Mineralization extended over 600 m from the Alta Ley and El Gallo areas of Sierra Metals’ Bolivar Mine, Chihuahua Mexico
VANCOUVER, May 14, 2013 /PRNewswire/ – Sierra Metals Inc. (TSX-V:SMT) (BVL:SMT) (“Sierra Metals” or the “Company” previously Dia
Bras Exploration) is pleased to announce that drilling has encountered
wide zones of mineralization in both the Upper and Lower Skarn horizons
located 600 m northwest of the major ore-hosting zones of the Bolivar
(Alta Ley) Mine. In addition, step-out drilling from the El Gallo
deposit has extended that mineralized zone 600 m to the northeast with
high grades of zinc in the Upper Skarn horizon.
____________________________________________________________________ |Press Release Highlights | | | | -- At Bolivar Northwest ("Bolivar NW"), drill hole DB13B433 cut| | 7.05 m core length averaging 1.552 g/t gold, 53 g/t silver, | | 0.55% copper and 1.15% zinc, including 5.5 m averaging 1.914| | g/t gold, 64 g/t silver, 0.66% copper and 1.38% zinc. | | -- Drilling in the Bolivar NW area has extended mineralization | | 600 m from Alta Ley over an area of 600 m by 250 m, which is| | open to the northwest and northeast. | | -- In the Step Out area northeast of El Gallo, drill hole | | DB12B416 cut 10.8 m core length averaging 0.89% copper and | | greater than 9.66% zinc, including 3.2 m averaging 2.91% | | copper and greater than 30% zinc (30% being the assay limit;| | re-assays pending). | | -- The Step Out area is located 600 m northeast of the El Gallo| | mining area near the IncreÃble Mine where two prominent | | NNW-trending faults, the Nathalie and Fernandez Faults, | |________converge_on_the_area._______________________________________|
Daniel Tellechea, President and CEO of Sierra Metals, commented: “Sierra Metals continues to expand the Bolivar ore deposits through its
aggressive exploration drilling program. These results support our
contention that the Bolivar mine is only partially explored and that
significant additional mineralization remains to be discovered. While
our recent reserves statement provided a snapshot of Bolivar’s
mineralization at that time, we expect to increase reserves and
resources during this year with the objective of commissioning a NI
43-101 update at the end of 2013.”
Recent Drilling Results
Bolivar NW Area: This area (http://files.newswire.ca/1167/EN-1SMMay14013.jpg) is located northwest of the Alta Ley Mine and hosts manto-type
mineralization in both the Upper and Lower Skarns, which are the
prominent mineralized horizons in the Bolivar Mine area. Very little
drilling had been done in this area before this year and results to
date indicate the mineralized horizons extend hundreds of meters to the
northwest and northeast.
Assay results are shown in the table below:
_____________________________________________________________________ | | | |Est. | | | | | | | |Hole | From-To (m) |Interval|True |Cu% |Zn %| Au |Ag g/t|Fe % |Skarn| | ID* | | (m) |Width| | | g/t | | | | | | | | (m) | | | | | | | |_____|_____________|________|_____|____|____|_____|______|_____|_____| | 425 |275.45-280.50| 5.05 |4.54 |0.25|2.34|0.082| 14 |4.86 |Upper| |_____|_____________|________|_____|____|____|_____|______|_____|_____| | |315.30-318.15| 2.85 |2.56 |0.06|1.13|0.013| 3 |1.48 | " | |_____|_____________|________|_____|____|____|_____|______|_____|_____| | |328.80-333.90| 5.10 |4.59 |0.14|5.80|0.054| 9 |7.69 | " | |_____|_____________|________|_____|____|____|_____|______|_____|_____| | |346.30-354.75| 8.45 |7.61 |2.59|0.27|0.906| 3 |27.62|Lower| |_____|_____________|________|_____|____|____|_____|______|_____|_____| |Incl.|346.30-350.25| 3.95|3.55 |3.92|0.49|1.471| 50|36.92| " | |_____|_____________|________|_____|____|____|_____|______|_____|_____| | |417.10-425.95| 8.85 |7.97 |0.91|0.03|0.421| 8 |10.84| " | |_____|_____________|________|_____|____|____|_____|______|_____|_____| | 428 |395.55-415.70| 20.15 |16.93|0.96|0.05|0.831| 9 |22.56| " | |_____|_____________|________|_____|____|____|_____|______|_____|_____| |Incl.|398.95-404.30| 5.35|4.49 |1.66|0.10|2.125| 20|37.42|Lower| |_____|_____________|________|_____|____|____|_____|______|_____|_____| | 430 |288.70-293.70| 5.00 |4.54 |1.12|0.02|0.831| 24 |14.03|Upper| |_____|_____________|________|_____|____|____|_____|______|_____|_____| | 432 |275.70-279.05| 3.35 |2.93 |1.24|0.02|0.163| 36 |13.17|Upper| |_____|_____________|________|_____|____|____|_____|______|_____|_____| | 433 |268.90-271.65| 2.75 |1.63 |1.86|0.21|0.324| 103 |7.84 |Lower| |_____|_____________|________|_____|____|____|_____|______|_____|_____| | |328.55-335.60| 7.05 |4.18 |0.55|1.15|1.552| 53 |7.72 |Lower| |_____|_____________|________|_____|____|____|_____|______|_____|_____| |Incl.|330.10-335.60| 5.50|3.26 |0.66|1.38|1.914| 64| 8.36|Lower| |_____|_____________|________|_____|____|____|_____|______|_____|_____| |Incl.|332.95-334.10| 1.15|0.68 |1.58|1.52|5.170| 113| 8.78|Lower| |_____|_____________|________|_____|____|____|_____|______|_____|_____|
Note *: all holes have prefix DB13B
Sections DB13B425 and DB13B433 show the relationships of these drill holes and their mineralized
intervals. From the Alta Ley mine to the northwest, the mineralized
horizons extend for at least 600 m to the northwest and for a width of
at least 250 m.
“Step Out” Area: This area is located 600 m northeast of the El Gallo deposit which is
one of the areas currently being mined by the Company. These drill
holes were placed where the Nathalie and Fernandez Trend faults
converge, and where the IncreÃble breccia pipe occurs. The high zinc
values in these holes demonstrate that the Upper Skarn horizon, the
same horizon that hosted high grades of copper and zinc in the Alta Ley
Mine, is strongly mineralized in this area.
For example, the intercepts in holes 416 & 424, combined with 426
(assays pending) indicate a 100-m long zone of Upper Skarn zinc
mineralization that is open both directions along strike and to depth.
Additional drilling will be done to determine the extent of this zone.
These holes were drilled towards the IncreÃble breccia pipe in a
north-westerly direction and were not oriented properly to test
mineralization related to the Nathalie Fault but did intercept
“high-value” skarn mineralization of the type targeted in the Company’s
drill program for 2013. These intercepts, however, are in the area
that is inferred to host “high-value” deposits, namely in the vicinity
of the Nathalie Fault.
New holes in progress are oriented specifically to test for “high-value”
deposits and drilling is planned to continue through 2013 with the
objective of discovering “high-value” deposits, namely deposits with
Cu+Zn grades of 15-20%, the type encountered in drill hole 416.
Drill results include the following:
_________________________________________________________________________ | | | |Est. | | | | | | | |Hole | From-To (m) |Interval|True |Cu% | Zn % | Au |Ag |Fe % | Skarn | | ID* | | (m) |Width| | | g/t |g/t| | | | | | | (m) | | | | | | | |_____|_____________|________|_____|____|________|_____|___|_____|________| | 416 |276.55-287.35| 10.80 |6.61 |0.89|>9.66** |0.017| 7 |2.48 | Upper | |_____|_____________|________|_____|____|________|_____|___|_____|________| |Incl.|282.80-286.00| 3.20|1.96 |2.91|>30.00**|0.052| 21| 3.30| " | |_____|_____________|________|_____|____|________|_____|___|_____|________| | |562.90-577.55| 4.55 |2.78 |0.82| 0.04 |0.327| 9 |19.95| Lower | |_____|_____________|________|_____|____|________|_____|___|_____|________| | 417 |107.65-113.55| 5.90 |2.43 |0.09| 1.49 |0.003| 7 |3.47 | Upper | |_____|_____________|________|_____|____|________|_____|___|_____|________| | |143.50-149.75| 6.25 |3.75 |0.00| 1.91 |0.003| 0 |2.90 | Upper | |_____|_____________|________|_____|____|________|_____|___|_____|________| | 420 |206.95-223.00| 16.00 |11.47|0.18| 4.56 |0.017|15 |1.32 | Upper | |_____|_____________|________|_____|____|________|_____|___|_____|________| |Incl.|213.10-221.70| 8.60|6.17 |0.32| 7.85|0.029| 27| 1.58| " | |_____|_____________|________|_____|____|________|_____|___|_____|________| |Incl.|219.00-221.70| 2.70|1.93 |0.29| 16.90|0.080| 63| 2.07| " | |_____|_____________|________|_____|____|________|_____|___|_____|________| | |264.65-268.25| 3.60 |2.58 |1.45| 7.99 |0.007|17 |2.37 | Upper | |_____|_____________|________|_____|____|________|_____|___|_____|________| | 421 |472.55-476.60| 4.05 |2.13 |0.85| 0.93 |0.062|22 |3.31 | Lower | |_____|_____________|________|_____|____|________|_____|___|_____|________| | 424 |339.75-346.05| 6.30 |3.86 |0.02| 11.60 |0.017| 5 |3.68 |Chimney?| |_____|_____________|________|_____|____|________|_____|___|_____|________|
Note *: all holes have prefix DB12B; ** assay upper limit is 30.00% zinc
Drilling up to 600 m both to the northwest and northeast of the
Company’s active mining areas of El Gallo and Alta Ley has shown
potentially mineable ore grades and widths in the Upper and Lower Skarn
horizons, clearly demonstrating that the limits of mineralization have
not been reached.
Management of Sierra Metals believes that the deposits at El Gallo, Alta
Ley and other areas have additional potential for expansion and the
Company is conducting an aggressive drilling program to explore these
The ongoing drilling program will continue to test these new mineralized
horizons and high value targets. Two drills are currently in operation
on the surface and one drill underground; 14,970 meters are scheduled
to be drilled in 2013.
The 7.46 million tonnes of Proven and Probable Reserves grading 19.52
g/t Ag, 0.76% Cu, 0.33% Zn and 0.12 g/t Au (see press release of April
24, 2013), and 15.40 million tonnes of Measure and Indicated Resources
grading 19.45 g/t Ag, 0.79% Cu, 1.06% Zn and 0.24 g/t Au (see press
release of August 30, 2012) at Bolivar represent a significant but
unknown portion of the extensive mineralization that occurs in the
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 HQ-size and NQ-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
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 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.