TORONTO, July 5, 2018 /CNW/ - Sierra Metals Inc.
(TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra Metals" or
"the Company") has filed a technical report prepared in accordance
with National Instrument 43-101 ("NI 43-101") on the Bolivar Mine
(the "Report"). The Report supports the disclosure made by
the Company in its news release dated May
22, 2018 entitled "Sierra Metals Increases Mineral Reserve
Estimate by 83% for its Bolivar Mine, Mexico". There are no material
differences in the mineral resources and reserves contained in the
Report from those disclosed in the May 22,
2018 news release.
The Report includes mineral resources and reserves for the
Bolivar Mine with:
- Total Probable Mineral Reserves for Bolivar are 7,925,000
tonnes averaging 18.9 g/t silver, 0.86% copper and 0.25 g/t gold,
1.14% CuEq** representing an 83% increase to the previous Probable
Mineral Reserve Estimate
- Total Indicated Mineral Resources for Bolivar are 13,267,000
tonnes averaging 22.5 g/t silver, 1.04% copper and 0.29 g/t gold,
1.36% CuEq** representing a 42% increase to the previous Indicated
Mineral Resource estimate
- Total Inferred Mineral Resources for Bolivar are 8,012,000
tonnes averaging 22.4 g/t silver, 0.96% copper and 0.42 g/t gold,
1.35% CuEq** representing an 11.5% decrease to the previous
Inferred Mineral Resource Estimate
- The updated Resource and Reserve Estimate varies from the
February 2017 Technical Report due to
a variety of factors, including: a 24% increase in Cu price
assumptions*, notable increases in metallurgical recovery
assumptions*, an increase in the Net Smelter Return (NSR) cut off
grades resulting in higher value material, change in commodity
prices* and depletion by production since the Report was
completed
- The updated Resource and Reserve Estimate has incorporated
new exploration drilling, sampling, and face mapping information
into the geologic interpretation and grade estimations providing
more refined resource models
* Metal price
assumptions considered for the calculation of unit values are:
Copper (Cu): US$/lb 3.00, Silver (Ag): US$/oz 18.25, and Gold (Au):
US$/oz 1,291.00. Metallurgical recovery assumptions are based on
actual plant data for 2017-2018 and are 78% Ag, 83% Cu, and 64%
Au.
** CuEq = ((Ag*Ag$*Agrec)+(Cu*Cu$*Curec)+(Au*Au$*Aurec)) /
(Cu$*Curec).
|
The Report dated June 28,
2018 with an effective date of October
31, 2017 is entitled "NI 43-101 Technical Report on
Resources and Reserves Bolivar Mine
Mexico", and was prepared by independent SRK
Consulting (U.S.), Inc.
Signed by Qualified Persons:
Giovanny Ortiz, BSc, PGeo,
FAusIMM, Associate Resource Geologist
Shannon L. Rhéaume, BASc Mining and Mineral Processing, PEng,
Senior Mining Engineer
Jeff Osborn, BEng Mining, MMSAQP,
Principal Mining Engineer
Daniel H. Sepulveda, BSc, SME-RM,
Metallurgist
John Tinucci, PhD, PE,
President/Practice Leader/Principal Geotechnical Engineer
Mark Willow, MSc, CEM, SME-RM,
Principal Environmental Scientist
Notes on the Resource and Reserve Estimate
The procedures and methods supporting the mineral resource and
reserve estimation have been developed in conjunction with
Dia Bras geological personnel. The
understanding of the geology and mineralization at Bolivar is based
on a large volume of geologic data as well as a robust history of
production. SRK has reviewed the methods and procedures for data
collection methods supporting the estimate, and notes that they are
reasonable and consistent with industry best practice. Geology
models were generated by Dia Bras
geologists using Leapfrog Geo, and locally vary significantly from
those used in previous reports. A combination of diamond drilling,
channel sampling, and mine mapping have been used to inform these
models, and SRK is of the opinion that they are an accurate
interpretation of the mineralization at Bolivar. These models,
presented as 3D wireframes, are used to constrain block models,
which are flagged with variables such as bulk density, mine area,
depletion, etc.
The resource and reserve estimations presented herein have been
conducted or reviewed by independent consultants using supporting
data generated by the site. SRK conducted independent estimations
for the Bolivar Mine. Grade for the three primary commodities (Cu,
Ag, Au) is estimated into the block models using both drilling and
channel samples, applying industry-standard estimation methodology.
Interpolation methods were generally via ordinary krigging. Mineral
resources and reserves estimated by the independent consultants are
categorized in a manner consistent with industry best practice, and
are reported above reasonable unit value cut-offs based on actual
marginal production costs to satisfy public reporting criteria.
SRK is of the opinion that the resource and reserve estimations
are suitable for public reporting and are a fair representation of
the in-situ contained metal for the Bolivar deposit.
The information in this announcement regarding the Resource and
Reserve Estimate included in the Report is qualified in its
entirety by reference to the Report. The Report is available for
review on SEDAR (www.sedar.com), EDGAR (www.SEC.gov) and the
Company's website (www.sierrametals.com).
Quality Control:
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 the Toronto Stock Exchange
under the symbol "SMT" and on the NYSE American Exchange under the
symbol "SMTS."
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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 Resource and Reserve Estimates
All resource and reserve 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.