Sierra Metals announces record first quarter 2013 production results
TORONTO, April 30, 2013 /PRNewswire/ – Sierra Metals Inc. (TSX-V:SMT) (BVL:SMT)
(“Sierra” or the “Company”) is pleased to announce its production results for the first quarter of
_____________________________________________________________________ | | |Press Release Highlights: | | | | | | -- Total tonnes processed of 317,637 in the first quarter of | | 2013 compared to 286,022 tonnes in the same period of 2012. | | An 11% increase year-over-year. | | -- Total silver ("Ag") production of 610,407 ounces ("oz") in | | the first quarter of 2013 compared to 584,284 oz for the same| | period of 2012. A 4% increase year-over-year. | | -- Total copper ("Cu") production of 4.1 million pounds ("lb") | | in the first quarter of 2013 compared to 3.9 million lb for | | the same period of 2012. A 5% increase year-over-year. | | -- Total lead ("Pb") production of 8.6 million lb in the first | | quarter of 2013 compared to 7.9 million lb for the same | | period of 2012. An 8% increase year-over-year. | | -- Total zinc ("Zn") production of 13.3 million lb in the first | | quarter of 2013 compared to 13.6 million lb for the same | | period of 2012. A 2% decrease year-over-year. | | -- Total gold ("Au") production from the Yauricocha Mine was | | 1,598 ounces in the first quarter 2013 compared to 3,025 | | ounces for the same period of 2012. A 47% decrease | |________year-over-year.______________________________________________|
Daniel Tellechea, President and CEO of Sierra Metals, commented: “We are pleased with the production results from all operations during
the first quarter of 2013 and they remain in line with Sierra’s 2013
production guidance. The Company is focused on expanding throughput at
its Bolivar and Cusi mines in the first half of this year and remains
dedicated to increasing global reserves and resources while adding
value through production growth. Sierra continues to strive towards its
objective of becoming a premier, low-cost precious and base metals
mining company in Latin America.”
Sierra Metals achieved strong production results in the first quarter of
2013. The main drivers of this year-over-year increase were 1) the
realization of operating efficiencies at the Bolivar mine, and 2) the
Cusi mine achieving commercial production as of January 1, 2013. Both
of these achievements are part of the Company’s growth strategy to
expand production in Mexico during 2013.
During the first quarter of 2013, the Company achieved a total of
317,637 tonnes of ore processed (compared to 286,022 tonnes in 2012)
from all operations, representing an 11% increase year-over-year. A
summarized table of consolidated production results is presented below.
3 Months Ended Consolidated Production March 31, 2013 March 31, 2012 % Var. Silver (oz) 610,407 584,284 4% Copper (000 lb) 4,060 3,878 5% Lead (000 lb) 8,528 7,930 8% Zinc (000 lb) 13,304 13,622 -2% Gold (oz) 1,598 3,025 -47%
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the Company’s largest producing mine
with a total of 214,867 tonnes processed in the first quarter of 2013
(compared to 211,937 tonnes in 2012). Mineralization at the Yauricocha
Mine is hosted in three different zones including the Copper,
Lead-Oxide (“Oxides”) and Polymetallic ore-bodies.
During the first quarter of 2013, aggregate production of these ore
bodies was 474,601 oz of silver, 2.2 million lb of copper, 8.4 million
lb of lead, 13.0 million lb of zinc and 1,598 oz of gold. A summary of
production from the Yauricocha Mine for the first quarter of 2013 has
been provided below.
3 Months Ended Yauricocha Production1 March 31, 2013 March 31, 2012 % Var. Silver (oz) 474,601 492,432 -4% Copper (000 lb) 2,175 2,634 -17% Lead (000 lb) 8,379 7,846 7% Zinc (000 lb) 13,045 10,485 24% Gold (oz) 1,598 3,025 -47%
(1 )For a detailed summary of production table for the Yauricocha Mine
please click here.
In January 2013, the Company began the “Pique Yauricocha project”. This
project includes the construction of a new haulage tunnel at the 720
Level and the installation of a new internal shaft that will be sunk
from the tunnel. This project will allow the Company to access deeper
levels of the Central Mine Area and also eliminate operational
bottlenecks enabling Yauricocha to increase production levels. The
anticipated completion date of the Pique Yauricocha is the second half
Bolivar Mine, Mexico
During the first quarter of 2013 total ore processed at the Bolivar Mine
increased 20% with 74,455 tonnes compared to 61,949 tonnes in the first
quarter of 2012. As a result, production of silver increased 22%
year-over-year with a total of 54,062 oz (compared to 44,359 oz in
2012) and total copper production increased 52% year-over-year with 1.9
million lb produced (compared to 1.2 million lb in 2012). Despite the
substantial increase in throughput during the first quarter of 2013,
zinc production decreased 92% year-over-year to 0.3 million lb
(compared to 3.1 million lb in 2012) as a result of a lower head grade
of 0.6% Zn in 2013 (compared to 2.9% Zn in 2012). A summary of
production from the Bolivar Mine for the first quarter of 2013 has been
3 Months Ended Bolivar Production1 March 31, 2013 March 31, 2012 % Var. Copper production (000 lb) 1,885 1,244 52% Zinc production (000 lb) 259 3,137 -92% Silver production (oz) 54,062 44,359 22%
(1 )For a detailed summary of production table for the Bolivar Mine please click here.
The Company is currently focused on expanding throughput at the Piedras
Verdes Mill, located 6 km away from the Bolivar mine, from 1,000 tonnes
per day (“tpd”) to 2,000 tpd in the second quarter of 2013.
Cusi Mine, Mexico
On January 1, 2013 the Company announced that Cusi achieved commercial
production and during the first quarter of 2013 processed 28,315 tonnes
of ore (compared to 12,136 tonnes in 2012) representing a 133% increase
year-over-year. During the first quarter of 2013 Cusi produced 81,744
oz of silver compared to 44,705 oz of silver in 2012. This substantial
increase in tonnage processed was planned to offset projected decreases
in head-grades for silver and lead. Head grades for silver and lead
were 142 g/t Ag and 0.43% Pb during the first quarter of 2013, compared
to 157 g/t Ag and 0.52% Pb for the same period in 2012. A summary of
production from Cusi’s mining operations for the first quarter of 2013
has been provided below.
3 Months Ended Cusi Production1 March 31, 2013 March 31, 2012 % Var. Silver (oz) 81,744 47,493 72% Flotation 81,744 44,705 83% Leaching 0 2,788 -100% Lead (000 lb) 149 84 77%
(1)For a detailed summary of production table for the Cusi Pilot-Mining
operation please click here.
Currently, the Company is in the midst of a substantial exploration and
development program at Cusi that will focus on expanding production
from Promontorio and adding new production from the San Juan, Minerva
and La India mines by the end of 2013. Additionally, the Company
anticipates completing an updated NI 43-101 resource calculation on the
property in the third quarter of 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
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 and Cusi
mines 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 common shares trade on the Bolsa de Valores de Lima and
the TSXV under the symbol “SMT”.
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.