Sierra Metals announces record 2012 annual production results and
issues 2013 production guidance
TORONTO,
Jan. 21, 2013 /CNW/ - Sierra
Metals Inc. (TSX-V:SMT) (BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce its 2012 annual and fourth
quarter production results and to issue production guidance for
2013.
Press Release Highlights:
- Total of 1,269,849 tonnes processed in 2012 compared to 657,086
tonnes in 2011. An increase of 93% year-over-year. In the fourth
quarter of 2012 a total of 343,076 tonnes was processed compared to
257,256 tonnes in the same period of 2011. An increase of 33%
year-over-year.
- Total silver ("Ag") production of 2,620,735 ounces ("oz") in
2012 compared to 1,517,079 oz in 2011. An increase of 73%
year-over-year. In the fourth quarter of 2012 a total of 683,937 oz
of silver was produced compared to 605,121 oz of silver in the same
period of 2011. An increase of 13% year-over-year.
- Total copper ("Cu") production of 15.9 million pounds ("lb") in
2012 compared to 10.5 million lb in 2011. An increase of 51%
year-over-year. In the fourth quarter of 2012 a total of 4.3
million lb of copper was produced compared to 3.5 million lb of
copper in the same period of 2011. An increase of 25%
year-over-year.
- Total lead ("Pb") production of 35.7 million lb in 2012
compared to 19.6 million lb in 2011. An increase of 82%
year-over-year. In the fourth quarter of 2012 a total of 8.7
million lb of lead was produced compared to 8.0 million lb of lead
in the same period of 2011. An increase of 9% year-over-year.
- Total zinc ("Zn") production of 59.0 million lb in 2012
compared to 36.3 million lb in 2011. An increase of 62%
year-over-year. In the fourth quarter of 2012 a total of 14.7
million lb of zinc was produced compared to 10.7 million lb of zinc
in the same period of 2011. An increase of 38% year-over-year.
- Total gold ("Au") production at the Yauricocha Mine was 10,491
oz in 2012. During the fourth quarter of 2012 a total of 2,181 oz
of gold was produced.
- Production Guidance for 2013
-
- Silver: 2,582,000 oz - 2,922,000 oz
- Copper: 20.5 million lb - 23.1 million lb
- Lead: 42.5 million lb - 48.1 million lb
- Zinc: 53.7 million lb - 60.8 million lb
- Gold: 6,000 oz - 7,000 oz
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Daniel Tellechea,
President and CEO of Sierra Metals, commented: "Sierra
Metals achieved another record breaking year of production in 2012.
Increase in production was the result of Management's efforts to
consolidate operations in Peru and
Mexico and the realization of
subsequent operating efficiencies. The Company is pleased to issue
its first production guidance in 2013 as it strives to become a
premier precious and base metal producer in Latin America."
Mine Operations
The Company achieved record-breaking production
results for the second consecutive year as 2012 marked the first
full year of production at the Yauricocha Mine and commercial
production at the Bolivar Mine. The Company achieved a total of
1,269,849 tonnes of ore processed (compared to 657,086 tonnes in
2011) from all operations, representing a 33% increase
year-over-year. A summarized table of consolidated production
results is presented below.
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Consolidated Production |
3 Months Ended |
Year Ended |
| Dec 31, 2012 |
Dec 31, 2011 |
% Var. |
Dec 31, 2012 |
Dec 31,
20111 |
% Var. |
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| Silver (oz) |
683,937 |
605,121 |
13% |
2,620,735 |
1,517,079 |
73% |
| Copper (000 lb) |
4,334 |
3,458 |
25% |
15,851 |
10,496 |
51% |
| Lead (000 lb) |
8,696 |
7,961 |
9% |
35,720 |
19,636 |
82% |
| Zinc (000 lb) |
14,706 |
10,666 |
38% |
59,012 |
36,341 |
62% |
| Gold (oz) |
2,181 |
N.A. |
N.R. |
10,491 |
N.A. |
N.R. |
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1 Includes Yauricocha Mine production only for the
ownership period of Sociedad Minera Corona S.A.(Corona) from
May 26, 2011 to Dec 31, 2011.
Yauricocha Mine, Peru
The Yauricocha Mine in Peru continued to be the Company's largest
producing mine with a total of 872,869 tonnes processed in 2012
(compared to 488,417 tonnes in 2011). In the fourth quarter of 2012
a total of 222,821 tonnes was processed (compared to 199,991 tonnes
in the same period of 2011). Mineralization at the Yauricocha Mine
is hosted in three different zones including the Copper, Lead-Oxide
("Oxides") and Polymetallic ore bodies.
During 2012, aggregate production of these ore
bodies was 2,143,971 oz of Ag, 9.1 million lb of Cu, 35.2 million
lb of Pb, 49.9 million lb of Zn and 10,491 oz of Au. During the
fourth quarter of 2012 aggregate production from these ore bodies
was 547,114 oz Ag, 2.2 million lb Cu, 8.6 million lb Pb, 13.8
million lb of Zn and 2,181 oz Au.
A summary of production from the Yauricocha Mine
for the year-end and the fourth quarter of 2012 have been provided
below.
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Yauricocha Production1 |
3 Months Ended |
Year ended |
| Dec 31, 2012 |
Dec 31, 2011 |
% Var. |
Dec 31, 2012 |
Dec 31, 20112 |
% Var. |
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| Silver (oz) |
547,114 |
530,449 |
3% |
2,143,971 |
1,232,455 |
74% |
| Copper (000 lb) |
2,172 |
2,525 |
-14% |
9,061 |
7,381 |
23% |
| Lead (000 lb) |
8,571 |
7,871 |
9% |
35,200 |
19,230 |
83% |
| Zinc (000 lb) |
13,803 |
8,579 |
61% |
49,888 |
21,927 |
128% |
| Gold (oz) |
2,181 |
N.A. |
N.R. |
10,491 |
N.A. |
N.R. |
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1 For a detailed summary of production for the
Yauricocha Mine please click here.
2 Includes Yauricocha Mine production only for the
ownership period of Corona from May 26,
2011 to Dec 31, 2011.
Bolivar Mine, Mexico
Since the announcement of commercial production
on November 29, 2011, the new
Piedras Verdes mill has continued
to increase the production profile of the Bolivar Mine. During
2012, total ore processed at the Bolivar Mine increased 129% with
312,952 tonnes processed compared to 136,715 tonnes in 2011. This
resulted in 2012 production of copper increasing 118% with a total
of 6.8 million lb produced compared to 3.1 million lb in 2011.
Additionally, silver production increased by 53% in 2012 to 191,285
oz compared to 125,037 oz in 2011. This increase in production was
the result of increased throughput even though silver grades
decreased 35% to 24.58 g/t Ag in 2012 compared to 37.74 g/t Ag in
2011. Despite this substantial increase in throughput during
2012, zinc production decreased 37% to 9.1 million lb compared to
14.4 million lb in 2011. The decrease in zinc production resulted
from a lower head-grade of 1.81% in 2012 compared to 5.57% in
2011.
During the fourth quarter of 2012 total ore
processed increased 93% with a total of 93,704 tonnes processed (an
average of 31,234 tonnes per month) compared to 48,461 tonnes
processed in the same period of 2011. This resulted in copper
production increasing 132% to 2.2 million lb in the fourth quarter
compared to 0.9 million in the same period 2011. Additionally,
silver production increased 96% with 55,143 oz produced compared to
28,184 oz in the same period of 2011. Despite the substantial
increase in throughput during the fourth quarter, zinc production
declined 57% to 0.9 million lb compared to 2.1 million lb in the
same period of 2011. This decrease was the result of a 64% decline
in zinc grades to 0.94% in the fourth quarter of 2012 compared to
2.63% in the same period of 2011.
A summary of production from the Bolivar Mine
for the year-end and the fourth quarter of 2012 have been provided
below.
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Bolivar Production1 |
3 Months Ended |
Year ended |
| Dec 31, 2012 |
Dec 31, 2011 |
% Var. |
Dec 31, 2012 |
Dec 31, 2011 |
% Var. |
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| Copper (000 lb) |
2,163 |
933 |
132% |
6,790 |
3,115 |
118% |
| Zinc (000 lb) |
904 |
2,087 |
-57% |
9,125 |
14,414 |
-37% |
| Silver (oz) |
55,143 |
28,184 |
96% |
191,285 |
125,037 |
53% |
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1 For a detailed summary of production for the
Bolivar Mine please click here.
Cusi, Mexico
Total production at Cusi increased 163% in 2012
with 84,027 tonnes processed compared to 31,954 tonnes in 2011. The
higher tonnage is explained by the additional processing of 29,903
tonnes of tailings at the Malpaso
mill while Cusi's material accounted for 54,125 tonnes. In this
context, the combined effect of historic tailings and Cusi's
material during 2012 drove silver and lead grades down to 157 g/t
and 0.50%, compared to 185 g/t and 0.90% in 2011, respectively.
Total production at Cusi increased 202% in the
fourth quarter of 2012 with 26,550 tonnes processed compared to
8,804 tonnes in the same period in 2011. The higher tonnage is
explained by the additional processing of 11,053 tonnes of historic
tailings at the Mal Paso mill while Cusi's material accounted for
15,496 tonnes. In this context, the combined effect of historic
tailings and Cusi's material during the fourth quarter of 2012
drove silver and lead grades down to 154 g/t and 0.46%, compared to
192 g/t and 0.67% in the same period of 2011, respectively.
A summary of production from the Cusi operation
for year-end and the fourth quarter of 2012 have been provided
below.
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| Cusi Production1 |
3 Months Ended |
Year ended |
| Dec 31, 2012 |
Dec 31, 2011 |
% Var. |
Dec 31, 2012 |
Dec 31, 2011 |
% Var. |
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| Silver (oz) |
81,680 |
46,488 |
76% |
285,479 |
159,587 |
79% |
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Flotation |
81,680 |
39,323 |
108% |
281,296 |
131,328 |
114% |
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Lixiviation |
0 |
7,166 |
-100% |
4,183 |
28,259 |
-85% |
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| Lead (000 lb) |
126 |
90 |
40% |
520 |
406 |
28% |
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1 For a detailed summary of production for the
Cusi Project please click here.
2013 Production Guidance
Sierra Metals is pleased to issue its production
consolidated guidance for 2013. The Company's production estimates
for 2013 have been provided below.
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| Consolidated |
Low |
High |
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| Silver (oz) |
2,582,000 |
2,922,000 |
| Copper (000 lb) |
20,400 |
23,100 |
| Zinc (000 lb) |
53,700 |
60,700 |
| Lead (000 lb) |
42,400 |
48,000 |
| Gold (oz) |
6,000 |
7,000 |
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Quality Assurance
The technical content of this news release has
been approved by Thomas L. Robyn,
Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101 and
Senior Vice President, Exploration, for Sierra Metals, Inc.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company
focused on precious and base metals from its Yauricocha mine in
Peru and its Bolivar mine in
Mexico. The Company is also
advancing its Cusi silver project in Mexico from advanced development into
commercial production. In addition, Sierra Metals is exploring
several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo
(polymetallic) at the Yauricocha Property in the province of
Yauyos. Projects in Mexico include
Bacerac (silver) in the
state of Sonora, La Verde (gold) at the Batopilas Property in
the state of Chihuahua, and
Las Coloradas (silver) at the
Melchor Ocampo Property in the
state of Zacatecas.
The Company's shares trade on the Bolsa de
Valores de Lima and TSXV under the
symbol "SMT".
This press release does not constitute an
offer to sell or solicitation of an offer to buy the securities in
the United States or any other
jurisdiction. The Common Shares will not be and have not been
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
Except for statements of historical fact
contained herein, the information in this press release may
constitute "forward-looking information" within the meaning of
Canadian securities law. Other than statements of historical fact,
all statements are "forward-looking statements", which involve
various known and unknown risk and uncertainties and other factors,
including market conditions that may affect the Company's ability
to execute its current business plan. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking
statements unless and until required by securities laws applicable
to the Company. Additional information identifying risks and
uncertainties is contained in filings by the Company with the
Canadian securities regulators, which filings are available at
www.sedar.com.
SOURCE Sierra Metals Inc.
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