Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN:
SMTS) (“Sierra Metals” or “the Company”) today announces that its
Board of Directors has approved the investment by the Company of
US$28 million for the construction of a magnetite processing plant
including an initial expenditure of $5.2 million for early
procurement and contracting on the project. The plant is expected
to produce approximately 500,000 tonnes per year of 62% iron ore
fines concentrate at the Company’s Bolivar Mine located in the
Chihuahua State, Mexico.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210421005964/en/
Truck being loaded at Bolivar Rom Pad
headed to Concentrate Plant (Photo: Business Wire)
Engineering and test work of the final process is currently
underway, and construction of the processing plant is expected to
commence this June and will take approximately six months to
complete. The Company expects to concentrate magnetite as an
additional process to the existing copper concentrator plant
through a series of magnetic drums and regrinding equipment, at an
added marginal cost for the process.
The magnetite project was previously mentioned in the Bolivar
Mine’s Preliminary Economic Assessment (the “Report”) which was
filed on SEDAR (sedar.com) and EDGAR (SEC.gov) on November 5, 2020.
In the Report the Company mentioned that the economic analysis did
not include the potential sale of magnetite but that the Company
was studying this potential development and believed that doing so
could result in the following outcomes:
1. Increased sales revenue
2. Reduced future closure costs;
and
3. Reduced tailings for deposition, and
its related costs.
The project has now been approved and will be included in an
updated PEA for the Bolivar Mine which will be filed within 45
days.
Luis Marchese, CEO of Sierra Metals commented: “We are very
excited about initiating this new process the potential for
additional revenue for the Company. The iron ore market is
presenting value enhancing opportunities for Sierra Metals and the
Company is taking decisive action to extract value from its
existing iron ore-copper mineral resources. As well, this process
is expected to have additional benefits including reduced haulage
costs of our copper concentrate by rail and enhance the Bolivar
mine’s economics due to this new revenue stream. Overall, we
believe that this is a great value-enhancing initiative for the
Company and its shareholders.”
Quality Control
Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice
President of Corporate Planning, is a Qualified Person under
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of
Metallurgy and Projects, is a Qualified Person under National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
About Sierra Metals
Sierra Metals Inc. is a diversified Canadian mining company
focused on the production and development of precious and base
metals from its polymetallic Yauricocha Mine in Peru and 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".
For further information regarding Sierra Metals, please visit
www.sierrametals.com
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals
| Facebook: SierraMetalsInc | LinkedIn: Sierra Metals
Inc | Instagram: sierrametals
Disclaimer Regarding Risks and Forward-Looking
Statements
The decision to construct the processing plant has not been made
based on a feasibility study and accordingly, involves increased
uncertainty and risks.
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of Canadian and
U.S. securities laws (collectively, "forward-looking information").
Forward-looking information includes, but is not limited to,
statements with respect to the timing of construction of the
processing plant, its capacity and production, construction costs
and expected iron content of the concentrate. 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, the risks described under the heading "Risk
Factors" in the Company's annual information form dated March 30,
2021 for its fiscal year ended December 31, 2020 and other risks
identified in the Company's filings with Canadian securities
regulators and the United States Securities and Exchange
Commission, which filings are available at www.sedar.com and
www.sec.gov, respectively.
The risk factors referred to above are not an exhaustive list 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 such 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210421005964/en/
Mike McAllister Vice President, Investor Relations Sierra
Metals Inc. (416) 366 7777 Email: info@sierrametals.com
Luis Marchese CEO Sierra Metals Inc. (416) 366 7777
Sierra Metals (AMEX:SMTS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sierra Metals (AMEX:SMTS)
Historical Stock Chart
From Jul 2023 to Jul 2024