VANCOUVER,
July 17, 2013 /CNW/ - Sierra
Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce a new silver resource estimate on
its Cusihuiriachic Property (Cusi), Chihuahua State, Mexico. These resources are in two areas
of the Cusi mine currently in commercial production, Promontorio
and Santa Eduwiges, as well as in two prospective areas, La India
and San Juan, where the company is
doing underground development. This resource estimate was prepared
by Gustavson Associates, LLC ("Gustavson") of Lakewood, Colorado.
Press Release Highlights:
- Sierra Metals increases its silver resource estimate five-fold
at the Cusi Mine, Mexico
- The total estimated Indicated Mineral Resources for the Cusi
Property with exploration drilling information as of the end of
December 31, 2012 are:
-
- 1,380,000 tonnes averaging 165 g/t Ag, 0.30% Pb and 0.29% Zn at
a cut-off grade of 90.0 g/t Ag, which contain 7.3 million oz of
silver
- Total estimated Inferred Resources are:
-
- 1,651,000 tonnes averaging 273 g/t Ag, 0.14% Pb and 0.08% Zn at
the same cut-off that contain 14.6 million oz of silver.
- Drilling continues with the objective of expanding the
resources of the property, especially in the Veta de Contacto and
Santa Rosa areas as well as extensions of the Promontorio and Santa
Eduwiges structures. These resources do not yet include the
results from this year's exploration drilling.
|
"Drilling and geologic mapping continue to
demonstrate the upside potential of the Cusi property", stated
Daniel Tellechea, President &
CEO of Sierra Metals. "These results are very encouraging as
they show sufficient geologic potential for Sierra to contemplate
investment decisions concerning the Cusi project. We consider this
resource estimate a first step in quantifying the size of the
multiple silver-rich areas at our Cusi property. Note that
none of the successful drilling results reported at Cusi this year
is reflected in the resources and should be included for our next
resource update later this year. "
While aggressively pursuing its target of
reaching 500 tonnes per day production from the Cusi property (see
press release of May 28, 2013), the
Company's geologic mapping is identifying areas with extensive
potential for additional mineralization.
Methods of Estimation
The major structures and mineralized zones were evaluated by
Gustavson using two different estimation methods.
1) The San Juan
and La India areas are structurally-controlled epithermal veins
with a single predominant structure. These vein shapes were
created as 3-D wireframes in Leapfrog™ software and grades were
estimated using the drill samples coded as vein material in the
logging.
2) The Promontorio and Santa Eduwiges areas are
also structurally-controlled epithermal veins although they are
structurally complex having formed in between the Cusi and
San Nicolas faults as multiple
sub-parallel shear structures. These zones were modeled using
two concentric grade shells created as 3-D wireframes in Leapfrog™
software at 50 g-Ag/t and 150 g-Ag/t. The higher grade limit
was used to restrict overextension of high grade intercepts, and
the 50 g/t limit allowed for the estimation of grades spanning the
reporting cutoff of 90 g/t.
Cusi Property Resource Estimate
The following tables show the Cusi Property
Indicated, and Inferred Resources at various cut-off grades.
The resource estimate is effective as of December 31, 2012. The 90 g-Ag/t cut-off
grade was selected by Gustavson based on current cost data from the
project.
Promontorio |
|
Indicated |
Cutoff |
Tonnes |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
Ag (oz) |
60 |
1,765,954 |
123.08 |
0.028 |
0.147 |
0.177 |
6,987,927 |
90 |
971,983 |
163.803 |
0.031 |
0.152 |
0.182 |
5,118,736 |
120 |
594,733 |
201.371 |
0.031 |
0.159 |
0.199 |
3,850,338 |
|
Inferred |
Cutoff |
Tonnes |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
Ag (oz) |
60 |
1,043,680 |
300.256 |
0.062 |
0.175 |
0.093 |
10,074,863 |
90 |
898,657 |
336.954 |
0.067 |
0.191 |
0.082 |
9,735,223 |
120 |
813,631 |
361.455 |
0.071 |
0.206 |
0.084 |
9,455,042 |
|
Santa Eduwiges |
|
Indicated |
Cutoff |
Tonnes |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
Ag (oz) |
60 |
782,287 |
123.513 |
0.118 |
0.49 |
0.432 |
3,106,413 |
90 |
408,316 |
170.753 |
0.154 |
0.644 |
0.554 |
2,241,533 |
120 |
239,841 |
217.681 |
0.188 |
0.779 |
0.708 |
1,678,511 |
|
Inferred |
Cutoff |
Tonnes |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
Ag (oz) |
60 |
5,314 |
152.158 |
0.273 |
1.004 |
1.612 |
25,994 |
90 |
4,865 |
158.406 |
0.292 |
1.04 |
1.638 |
24,778 |
120 |
2,803 |
202.165 |
0.345 |
1.013 |
1.584 |
18,216 |
La India |
|
Inferred |
Cutoff |
Tonnes |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
Ag (oz) |
60 |
595,069 |
194.76 |
0.093 |
0.048 |
0.028 |
3,726,051 |
90 |
485,093 |
222.719 |
0.103 |
0.055 |
0.032 |
3,473,466 |
120 |
389,156 |
251.419 |
0.11 |
0.062 |
0.036 |
3,145,597 |
|
San Juan |
|
Inferred |
Cutoff |
Tonnes |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
Ag (oz) |
60 |
424,732 |
120.258 |
0.066 |
0.101 |
0.141 |
1,642,134 |
90 |
262,807 |
149.789 |
0.076 |
0.111 |
0.161 |
1,265,601 |
120 |
158,485 |
180.256 |
0.092 |
0.119 |
0.175 |
918,455 |
Quality and grade are estimates and are rounded
to reflect the fact that the resource estimate is an
approximation.
Although the data inputs for this study were cut
off as of December 31, 2012, drilling
has continued. Since that date to end-June, 2013, 11,100.15
meters have been drilled in 40 surface holes and 1,931.17 meters in
21 underground holes. The results from these holes will be
included in future studies. Based on the results from these
holes, the potential for resource expansion is significant.
In addition, 11,450 meters of surface drilling
and 4,219 meters of underground drilling are planned for the
remainder of 2013, the results of which - depending on the cut-off
date - will be included in future studies.
The Company plans to have another resource
update combined with a pre-feasibility study completed in early
2014, with the objective of converting some resources to
reserves.
Mineral Resources are not Mineral Reserves and
do not demonstrate economic viability. There is no certainty
that all or any part of the Mineral Resource will be converted to
Mineral Reserves.
The Cusi project is currently in commercial
production. Mining was initiated at Cusi as a pilot project
to evaluate the deposit's viability. This has gradually
expanded to the current production status although no feasibility
study of reserves has been completed, which may lead to increased
technical and economic risks.
Both the Cusi mine and the Mal Paso plant are
permitted to include current mine plans and there are no known
political or environmental risks.
Method of Analysis
Samples were prepared at the ALS Chemex lab facility in
Chihuahua, Mexico, and analyzed by
ICP and AA methods at their facilities in Vancouver, Canada. Diamond drill samples sent
for analysis consisted of half NQ-size and BQ-size diamond core
split on site, prepared by the ALS Chemex sample preparation
laboratory in Chihuahua, Mexico,
and assayed for Au by 50 g fire assay with AA finish, and for Ag by
AA on 50 g split sample at the ALS Chemex North Vancouver
Laboratory. Assays for Pb, Zn and Cu are analyzed by Induction
Coupled Plasma (ICP) at ALS Chemex. Samples processed at the
Mal Paso laboratory owned by Sierra Metals were utilized to
determine mineralized zones however they were not used for the
grade estimates.
Cusi Property
The Cusi property has an historical production of 100-200 million
ounces of silver between 1680 and 1940. Production was interrupted
multiple times by Indian raids, wars, revolution, depression, etc.
Historical operators needed grades of 1,000 g/t silver or more to
be economic and many areas were left un-mined. There are multiple
high-grade silver veins open to depth.
Recent drilling in extension of stockwork zone
cut high-grade silver over wide widths; e.g., 49 m @ 753 g/t Ag
(true width ± 6 m). In 2012, pilot mining production at Cusi
consisted of 54,125t @ 185 g/t silver and 0.57% lead (avg. 170
tpd). Commercial production was announced on January 1, 2013. Mining is done by cut-and-fill
method. The Company plans to release a NI 43-101 complaint
resources report in Q3 2013.
The Company's objective for the Cusi property in
2013 is to advance underground development from five mines, the
Santa Eduwiges, Promontorio, La India, Minerva and San Juan Mines to allow
mining and development both laterally and at depth. This will bring
to five the total of producing mines at the Cusi project.
Management believes that Cusi is only starting to reveal its full
silver potential.
Quality Control
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. Donald E. Hulse P.E., SME-RM of Gustavson
Associates was responsible for the resource estimate. Mr.
Hulse is a Qualified Person as defined in NI 43-101 and a Principal
Mining Engineer.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company
focused on 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.