VANCOUVER,
April 24, 2014 /CNW/ - Sierra
Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce that development of the Gallo
Superior Magnetita orebody has started and mining will begin within
two months, adding another mining area to its production.
Gallo Superior Magnetita is included in the 43-101 compliant
Pre-Feasibility Study authored by Gustavson Associates of
Lakewood, Colorado ("Gustavson")
and dated May 31, 2013.
Development is along two fronts, Rebaje 398 and Banco 314.
In addition, the Company's exploration drilling
in the Bolivar NW area has further defined a mineralized zone that
is not within the previous resource or reserve calculations done by
Gustavson. This area is located 400 meters northwest of the
Alta Ley mine of Bolivar.
Press Release Highlights:
- Rebaje 398 has been developed over a front of about 30 meters
and averages 2.5% copper, 30 g/t silver and 0.032% zinc.
- Banco 314 has been developed over a front of about 100 meters
and averages 1.9% copper, 24 g/t silver and 0.15% zinc.
- Mining in Gallo Superior Magnetita is expected to begin in two
months and continue through mid-2015.
- Drilling at Bolivar NW has identified a potentially-economic
deposit that is not within Gustavson's current resources or
reserves estimates but will be in a forthcoming update expected to
be completed late this year.
- The Company has initiated an aggressive exploration program for
gold-silver deposits within the Bolivar property.
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"The development of Gallo Superior Magnetita
is important and is part of our plan to achieve production of 2,500
tonnes per day in 2015", stated Daniel
Tellechea, President & CEO of Sierra Metals. "The
El Gallo orebodies contain
significant tonnage and are hosted in thick mantos that allow us to
mine large volumes on a daily basis. Going forward, we expect
to have significant growth in production at Bolivar as underground
development advances. In addition, our exploration results,
especially at Bolivar Northwest, support our geologists'
interpretation that the overall Bolivar area is extensively
mineralized and more discoveries are expected in the
future."
The Gallo Superior Magnetita orebodyis 20 meters
thick and 200 x 150 meters in lateral dimensions,and is hosted in a
manto that dips 24 degrees to the NE. Ore mined during
development work and processed through the mill has returned
average copper grades 12% higher than indicated in the resource
estimation. This variation reflects how mined grades can
differ from those determined from widely-spaced drill holes.
Figure 1 shows a perspective view of the Gallo
Superior Magnetita orebody.
Bolivar Northwest Viejo: Development and
mining of the Bolivar NW Viejo area, located near the Level 6
portal of Alta Ley and drilled in 2004, has commenced because the
mineralization at that location is now economic with the Piedras
Mill in operation at 2,000 tpd. There are two blocks in this
area: an underground mineable block (Block C) and an open-pitable
block (Block A). These mineralized bodies are not included in the
resource calculations completed by Gustavson, dated October 15, 2012. The Company's geologists
estimate that Block C contains 90,000-110,000 tonnes averaging
35-40 g/t silver, 1.2-1.4% copper and 0.2-0.4% zinc, while Block A
contains 190,000-210,000 tonnes averaging 17-21 g/t silver,
0.5-0.7% copper and 2-3% zinc. The potential quantity and
grade is conceptual in nature and there has been insufficient
exploration to define an NI 43-101 compliant resource.
The underground workings for Bolivar NW Viejo
project will also be a starting point for a ramp to the Bolivar NW
area shown in Figure 2.
Bolivar Northwest: In addition to the
resource in the main El Gallo and
Alta Ley deposits, the Company's exploration drilling has
discovered a deposit that is not within the current resource.
On May 14, 2013, the Company
published drill results from the Bolivar NW area that indicate
potentially-economic copper-zinc-(silver-gold) mineralization.
This drilling defined the mineralized bodies in
Bolivar NW, which are shown as a perspective view in Figure
2. Figure 2 also shows the locations of the major mining
areas of the Bolivar project as well as the location of a proposed
ramp that will access Bolivar NW. Bolivar NW is located 400 meters
northwest of Bolivar Alta Ley/Bolivar NW Viejo and extends over an
area 250 x 170 meters with a cumulative thickness of Upper and
Lower Skarns of 8 meters.
The Company's geologists infer that, based on
drilling done before and during 2013, Bolivar NW contains
500,000-600,000 tonnes averaging 0.9-1.1% copper, 0.9-1.1% zinc,
30-35 g/t silver and 0.5-0.7 g/t gold. The mineralized
volume, however, remains open to the northwest. The potential
quantity and grade is conceptual in nature and there has been
insufficient exploration to define an NI 43-101 compliant
resource.
Drilling has restarted at Bolivar NW in order to
expand the mineralized zone and results will be included in the
next NI 43-101 compliant update on Bolivar planned for late
2014.
Exploration Program
The Company has inititated an aggressive
exploration program on the Bolivar property, outside the main mine
area. The focus of the program will be to test several
precious metals targets that have been identified by the Company's
geologists over several years (Figure 3). They are:
La Lilly: This area contains at
least four NE-trending quartz veins that extend up to 2,000 meters
on strike, range up to 2-3 meters wide, and were the subject of
small-scale historical mining. Selected sampling of
mineralized rock at the mine dump by the Company's geologists has
returned values of: (1) 6.0 g/t gold, 1,136 g/t silver, 8.35%
copper, 11.04% lead and 6.94% zinc; and (2) 4.2 g/t gold,
1,192 g/t silver, 8.88% copper, 10.84% lead and 7.68%
zinc. Drilling of the southeastern-most vein began in
mid-April.
Veta Piedras
Verde: This NE-trending quartz vein is located near
the Company's Piedras Verde mill and is hosted by an andesite dike
cutting granodiorite. The vein is variably brecciated and has
been mapped over a distance of about 500 meters; it is 1.5-3 meters
wide where exposed. The best assays from chip-channels are:
3.0 g/t gold, 601 g/t silver, 0.44% copper, 5.63%
lead and 0.01% zinc; and, 2.0 g/t gold, 340 g/t silver,
0.29% copper, 4.18% lead and 0.00% zinc. Drilling of
the vein began in early April.
La
Sidra/La Verdolaga:
This area contains NE-trending quartz veins that extend for more
than 1,000 meters on strike, range in width from 1 meters to 6
meters, and have returned gold grades that are
highly-anomalous. For example, two 2-meter-wide channel
samples assayed: (1) 1.57 g/t gold, 81 g/t silver, 10.55% lead,
7.32% zinc and 0.40% copper; and, (2) 1.70 g/t gold, 11.4 g/t
silver, 0.73% lead, 1.20% zinc and 0.44% copper. Detailed
mapping and sampling of this area was started in mid-April.
Churuguayvo (Reyna
de Oro): This prospect was previously drilled by two
companies, with 10 NQ core holes (1997) and 22 RC holes (2004 &
2005). The Company has recovered most of the drill core but
none of the RC cuttings. Records from the RC drilling
programs indicate high-grade gold zones, with values such as
19.8 meters @ 3.10 g/t, 21.3 meters @ 4.77 g/t and 13.7 meters @
3.52 g/t (all lengths are drill lengths). The Company
intends to re-map and re-drill the prospect with the objective of
defining underground-mineable gold mineralization.
La Cilica: This prospect was
explored by historical operators who completed minor underground
works. It is a narrow structure in andesite, about 0.8 meters
wide where exposed, that hosts quartz breccia containing
semi-massive sulfide minerals such galena and sphalerite.
Sampling of the structure returned high precious and base-metal
grades, such as: (1) nine samples collected along various parts of
the vein averaged 1.61 g/t gold 107 g/t silver, 1.24% lead,
1.09% zinc and 1.25% copper. Four samples collected from
dumps at prospect pits averaged 1.30 g/t gold, 30 g/t silver,
1.52% lead, 3.02% zinc and 0.96% copper. Although these
results are attractive, the vein is not the primary target.
The primary target here is large skarn deposits
hosted by the underlying thick beds of skarnified carbonate
rocks. These rocks have mapped thicknesses of over 400 meters
where the overlying andesite has been eroded to expose them.
At the Cilica prospect, they underlie the andesite at an unknown
depth.Mapping will be done to enable the Company's geologists to
infer the depth to the favorable host rocks, the same type that
hosts the Bolivar Mine, and plan a drill program to explore for
large-tonnage Cu-Zn-(Ag-Au) deposits hosted in skarn.
The Company expects to providein early May an
update on the mapping, sampling and drilling programs now in
progress.
Quality Assurance
The technical content of this news release has
been approved by Thomas L. Robyn,
Ph.D., CPG, RPG, and 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 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 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.
SOURCE Sierra Metals Inc.
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