TORONTO, Dec. 13, 2012 /CNW/ - Sierra Metals Inc. (TSX-V:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to
report that drilling at the Promontorio Mine of its Cusi property has
encountered high grade silver mineralization over wide widths in what
the Company believes is a previously-unknown vein within a deeper
portion of the mine's disseminated zone.
Press Release Highlights:
Drill hole DC12B509 penetrated 48.85 m (core length) averaging 753 g/t
silver that includes a 33.8 m interval averaging 1,058 g/t silver.
Development on Level 9 of the Promontorio mine has encountered high
grade veins in the disseminated zone, with values up to 3,351 g/t Ag
over 1.1 m.
"Drill hole 509 is the most impressive in the company's history for its
combination of core length (48.85m) and silver grade (average 753 grams
per tonne) and demonstrates that the Promontorio mine area contains
excellent discovery potential." stated Daniel Tellechea, President and
CEO of Dia Bras Exploration. "This intercept is the only 100 meters
laterally and 100 meters vertically from our Level 9 workings and more
drilling will be done to plan our development of this exciting area.
This discovery is significant because the existing infrastructure at
Level 9 can provide early access to these new high-grade zones. In
fact, mine development work on Level 9 of Promontorio is encountering
excellent grades in the disseminated-silver rock as well as
previously-unknown high grade veins within the disseminated zone."
As part of the Company's more aggressive exploration and development
program for the Cusi property approved earlier in the year, during
November, 2012 the Company drilled a total of 4,002 metres at the Cusi
project. A total of 2,904 metres was drilled from the surface and
1,098 metres underground. For surface holes, two were drilled on the
San Ignacio-El Gallo vein, one on Promontorio Viejo vein, and four at
Santa Eduwiges area on the San Bartolo vein. For underground holes,
three were drilled from Level 1 of the Promontorio mine and three from
Level 10 of the Santa Eduwiges mine.
Assay results have been received for two holes drilled in the Cuerpo
Oriente area of the Promontorio mine and the results are shown below.
In each hole, only one intercept has been made and the true width and
orientation of the mineralized zones are not known at this time but are
inferred to be about 30-40% of the core length. Additional drilling is
planned to determine these factors.
A drill hole location map can be found at http://files.newswire.ca/1167/drillhole.pdf while a cross section can be found at http://files.newswire.ca/1167/509-520.pdf.
* All holes have prefix DC12
** Only one hole has penetrated each mineralized zone and the true width
and orientation of the bodies is not known at this time. Additional
drilling is planned.
Ramp development continues from Level 5 towards Level 6, with about 45
meters more development required to reach Level 6. This ramp is
important because it provides access from the surface to the higher
levels of the silver disseminated area at Promontorio which start at
Frente 800 SW (Level 2) advanced 22 metres on the El Gallo vein and back
samples over a length of 10 metres and 1.21 metres width yielded the
following results: 149 g/t Ag, 0.63% Pb and 0.09% Zn.
Frente 972 NE (Level 5) advanced along the K vein and back samples over
a length of 16 metres and 1.26 metre width yielded the following: 213
g/t Ag, 0.16% Pb and 0.33% Zn.
Development in Level 9 has encountered several high-grade veins within
the disseminated zone as shown in the sample location map, which can be
found at http://files.newswire.ca/1167/Promontorio.pdf. Values up to 3,351 g/t Ag over 1.1 m occur in the veins.
Santa Eduwiges Mine
On Level 11, Frente 9408 SW advanced 8 metres and averaged 627 g/t Ag, 2.0% Pb, and 0.27% Zn over an average of 1.5 metres. This drift also
advanced 30 metres on Vein C and averaged 292 g/t Ag, 0.80% Pb and 0.38% Zn over an average of 1.11 m. Frente 603 NE
advanced 14 metres and averaged 834 g/t Ag, 0.58% Pb and 0.55% Zn over an average of 1.75 metre.
Also on Level 11, Frente 650 NE advanced 19 metres to encounter Vein B
of San Bartolo. An 11 metre drift along the vein averaged 160 g/t Ag,
0.17% Pb and 0.13% Zn over an average of 0.8 metre. The drift was
continued another 15 metres to communicate with a drift on the Santa
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 and its Bolivar mine in
Mexico. The Company is also advancing its Cusi silver project in Mexico
from advanced development into commercial production. 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. 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.
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.
PDF available at: http://stream1.newswire.ca/media/2012/12/13/20121213_C8828_DOC_EN_21935.pdf
PDF available at: http://stream1.newswire.ca/media/2012/12/13/20121213_C8828_DOC_EN_21936.pdf
PDF available at: http://stream1.newswire.ca/media/2012/12/13/20121213_C8828_DOC_EN_21937.pdf
SOURCE: Sierra Metals Inc.
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