TORONTO, Feb. 12, 2018 /CNW/ - 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 Cusi Mine (the
"Report"). The Report supports the disclosure made by the
Company in its news releases dated December
29, 2017 entitled "Sierra Metals Significantly Increases
Mineral Resource Estimate for Cusi Mine, Mexico." There are no material differences in
the mineral resources contained in the Report from those disclosed
in the December 29, 2017 news
release.
The Report included mineral resources for the Cusi Mine
with:
- 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 AgEq
- 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
The Report dated February 9, 2018
with an effective date of August 31,
2017 is entitled "NI 43-101 Technical Report on
Resources Cusi Mine Mexico", and was prepared
by independent SRK Consulting (U.S.), Inc.
Signed by Qualified Persons:
Signed by Qualified
Persons:
Giovanny J. Ortiz, BSc Geology,
FAusIMM
Fernando Rodrigues, BS Mining, MBA,
MMSAQP
Daniel Sepulveda, BSc Extractive Metallurgy Engineer, SME-RM
Mark Willow, MSc, CEM, SME-RM
Reviewed by:
Matthew
Hastings, MSc Geology, MAusIMM (CP)
Notes on the Resource Estimate
The procedures and methods supporting the mineral resource
estimation have been developed in conjunction with Dia Bras geological personnel. The understanding
of the geology and mineralization at Cusi 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 Dis Bras geologists using 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
Cusi. These models, presented as 3D wireframes, are used to
constrain block models, which are flagged with variables such as
bulk density, mine area, depletion, 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 Cusi
Mine. Grade for the four primary commodities (Ag, Au, Pb, Zn) is
estimated into the block models using both drilling and channel
samples, applying industry-standard estimation methodology.
Interpolation methods were generally via inverse distance. 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 Cusi deposit.
The information in this announcement regarding the Resource
Estimate included in the Report is qualified in its entirety by
reference to the Report. The Report is available for review on
SEDAR (www.sedar.com), EDGAR (www.SEC.gov) 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 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.