TSX: SMT
BVL: SMT
NYSE AMERICAN:
SMTS
- 12 drill holes have been executed in the area where a Titan
24 program identified geophysical anomalies
- Drilling identified a new wide high-grade copper structure
which extends the continuity of the Bolivar Northwest structure by
an additional 400 meters
- Average grade of intercepts is 1.37% copper with an average
true width of 8.1 meters
- The new extension discovery was not included in the recent
Mineral Resource update due to a cut off date for drilling of
October 2017 and should be
incremental to future mineral resource updates. Sierra metals has
an aggressive exploration program at all three Mines
Drill hole highlights include:
Hole
No.
|
EqCu
(%)
|
Ag
(g/t)
|
Cu
(%)
|
Zn
(%)
|
Au
(g/t)
|
Width
|
DB17B602
|
3.02
|
38
|
2.06
|
0.41
|
0.46
|
over 18
meters
|
DB17B613
|
2.58
|
17
|
2.38
|
0.04
|
0.00
|
over 14
meters
|
DB17B631
|
1.66
|
25
|
1.37
|
0.04
|
0.00
|
over 8
meters
|
TORONTO, June 6, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") today announces results of an infill
drilling program evaluating the continuity and characteristics of
geophysical anomalies that were previously tested as part of a
recent Titan 24 Geophysical Survey and deemed high value targets at
the Bolivar Property, Chihuahua,
Mexico. The Bolivar Property is situated within the Piedras
Verdes Mining District, which is located within the major
north-northwest trending Sierra Madre Precious Metals Belt
extending across the states of Chihuahua, Durango and Sonora in northwestern Mexico.
Drilling has identified and defined a new zone named
Cieneguita which is an extension
of the Bolivar Northwest structure and is situated in close
proximity to the Bolivar Northwest zone with similar
characteristics.
Alonso Lujan, Vice President of
Exploration stated: "The Titan 24 areas we tested demonstrated
an excellent relationship between chargeability and the
structures. Based on those results, the Company has completed
a successful infill drilling program on those previously tested
areas, which resulted in a new structure being defined which
demonstrates the continuity of the previously defined wide
high-grade copper structures. The potential for further extensions
to the North of the Cieneguita
zone remain open and there is strong evidence of further high
priority geological and geophysical anomalies."
Igor Gonzales, President and
CEO of Sierra Metals commented: "Brownfield exploration remains a
key part of Sierra Metals' growth plan, and the discovery of a new
structure at Bolivar helps to support further growth and
development at the Bolivar Mine and supports the Company's overall
growth plans in Mexico."
TABLE 1
Hole
No
|
From
|
To
|
Width
(m)
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
Zn
(%)
|
EqCu
(%)
|
DB17B602
|
349.70
|
368.30
|
18.6
|
0.46
|
38
|
2.06
|
0.41
|
3.02
|
DB17B610
|
393.25
|
397.75
|
4.50
|
0.00
|
23
|
1.60
|
0.45
|
2.06
|
DB17B613
|
393.35
|
408.00
|
14.65
|
0.00
|
17
|
2.38
|
0.04
|
2.58
|
DB17B622
|
289.60
|
296.58
|
6.98
|
0.00
|
0
|
0.00
|
0.00
|
0.00
|
DB17B623
|
416.75
|
418.20
|
1.45
|
0.00
|
15
|
0.54
|
1.33
|
1.33
|
DB17B624
|
323.90
|
325.80
|
1.90
|
0.00
|
25
|
0.91
|
0.02
|
1.19
|
DB17B628
|
381.00
|
386.05
|
5.05
|
0.25
|
13
|
1.11
|
0.02
|
1.44
|
DB17B631
|
357.00
|
365.40
|
8.40
|
0.00
|
25
|
1.37
|
0.04
|
1.64
|
DB17B632
|
361.35
|
378.80
|
17.45
|
0.23
|
18
|
0.94
|
0.03
|
1.31
|
DB17B633
|
255.30
|
261.30
|
6.00
|
0.00
|
11
|
0.95
|
0.02
|
1.07
|
DB17B634
|
452.85
|
457.15
|
4.30
|
0.00
|
7
|
0.75
|
0.04
|
0.82
|
DB17B642
|
443.15
|
451.00
|
7.85
|
0.00
|
5
|
0.94
|
0.02
|
0.99
|
Figure 1 is a geological map of the Bolivar
Mine. Figure 2 shows a Longitudinal Section at the Bolivar
Structure. Figure 3 is a Schematic orebody of Bolivar
Structure.
Quality Control
All samples were dried, crushed and pulverized by the Chemex Lab
(Chihuahua), pulp samples were shipped to the Chemex Lab in
Vancouver Canada.
The quality assurance-quality control (QA-QC) program employed
by Sierra Metals has been described in detail in the NI-43-101
report for Bolivar dated December
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 Chemex lab in Chihuahua 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.
Américo 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.