VANCOUVER, Aug. 14, 2013 /CNW/ - Sierra Metals Inc.
(TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to
announce that drilling at its Yauricocha mine in Peru has discovered high-grade,
silver-lead-zinc mineralization in the Cachi Cachi Mine, located
immediately north of the Central Mine Area. The positive
results of this drilling demonstrate that additional
potentially-economic polymetallic mineralization occurs within the
Yauricocha fault zone along strike from the main mine area.
Press Release Highlights:
- Drill hole 12-13-04 cut 5.6 meters true width averaging 199 g/t
silver, 6.44% lead and 19.93% zinc in the Elissa body of the Cachi
Cachi Mine.
- Drill hole 12-13-08 cut 4.6 meters true width averaging 226 g/t
silver, 18.16% lead and 19.42% zinc in the Escondida body of the
Cachi Cachi Mine.
- Mineralization remains open to depth.
|
"These results support our prediction that
additional high-grade ore occurs along the Yauricocha Fault, an
area that is essentially unexplored," said Daniel Tellechea, the Company's President and
CEO. "The significance of this discovery is that the drilling
has transformed expectation of the Cachi Cachi orebody from a small
one to a more important one whose higher grades could increase the
average head grades fed to the processing mill while replacing
reserve depletion from the other Cachi Cachi orebodies. This
discovery also opens a new area of exploration focus at the
mine. High grade discoveries at Yauricocha in the past have
been key drivers for the mine's strong profit margins. We
intend to continue drilling this area to demonstrate that the
Yauricocha Mine has an extensive mine life before it."
Cachi Cachi Mine
The Cachi Cachi Mine is located only 1,200
meters northwest of the Central Mine Area and along the Yauricocha
Fault. This mine has produced 958,929 tonnes of ore averaging
138 g/t silver, 3.32 % lead and 6.95 % zinc during the period 1996
to July 2013. As shown in
Figure 1
(http://preview1.newswire.ca/media/2013/08/13/20130813-698269-29821-ac8e6544-69f4-461e-b10a-a21232fbb1be.jpg),
the Cachi Cachi Mine has been partially mined down to the 820 level
but this drilling demonstrates that mineralization continues more
than 100 meters to depth - below the 920 level - but remains open
below that level. Figure 2
(http://preview1.newswire.ca/media/2013/08/13/20130813-698269-29822-ac8e6544-69f4-461e-b10a-a21232fbb1be.jpg)
shows the drill map on Level 820 of the Cachi Cachi Mine.
Drill Results from the Cachi Cachi Mine, Yauricocha,
Peru
Hole # |
From-To
(m) |
Core
Length (m) |
Est. True
Width (m) |
g/t Ag |
% Pb |
% Cu |
% Zn |
g/t Au |
Body |
12-13-01 |
71.4-77.8 |
6.4 |
3.5 |
174 |
3.32 |
0.28 |
12.91 |
0.36 |
Elissa |
12-13-02 |
64.6-75.5 |
10.9 |
6.5 |
39 |
2.06 |
0.04 |
6.08 |
0.36 |
Elissa west |
12-13-04 |
109.7-125.4 |
15.7 |
5.6 |
199 |
6.44 |
0.09 |
19.93 |
1.46 |
Elissa west |
12-13-05 |
106.0-112.3 |
6.3 |
3.0 |
33 |
0.03 |
1.35 |
4.60 |
0.80 |
Elissa |
12-13-06 |
132.5-135.4 |
2.9 |
2.1 |
275 |
3.22 |
0.35 |
23.09 |
0.98 |
Escondida |
12-13-07 |
107.4-109.4 |
2.0 |
1.2 |
36 |
0.04 |
0.12 |
4.42 |
0.40 |
Elissa |
12-13-08 |
130.3-137.4 |
7.1 |
4.6 |
226 |
18.16 |
0.15 |
19.42 |
0.68 |
Escondida |
These results demonstrate that mineralization at Cachi Cachi is
open to depth. Drilling will continue as long as it is
practical, given the near-vertical nature of the
mineralization.
In addition, other targets along the Yauricocha Fault will be
drill tested, such as the Kilkaska area located about 5 km SE of
the Central Mine Area that also has potential for polymetallic
mineralization similar to that currently being mined at Cachi Cachi
and the Central Mine Area.
Method of Analysis
Samples are prepared at the Yauricocha lab facility at the
Chumpe mill, which is on site. Core and channel samples from
the mine are assayed utilizing one of two procedures. Silver,
lead, zinc and copper are assayed by atomic absorption. Gold
is fire-assayed with an atomic absorption finish. Diamond
drill samples sent for analysis consist of half NQ-size and BQ-size
diamond core split on site.
Quality Control
The quality assurance-quality control (QA-QC)
program employed by Sierra Metals has been described in detail in
the NI 43-101 report on Yauricocha dated May
25, 2012, prepared by Gustavson Associates of Denver, which is available for review on
SEDAR.
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.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company
focused on production of precious and base metals from its
Yauricocha Mine in Peru, its
Bolivar Mine and Cusi Mine in Mexico. 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
and the San Miguelito gold
properties in Northern Peru.
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 the Toronto Stock Exchange
under the symbol "SMT".
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.
Image with caption: "Figure 1: Long Section Showing Drill
Piercing Points of the Cachi Cachi Mine. (CNW Group/Sierra Metals
Inc.)". Image available at:
http://photos.newswire.ca/images/download/20130814_C5775_PHOTO_EN_29821.jpg
Image with caption: "Figure 2: Drill Plan of the Cachi Cachi
Mine (CNW Group/Sierra Metals Inc.)". Image available at:
http://photos.newswire.ca/images/download/20130814_C5775_PHOTO_EN_29822.jpg