VANCOUVER,
July 31, 2013 /CNW/ - Sierra
Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce that drilling and sampling at its
Bolivar copper-zinc-silver mine in Chihuahua State, Mexico, continues to demonstrate significant
mineralization outside the NI 43-101 resource volume. The
Bolivar NW area continues to return potentially-economic results
from both the Upper and Lower Skarn horizons, while surface
sampling shows the El Gallo body
is larger than previously recognized.
Press Release Highlights:
- Surface sampling at Old Mina de Fierro, located between the El
Gallo and Alta Ley areas, returned an average from 31 samples of
0.988 g/t gold, 42 g/t silver and 0.91% copper.
- Drill hole DB13B438 at Bolivar NW intercepted several zones of
mineralization, including 2.35 m true width averaging 1.049 g/t
gold, 176 g/t silver and 2.03% copper.
|
Daniel Tellechea,
President and CEO of Sierra Metals, commented: "Our
resource expansion efforts at Bolivar continue to return positive
results. Our current reserve and resources represent only a
portion of the mineralization we believe is present and will be
defined as we proceed with our operations at this attractive
property."
Surface Sampling
Most of the area between El Gallo and Alta Ley mines is scree covered
and there is limited bedrock exposure. An area about 100 m by
20-40 m above the Old Mina de Fierro exposes the Lower Skarn
Horizon (Gallo Inferior) and was sampled recently by the Company's
geologists (see Table A below; Tables 1-3). The sampled area
is located almost entirely outside the limit of the recent NI
43-101 - compliant Pre-Feasibility Study (see press release of
April 24, 2013). The Old Mina
de Fierro tunnel was also sampled (Table 4) as well as the new
access tunnel developed by the Company (Table 5). The sample
sites are shown on the map of the Old Mina de Fierro area
(http://files.newswire.ca/1167/Mina_de_Fierro.pdf). Table A
shows the average assay results for all of the samples in a
particular sampled area while the bold numbers indicate the
averages for the samples in that zone collected in the mineralized
zone.
Table A: Results of Sampling in the Old Mina
de Fierro Area
Table # |
# of Samples |
Gold, g/t |
Silver, g/t |
Copper, % |
Zinc, % |
Iron, % |
1 |
31 |
0.988 |
42 |
0.91 |
0.03 |
31.97 |
Note: |
27 |
1.107 |
45 |
0.96 |
0.03 |
32.87 |
2 |
10 |
0.633 |
52 |
1.48 |
0.11 |
17.08 |
Note: |
6 |
1.051 |
84 |
2.23 |
0.08 |
22.28 |
3 |
22 |
1.005 |
34 |
0.52 |
0.00 |
32.68 |
Note: |
17 |
1.184 |
39 |
0.56 |
0.01 |
33.54 |
4 |
11 |
0.110 |
11 |
0.88 |
0.10 |
12.78 |
Note: |
7 |
0.145 |
13 |
1.20 |
0.13 |
13.53 |
5 |
18 |
0.039 |
10 |
0.57 |
0.06 |
15.83 |
Note: |
4 |
0.753 |
29 |
1.46 |
0.03 |
28.79 |
Note: Samples in bold collected from the main mineralized
zone.
These results show that potentially-economic
widths of mineralization occur in the area. Although the area
between the new Mina de Fierro
tunnel and the sampled area is scree-covered, the Company's
geologists believe that the Lower Skarn horizon is mineralized
throughout this area and can eventually be mined from El Gallo to Alta Ley, yielding a larger volume
to the El Gallo deposit than that
currently identified.
Drilling from the access tunnel between
San Francisco (Alta Ley) and
El Gallo ore zones will be done to
determine the grades and widths of this zone along this
horizon.
Drilling, Bolivar NW
Drilling continues in the Bolivar NW area of the Alta Ley mine
of the Bolivar property and is returning potentially-economic
grades and widths
(http://files.newswire.ca/1167/Map_for_Bolivar_NW.pdf). Table B
below shows the results from recent drilling:
Table B: Selected Drill Results from the
Bolivar NW Area
Hole ID* |
From-To (m) |
Interval (m) |
Est. True Width (m) |
Cu% |
Zn % |
Au g/t |
Ag g/t |
Fe % |
Skarn |
441 |
241.35-247.65 |
6.30 |
5.43 |
0.10 |
8.45 |
0.067 |
5 |
11.44 |
|
|
254.95-260.95 |
6.00 |
5.16 |
0.63 |
2.96 |
0.293 |
18 |
18.03 |
|
438 |
261.1-263.7 |
2.60 |
2.49 |
0.97 |
0.01 |
0.537 |
76 |
7.67 |
|
|
266.7-269.15 |
2.45 |
2.35 |
2.03 |
0.13 |
1.049 |
176 |
6.11 |
|
|
271.65-273.35 |
1.70 |
1.62 |
1.27 |
0.09 |
0.645 |
114 |
4.71 |
|
|
299.50-303.95 |
4.45 |
4.27 |
0.09 |
3.08 |
0.225 |
8 |
4.47 |
|
|
528.55-530.00 |
1.45 |
1.39 |
1.30 |
0.03 |
0.294 |
6 |
19.50 |
|
Note *: all holes have prefix DB13B
Drilling in the Bolivar NW area has demonstrated
that an area over 600 x 300 meters in extent contains significant
widths of copper-zinc-gold-silver mineralization. Drill
spacing at this time is too wide to allow calculation of a 43-101
compliant resource but the Company plans to continue drilling this
attractive area with the objective of eventually commissioning a
resource update that will include the Bolivar NW area as well as
other areas outside the current resource volume.
Bolivar Mine
Bolívar comprises 12 mining concessions covering
approximately 6,616 hectares within the municipality of
Urique, in the Piedras Verdes mining district of Chihuahua, Mexico. During 2011, the Company
completed the construction of the Piedras Verdes Mill, which is
located only 6 kilometres from the Bolivar Mine and has an initial
capacity of 1,000 tpd, resulting in a declaration of commercial
production on November 29, 2011. A
construction project to increase production to 2,000 tpd is
expected to be completed in 2013.
During the past 3 months ending on June 30, 2013, Bolivar produced a daily average
of 1,010 tonnes at a grade of 1.23% Cu, 0.75% Zn and 30.3 g/t Ag
with respective recoveries of 85.21% for Cu, 44.92% Zn and 85.58%
Ag.
On April 17, 2013
a NI 43-101 compliant Prefeasibility Study (PFS) was released on
the Bolivar Mine. This updated reserves and resource calculation
has substantially increased the life of mine at Bolivar and shows
the upside of potential of the property at depth and along strike.
A summary of the NI 43-101 reserves and resources estimate can be
found on at www.sierrametals.com
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 Control
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.
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, 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 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.
TABLE 1. MINA
DE FIERRO |
No. |
SAMPLE |
Au
g/t |
Ag
g/t |
Cu
% |
Zn
% |
Fe
% |
|
3 |
122411 |
0.368 |
18 |
0.90 |
0.10 |
31.40 |
4 |
122412 |
0.226 |
30 |
0.90 |
0.10 |
34.60 |
5 |
122413 |
0.228 |
16 |
1.00 |
0.00 |
24.50 |
6 |
122414 |
0.346 |
28 |
1.00 |
0.00 |
21.90 |
7 |
122415 |
0.488 |
44 |
1.10 |
0.00 |
24.40 |
8 |
122416 |
0.716 |
26 |
0.70 |
0.00 |
28.00 |
9 |
122417 |
0.226 |
15 |
0.70 |
0.00 |
28.30 |
10 |
122418 |
0.206 |
22 |
0.80 |
0.00 |
20.60 |
11 |
122419 |
1.685 |
95 |
1.50 |
0.00 |
32.50 |
12 |
122420 |
1.27 |
36 |
1.00 |
0.00 |
33.10 |
13 |
122421 |
0.182 |
23 |
0.70 |
0.10 |
36.20 |
14 |
122422 |
0.168 |
15 |
0.80 |
0.00 |
36.40 |
15 |
122423 |
0.072 |
6 |
1.10 |
0.00 |
27.40 |
16 |
122424 |
0.053 |
6 |
0.40 |
0.00 |
16.60 |
17 |
122425 |
2.61 |
87 |
1.50 |
0.00 |
43.50 |
18 |
122426 |
0.603 |
46 |
0.70 |
0.00 |
44.00 |
19 |
122427 |
3.02 |
121 |
1.60 |
0.10 |
36.50 |
20 |
122428 |
0.424 |
34 |
1.00 |
0.10 |
46.00 |
21 |
122429 |
1.255 |
94 |
1.70 |
0.10 |
49.30 |
22 |
122430 |
0.707 |
32 |
0.80 |
0.00 |
44.60 |
23 |
122431 |
0.435 |
101 |
0.90 |
0.00 |
33.90 |
24 |
122432 |
1.25 |
50 |
0.90 |
0.10 |
40.80 |
25 |
122433 |
0.781 |
36 |
0.60 |
0.00 |
22.30 |
26 |
122434 |
10.45 |
110 |
0.70 |
0.00 |
31.00 |
27 |
122435 |
0.965 |
57 |
1.10 |
0.10 |
37.10 |
28 |
122436 |
0.789 |
33 |
0.60 |
0.00 |
30.10 |
29 |
122437 |
0.36 |
40 |
1.10 |
0.10 |
32.60 |
AVERAGES |
1.107 |
45 |
0.96 |
0.03 |
32.87 |
TABLE 2.
ARROYO MINA DE FIERRO |
No. |
SAMPLE |
Au
g/t |
Ag
g/t |
Cu
% |
Zn
% |
Fe
% |
|
36 |
745195 |
0.158 |
30 |
0.70 |
0.10 |
16.10 |
37 |
745196 |
0.083 |
25 |
0.60 |
0.00 |
15.40 |
38 |
745197 |
0.452 |
79 |
2.60 |
0.10 |
24.90 |
39 |
745198 |
0.554 |
33 |
1.30 |
0.10 |
29.30 |
40 |
745199 |
4.450 |
50 |
2.90 |
0.10 |
26.00 |
41 |
745200 |
0.606 |
284 |
5.30 |
0.10 |
22.00 |
AVERAGES |
1.051 |
84 |
2.23 |
0.08 |
22.28 |
TABLE 3. MINA
DE FIERRO II |
No. |
SAMPLE |
Au
g/t |
Ag
g/t |
Cu
% |
Zn
% |
Fe
% |
|
45 |
122310 |
1.440 |
36 |
0.60 |
0.00 |
42.80 |
46 |
122311 |
0.894 |
59 |
0.30 |
0.00 |
27.60 |
47 |
122312 |
0.741 |
61 |
0.40 |
0.00 |
47.70 |
48 |
122313 |
0.587 |
12 |
0.30 |
0.00 |
46.60 |
49 |
122314 |
0.201 |
19 |
0.20 |
0.00 |
47.30 |
50 |
122315 |
0.420 |
38 |
0.80 |
0.00 |
33.10 |
51 |
122316 |
0.648 |
31 |
0.50 |
0.00 |
21.70 |
52 |
122317 |
0.495 |
26 |
0.60 |
0.00 |
23.60 |
53 |
122318 |
0.972 |
27 |
0.70 |
0.00 |
19.50 |
54 |
122319 |
1.660 |
48 |
0.60 |
0.00 |
30.40 |
55 |
122320 |
0.268 |
3 |
0.10 |
0.00 |
37.10 |
56 |
122321 |
2.510 |
46 |
0.80 |
0.00 |
37.60 |
57 |
122322 |
0.819 |
28 |
0.60 |
0.10 |
30.50 |
58 |
122323 |
2.600 |
97 |
1.20 |
0.00 |
40.70 |
59 |
122324 |
3.570 |
78 |
1.00 |
0.00 |
32.90 |
60 |
122325 |
0.538 |
12 |
0.40 |
0.00 |
29.00 |
61 |
122326 |
1.765 |
49 |
0.50 |
0.00 |
23.80 |
AVERAGES |
1.184 |
39 |
0.56 |
0.01 |
33.64 |
TABLE 4.
INTERIOR MINA DE FE |
No. |
SAMPLE |
Au
g/t |
Ag
g/t |
Cu
% |
Zn
% |
Fe
% |
|
64 |
112801 |
0.721 |
25 |
4.80 |
0.10 |
36.60 |
65 |
112802 |
0.124 |
7 |
1.20 |
0.20 |
22.40 |
66 |
112803 |
0.061 |
21 |
0.70 |
0.10 |
14.50 |
67 |
112804 |
0.009 |
4 |
0.20 |
0.10 |
3.00 |
68 |
112805 |
0.010 |
6 |
0.30 |
0.10 |
1.80 |
69 |
122440 |
0.036 |
10 |
0.40 |
0.20 |
3.80 |
70 |
122441 |
0.055 |
18 |
0.80 |
0.10 |
12.60 |
AVERAGES |
0.145 |
13 |
1.20 |
0.13 |
13.53 |
TABLE 5.
ALTERACION EN SUPERFICIE |
No. |
SAMPLE |
Ancho
(m) |
Au
g/t |
Ag
g/t |
Cu
% |
Zn
% |
Fe
% |
|
1 |
8440 |
0.70 |
0.005 |
1 |
0.14 |
0.02 |
1.82 |
2 |
8441 |
1.50 |
0.512 |
17 |
1.04 |
0.03 |
28.60 |
3 |
8442 |
1.70 |
0.061 |
5 |
1.50 |
0.03 |
26.40 |
4 |
8443 |
1.60 |
2.040 |
80 |
2.40 |
0.03 |
43.30 |
AVERAGES |
5.5 |
0.753 |
29 |
1.46 |
0.03 |
28.79 |
SOURCE Sierra Metals Inc.
PDF available at:
http://stream1.newswire.ca/media/2013/07/31/20130731_C2621_DOC_EN_29407.pdf
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http://stream1.newswire.ca/media/2013/07/31/20130731_C2621_DOC_EN_29408.pdf
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