Development and drilling demonstrates
potential for an additional amount of high volume, bulk tonnage of
readily available silver stockwork not incorporated in the previous
resource update, allowing for an innovative and highly
productive operational design mining plan.
TORONTO, June 29, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE American: SMTS) ("Sierra
Metals" or "the Company") today announced that the development
program at the Cusi Mine has confirmed a wide, high-grade silver
stockwork zone located within the Santa
Rosa de Lima ("SRL") vein complex. The SRL Vein is a
regional structure which extends on the Company's property for a
length of 12 kilometers. This stockwork zone is open at depth, and
in width, current known dimensions are noted below. The current
development program at Cusi is focused on the inclusion of the
mineral resources from the SRL vein into the current mine plan.
This mineralized zone extends to over 100 meters in length, 40
meters in width and 70 meters in height (see Fig 9.- Schematic View
of the Sublevel Caving). The Cusi Mine lies within the Sierra Madre
Occidental Mountain Range and located within the municipality of
Cusihuiriachi in the central portion of Chihuahua State,
Mexico.
Highlights of the newly defined area include the
following:
- Size of Area: 100 meters long x 40 meters wide x 70 meters
high and open to depth and width. Note that this area is within the
SRL complex and the SRL veins are open on strike. The typical
mineralized zone density is 2.7 tonnes/cubic meter.
- Size of area and ground conditions lend stockwork zone to be
favourable for low-cost bulk mining methods.
- Mine production plan to utilize the same equipment as the
Cusi mine is using for sub level long hole stoping including long
hold drilling equipment and remote-control equipment.
- Ground conditions review by Geotech staff identified ground
conditions which only require conventional ground support
techniques, screen and bolting.
- Development program to date has resulted in following mill
feed grade:
|
|
Tonnes
|
Ag
(g/t)
|
Au
(g/t)
|
Pb
(%)
|
Zn
(%)
|
|
|
4,437
|
205
|
0.07
|
0.12
|
0.15
|
- Mine production will incorporate fill into mined out areas,
and the andesite cap will be allowed to cave, with fill placement
coming on top of the caved area.
- All development is supplying mill feed. A definition
drilling program is currently in progress, and moving forward, it
will provide information necessary for resource category
re-classification from current potential status.
- All development production was processed at the Malpaso plant, and assays obtained from
Malpaso laboratory.
Alonso Lujan, Vice President
Exploration at Sierra Metals commented: "Today's press release
demonstrates the existence of increased high-grade silver
mineralization at Cusi with the potential for further resource
development, as this area remains open at depth and along strike.
The increased potential resources defined today will allow the
Company to utilize the highly productive exploitation method of
sublevel caving and help achieve its economic objectives at the
Cusi Mine. This will be made possible given the morphological
characteristics of the mineralized area, as well as the quality of
the rock mass (RMR>40). The mine design will utilize sublevel
caving which is highly productive, as it substantially reduces the
needs for special rock support techniques, such as steel sets and
allows for greater flexibility in the usage of current existing
mining equipment."
He continued, "based on today's results management believes
there is further potential to expand the SRL area but also the
potential to expand resources in other areas such as the San Rafael
Vein and the San Nicolas Vein. Management is very optimistic about
the increased potential at the Cusi Mine and looks forward to
further exploration there."
Igor Gonzales, President, and CEO
of Sierra Metals stated: "These results are exceptional and are
key to increasing development of the Cusi operations. With the
information obtained from these recent results, management believes
further development will benefit from our better understanding of
the ore body at the Cusi Mine." He continued, "the
significance of this discovery is that it occurred as a result of
mine development work at one of the first areas to be mined at SRL
structure. Our plans were to mine the typical four-meter-wide
veins at SRL and we encountered a 40-meter-wide stockwork
associated with that zone. Our development plan is now
incorporating the much wider dimensions of this zone, which has
positive implications on volume and economics beyond what was
previously anticipated. Mine feed from this zone should increase in
the next three months and provide stability of feed to our ore
processing facilities at Mal Paso. Overall, I am very pleased with
these results as they increase the value of the asset and are
important to our growth strategy."
Work programs are now underway developing the primary level in
this zone. With the draw points in place, work can commence on
definition drilling at the zone to develop a resource. With
our mining plan, the resource can be turned into a reserve in this
area. As noted, all drift development provides mill feed for future
metallurgical studies. This area along with SRL sublevel long hole
stoping will provide long-term consistent mill feed and aid in the
production ramp up for the Cusi mine.
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 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.