VANCOUVER, Aug. 14, 2013 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce that drilling at its Yauricocha mine in Peru has discovered high-grade, silver-lead-zinc mineralization in the Cachi Cachi Mine, located immediately north of the Central Mine Area. The positive results of this drilling demonstrate that additional potentially-economic polymetallic mineralization occurs within the Yauricocha fault zone along strike from the main mine area.
Press Release Highlights:
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"These results support our prediction that additional high-grade ore occurs along the Yauricocha Fault, an area that is essentially unexplored," said Daniel Tellechea, the Company's President and CEO. "The significance of this discovery is that the drilling has transformed expectation of the Cachi Cachi orebody from a small one to a more important one whose higher grades could increase the average head grades fed to the processing mill while replacing reserve depletion from the other Cachi Cachi orebodies. This discovery also opens a new area of exploration focus at the mine. High grade discoveries at Yauricocha in the past have been key drivers for the mine's strong profit margins. We intend to continue drilling this area to demonstrate that the Yauricocha Mine has an extensive mine life before it."
Cachi Cachi Mine
The Cachi Cachi Mine is located only 1,200 meters northwest of the Central Mine Area and along the Yauricocha Fault. This mine has produced 958,929 tonnes of ore averaging 138 g/t silver, 3.32 % lead and 6.95 % zinc during the period 1996 to July 2013. As shown in Figure 1 (http://preview1.newswire.ca/media/2013/08/13/20130813-698269-29821-ac8e6544-69f4-461e-b10a-a21232fbb1be.jpg), the Cachi Cachi Mine has been partially mined down to the 820 level but this drilling demonstrates that mineralization continues more than 100 meters to depth - below the 920 level - but remains open below that level. Figure 2 (http://preview1.newswire.ca/media/2013/08/13/20130813-698269-29822-ac8e6544-69f4-461e-b10a-a21232fbb1be.jpg) shows the drill map on Level 820 of the Cachi Cachi Mine.
Drill Results from the Cachi Cachi Mine, Yauricocha, Peru
| Hole # | From-To (m) |
Core Length (m) |
Est. True Width (m) |
g/t Ag | % Pb | % Cu | % Zn | g/t Au | Body |
| 12-13-01 | 71.4-77.8 | 6.4 | 3.5 | 174 | 3.32 | 0.28 | 12.91 | 0.36 | Elissa |
| 12-13-02 | 64.6-75.5 | 10.9 | 6.5 | 39 | 2.06 | 0.04 | 6.08 | 0.36 | Elissa west |
| 12-13-04 | 109.7-125.4 | 15.7 | 5.6 | 199 | 6.44 | 0.09 | 19.93 | 1.46 | Elissa west |
| 12-13-05 | 106.0-112.3 | 6.3 | 3.0 | 33 | 0.03 | 1.35 | 4.60 | 0.80 | Elissa |
| 12-13-06 | 132.5-135.4 | 2.9 | 2.1 | 275 | 3.22 | 0.35 | 23.09 | 0.98 | Escondida |
| 12-13-07 | 107.4-109.4 | 2.0 | 1.2 | 36 | 0.04 | 0.12 | 4.42 | 0.40 | Elissa |
| 12-13-08 | 130.3-137.4 | 7.1 | 4.6 | 226 | 18.16 | 0.15 | 19.42 | 0.68 | Escondida |
These results demonstrate that mineralization at Cachi Cachi is open to depth. Drilling will continue as long as it is practical, given the near-vertical nature of the mineralization.
In addition, other targets along the Yauricocha Fault will be drill tested, such as the Kilkaska area located about 5 km SE of the Central Mine Area that also has potential for polymetallic mineralization similar to that currently being mined at Cachi Cachi and the Central Mine Area.
Method of Analysis
Samples are prepared at the Yauricocha lab facility at the Chumpe mill, which is on site. Core and channel samples from the mine are assayed utilizing one of two procedures. Silver, lead, zinc and copper are assayed by atomic absorption. Gold is fire-assayed with an atomic absorption finish. Diamond drill samples sent for analysis consist of half NQ-size and BQ-size diamond core split on site.
Quality Control
The quality assurance-quality control (QA-QC) program employed by Sierra Metals has been described in detail in the NI 43-101 report on Yauricocha dated May 25, 2012, prepared by Gustavson Associates of Denver, which is available for review on SEDAR.
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 production of 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.
Image with caption: "Figure 1: Long Section Showing Drill Piercing Points of the Cachi Cachi Mine. (CNW Group/Sierra Metals Inc.)". Image available at: http://photos.newswire.ca/images/download/20130814_C5775_PHOTO_EN_29821.jpg
Image with caption: "Figure 2: Drill Plan of the Cachi Cachi Mine (CNW Group/Sierra Metals Inc.)". Image available at: http://photos.newswire.ca/images/download/20130814_C5775_PHOTO_EN_29822.jpg
SOURCE: Sierra Metals Inc.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Daniel Tellechea
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646
Matt Morrish
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646
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