VANCOUVER,
Sept. 9, 2013 /CNW/ - Sierra
Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce that development in the Santa
Eduwiges mine at its Cusi property has opened two new areas of
bonanza grade silver mineralization, the Monaco and Veta del Contacto areas. In
addition, on-going mapping and sampling of the La Gloria vein at its Cusi property has
returned high grades of silver over significant strike
lengths. Moreover, mapping of the Milagro and San Rafael veins gave encouraging visual
results.
Press Release Highlights:
- BONANZA GRADES IN SANTA EDUWIGES (EL MONACO VEIN):
Development into the Monaco vein of the Santa Eduwiges Mine has
encountered bonanza grades of gold ("Au") and silver ("Ag"), such
as 2.45 m averaging 1,925 g/t Ag & 3.90 g/t Au and 1.9 m
averaging 8,240 g/t Ag & 32.21 g/t Au. This is a mine
working level that is starting to contribute to Cusi's ore
production.
- BONANZA GRADES IN SANTA EDUWIGES (VETA DEL CONTACTO):
Development into the Veta del Contacto of Santa Eduwiges has
encountered bonanza grades of silver, such as 2.1 m averaging
1,686 g/t Ag & 0.72 g/t Au and 1.0 meters averaging 2,350 g/t
Ag & 0.60 g/t Au. Drilling has confirmed its
extension over 200 meters below the mine development level with
high silver grades.
- WIDE NEW HIGH-GRADE VEIN AT SANTA EDUWIGES: A drift
excavated along Level 11 towards the Red Fault and its intersection
with Santa Marina vein has entered a 4-5 meters wide vein and 15
samples across it assayed an average of 221 g/t Ag.
- SURFACE SAMPLING AT LA GLORIA YIELDS BONANZA GRADES:
Sampling on the surface along the La Gloria vein along a strike
length of approximately 200 m returned an average of 263 g/t
silver over an average width of 0.7m from 31 samples (SW shoot).
Sampling along another portion of the La Gloria vein along a strike
length of approximately 220 m returned an average of 144 g/t
silver over an average width of 0.7m from 12 samples (NE
shoot). Mapping and sampling of the Milagro and San Rafael
veins identified similar zones along the mineralized veins; assays
are pending.
|
Daniel Tellechea,
President and CEO of Sierra Metals, commented: "Our work
at Cusi continues to demonstrate the major upside for precious
metals potential of the property. As we develop deeper into
the Santa Eduwiges mine we are finding veins very rich in gold and
silver and in this case bonanza gold and silver grades in areas
where we are currently conducting mine development and
production These results are extremely important as the
Company has access to three separate bonanza-grade precious metals
mining fronts, the two announced in this press release plus "La
Azucarera" in Promontorio. The Company should have access to
a fourth bonanza grade silver zone at the Santa Rosa de Lima area that is between
Promontorio and Santa Eduwiges, which mine development should
access in October, 2013. In addition, our surface work is
demonstrating that there are high grades of silver on the surface
in veins that have seen little to no development such as
La Gloria, yet are close to our
main operating areas. The exploration upside of this property is
very high and continues to yield positive results. Our NI
43-101 resource update scheduled for early next year will include
these new areas, as our NI 43-101 resource released in July, 2013
had a cutoff date of drill and development results as of December,
2012."
Surface Work
The Company has been conducting detailed surface
mapping in the northwestern portion of its Cusi property at 1:1,000
and 1:500 scales. Recent work has been focused to the west
and south of the Santa Eduwiges mine, covering the La Gloria, Milagro and San Rafael veins
(http://40rhel5streamview01.newswire.ca/media/2013/09/06/20130906-702895-30495-903873c2-2795-40ff-b2ab-be53daac6fe1.jpg).
Assay results have been received for samples collected along the
La Gloria vein and have identified
two potential ore shoots. These are called herein the NE and
SW La Gloria shoots. The NE
shoot begins about 400 meters southwest of the intersection of the
La Gloria and Minerva veins, and averages 144 g/t
silver over an average vein width of 0.7 meters.
The SW shoot is about 100 meters southwest of
the NE shoot and averages 263 g/t silver over an average
vein width of 0.7 meters.
Assay results from the surface sampling along the inferred
shoots of the La Gloria vein are
given in Table 1 (insert link to Table 1 here).
The Minerva
ramp is being extended in two directions, one of which is along the
La Gloria vein. As of
August 29, the ramp was within 10-20
meters of the La Gloria NE shoot and should be well into the shoot
by end-September, at depths of 100-150 meters below the
surface. The second direction is a switchback to deeper
levels of the Minerva vein, which
should encounter the vein 70-80 meters below old workings in
approximately six weeks.
Mine Development and Mining
In addition to mine development at La Gloria and Minerva, development is also progressing at
the Promontorio, Santa Eduwiges and Candelaria Mines. Highlights are as
follows:
At Santa Eduwiges:
- Level 1 (El Monaco): Development has entered a new area
called Monaco, which yields
bonanza grades of silver and gold as shown in Figure 2
(http://40rhel5streamview01.newswire.ca/media/2013/09/06/20130906-702895-30496-903873c2-2795-40ff-b2ab-be53daac6fe1.jpg).
The high-grade vein is up to 4 meters in width and has been
developed along a 30 meter length. Face sampling across the
vein yielded the following results:
-
- 2.45 meters averaging 1,925 g/t Ag and 3.90 g/t Au;
- 2.6 meters averaging 1,520 g/t Ag and 7.58 g/t Au;
- 2.6 meters averaging 772 g/t Ag and 5.76 g/t Au;
- 3.05 meters averaging 1,248 g/t Ag and 4.21 g/t Au;
- 3.8 meters averaging 378 g/t Ag and 1.42 g/t Au.
Wall sampling along the drift yielded the
following results:
- 4.0 meters averaging 342 g/t Ag and 1.45 g/t Au;
- 1.9 meters averaging 8,240 g/t Ag and 32.21 g/t Au.
- 1.9 meters averaging 844 g/t Ag and 1.84 g/t Au;
- 3.1 meters averaging 710 g/t Ag and 2.61 g/t Au;
- 2.2 meters averaging 278 g/t Ag and Au below detection
limit.
The vein is being developed to the northeast and
will be drilled to depth.
- Level 11 has also been extended to the Cusi Fault
and has cut high-grade mineralization (Veta del Contacto - Santa
Eduwiges). The miners have drifted 40 m along the vein, which
they call Veta del Contacto because it is along the same major
fault (Cusi Fault) as Veta del Contacto at Promontorio Mine,
located about 800 meters to the northwest. Twelve face
samples were collected along the 40 m drift length of the vein with
the following results:
-
- 2.1 meters averaging 1,686 g/t silver and 0.72 g/t
gold;
- 1.35 meters averaging 548 g/t Ag and 0.11 g/t gold;
- 1.7 meters averaging 491 g/t Ag and 0.49 g/t Au;
- 2.45 meters averaging 578 g/t Ag and 0.27 g/t Au;
- 2.3 meters averaging 91 g/t Ag and 0 g/t Au;
- 1.0 meter averaging 2,350 g/t Ag and 0.60 g/t Au;
- 2.5 meters averaging 50 Ag g/t and 0 g/t Au;
- 2.3 meters averaging 113 g/t Ag and 0 g/t
Au;
- 1.8 meters averaging 73 g/t Ag and 0 g/t Au;
- 0.6 meters averaging 1,632 g/t Ag and 2.0 g/t Au;
- 1.0 m averaging 570 g/t Ag and 0 g/t Au; and,
- 0.8 meters @ 300 g/t Ag and 0.3 g/t Au
Development is continuing along the vein and a
positive ramp is being driven to access the vein on Level 10, when
mining will begin. In addition, a decline will be driven to
Levels 12 and 13, with 30 m spacing between levels. It will
take about 5 months to drive from Level 11 to Level 12, a total of
360 meters.
The vein in this area has also been cut by three
drill holes, which yields a vertical distance of 200 m and a
horizontal distance of 100 m for this zone. The results from
these holes are shown in Table 2 below:
Table 2: Selected Drill Samples from Santa
Eduwiges
Drill
Hole* |
Drill
Interval
(From-To) |
Core
Length (m) |
Est.
True
Width (m) |
Ag g/t |
Au g/t |
Pb % |
Mn % |
Vein
Name |
13M173 |
15.5-16.5 |
1.0 |
0.5 |
199 |
na** |
0.06 |
1.07 |
unknown |
and |
6.0-8.0 |
2.0 |
0.4 |
409 |
na |
0.08 |
0.22 |
unknown |
and |
125.7-127.45 |
1.75 |
1.5 |
394 |
na |
1.51 |
0.22 |
Veta del C. |
12B581 |
194.5-195.5 |
1.0 |
0.35 |
720 |
0.17 |
0.99 |
0.23 |
Veta del C. |
13B582 |
138.7-140.5 |
1.8 |
1.35 |
456 |
0.08 |
1.04 |
0.58 |
Veta del C. |
* All drill holes have prefix DC
** na = not assayed
A second ramp will be driven from Level 11 to Level 12 to mine
the San Antonio vein where it has
been defined by six drill holes.
A drift excavated along Level 11 towards the Red Fault and its
intersection with Santa Marina vein
that is 4-5 meters wide; 15 samples across the vein assayed an
average of 221 g/t Ag.
At Promontorio:
- Level 6: development is along Veta K, Veta El Gallo and an un-named vein. There
is a 20 meter separation between Veta K and the next level.
This is Fte. 660 SW, where the vein is 0.8-0.9 meters wide and
contains grades ranging from 300 to 400 g/t silver.
- Level 7: an old drift is being rehabilitated and
widened; then two cross-cuts will be made to Santa Rosa de Lima in the NE & W
directions. The ramp to Level 8 is also being excavated.
- Level 9: an old drift is being rehabilitated and
expanded, and will be extended to Santa
Rosa de Lima. A decline is being driven to the
alphabet veins and will be extended to Level 10. Also, on El
Gallo Level 9 an old drift is being rehabilitated. Backfill
in an old stope will be sampled.
At Candelaria:
The drift to the northwest towards La India vein
has cut the 20 de Noviembre vein and contains good mineralization
in the southwestern side of the drift. The northeast side of
the drift is barren and is thought to have possibly encountered a
fault. Three back samples have been taken at the beginning of
a crosscut along the vein. Two samples across the vein
yielded 2.0 meters averaging 150 g/t silver and 1.7 meters @
121 g/t silver. A back sample along the vein yielded
3.65 m averaging 169 g/t silver. The crosscut will be
extended to follow this mineralization.
Method of Analysis
Surface 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 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. Assays
for Ag, Pb, Zn, Cu and trace elements are analyzed by Induction
Coupled Plasma (ICP-41) on 50g split sample at the ALS Chemex North
Vancouver Laboratory. Over-limits of Ag and base metals are
assayed by OG-46 method. Higher results of Au & Ag are
assayed by GRA-21 method.
Mine samples were prepared at the Company's lab
facility at its Malpaso lab and
analyzed by atomic absorption for Cu, Zn, Pb, Bi, Co, Mn, Sb, Cd
and Fe. Gold and silver are analyzed by fire assay
method. The Malpaso
laboratory follows the quality control methodology recommended by
CANMET of Canada, such as assaying
of blanks, duplicate samples, and check assays by commercial
laboratories such as Chemex.
Quality Control
The quality assurance-quality control (QA-QC) of
Dia Bras at Cusi has been described
in detail in Gustavson Associates' NI 43-101 report of August 23, 2013.
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 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.
Table 1: Selected Surface Samples* from La Gloria Vein
Sample # |
Sample
Width (m) |
Ag g/t |
Au g/t |
Pb % |
Mn % |
Inferred Shoot |
459778 |
0.6 |
224 |
<dl |
0.17 |
2.53 |
La Gloria NE |
459780 |
0.7 |
27 |
<dl |
0.06 |
0.60 |
La Gloria NE |
459781 |
0.5 |
<20 |
<dl |
0.06 |
0.30 |
La Gloria NE |
459782 |
0.3 |
248 |
0.6 |
0.14 |
1.68 |
La Gloria NE |
459783 |
0.6 |
222 |
<dl |
0.22 |
0.68 |
La Gloria NE |
459786 |
1.0 |
10 |
<dl |
0.01 |
0.09 |
La Gloria NE |
459787 |
0.5 |
188 |
<dl |
0.05 |
0.94 |
La Gloria NE |
459788 |
1.0 |
214 |
0.5 |
0.02 |
1.64 |
La Gloria NE |
459789 |
1.2 |
108 |
<dl |
0.02 |
0.35 |
La Gloria NE |
459790 |
0.4 |
21 |
<dl |
0.02 |
0.21 |
La Gloria NE |
459791 |
0.7 |
75 |
<dl |
0.00 |
1.07 |
La Gloria NE |
459792 |
0.4 |
383 |
<dl |
0.06 |
4.44 |
La Gloria NE |
|
|
|
|
|
|
|
459658 |
0.50 |
304 |
0.50 |
0.36 |
1.22 |
La Gloria SW |
459659 |
0.60 |
43 |
<dl |
0.12 |
0.67 |
La Gloria SW |
459660 |
0.70 |
1,041 |
15.0 |
1.02 |
2.33 |
La Gloria SW |
459661 |
0.80 |
271 |
1.6 |
0.08 |
0.16 |
La Gloria SW |
459662 |
0.60 |
30 |
<dl |
0.10 |
0.14 |
La Gloria SW |
459663 |
0.80 |
251 |
<dl |
0.19 |
0.58 |
La Gloria SW |
459664 |
0.90 |
63 |
<dl |
0.12 |
0.25 |
La Gloria SW |
459665 |
0.90 |
<20 |
<dl |
0.05 |
0.08 |
La Gloria SW |
459666 |
0.70 |
<20 |
<dl |
0.09 |
0.41 |
La Gloria SW |
459693 |
1.0 |
56 |
<dl |
0.03 |
0.14 |
La Gloria SW |
459694 |
1.3 |
214 |
<dl |
0.09 |
1.44 |
La Gloria SW |
459695 |
1.0 |
37 |
<dl |
0.02 |
0.15 |
La Gloria SW |
459696 |
0.6 |
21 |
<dl |
0.16 |
0.58 |
La Gloria SW |
459697 |
1.0 |
116 |
<dl |
0.12 |
1.59 |
La Gloria SW |
459701 |
0.6 |
150 |
<dl |
0.54 |
0.38 |
La Gloria SW |
459702 |
0.3 |
359 |
<dl |
0.82 |
0.17 |
La Gloria SW |
459703 |
0.4 |
121 |
<dl |
0.14 |
0.01 |
La Gloria SW |
459704 |
0.5 |
232 |
<dl |
0.04 |
0.05 |
La Gloria SW |
459705 |
0.4 |
1,330 |
<dl |
0.37 |
3.20 |
La Gloria SW |
459707 |
0.6 |
320 |
<dl |
0.14 |
1.31 |
La Gloria SW |
459708 |
0.6 |
96 |
<dl |
0.03 |
0.10 |
La Gloria SW |
459709 |
0.4 |
139 |
<dl |
0.05 |
0.24 |
La Gloria SW |
459710 |
0.7 |
357 |
<dl |
0.18 |
0.85 |
La Gloria SW |
459711 |
0.7 |
159 |
<dl |
0.06 |
0.11 |
La Gloria SW |
459712 |
0.5 |
455 |
0.1 |
0.18 |
0.86 |
La Gloria SW |
459713 |
0.6 |
307 |
<dl |
0.22 |
1.14 |
La Gloria SW |
459714 |
0.7 |
199 |
<dl |
0.18 |
2.25 |
La Gloria SW |
459715 |
0.6 |
206 |
<dl |
0.08 |
0.48 |
La Gloria SW |
459716 |
0.6 |
320 |
<dl |
0.46 |
0.94 |
La Gloria SW |
459717 |
1.1 |
621 |
0.2 |
0.77 |
1.38 |
La Gloria SW |
459754 |
0.6 |
313 |
<dl |
0.01 |
0.57 |
La Gloria SW |
* all surface assays by ALS Chemex
SOURCE Sierra Metals Inc.
Image with caption: "Figure 1: Location Map Showing Major Veins
of the Cusi Property, Chihuahua,
Mexico (CNW Group/Sierra Metals Inc.)". Image available at:
http://photos.newswire.ca/images/download/20130909_C5157_PHOTO_EN_30495.jpg
Image with caption: "Figure 2: Sample Location Map of the
Monaco Area, Santa Eduwiges Mine,
Cusi Project, Chihuahua (CNW Group/Sierra Metals Inc.)". Image
available at:
http://photos.newswire.ca/images/download/20130909_C5157_PHOTO_EN_30496.jpg