TSX EXCHANGE: SMT
LIMA STOCK EXCHANGE: SMT
TORONTO, July 9, 2013 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to
report that the Company drilling has extended the Veta del Contacto to
a depth extent of over 700 m. In addition, detailed geologic mapping
has identified two areas of wide silicification and veining at vein
intersections, which are high-priority drill targets.
Press Release Highlights:
Drill hole DC12B575 cut 4.0 m true width of Veta del Contacto averaging
709 g/t silver and 2.12% lead.
Drill hole DC12B578 cut 1.0 m true width of Veta del Contacto averaging
459 g/t silver, 4.04 g/t gold and 1.81 % lead.
Geologic mapping in the San Juan area reveals a broad zone of
silicification and veining at the intersection of the San Juan and Las
Margaritas veins. Another zone of silicification occurs at the
intersection of the La Gloria and Minerva veins.
"Drilling and geologic mapping continue to demonstrate the upside
potential of the Cusi property", stated Daniel Tellechea, President &
CEO of Sierra Metals. "The results from Veta del Contacto are
especially relevant because our underground workings in the Promontorio
mine are only meters away from reaching this vein and the new drill
results extend the silver mineralization from the surface to 700 meters
depth and the vein is open at depth. Our geologists' structural
interpretation of this vein indicates significant potential mining
While aggressively pursuing its target of reaching 500 tonnes per day
production from the Cusi property (see press release of May 28, 2013)
the Company's geologic mapping has successfully identified areas with
extensive potential for additional mineralization.
Drilling Expands Veta del Contacto
Drilling northeast of the Promontorio shaft (Figure 1) with the objective of expanding the size of Veta del Contacto has
demonstrated that the vein extends from the surface to at least 700 m
down dip, has a strike length of about 250 m, and averages 1.95 m in
width. The vein is open in both directions and to depth. Portions of
the vein are wider where the vein flattens, perhaps controlled by a
listric fault, where dilational zones occur. This relationship is
shown in the 3D perspective view of Veta del Contacto (Figure 2).
Table 1: Selected Drill Samples from Cusi project, Chihuahua
V. del Contacto
V. del Contacto
V. del Contacto
Drill hole 624 is in progress with the objective of confirming the
flattening of Veta del Contacto.
It is possible that the wide intercept in hole 509 (753 g/t silver over
49 m core length (±6 m true width); see press release of December 13,
2012), in Santa Rosa de Lima about 200 meters to the SE of Veta del
Contacto, is in a similar dilational zone. At this time, the Company
does not have sufficient drill data to determine if these two
mineralized areas are connected.
Results of Geologic Mapping
The Company has been conducting geologic mapping in higher-priority
areas of the Cusi property. Recent results have identified two areas
with the potential to host significant mineralization.
San Juan - Las Margaritas Veins: This area lies southwest of the San Juan Mine (Figure 3) that the Company is planning to begin mining late this year. These
two veins merge SW of the San Juan mine and form an area of about 200 x
50 m with extensive quartz veining and silicification. This broad zone
of intersection will be sampled in detail prior to drilling. Vein
intersections of this type can host large volumes of mineralized rock.
La Gloria - Minerva Veins: The La Gloria Vein is a NNE-trending vein in the central part of the
Company's active mining and exploration activities, and trends into the
San Nicolas and Minerva Veins. The La Gloria vein's zone of
silicification expands strongly near its intersection with the Minerva
vein and forms an area 30-35 m wide and about 100 m long characterized
by multiple quartz veinlets and stringers. This "blowout" of the La
Gloria vein is an excellent exploration target and will be tested by
drilling. In addition, the new access ramp into the Minerva vein will
be extended to this area as an underground pilot mining exercise.
The Cusi property has an historical production of 100-200 million ounces
of silver between 1680 and 1940. Production was interrupted multiple
times by Indian raids, wars, revolution, depression, etc. Historical
operators needed grades of 1,000 g/t silver or more to be economic and
many areas were left un-mined. There are multiple high-grade silver
veins open to depth.
Recent drilling in extension of stockwork zone cut high-grade silver
over wide widths; e.g., 49 m @ 753 g/t Ag (true width ± 6 m). In 2012,
pilot mining production at Cusi consisted of 54,125t @ 185 g/t silver
and 0.57% lead (avg. 170 tpd). Commercial production was announced on
January 1, 2013. Mining is done by cut-and-fill method. The Company
plans to release a NI 43-101 complaint resources report in Q3 2013.
The Company's objective for the Cusi property in 2013 is to advance
underground development from five mines, the Santa Eduwiges,
Promontorio, La India, Minerva and San Juan Mines to allow mining and
development both laterally and at depth. This will bring to five the
total of producing mines at the Cusi project. Management believes that
Cusi is only starting to reveal its full silver potential.
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
NQ-size and BQ-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. Assays for Ag, Pb, Zn, Cu
and trace elements are analyzed by Induction Coupled Plasma (ICP-41) on
50g split sample at the ALS Chemex North Vancouver Laboratory.
Over-limits of Ag and base metals are assayed by OG-46 method. Higher
results of Au & Ag are assayed by GRA-21 method.
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
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 TSX 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 TSX nor its Regulation Services Provider (as that term is
defined in policies of the TSX) 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.
PDF available at: http://stream1.newswire.ca/media/2013/07/09/20130709_C6174_DOC_EN_28883.pdf
PDF available at: http://stream1.newswire.ca/media/2013/07/09/20130709_C6174_DOC_EN_28884.pdf
PDF available at: http://stream1.newswire.ca/media/2013/07/09/20130709_C6174_DOC_EN_28885.pdf
SOURCE: Sierra Metals Inc.
For further information:
For further information on Sierra Metals, please visit www.sierrametals.com or contact:
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646