TSX: SMT
BVL: SMT
NYSE AMERICAN: SMTS
- Current drilling program at the Contacto Oriental zone reflects
high-grade polymetallic, copper mineralization in addition to a new
style of mineralization (Hydrothermal Breccias) which continue and
remain open at depth
- The new discovery is important due to its close proximity to
current mine exploitation areas which could reduce the time and
capex to integrate this new zone into the mine plan
- To date 4 holes have been completed from 1070 level in Contacto
Oriental Area
- Copper sulphide rich mineral deposits have been defined
containing widths of greater than 50 meters and Hydrothermal
Breccias containing high-grade zinc are open and have potential at
depth
- Hydrothermal breccias are important structures representing a
new style of mineralization not previously present. Their presence
at the 1070 level suggests phreatomagmatic events below this
level
Drill hole highlights include:
Hole
No
|
From
|
To
|
Ag
(g/t)
|
Pb
(%)
|
Cu
(%)
|
Zn
(%)
|
Width
|
E-COR17-18-01
|
65.10
|
97.50
|
2.31
|
0.51
|
0.37
|
11.75
|
over 32
meters
|
E-COR17-18-03
|
115.60
|
124.90
|
0.39
|
0.03
|
0.14
|
7.68
|
over 9
meters
|
E-COR17-18-04
|
92.20
|
149.40
|
1.86
|
0.54
|
0.28
|
9.53
|
over 57
meters
|
TORONTO, June 4, 2018 /CNW/ - Sierra Metals Inc.
(TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra Metals" or
"the Company") today announced drilling results demonstrating high
grade polymetallic ore and a new mineralization style of
Hydrothermal Breccias located at the Contacto Oriental Zone
extension situated within the Central Mine at Yauricocha.
To date, four holes have been executed from the 1070 level of
the Yauricocha Mine in the Contacto Oriental Area. These holes have
intercepted polymetallic sulphide mineralization containing
high-grade zinc and copper 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 represents further the
further potential at the Yauricocha Mine with the identification of
high-grade polymetallic mineralization at the Contacto Oriental
zone. It also suggests the possibility of even further
mineralization at depth, specifically from the Zinc sulphide
orebodies which contain significant widths." He
continued, "The Central Mine area contains several high-grade
mineralized areas opening the possibility for further discoveries
of additional orebodies along the Yauricocha fault. The Company
made a strong commitment to brownfield exploration as part of its
growth plan, and results such as the ones released today continue
to demonstrate that this investment is 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 location of the new
discovery is outside of the Yauricocha Fault contact zone, which is
important as it confirms the exploration upside of zones previously
unexplored. Prior exploration efforts at Yauricocha were
mainly focused on the Yauricocha contact zone." He continued,
"the results reported today from the Contacto Oriental zone
demonstrate the existence of high-grade, sulphide mineralized
sectors containing mainly copper and zinc as show in table 1 below.
Generally hydrothermal breccias are large structures and the
discovery of a new style of mineralization represents a new
opportunity to further increase resources."
All reported intercepts are core length as further drilling is
required to determine true thicknesses.
A map of the Yauricocha Mine 1070 level (Central Mine) is shown
in Figure 1. Figure 2 shows the location of the area explored.
Figures 3, 4 and 5 show the cross sections of the drill holes
(Please note in figure 5 the width of the Copper sulphide orebody
is more than 25 meters).
Table 1 – Selected Drill Hole Assay Results on Contacto
Oriental Zone
Hole
No
|
From
|
To
|
Width
(m)
|
Ag
(g/t)
|
Pb
(%)
|
Cu
(%)
|
Zn
(%)
|
Style
|
E-COR17-18-01
|
4.00
|
24.60
|
20.60
|
0.14
|
0.02
|
0.01
|
1.47
|
Breccia
|
|
65.10
|
97.50
|
32.40
|
2.31
|
0.51
|
0.37
|
11.75
|
Poly
|
|
97.50
|
146.60
|
49.10
|
1.06
|
0.07
|
1.84
|
0.30
|
Copper
|
E-COR17-18-02
|
9.00
|
19.00
|
10.00
|
0.19
|
0.05
|
0.03
|
1.98
|
Breccia
|
|
90.00
|
95.10
|
5.10
|
0.33
|
0.07
|
0.09
|
1.14
|
Breccia
|
|
95.10
|
96.00
|
8.85
|
0.24
|
0.17
|
0.03
|
4.06
|
Breccia
|
E-COR17-18-03
|
4.90
|
33.10
|
28.20
|
0.15
|
0.02
|
0.02
|
2.08
|
Breccia
|
|
72.00
|
77.30
|
5.30
|
0.97
|
0.03
|
0.87
|
0.07
|
Copper
|
|
115.60
|
124.90
|
9.30
|
0.39
|
0.03
|
0.14
|
7.68
|
Breccia
|
E-COR17-18-04
|
4.95
|
24.10
|
19.15
|
0.16
|
0.02
|
0.01
|
1.99
|
Breccia
|
|
37.00
|
57.80
|
17.95
|
0.10
|
0.01
|
0.01
|
0.54
|
Breccia
|
|
92.20
|
149.40
|
57.20
|
1.86
|
0.54
|
0.28
|
9.53
|
Poly/Breccia
|
Quality Control
All samples were dried, crushed and pulverized by the Chumpe Lab
at 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 9,
2016, 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 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.