Sierra Metals announces production results for the second quarter of 2013
VANCOUVER, July 16, 2013 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce its production results for the second quarter of 2013.
Press Release Highlights:
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Daniel Tellechea, President and CEO of Sierra Metals, commented: "We are pleased with the production results from all operations during the second quarter of 2013 and they remain in line with Sierra's 2013 production guidance. The Company remains focused on expanding production at both the Bolivar and Cusi mines in the third quarter of 2013. Sierra continues to strive towards its objective of becoming a premier, low-cost precious and base metals mining company in Latin America."
Mine Operations
Sierra Metals maintained strong production results in the second quarter of 2013. During this period, the Company achieved a total of 323,751 tonnes of ore processed (compared to 325,913 tonnes in 2012) from all operations, representing a 1% decrease year-over-year.
Despite a decrease in production at the Yauricocha Mine, the Company maintained strong production in the quarter resulting from (1) the Cusi Mine achieving commercial production as of January 1, 2013, and (2) continued increases in operating efficiencies at the Bolivar Mine. Both of these achievements are part of the Company's growth strategy to expand production in Mexico during 2013. A summarized table of consolidated production results is presented below.
| Consolidated Production | 3 Months Ended | 6 Months Ended | ||||
| June 30, 2013 | June 30, 2012 | % Var. | June 30, 2013 | June 30, 2012 | % Var. | |
| Silver (oz) | 669,620 | 670,706 | 0% | 1,280,028 | 1,254,990 | 2% |
| Copper (000 lb) | 3,755 | 4,122 | -9% | 7,816 | 8,000 | -2% |
| Lead (000 lb) | 9,559 | 9,084 | 5% | 18,087 | 17,014 | 6% |
| Zinc (000 lb) | 12,776 | 15,282 | -16% | 26,080 | 28,905 | -10% |
| Gold (oz) | 1,800 | 2,876 | -37% | 3,398 | 5,901 | -42% |
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the Company's largest producing mine with a total of 206,407 tonnes processed in the second quarter of 2013 representing a 5% decrease compared to 217,078 tonnes in 2012. Mineralization at the Yauricocha Mine is hosted in three different zones including the Copper, Lead-Oxide ("Oxides") and Polymetallic ore-bodies.
Aggregate production of these ore bodies during the second quarter of 2013 was 481,058 oz of silver, a 12% decrease year-over year; 1.7 million lb of copper, a 23% decrease year-over-year; 9.4 million lb of lead, a 5% increase year-over year; 12.1 million lb of zinc, a 6% increase year-over year; and 1,800 oz of gold, a 37% decrease year-over-year. A summary of production from the Yauricocha Mine for the second quarter of 2013 has been provided below.
| Yauricocha Production1 | 3 Months Ended | 6 Months Ended | ||||
| June 30, 2013 | June 30, 2012 | % Var. | June 30, 2013 | June 30, 2012 | % Var. | |
| Silver (oz) | 481,058 | 544,707 | -12% | 955,660 | 1,037,139 | -8% |
| Copper (000 lb) | 1,714 | 2,212 | -23% | 3,889 | 4,846 | -20% |
| Lead (000 lb) | 9,382 | 8,958 | 5% | 17,761 | 16,804 | 6% |
| Zinc (000 lb) | 12,121 | 11,465 | 6% | 25,167 | 21,950 | 15% |
| Gold (oz) | 1,800 | 2,876 | -37% | 3,398 | 5,901 | -42% |
1 For a detailed summary of production table for the Yauricocha Mine please click here.
Bolivar Mine, Mexico
During the second quarter of 2013, total ore processed at the Bolivar Mine increased 3% with 88,406 tonnes processed compared to 86,061 tonnes in 2012. Silver production at Bolivar increased 41% year-over-year with a total of 74,037 oz produced (compared to 52,544 in 2012). This substantial increase in production was a result of higher silver-grades (30.33 g/t Ag in 2013 compared to 24.38 g/t Ag in 2012) and an increase in recovery rates (85.58% recovery in 2013 compared to 77.74% in 2012) year-over-year. Copper production during the period increased 7% with a total of 2.0 million lb produced (compared to 1.9 million lb in 2012). Zinc production decreased 83% with a total of 0.7 million lb produced (compared to 3.8 million lb in 2012). The decline in Zinc production resulted from a decrease in Zinc grades (0.75% in 2013 compared to 2.51% in 2012) and reduced recovery rates (44.92% in 2013 compared to 80.12% in 2012). A summary of production for the Bolivar Mine for the second quarter of 2013 has been provided below.
| Bolivar Production1 | 3 Months Ended | 6 Months Ended | ||||
| June 30, 2013 | June 30, 2012 | % Var. | June 30, 2013 | June 30, 2012 | % Var. | |
| Copper (000 lb) | 2,042 | 1,910 | 7% | 3,927 | 3,154 | 25% |
| Zinc (000 lb) | 655 | 3,817 | -83% | 914 | 6,954 | -87% |
| Silver (oz) | 74,037 | 52,544 | 41% | 128,099 | 96,903 | 32% |
1 For a detailed summary of production table for the Bolivar Mine please click here.
Cusi Mine, Mexico
On January 1, 2013 the Company announced that the Cusi Mine achieved commercial production and during the second quarter of 2013 total ore processed increased 27% with a total of 28,937 tonnes of ore processed (compared to 22,773 tonnes in 2012). During the second quarter of 2013 production of silver at Cusi increased 56% with a total of 114,525 oz of silver (compared to 73,455 oz in 2012). Total lead production at Cusi increased 40% during the second quarter of 2013 with a total of 0.02 million lb (compared to 0.1 million in 2012). A summary of production for the Cusi Mine for the second quarter of 2013 has been provided below.
| Cusi Production1 | 3 Months Ended | 6 Months Ended | ||||
| June 30, 2013 | June 30, 2012 | % Var. | June 30, 2013 | June 30, 2012 | % Var. | |
| Silver (oz) | 114,525 | 73,455 | 56% | 196,269 | 120,948 | 62% |
| Flotation | 114,525 | 72,059 | 59% | 196,269 | 116,764 | 68% |
| Lixiviation | 0 | 1,396 | -100% | 0 | 4,184 | -100% |
| Lead (000 lb) | 177 | 126 | 40% | 326 | 210 | 55% |
1 For a detailed summary of production table for the Cusi Mine please click here.
Currently, the Company is in the midst of a substantial exploration and development program at Cusi that will focus on expanding production from Promontorio and adding new production from the San Juan, Minerva and La India mines by the end of 2013. Additionally, the Company anticipates completing an updated NI 43-101 resource calculation on the property in the third quarter of 2013.
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 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 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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For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Daniel Tellechea
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646
Matt Morrish
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646