VANCOUVER, May 14, 2013 /CNW/ - 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 Increíble 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:
Hole
ID* |
From-To (m) |
Interval
(m) |
Est. True
Width
(m) |
Cu% |
Zn % |
Au g/t |
Ag g/t |
Fe % |
Skarn |
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
Increíble 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 Increíble 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:
Hole
ID* |
From-To (m) |
Interval
(m) |
Est. True
Width
(m) |
Cu% |
Zn % |
Au g/t |
Ag g/t |
Fe % |
Skarn |
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 |
Implications
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 areas
further.
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 area.
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 Chemex.
Quality Assurance
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.
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.
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