VANCOUVER, Jan. 23, 2014 /CNW/ - Sierra Metals Inc.
(TSX:SMT) (BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce its 2013 annual and fourth
quarter production results and to issue the production guidance for
2014.
Press Release Highlights:
- Total tonnes of ore processed of 1,321,782 in 2013 compared to
1,269,850 tonnes in 2012. A 4.1% increase year-over-year. During
the fourth quarter of 2013, the Company achieved a total of 390,780
tonnes of ore processed compared to 343,076 tonnes in 2012 from all
operations, representing a 14% increase year-over-year.
- Total silver (''Ag'') production of 2,560,467 ounces (''oz'')
in 2013 compared to 2,620,774 oz in 2012. Slightly below with the
previous year. In the fourth quarter of 2013 a total of 653,705 oz
was produced compared to 683,938 oz for the same period of 2012. A
4% decrease year-over-year.
- Total copper (''Cu'') production of 15.9 million pounds
(''lb'') in 2013 compared to 15.9 million lb in 2012. In line with
the previous year. In the fourth quarter of 2013 a total of 4.8
million lb was produced compared to 4.3 million lb for the same
period of 2012. An 11% increase year-over-year.
- Total lead (''Pb'') production of 38.0 million lb in 2013
compared to 35.7 million lb in 2012. A 6% increase year-over-year.
In the fourth quarter of 2013 a total of 11.3 million lb was
produced compared to 8.7 million lb for the same period of 2012. A
30% increase year-over-year.
- Total zinc (''Zn'') production of 51.7 million lb in 2013
compared to 59.0 million lb in 2012. A 12% decrease year-over-year.
In the fourth quarter of 2013 a total of 13.4 million lb was
produced compared to 14.7 million lb for the same period of 2012. A
9% decrease year-over-year.
- Total gold (''Au'') production at the Yauricocha Mine was 6,736
oz in 2013 compared to 10,491 oz in 2012. A 36% decrease
year-over-year. In the fourth quarter of 2013 a total of 1,665 oz
was produced compared to 2,181 oz for the same period of 2012. A
24% decrease year-over-year.
- Production Guidance for 2014
- Silver: 2,535,000 oz - 2.695,000 oz
- Copper: 22.6 million lb - 24.1 million lb
- Lead: 31.3 million lb - 33.0 million lb
- Zinc: 43.5 million lb - 45.8 million lb
- Gold: 7,700 oz - 8,200 oz
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Daniel Tellechea,
President and CEO of Sierra Metals, commented: "2013 marked
another strong year of production for the Company. The yearly
production for our main metals, silver and copper was slightly
below guidance and partly offset by above guidance production for
lead, zinc and gold. The Company is pursuing its goal of becoming
one of the top mid-tier Latin American metals producer. For 2014,
the Company will focus on consolidating its production and
exploration at its three operations, including the following at
the:
- Yauricocha Mine:, complete the current underground mine
infrastructure project, reduce grade dilution by a better control
of water inflows, carry out regional exploration outside of the
central mine area and maintain existing cash costs
- Bolivar Mine: exploration drilling to increase the quality
and grade of the existing resources, expand the mill capacity and
reduce cash costs.
- Cusi Mine: complete a pre-feasibility study along with a new
43-101 compliant resources report, continue exploration and
development of the mines, upgrade the mine infrastructure at Santa
Eduwiges and Promontorio to allow higher production rates and
reduce cash costs.''
Mine Operations
During the fourth quarter of 2013, the Company
achieved a total of 390,780 tonnes of ore processed (compared to
343,076 tonnes in 2012) from all operations, representing a 14%
increase year-over-year. Total tonnes processed of 1,321,782 in the
twelve months of 2013 compared to 1,269,850 tonnes in the same
period of 2012.
The decrease in production at the Yauricocha
Mine during the fourth quarter was partially offset by strong
production results in: (1) higher silver processed at Bolivar and
Cusi, which achieved commercial production on January 1, 2013, and (2) higher copper production
at Bolivar. Both of these achievements are part of the Company's
growth strategy to expand production in Mexico. A summarized table of consolidated
production results is presented below:
|
|
|
Consolidated Production |
3 Months Ended |
12 Months Ended |
|
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
|
|
|
|
|
|
|
Silver production (oz) |
653,705 |
683,938 |
-4% |
2,560,467 |
2,620,774 |
-2% |
Copper production (000 lb) |
4,819 |
4,334 |
11% |
15,905 |
15,851 |
0% |
Lead production (000 lb) |
11,278 |
8,696 |
30% |
37,957 |
35,720 |
6% |
Zinc production (000 lb) |
13,382 |
14,706 |
-9% |
51,747 |
59,012 |
-12% |
Gold Production (oz) |
1,665 |
2,181 |
-24% |
6,736 |
10,491 |
-36% |
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the
Company's largest producing mine with a total of 214,454 tonnes
processed in the fourth quarter of 2013 representing a 4% decrease
compared to 222,821 tonnes in 2012. Total tonnes processed of
837,496 in the twelve months of 2013 compared to 872,869 tonnes in
the same period of 2012. A 4% decrease year-over-year.
Mineralization at the Yauricocha Mine is hosted in two different
zones including Lead-Oxide ("Oxides") and Polymetallic
ore-bodies.
During the fourth quarter of 2013, aggregate
production of these ore bodies was 463,964 oz of silver, a 15%
decrease year-over year; 1.2 million lb of copper, a 46% decrease
year-over-year; 11.0 million lb of lead, a 28% increase year-over
year; 13.4 million lb of zinc, a 3% decrease year-over year; and
1,665 oz of gold, a 24% decrease year-over-year. Lower metal
production was driven by lower head grades in line with
Yauricocha's mine plan. A summary of production from the Yauricocha
Mine has been provided below:
|
|
|
Yauricocha Production |
3 Months Ended |
12 Months Ended |
|
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
|
|
|
|
|
|
|
Silver production (oz) |
463,964 |
547,114 |
-15% |
1,866,769 |
2,143,972 |
-13% |
Copper production (000 lb) |
1,167 |
2,172 |
-46% |
6,514 |
9,061 |
-28% |
Lead production (000 lb) |
10,956 |
8,571 |
28% |
37,055 |
35,200 |
5% |
Zinc production (000 lb) |
13,382 |
13,803 |
-3% |
50,817 |
49,888 |
2% |
Gold Production (oz) |
1,665 |
2,181 |
-24% |
6,736 |
10,491 |
-36% |
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1For a detailed summary of
production table for the Yauricocha Mine please click here.
Bolivar Mine, México
During the fourth quarter of 2013, total ore
processed at the Bolivar Mine increased 62% with 152,242 tonnes
processed compared to 93,704 tonnes in 2012. Total tonnes processed
of 377,432 in the twelve months of 2013 compared to 312,952 tonnes
in the same period of 2012. A 21% increase year-over-year. Copper
production during the period increased 69% with a total of 3.7
million lb produced (compared to 2.2 million lb in 2012). Silver
production at Bolivar increased 63% year over-year with a total of
90,013 oz produced (compared to 55,143 in 2012). This substantial
increase in production was a result of higher processed tonnes as
the capacity at the Piedras Verde mill was increased to 2,000 tpd.
A summary of production for the Bolivar Mine has been provided
below:
|
|
|
Bolivar Production |
3 Months Ended |
12 Months Ended |
|
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
|
|
|
|
|
|
|
Copper production (000 lb) |
3,652 |
2,163 |
69% |
9,391 |
6,790 |
38% |
Zinc production (000 lb) |
0 |
904 |
-100% |
930 |
9,125 |
-90% |
Silver production (oz) |
90,013 |
55,143 |
63% |
270,610 |
191,285 |
41% |
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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 and during the fourth quarter of 2013 total ore
processed decreased 9% with a total of 24,085 tonnes of ore
processed (compared to 26,550 tonnes in 2012). Total tonnes
processed of 106,853 in the twelve months of 2013 compared to
84,028 tonnes in the same period of 2012. A 27% increase
year-over-year. During the fourth quarter of 2013 production of
silver at Cusi increased 22% with a total of 99,727 oz of silver
(compared to 81,680 oz in 2012). This increase is mainly driven by
higher recoveries versus the fourth quarter of 2012 (77.44% vs
62.16%). A summary of production for the Cusi Mine has been
provided below:
|
|
|
Cusi Production |
3 Months Ended |
12 Months Ended |
|
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
Dec 31, 2013 |
Dec 31, 2012 |
% Var. |
Silver production (oz) |
99,727 |
81,680 |
22% |
423,089 |
285,516 |
48% |
Lead production (000 lb) |
323 |
126 |
157% |
902 |
520 |
73% |
|
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|
|
|
|
|
1For a detailed summary of
production table for the Cusi Mine please click here.
Production Guidance
Sierra Metals is pleased to issue its production guidance for
2014. The Company's production estimates for 2014 are provided
below:
|
|
Consolidated
Production |
2014 |
Low |
High |
Silver (oz) |
2,535,000 |
2,695,000 |
Copper (000 lb) |
22,600 |
24,100 |
Lead (000 lb) |
31,300 |
33,000 |
Zinc (000 lb) |
43,500 |
45,800 |
Gold (oz) |
7,700 |
8,200 |
|
|
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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, 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, 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 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.
SOURCE Sierra Metals Inc.