VANCOUVER, April 15, 2014 /CNW/ - Sierra Metals Inc. (TSX:SMT) (BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce its production results for the first quarter of 2014.
Press Release Highlights:
- Total silver ("Ag") production of 728,211 ounces ("oz") in the first quarter of 2014 compared to 610,407 oz for the same period of 2013. A 19% increase year-over-year.
- Total copper ("Cu") production of 5.7 million pounds ("lb") in the first quarter of 2014 compared to 4.1 million lb for the same period of 2013. A 41% increase year-over-year.
- Total lead ("Pb") production of 12.2 million lb in the first quarter of 2014 compared to 8.5 million lb for the same period of 2013. A 43% increase year-over-year.
- Total zinc ("Zn") production of 12.7 million lb in the first quarter of 2014 compared to 13.3 million lb for the same period of 2013. A 4% decrease year-over-year.
- Total gold ("Au") production of 2,485 oz in the first quarter of 2014 compared to 1,598 oz for the same period of 2013. A 55% increase year-over-year.
Daniel Tellechea, President and CEO of Sierra Metals, commented: "Sierra's strong production during the first quarter is mainly reflective of higher lead head grades and silver recoveries at Yauricocha, and higher throughputs at the Bolivar and Cusi mines. Bolivar has been operating at a rate close to 2,000 tpd during the quarter and Cusi at an average production rate of 375 tpd. We expect solid production results in the second quarter and we are on target to meet our production guidance for 2014."
Mine Operations
During this period, the Company achieved a total of 416,465 tonnes of ore processed (compared to 317,637 tonnes in 2013) from all operations, representing a 19% increase year-over-year.
There was no variation in production at the Yauricocha Mine during the first quarter of 2014 versus the first quarter of 2013, while production increased 126% at Bolivar and 16% at Cusi. The lower grade in silver and copper at Yauricocha and Bolivar was completely offset by the following strong production results: (1) higher production rates at Bolivar, (2) higher lead head grades and silver recoveries at Yauricocha, and (3) overall higher production rates, grades and recoveries at Cusi. A summarized table of consolidated production results is presented below:
| Consolidated Production | 3 Months Ended | ||
| Mar 31, 2014 | Mar 31, 2013 | % Var. | |
| Silver production (oz) | 728,211 | 610,407 | 19% |
| Copper production (000 lb) | 5,730 | 4,060 | 41% |
| Lead production (000 lb) | 12,180 | 8,528 | 43% |
| Zinc production (000 lb) | 12,732 | 13,304 | -4% |
| Gold Production (oz) | 2,485 | 1,598 | 55% |
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the Company's largest producing mine with a total of 215,550 tonnes processed in the first quarter of 2014, representing no variation compared to 214,867 tonnes in 2013. Mineralization at the Yauricocha Mine is hosted in two different zones including Lead-Oxide ("Oxides") and Polymetallic orebodies.
During the first quarter of 2014, aggregate production of these orebodies was 494,294 oz of silver, a 4% increase year-over year; 1.7 million lb of copper, a 20% decrease year-over-year; 11.7 million lb of lead, a 39% increase year-over year; 12.7 million lb of zinc, a 2% decrease year-over year; and 1,474 oz of gold, a 8% decrease year-over-year. Lower copper production was driven by lower head grades in line with Yauricocha's mine plan. A summary of production from the Yauricocha Mine for the first quarter of 2014 has been provided below:
| Yauricocha Production1 | 3 Months Ended | ||
| Mar 31, 2014 | Mar 31, 2013 | % Var. | |
| Silver production (oz) | 494,294 | 474,601 | 4% |
| Copper production (000 lb) | 1,739 | 2,175 | -20% |
| Lead production (000 lb) | 11,683 | 8,379 | 39% |
| Zinc production (000 lb) | 12,732 | 13,045 | -2% |
| Gold Production (oz) | 1,474 | 1,598 | -8% |
1For a detailed summary of production table for the Yauricocha Mine please click here.
Bolivar Mine, México
During the first quarter of 2014, total ore processed at the Bolivar Mine increased 126% with 168,190 tonnes processed compared to 74,455 tonnes in 2013. Copper production during the period increased 112% with a total of 4.0 million lb produced (compared to 1.9 million lb in 2013). Silver production at Bolivar increased 70% year-over-year with a total of 91,660 oz produced (compared to 54,062 oz in 2013). This substantial increase in production was a result of higher production rate and recovery rates year-over year. A summary of production for the Bolivar Mine for the first quarter of 2014 has been provided below:
| Bolivar Production1 | 3 Months Ended | ||
| Mar 31, 2014 | Mar 31, 2013 | % Var. | |
| Copper production (000 lb) | 3,991 | 1,885 | 112% |
| Zinc production (000 lb) | 0 | 259 | -100% |
| Silver production (oz) | 91,660 | 54,062 | 70% |
| Gold production (oz) | 572 | 0 | N.A. |
1For a detailed summary of production table for the Bolivar Mine please click here.
Cusi Mine, México
On January 1, 2013 the Company announced that the Cusi Mine achieved commercial production but is still under development as most of the ore comes from development rock. During the first quarter of 2014, total ore processed increased 16% with a total of 32,825 tonnes of ore processed (compared to 28,315 tonnes in 2013). During the first quarter of 2014, production of silver at Cusi increased 74% with a total of 142,258 oz of silver (compared to 81,744 oz in 2013). This increase is mainly driven by higher throughput compared to the first quarter of 2013 (32,825 tonnes versus 28,315 tonnes), higher head grades and recoveries compared to the first quarter of 2013 (169.3 g/t Ag versus 141.7 g/t Ag), higher recoveries (79.6% versus 63.4% in the first quarter of 2013). A summary of production for the Cusi Mine for the first quarter of 2014 has been provided below:
| Cusi Production1 | 3 Months Ended | ||
| Mar 31, 2014 | Mar 31, 2013 | % Var. | |
| Silver production (oz) | 142,258 | 81,744 | 74% |
| Gold production (oz) | 439 | 0 | N.A. |
| Lead production (000 lb) | 497 | 149 | 234% |
1For a detailed summary of production table for the Cusi Mine please click here.
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 production of 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, 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 TSX 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 and to continue to pay a quarterly dividend. 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/2014/04/15/20140415_C9814_DOC_EN_39231.pdf
PDF available at: http://stream1.newswire.ca/media/2014/04/15/20140415_C9814_DOC_EN_39232.pdf
PDF available at: http://stream1.newswire.ca/media/2014/04/15/20140415_C9814_DOC_EN_39233.pdf
SOURCE: Sierra Metals Inc.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Daniel Tellechea
President & CEO
Sierra Metals Inc.
1 (866) 493-9646
Thomas Robyn
Senior Vice President, Exploration
Sierra Metals Inc.
1 (866) 493-9646
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