Sierra Metals Develops Another High-Grade Silver-Gold Vein at its Cusi Mine, Chihuahua, Mexico

April 16, 2014

VANCOUVER, April 16, 2014 /PRNewswire/ – Sierra Metals Inc. (TSX:SMT)(BVL:SMT) (“Sierra Metals” or the “Company”) is pleased to
announce that development is proceeding at the Monaco vein of its Santa
Eduwiges mine in the Cusi district, Chihuahua, Mexico. Levels 1, 3 and
4 and being prepared for stoping and a ramp is being driven to Level 5.

    |Press Release Highlights:                                            |
    |                                                                     |
    |                                                                     |
    |    --  The Monaco shoot contains high grades of silver and gold from|
    |        the surface to Mine Level 4, a vertical distance of 170      |
    |        meters, and is open to depth.                                |
    |                                                                     |
    |    --  Gold grades range from 4-7 g/t and silver grades range from  |
    |        400-780 g/t in the newly-developed levels (e.g. Level 4).    |
    |                                                                     |
    |    --  The Company plans to mine the Monaco shoot from Level 1 to   |
    |        the surface, a vertical distance of 120 meters, and below    |
    |        Level 1 to a depth that is yet to be determined.             |
    |                                                                     |
    |    --  A ramp is being driven from Level 4 to Level 5, and will be  |

“The development of the Monaco shoot is only part of our plan to develop
more production faces at the Santa Eduwiges mine”, stated Daniel
Tellechea, President & CEO of Sierra Metals. “The high silver and gold
grades in this area will complement the higher silver grades being
mined from other levels in the Santa Eduwiges and Promontorio mines.
As we develop our veins to the southwest of the San Nicolas fault we
find that gold values increase markedly over those northeast of the
fault. Because we have thousands of meters of strike length of veins
to the southwest to explore and develop, we expect to increase our gold
resources significantly over time.”

Milagro Vein: The Monaco shoot of the Milagro vein (Figure 1) has been sampled on the surface, in an old drift (Milagro drift) and
on four mine levels by geologists of the Company. The results are
shown in the table below:

Table 1: Grades of Gold and Silver from Various Levels of the Monaco

    |      Zone  | Sampled |Average |# Back |Ag g/t|Au g/t|Pb% |Depth from|
    |            |Length, m|Width, m|Samples|      |      |    |Surface, m|
    |   Surface  |     78  |   1.00 |   16  |  104 | 0.08 |4.90|      0   |
    |   Milagro  |     74  |   1.20 |   15  |  210 | 1.20 |3.50|    0-15  |
    |    drift   |         |        |       |      |      |    |          |
    |   Level 1  |     35  |   1.05 |   11  |  134 | 0.19 |3.09|     120  |
    |Level 1 Ramp|     24  |   1.20 |   10  |  403 | 4.25 |1.86|     140  |
    |  Level 3.5 |     48  |   1.40 |   16  |  557 | 5.90 |2.30|     160  |
    |   Level 4  |     35  |   1.35 |   15  |  784 | 7.17 |1.78|     170  |

These results are from within the volume of the recently reported NI
43-101 resource for Cusi (see press release dated March 27, 2104) and
do not significantly change the tonnage of the resource. The denser
spacing of samples from the mine levels will result in a higher amount
of contained ounces but due to the limited volume of the area under
development, the contained ounces are not materially increased. These
results, however, indicate that as development continues, more
high-grade zones may be discovered.

Drifting continues on all four levels and the Monaco shoot is still open
in both directions. When the drifts reach the ends of the shoot,
stoping will begin. In addition, the miners have observed that the
shoot becomes more coherent, wider and higher grade with depth.

A ramp is being driven from Level 4 to Level 5, and will be continued to
greater depths to access the deeper portions of this shoot.

The Company has drifted only 250 meters along the Milagro vein to access
the Monaco shoot and surface sampling demonstrates that another shoot
occurs 180 meters to the southwest of Monaco. Surface sampling of this
shoot yielded the following results:

Table 2: Surface Sample Results from a Shoot on the Milagro Vein

    |  Zone | Sampled |Average |# Samples|Ag g/t|Au g/t|Pb% |Depth from|
    |       |Length, m|Width, m|         |      |      |    |Surface, m|
    |Surface|     25  |   0.77 |      6  |  412 | 0.09 |0.05|      0   |

The Milagro vein is a 1-kilometer-long vein that splays off the
3-kilometer-long La Gloria Vein (Figure 2), where surface sampling has also shown high grades of silver on the
surface (see press release dated September 9, 2013). These veins extend
from the San Nicolas structure in the northeast to a major bounding
fault in the southwest.

There remains an additional 2,500 meters of strike length of the
Milagro/La Gloria vein system to be explored by the Company. More ore
shoots are expected to be discovered as work progresses. In addition,
other veins such as the San Juan/Margaritas, San Ignacio, El Gallo and
San Rafael veins are each exposed over several kilometers of strike
length but have only been mapped and sampled on the surface.

The appearance of gold in veins southwest of the San Nicolas structure,
such as Minerva and Milagro, indicates that mineralization in these
veins is from higher levels in the epithermal precious metals zone.
The Company’s geologists infer that ore shoots with significant
vertical extents will be discovered in these veins.

Santa Marina Vein: Development of the Santa Eduwiges mine has exposed over a 50 meter
length the convergence of the Santa Marina vein and San Bartolo veins
with Veins A, B & C (the alphabet veins of Santa Eduwiges). Drifting
continues along the 50-meter-long and 20-meter-wide zone of convergence
to determine its complete length. Figure 3 is a map of Level 10 that shows the current production areas.

The three alphabet veins are each 2 meters wide and separated by
2-meter-wide zones of country rock, yielding a 10-meter-wide
mineralized zone that averages 250 g/t silver. Mining of the
10-meter-wide zone will begin once the boundaries of the zone are

Mexicana Vein: A ramp is being driven from Level 10 to Level 12 and is presently 20
meters under Level 10. The ramp is now being driven through a zone
that averages 90 g/t silver, 2% lead and 3% zinc.

Stoping from Level 10 will begin in June while mining from Level 11 will
begin in December. Level 12 is planned to be mined in 2015.

Method of Analysis

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 Assurance

The technical content of this news release has been approved by Thomas
L. Robyn, Ph.D., CPG, RPG, and a Qualified Person as defined in NI

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 and La Verde (gold) at
the Batopilas Property in the state of Chihuahua.

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.

SOURCE Sierra Metals Inc.

Source: PR Newswire

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