- Deepest holes ever drilled at Yauricocha mine of 1.7 kilometers
below the surface and 650 meters below current mine level. Results
potentially indicate the continuity of high grade mineralization,
well below current resource models
- Extension of Northern Cuye and Southern Esperanza zones
demonstrates the continued existence of mineralization at depth and
the potential to increase mineral resources in short-term
- Location of drill holes in between the important mineralized
zones of Esperanza and Cuye could potentially link both zones at
depth, which would correlate well with the Titan 24 geophysical
surveys completed on the area
- Dissemination of copper mineralization in the intrusive rock
opens a new geological interpretation for the
Yauricocha mining district at depth
TORONTO, June 5, 2018 /CNW/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") today announced drilling results
demonstrating the potential to increase mineral resources between
Esperanza Zone and Cuye Zone,
located within the Central Mine at Yauricocha.
Two holes executed from the 1070 level of the Yauricocha Mine
between the Esperanza and Cuye zones intercepted polymetallic,
sulphide mineralization containing silver, zinc, copper, and lead.
These results demonstrate the potential for further mineralization
within the reported area, and more importantly, indicate the
continued existence of mineralization at depth. These results
come as part of an ongoing brownfield drilling program that is
testing priority targets at the Yauricocha Mine, located 150
kilometers east-southeast of Lima in the Yauricocha Mining District
(Cordillera Occidental), Peru.
Igor Gonzales, President and CEO
of Sierra Metals stated: "Today's results represent the
existence of polymetallic mineralization at the northern extension
of Cuye, and south extension of Esperanza". He continued,
"the Central Mine area contains several high-grade mineralized
areas opening the possibility for further discoveries of additional
orebodies along the Yauricocha Fault. The Company is committed to
brownfield exploration with an aggressive program planned in 2018
on targets within close proximity to our existing operations.
Results such as the ones released today continue to demonstrate
that these investments are paying off for us demonstrating the
potential for mineral resource and tonnage growth."
Alonso Lujan, Vice President,
Exploration of Sierra Metals commented: "The results reported
demonstrate mineralized sulphide sectors containing silver, copper,
lead and zinc as shown in table 1 below. Furthermore, the
drilling indicates that the intersection of the orebody is 650
meters below the 1070 mine level, demonstrating yet another
potential area to increase resources in the short term." He
added, "The existence of disseminated copper mineralization in
the intrusive rock formation opens a new exploration horizon
previously unknown and a new interpretation of the sources of
copper mineralization in the Yauricocha district."
A map of the Yauricocha Mine 1070 level (Central Mine) is shown,
in Figure 2. Figure 3 shows a Longitudinal Section of the
Yauricocha Mine highlighting Cross Section Hole ESP-CUY
17-18-01.
Table 1
Hole
No
|
From
|
To
|
Width
(m)
|
Ag
(g/t)
|
Pb
(%)
|
Cu
(%)
|
Zn
(%)
|
Au
g/t
|
Type
|
ESP
17-16-08
|
69.3
|
72.0
|
2.7
|
41
|
0.68
|
0.29
|
5.23
|
0.05
|
Poly
|
|
110.5
|
112.8
|
2.3
|
5
|
0.02
|
0.05
|
3.05
|
0.04
|
Poly
|
|
155.1
|
158.0
|
2.9
|
120
|
0.85
|
0.01
|
7.78
|
0.34
|
Poly
|
|
158.0
|
168.1
|
10.1
|
17
|
0.09
|
0.05
|
0.45
|
0.24
|
Poly
|
ESP
17-18-01
|
770.3
|
773.5
|
3.2
|
113
|
1.18
|
0.70
|
1.51
|
0.16
|
Intrusive
|
Quality Control
All samples were dried, crushed and pulverized by the Chumpe Lab
at site, pulp samples were shipped by ALS Peru S.A. Lab Chemex) to
their laboratory in Lima,
Peru.
The quality assurance-quality control (QA-QC) program employed
by Sierra Metals has been described in detail in the NI-43-101
report for Yauricocha dated December 29,
2017, prepared by SRK Consulting in Denver, which is available for review on
Sedar. Standards and blanks are inserted into the sample stream and
duplicate samples are sent to the ALS Peru S.A. lab (Chemex) in
Lima as per internal quality
control procedures.
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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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.
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SOURCE Sierra Metals Inc.