- Total Probable Mineral Reserves for Bolivar are 7,925,000
tonnes averaging 19 g/t silver, 0.86% copper and 0.25 g/t gold,
1.14% CuEq** representing an 83% increase to the previous Probable
Mineral Reserve Estimate
- Total Indicated Mineral Resources for Bolivar are 13,267,000
tonnes averaging 22.5 g/t silver, 1.04% copper and 0.29 g/t gold,
1.37% CuEq** representing a 42% increase to the previous Indicated
Mineral Resource estimate
- Total Inferred Mineral Resources for Bolivar are 8,012,000
tonnes averaging 22 g/t silver, 0.96% copper and 0.30 g/t gold,
1.35% CuEq** representing an 11.5% decrease to the previous
Inferred Mineral Resource Estimate
- The updated Resource and Reserve Estimate varies from the
February 2017 Technical Report due to
a variety of factors, including: a 24% increase in Cu price
assumptions*, notable increases in metallurgical recovery
assumptions*, an increase in the Net Smelter Return (NSR) cut off
grades resulting in higher value material, change in commodity
prices* and depletion by production since the Report was
completed
- The updated Resource and Reserve Estimate has incorporated
new exploration drilling, sampling, and face mapping information
into the geologic interpretation and grade estimations providing
more refined resource models
|
*
|
Metal price
assumptions considered for the calculation of unit values are:
Copper (Cu): US$/lb 3.00, Silver (Ag): US$/oz 18.25, and Gold (Au):
US$/oz 1,291.00. Metallurgical recovery assumptions are based on
actual plant data for 2017-2018 and are 78% Ag, 83% Cu, and 64%
Au.
|
|
**
|
CuEq =
((Ag*Ag$*Agrec)+(Cu*Cu$*Curec)+(Au*Au$*Aurec)) /
(Cu$*Curec).
|
|
___________________________________________________________________
|
TORONTO, May 22, 2018 /CNW/ - Sierra Metals Inc. (TSX:
SMT) (BVL: SMT) ("Sierra Metals" or "the Company") has updated its
Mineral Reserve and Resource Estimate at the Company's Bolivar
Mine, located in Chihuahua State, Mexico.
The updated Mineral Reserve and Resource Estimate disclosed
herein is the result of drilling programs completed between
October 2016 and October 2017, totaling 28,972 meters, as well as
production data of October 2017.
Subsequent to the cut-off date of October
2017 the updated Reserve and Resource statement does not
include approximately 22,000 meters of drilling with an aim to
further expand the resources and reserves at the Bolivar mine. This
information will be included in an updated Press Release to be
issued shortly.
A Technical Report prepared by SRK Consulting (U.S.) Inc. in
accordance with NI 43-101 standards of disclosure has been
completed and will be filed on SEDAR within 45 days of this news
release.
Igor Gonzales, President and CEO
of Sierra Metals commented "Management are pleased with the
updated reserve and resource report. The upward conversion of
resources and an 83% increase in reserves which averages 19
g/t silver, 0.86% copper and 0.25 g/t gold or 1.14% CuEq**
improves the mine life at Bolivar to more than seven years at the
current throughput levels when compared to the previous estimate
filed in April 2017.
Drilling continues to take place at the Bolivar West, and
Bolivar Northwest zones and will continue at the La Sidra area this year. A recently completed
geophysical program utilizing Titan 24 techniques has targeted
near-surface, coincident strong chargeability (IP) and resistivity
anomalies in the Southwestern sector of the property near Bolivar
West. We are currently drilling these targets using a diamond
drilling program, and subsequent exploration programs are targeted
to increase tonnage and grade at Bolivar."
Americo Zuzunaga, Vice President
of Corporate Planning stated, "One year has passed since the
filing of the previous technical report, and the Company is
confident that with this review, as well as the inclusion of the
ongoing drilling, we will continue to define additional mineral
reserves and resources in a short time frame."
The incorporation of new exploration drilling, updated consensus
commodity price assumptions, sampling, face mapping information
into the geologic interpretations, and grade estimations which have
resulted in a further refinement of the ore body. As commodity
prices improve, certain areas which have been excluded because of
lower metal prices could be included in future reserve and resource
updates. It is Management's view that the resulting Reserve and
Resource Estimate reflects the ongoing efforts by the Company to
achieve good value from the Bolivar asset while focusing on quality
over quantity, given the current operating and metal price
environment.
Mineral Reserve and Resource Estimate
Mineral Reserve Estimations have been conducted or reviewed by
the following Qualified Persons:
- Enrique Rubio, Ph.D. of REDCO
Mining Consultants (Chile);
Datamine Studio 5DP™ and Enhanced Production Scheduler (EPS)™
software.
- Shannon L. Rhéaume, P.Eng. of SRK Consulting (Canada) Inc.; Datamine Studio 5DP™ and
Enhanced Production Scheduler (EPS)™ software.
Mineral Resource Estimations have been conducted by David Keller, P.Geo. of SRK Consulting Canada
and reviewed by Giovanny Ortiz,
FAusIMM CP an associate of SRK Consulting (U.S.) Inc. and a
Qualified Person under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. The estimations were carried out
using Datamine Studio RM™ and Leapfrog Geo™ software.
This release features mineral reserves and resources reported
from models developed and estimated by SRK using criteria
determined by Dia Bras and SRK to be
reasonable for reporting of these resources and reserves.
Geology models were developed by Sierra Metals and reviewed by
SRK. In all, there are seventeen individual mineralized bodies
identified through drilling and mine development. These were used
as hard boundaries for the purposes of the statistical data
analysis and estimation. Although the majority of the estimated
resource is supported by drilling, limited channel samples support
the estimation. Samples have been composited and outliers have been
capped prior to estimation. Rotated block models were created by
SRK and have been estimated using ordinary kriging. The mineral
resources have been estimated in conformity with generally accepted
CIM "Estimation of Mineral Resource and Mineral Reserves Best
Practices" guidelines.
The procedures and methods supporting the mineral reserve
estimation have been developed in conjunction with Dia Bras mine planning personnel. The reserve
estimations presented herein have been conducted by REDCO Mining
Consultants (Chile) using
supporting data generated by the site. Mineral Reserves estimated
by the independent consultants are categorized in a manner
consistent with industry best practice. Each mining area was
evaluated using reasonable mining block shapes based on the mining
method applicable to the zone. Data and information supporting the
mining recovery, mining dilution, metallurgical recoveries,
consensus commodity pricing, and treatment and refining charges
have been provided by Dia Bras and
reviewed by SRK. These factors are used to calculate unit values
for Net Smelter Return (NSR) for the blocks in the resource models.
Historic and expected direct and indirect mining, processing and
general and administrative costs were provided by Sierra Metals. To
be considered economic, the NSR value of the mining block must be
greater than the economic cut-off. Blocks below the economic
cut-off but above the marginal cut-off are, in some cases, included
in the reserve where they are in between or immediately adjacent to
an economic block and it is reasonable to expect that no
significant additional development would be required to extract the
marginal block. Isolated blocks, defined as blocks with no defined
access or blocks that do not pay for the required development, have
been excluded. Mined out areas were provided by Sierra Metals
personnel and represent development and production up to
October 31, 2017.
SRK is of the opinion that the reserve and resource estimations
are suitable for public reporting and are a fair representation of
the mill feed tonnes, grade, and metal for the Bolivar deposit.
The consolidated mineral reserve statement for the Bolivar Mine
area is presented in Table 1. The effective date for the reserves
estimated herein is October 31, 2017.
SRK has prepared an NI 43-101 Technical Report which supports this
disclosure.
Table 1: Consolidated Bolivar Mineral Reserve Estimate as of
October 31, 2017 – SRK Consulting
(U.S.), Inc.
Category
|
Tonnes
(000's)
|
Ag
(g/t)
|
Au
(g/t)
|
Cu
(%)
|
Ag
(Koz)
|
Au
(Koz)
|
Cu
(t)
|
Proven
Probable
|
7,925
|
18.9
|
0.25
|
0.86
|
4,823
|
63
|
67,925
|
P+P
|
7,925
|
18.9
|
0.25
|
0.86
|
4,823
|
63
|
67,925
|
(1)
|
All figures rounded to
reflect the relative accuracy of the estimates. Totals may not sum
due to rounding.
|
(2)
|
Ore reserves are
reported at unit value cut-offs based on metal price assumptions*,
metallurgical recovery assumptions**, mining costs, processing
costs, general and administrative (G&A) costs, and treatment
and refining charges.
|
* Metal price
assumptions considered are: Copper (Cu): US$/lb 3.00, Silver (Ag):
US$/oz 18.25, and Gold (Au): US$/oz 1,291.00.
|
** Metallurgical
recovery assumptions are 83% Cu, 78% Ag, and 64% Au.
|
(3)
|
The mining costs are
based on historical actual costs.
|
(4)
|
The NSR cut-off
values are variable by proposed mining method.
|
|
• The economic NSR cut-off value is:
|
|
|
º US$30.80 = Room and Pillar; and
|
|
|
º US$33.10 = Longhole Stoping.
|
|
• The marginal NSR cut-off value is:
|
|
|
º US$26.50 = Room and Pillar; and
|
|
|
º US$28.70 = Longhole Stoping.
|
(5)
|
Mining recovery and
dilution have been applied and are variable by mining area and
proposed mining method.
|
The October 31, 2017, consolidated
mineral resource statement for the Bolivar Mine area is presented
in Table 2. These resources have been stated in unmined areas of
the deposits. Potential resources within surveyed pillar shapes in
the existing mined out areas are not reported. SRK has prepared an
NI 43-101 Technical Report which supports this disclosure.
Table 2: Consolidated Bolivar Mineral Resource Estimate as of
October 31, 2017 – SRK Consulting
(U.S.), Inc.
Category
|
Tonnes
(000's)
|
Ag
(g/t)
|
Au
(g/t)
|
Cu
(%)
|
Ag
(Koz)
|
Au
(Koz)
|
Cu
(t)
|
Indicated
Inferred
|
13,267
8,012
|
22.5
22.4
|
0.29
0.42
|
1.04
0.96
|
9,616
5,779
|
124
109
|
137,537
76,774
|
(6)
|
(1) Mineral resources
are reported inclusive of ore reserves. Mineral resources are not
ore reserves and do not have demonstrated economic viability. All
figures rounded to reflect the relative accuracy of the estimates.
Copper, gold, and silver assays were capped where
appropriate.
|
(7)
|
(2) Mineral resources
are reported at variable metal value cut-off grades based on metal
price assumptions*, metallurgical recovery assumptions**,
mining/transport costs (US$17.95/t), processing costs (US$8.33/t),
and general and administrative costs (US$2.41/t).
|
(8)
|
(3) The metal value
cut-off grade for the Bolivar Mine is US$29 No mineral resources
are not reported for remaining pillars.
|
(9)
|
* Metal price
assumptions considered for the calculation of metal value are:
Copper (Cu): US$/lb 3.00, Silver (Ag): US$/oz 18.25, and Gold (Au):
US$/oz 1,291.00.
|
(10)
|
** Metallurgical
recovery assumptions are 83% Cu, 78% Ag, and 64% Au.
|
Quality Control
All technical data contained in this news release has been
reviewed and approved by:
Gordon Babcock, P.Eng., Chief
Operating Officer and a Qualified Person under National Instrument
43-101 – Standards of Disclosure for Mineral Projects.
Americo Zuzunaga, MAusIMM CP
(Mining Engineer) and Vice President of Corporate Planning is a
Qualified Person and chartered professional qualifying as a
Competent Person under the Joint Ore Reserves Committee (JORC)
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Augusto Chung, FAusIMM CP
(Metallurgist) and Consultant to Sierra Metals is a Qualified
Person and chartered professional qualifying as a Competent Person
on metallurgical processes.
About Sierra Metals
Sierra Metals Inc. is Canadian based growing polymetallic mining
company with production from its Yauricocha Mine in Peru, and its Bolivar and Cusi Mines in Mexico. The Company is focused on increasing
production volume and growing mineral resources. Sierra Metals has
recently had several new key discoveries and still has many more
exciting brownfield exploration opportunities at all three Mines in
Peru and Mexico that are within close proximity to the
existing mines. Additionally, the Company also has large land
packages at all three mines with several prospective regional
targets providing longer term exploration upside and mineral
resource growth potential.
The Company's Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock
Exchange under the symbol "SMT" and on the NYSE American Exchange
under the symbol "SMTS".
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals
| Facebook: SierraMetalsInc | LinkedIn: Sierra Metals
Inc
Forward-Looking Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of Canadian and
U.S. securities laws related to the Company (collectively,
"forward-looking information"). Forward-looking information
includes, but is not limited to, statements with respect to the
Company's operations, including the anticipated developments in the
Company's operations in future periods, the Company's planned
exploration activities, the adequacy of the Company's financial
resources, and other events or conditions that may occur in the
future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties
are developed or further developed. These statements relate to
analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives",
"potential" or variations thereof, or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking information.
Forward-looking information is subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking information, including,
without limitation, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions,
cave-ins, weather conditions and criminal activity; commodity price
fluctuations; higher operating and/or capital costs; lack of
available infrastructure; the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; risks associated with the estimation of
mineral resources and the geology, grade and continuity of mineral
deposits and the inability to replace reserves; fluctuations in the
price of commodities used in the Company's operations; risks
related to foreign operations; changes in laws or policies, foreign
taxation, delays or the inability to obtain necessary governmental
permits; risks relating to outstanding borrowings; issues regarding
title to the Company's properties; risks related to environmental
regulation; litigation risks; risks related to uninsured hazards;
the impact of competition; volatility in the price of the Company's
securities; global financial risks; inability to attract or retain
qualified employees; potential conflicts of interest; risks related
to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral
reserves and resources; potential dilutive transactions; foreign
currency risks; risks related to business cycles; liquidity risks;
reliance on internal control systems; credit risks, including risks
related to the Company's compliance with covenants with respect to
its BCP Facility; uncertainty of production and cost estimates for
the Yauricocha Mine, the Bolivar Mine and the Cusi Mine; and other
risks identified in the Company's filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission ("SEC"),
which filings are available at www.sedar.com and www.sec.gov,
respectively.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking information. Forward-looking
information includes statements about the future and are inherently
uncertain, and the Company's actual achievements or other future
events or conditions may differ materially from those reflected in
the forward-looking information due to a variety of risks,
uncertainties and other factors. The Company's statements
containing forward-looking information are based on the beliefs,
expectations, and opinions of management on the date the statements
are made, and the Company does not assume any obligation to update
forward-looking information if circumstances or management's
beliefs, expectations or opinions should change, other than as
required by applicable law. For the reasons set forth above, one
should not place undue reliance on forward-looking information.
Note Regarding Reserve and Resource Estimates
All reserve and resource estimates reported by the Company are
calculated in accordance with the Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects and the
Canadian Institute of Mining and Metallurgy Classification system.
These standards differ significantly from the requirements of the
SEC. The differences between these standards are discussed in our
SEC filings. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.
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SOURCE Sierra Metals Inc.