- Current Drilling program at the Cuye Zone reflects high grade
Polymetallic and Copper mineralization which continues and remains
open to depth
- 14 holes have been completed to date from the 1070 level in the
Cuye area
- Copper sulphide mineralized areas have been defined containing
intersections of more than 99 meters which remain open at depth
- Mineralized areas noted in core continue to identify large
dioritic intrusive inclusions which previously were never studied
and are the widest intercepts of copper mineralization in Sierra
Metals history. This suggests a new geological interpretation
concept in the intrusive rocks with potentially larger
dimensions
- Drill hole 13 intercepted over 120 meters of continued high
grade polymetallic and copper mineralization and included a
21-meter intercept of polymetallic mineralization followed by a
99-meter copper sulphide intercept
- Drilling program also intercepted further low-grade
disseminated copper mineralization in the intrusive formation,
which continues to demonstrate a new exploration concept not
explored or known before at Yauricocha
Drill hole highlights include:
Hole
No.
|
From
m
|
To
m
|
Width
|
Ag
g/t
|
Pb
%
|
Cu
%
|
Zn
%
|
Au
g/t
|
CUY
17-17-12
|
286.2
|
303.0
|
over 17
m
|
13
|
0.01
|
1.58
|
0.89
|
0.62
|
CUY
17-17-12
|
303.0
|
334.0
|
over 31
m
|
2.4
|
0.01
|
0.33
|
0.00
|
0.00
|
CUY
17-17-13
|
316.3
|
337.3
|
over 21
m
|
91
|
1.18
|
1.58
|
6.33
|
0.30
|
CUY
17-17-13
|
337.3
|
436.3
|
over 99
m
|
12
|
0.01
|
1.48
|
0.05
|
0.70
|
CUY
17-17-14
|
209.3
|
253.7
|
over 44
m
|
14
|
0.13
|
1.04
|
0.33
|
0.50
|
TORONTO, Feb. 7, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") today announced drilling results
demonstrating new limestone replacement mineralization at the Cuye
Zone extension located within the Central Mine at Yauricocha.
To date, 14 holes have been executed from the 1070 level of the
Yauricocha Mine in the Cuye area. These holes have intercepted
polymetallic sulphide mineralization containing high-grade silver,
zinc, copper and lead zones over significant widths. These results
demonstrate the potential for high-grade mineralization within the
reported area and more importantly indicate the continued existence
of extensive mineralization at depth. These results come as
part of an ongoing brownfield drilling program testing priority
targets at the Yauricocha Mine, which is 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 high-grade polymetallic mineralization at the Northern
extension of Cuye, and continue to build on previous releases from
the Cuye zone suggesting the possibility of even further
mineralization at depth specifically from the copper sulphide
orebodies which contain significant widths as shown in figure
5." He continued, "The Central Mine area contains several
high-grade mineralized areas opening the possibility to further
discoveries of additional orebodies along the Yauricocha fault. The
Company made a strong commitment to brownfield exploration with
several significant new discoveries in 2017 and remains committed
to brownfield exploration with an aggressive plan 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 with the
potential to further grow our mineral resources and add high-value
tonnage."
Alonso Lujan, Vice President,
Exploration of Sierra Metals commented: "The results reported
from Cuye demonstrate high-grade, sulphide mineralized sectors
containing primarily silver, copper, lead and zinc as shown in
table 1 below. The potential still remains for further extensions
within the Cuye zone, which remains open at depth. The exploration
completed at depth demonstrates considerable widths and the
high-grade nature of these orebodies." He added, "It is
important to mention that the current drill holes extended into the
intrusive formation which was assayed for the first time and led to
the identification of low-grade disseminated mineralization on the
intrusive. Figures 5, and 6 demonstrate the intercepts where we
intercepted 21 meters with 1.58% Cu, 99 meters with 1.48% Cu and 44
meters with 1.04% Cu. Prior exploration programs at Yauricocha
have not typically assayed the intrusive rocks, as the
mineralization was considered to occur in the contact of the
intrusive and the volcanics. 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."
All reported intercepts are core length as further drilling is
required to determine true thicknesses.
A map of the Yauricocha Mine 1220 level (Central Mine) is shown
in Figure 2 and 1370 level (Central Mine) is Figure 3 showing the
location of the areas explored. Figures 4, 5 and 6 show the cross
sections of the drill holes.
Table 1
Hole
N°
|
From
|
To
|
Width
(m)
|
Ag
(g/t)
|
Pb
(%)
|
Cu
(%)
|
Zn
(%)
|
Au
(g/t)
|
Description
|
CUY
17-17-12
|
251.50
|
255.0
|
3.50
|
60.17
|
0.97
|
0.37
|
2.69
|
0.06
|
Polymetallic
Sulphide
|
286.15
|
303.0
|
16.85
|
12.60
|
0.01
|
1.58
|
0.89
|
0.62
|
Copper
Sulphide
|
303.00
|
334.0
|
31.00
|
2.38
|
0.01
|
0.31
|
0.02
|
0.04
|
Copper
Sulphide
|
CUY
17-17-13
|
227.00
|
235.15
|
8.15
|
4.25
|
0.26
|
0.00
|
0.93
|
0.02
|
Polymetallic
Sulphide
|
306.30
|
309.30
|
3.00
|
78.13
|
0.22
|
1.32
|
0.23
|
0.31
|
Copper
Sulphide
|
316.30
|
337.25
|
20.95
|
90.89
|
1.18
|
1.58
|
6.33
|
0.26
|
Polymetallic
Sulphide
|
337.25
|
435.90
|
98.65
|
12.00
|
0.01
|
1.49
|
0.05
|
0.72
|
Copper
Sulphide
|
|
|
|
|
|
|
|
|
|
CUY
17-17-14
|
115.80
|
117.30
|
1.50
|
33.20
|
0.41
|
0.20
|
11.88
|
0.28
|
Polymetallic
Sulphide
|
209.30
|
253.70
|
44.40
|
14.00
|
0.13
|
1.04
|
0.33
|
0.54
|
Copper
Sulphide
|
|
|
|
|
|
|
|
|
|
According to the intersections and Lab results in the
exploration carried out within the Cuye area an orebody with widths
greater than 40 meters is interpreted (see figure 1. Which depicts
Copper Sulphide in green and Polymetallic Sulphide in purple). This
area remains open to depth and the same pattern is repeated in the
Mascota and Esperanza areas, these orebodies are located North of
the Cuye area. The circle indicates a potential area to
investigate the continuity of Cuye, Mascota and Esperanza as a
single orebody.
Quality Control
All samples were dried, crushed and pulverized by the Chumpe Lab
at the 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 is 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.