Sierra Metals announces record 2012 annual production results and issues 2013 production guidance
TORONTO, Jan. 21, 2013 /PRNewswire/ – Sierra Metals Inc. (TSX-V:SMT) (BVL:SMT) (“Sierra Metals” or the “Company”) is pleased to
announce its 2012 annual and fourth quarter production results and to
issue production guidance for 2013.
_____________________________________________________________________ |Press Release Highlights: | | | | -- Total of 1,269,849 tonnes processed in 2012 compared to | | 657,086 tonnes in 2011. An increase of 93% year-over-year. In| | the fourth quarter of 2012 a total of 343,076 tonnes was | | processed compared to 257,256 tonnes in the same period of | | 2011. An increase of 33% year-over-year. | | | | -- Total silver ("Ag") production of 2,620,735 ounces ("oz") in | | 2012 compared to 1,517,079 oz in 2011. An increase of 73% | | year-over-year. In the fourth quarter of 2012 a total of | | 683,937 oz of silver was produced compared to 605,121 oz of | | silver in the same period of 2011. An increase of 13% | | year-over-year. | | | | -- Total copper ("Cu") production of 15.9 million pounds ("lb") | | in 2012 compared to 10.5 million lb in 2011. An increase of | | 51% year-over-year. In the fourth quarter of 2012 a total of | | 4.3 million lb of copper was produced compared to 3.5 million| | lb of copper in the same period of 2011. An increase of 25% | | year-over-year. | | | | -- Total lead ("Pb") production of 35.7 million lb in 2012 | | compared to 19.6 million lb in 2011. An increase of 82% | | year-over-year. In the fourth quarter of 2012 a total of 8.7 | | million lb of lead was produced compared to 8.0 million lb of| | lead in the same period of 2011. An increase of 9% | | year-over-year. | | | | -- Total zinc ("Zn") production of 59.0 million lb in 2012 | | compared to 36.3 million lb in 2011. An increase of 62% | | year-over-year. In the fourth quarter of 2012 a total of 14.7| | million lb of zinc was produced compared to 10.7 million lb | | of zinc in the same period of 2011. An increase of 38% | | year-over-year. | | | | -- Total gold ("Au") production at the Yauricocha Mine was | | 10,491 oz in 2012. During the fourth quarter of 2012 a total | | of 2,181 oz of gold was produced. | | | | -- Production Guidance for 2013 | | o Silver: 2,582,000 oz - 2,922,000 oz | | o Copper: 20.5 million lb - 23.1 million lb | | o Lead: 42.5 million lb - 48.1 million lb | | o Zinc: 53.7 million lb - 60.8 million lb | |__o_Gold:_6,000_oz_-_7,000_oz________________________________________|
Daniel Tellechea, President and CEO of Sierra Metals, commented: “Sierra Metals achieved another record breaking year of production in
2012. Increase in production was the result of Management’s efforts to
consolidate operations in Peru and Mexico and the realization of
subsequent operating efficiencies. The Company is pleased to issue its
first production guidance in 2013 as it strives to become a premier
precious and base metal producer in Latin America.”
The Company achieved record-breaking production results for the second
consecutive year as 2012 marked the first full year of production at
the Yauricocha Mine and commercial production at the Bolivar Mine. The
Company achieved a total of 1,269,849 tonnes of ore processed (compared
to 657,086 tonnes in 2011) from all operations, representing a 33%
increase year-over-year. A summarized table of consolidated production
results is presented below.
3 Months Ended Year Ended Consolidated Production Dec 31,2012 Dec 31,2011 %Var. Dec 31,2012 Dec 31, %Var. 20111 Silver (oz) 683,937 605,121 13% 2,620,735 1,517,079 73% Copper (000 4,334 3,458 25% 15,851 10,496 51% lb) Lead (000 8,696 7,961 9% 35,720 19,636 82% lb) Zinc (000 14,706 10,666 38% 59,012 36,341 62% lb) Gold (oz) 2,181 N.A. N.R. 10,491 N.A. N.R.
(1) Includes Yauricocha Mine production only for the ownership period of
Sociedad Minera Corona S.A.(Corona) from May 26, 2011 to Dec 31, 2011.
Yauricocha Mine, Peru
The Yauricocha Mine in Peru continued to be the Company’s largest
producing mine with a total of 872,869 tonnes processed in 2012
(compared to 488,417 tonnes in 2011). In the fourth quarter of 2012 a
total of 222,821 tonnes was processed (compared to 199,991 tonnes in
the same period of 2011). Mineralization at the Yauricocha Mine is
hosted in three different zones including the Copper, Lead-Oxide
(“Oxides”) and Polymetallic ore bodies.
During 2012, aggregate production of these ore bodies was 2,143,971 oz
of Ag, 9.1 million lb of Cu, 35.2 million lb of Pb, 49.9 million lb of
Zn and 10,491 oz of Au. During the fourth quarter of 2012 aggregate
production from these ore bodies was 547,114 oz Ag, 2.2 million lb Cu,
8.6 million lb Pb, 13.8 million lb of Zn and 2,181 oz Au.
A summary of production from the Yauricocha Mine for the year-end and
the fourth quarter of 2012 have been provided below.
3 Months Ended Year ended Yauricocha Production1 Dec 31,2012 Dec 31,2011 %Var. Dec 31,2012 Dec 31, %Var. 20112 Silver (oz) 547,114 530,449 3% 2,143,971 1,232,455 74% Copper (000 2,172 2,525 -14% 9,061 7,381 23% lb) Lead (000 8,571 7,871 9% 35,200 19,230 83% lb) Zinc (000 13,803 8,579 61% 49,888 21,927 128% lb) Gold (oz) 2,181 N.A. N.R. 10,491 N.A. N.R.
(1) For a detailed summary of production for the Yauricocha Mine please
(2) Includes Yauricocha Mine production only for the ownership period of
Corona from May 26, 2011 to Dec 31, 2011.
Bolivar Mine, Mexico
Since the announcement of commercial production on November 29, 2011,
the new Piedras Verdes mill has continued to increase the production
profile of the Bolivar Mine. During 2012, total ore processed at the
Bolivar Mine increased 129% with 312,952 tonnes processed compared to
136,715 tonnes in 2011. This resulted in 2012 production of copper
increasing 118% with a total of 6.8 million lb produced compared to 3.1
million lb in 2011. Additionally, silver production increased by 53% in
2012 to 191,285 oz compared to 125,037 oz in 2011. This increase in
production was the result of increased throughput even though silver
grades decreased 35% to 24.58 g/t Ag in 2012 compared to 37.74 g/t Ag
in 2011. Despite this substantial increase in throughput during 2012,
zinc production decreased 37% to 9.1 million lb compared to 14.4
million lb in 2011. The decrease in zinc production resulted from a
lower head-grade of 1.81% in 2012 compared to 5.57% in 2011.
During the fourth quarter of 2012 total ore processed increased 93% with
a total of 93,704 tonnes processed (an average of 31,234 tonnes per
month) compared to 48,461 tonnes processed in the same period of 2011.
This resulted in copper production increasing 132% to 2.2 million lb in
the fourth quarter compared to 0.9 million in the same period 2011.
Additionally, silver production increased 96% with 55,143 oz produced
compared to 28,184 oz in the same period of 2011. Despite the
substantial increase in throughput during the fourth quarter, zinc
production declined 57% to 0.9 million lb compared to 2.1 million lb in
the same period of 2011. This decrease was the result of a 64% decline
in zinc grades to 0.94% in the fourth quarter of 2012 compared to 2.63%
in the same period of 2011.
A summary of production from the Bolivar Mine for the year-end and the
fourth quarter of 2012 have been provided below.
3 Months Ended Year ended Bolivar Production1 Dec 31, Dec 31, % Var. Dec 31, 2012 Dec 31, 2011 % Var. 2012 2011 Copper (000 2,163 933 132% 6,790 3,115 118% lb) Zinc (000 904 2,087 -57% 9,125 14,414 -37% lb) Silver (oz) 55,143 28,184 96% 191,285 125,037 53%
(1) For a detailed summary of production for the Bolivar Mine please click here.
Total production at Cusi increased 163% in 2012 with 84,027 tonnes
processed compared to 31,954 tonnes in 2011. The higher tonnage is
explained by the additional processing of 29,903 tonnes of tailings at
the Malpaso mill while Cusi’s material accounted for 54,125 tonnes. In
this context, the combined effect of historic tailings and Cusi’s
material during 2012 drove silver and lead grades down to 157 g/t and
0.50%, compared to 185 g/t and 0.90% in 2011, respectively.
Total production at Cusi increased 202% in the fourth quarter of 2012
with 26,550 tonnes processed compared to 8,804 tonnes in the same
period in 2011. The higher tonnage is explained by the additional
processing of 11,053 tonnes of historic tailings at the Mal Paso mill
while Cusi’s material accounted for 15,496 tonnes. In this context, the
combined effect of historic tailings and Cusi’s material during the
fourth quarter of 2012 drove silver and lead grades down to 154 g/t and
0.46%, compared to 192 g/t and 0.67% in the same period of 2011,
A summary of production from the Cusi operation for year-end and the
fourth quarter of 2012 have been provided below.
3 Months Ended Year ended Cusi Production1 Dec 31, Dec 31, % Var. Dec 31, 2012 Dec 31, 2011 % Var. 2012 2011 Silver (oz) 81,680 46,488 76% 285,479 159,587 79% Flotation 81,680 39,323 108% 281,296 131,328 114% Lixiviation 0 7,166 -100% 4,183 28,259 -85% Lead (000 lb) 126 90 40% 520 406 28%
(1) For a detailed summary of production for the Cusi Project please click here.
2013 Production Guidance
Sierra Metals is pleased to issue its production consolidated guidance
for 2013. The Company’s production estimates for 2013 have been
Consolidated Low High Silver (oz) 2,582,000 2,922,000 Copper (000 lb) 20,400 23,100 Zinc (000 lb) 53,700 60,700 Lead (000 lb) 42,400 48,000 Gold (oz) 6,000 7,000
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
and Senior Vice President, Exploration, for Sierra Metals, Inc.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on precious and
base metals from its Yauricocha mine in Peru and its Bolivar mine in
Mexico. The Company is also advancing its Cusi silver project in Mexico
from advanced development into commercial production. 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. 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 TSXV
under the symbol “SMT”.
This press release does not constitute an offer to sell or solicitation
of an offer to buy the securities in the United States or any other
jurisdiction. The Common Shares will not be and have not been
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements.
Neither the TSXV nor its Regulation Services Provider (as that term is
defined in policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
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.