|
Zn
Mlb
|
AgEq
Moz
|
Measured
|
362
|
225
|
0.13
|
0.55
|
0.68
|
268
|
2.6
|
1.5
|
4.4
|
5.4
|
3.1
|
Category
|
Tonnes
(000's)
|
Ag
(g/t)
|
Au
(g/t)
|
Pb
(%)
|
Zn
(%)
|
AgEq
(g/t)
|
Ag
Moz
|
Au
Koz
|
Pb
Mlb
|
Zn
Mlb
|
AgEq
Moz
|
Indicated
|
4,195
|
217
|
0.21
|
0.64
|
0.66
|
267
|
29.2
|
28.7
|
59.0
|
60.8
|
36.0
|
Category
|
Tonnes
(000's)
|
Ag
(g/t)
|
Au
(g/t)
|
Pb
(%)
|
Zn
(%)
|
AgEq
(g/t)
|
Ag
Moz
|
Au
Koz
|
Pb
Mlb
|
Zn
Mlb
|
AgEq
Moz
|
Inferred
|
1,633
|
158
|
0.16
|
0.54
|
0.84
|
207
|
8.3
|
8.3
|
19.6
|
30.4
|
10.87
|
(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, lead and zinc assays were capped where
appropriate.
|
(2)
|
Mineral resources are
reported at a single cut-off grade of 105 g/t AgEq based on metal
price assumptions*, metallurgical recovery assumptions, mining
costs (US$29.41/t), processing costs (US$18.3/t), and general and
administrative costs (US$3.74/t).
|
*
|
Metal price
assumptions considered for the calculation of the cut-off grade and
equivalency are: Silver (Ag): US$/oz 18.30, Lead (US$/LB 0.93),
Zinc (US$/lb 1.15) and Gold (US$/oz 1,283.00).
The resources were estimated by SRK. Giovanny Ortiz, B.Sc.,
PGeo, FAusIMM #304612 of SRK, a Qualified Person, performed the
resource calculations for the Cusi Mine.
|
**
|
Based on the
historical production information of Cusi, the metallurgical
recovery assumptions are: 84% Ag, 57% Au, 86% Pb, 51%
Zn.
|
Quality Control
All technical data contained in 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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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 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, 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 were
calculated in accordance with the Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system. These standards differ significantly from
the requirements of the U.S. Securities and Exchange Commission
("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.