Sierra Metals drills more high grade zinc at its Yauricocha Mine, Peru, and more than doubles its 2014 drilling program
VANCOUVER, July 15, 2014 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce that drilling at the Cachi Cachi Mine, located immediately north of the Central Mine Area of its Yauricocha property, has encountered wide zones of high grade zinc mineralization. In addition, the Company has expanded its planned 2014 drilling for resource expansion at Yauricocha by 2.5 times.
Press Release Highlights:
- Drill hole ESC-12-14-18 cut 5.1 m true width averaging 288.3 g/t silver, 20.57% zinc, and 3.05% lead (1,098.8 g/t silver equivalent grade)
- Drill hole CC-ANG-11-14-09 cut 7.8 m true width averaging 6.27% zinc (278.4 g/t silver equivalent grade)
- The Company has more than doubled its planned drilling for resource expansion during 2014 from 8,670 meters to 21,855 meters
"These results from Cachi Cachi are encouraging," said Daniel Tellechea, the Company's President and CEO, "especially since our geologists believe that these multiple orebodies continue to depth for a significant distance. As at the Central Mine Area, our drilling continues to expand the mineralized bodies and we expect a significant increase in resources in our next NI 43-101 update. Our confidence in our ability to expand resources is illustrated by the significant expansion of drilling planned for this year."
Cachi Cachi Mine
The Cachi Cachi Mine is located only 1,200 meters northwest of the Central Mine Area of the Yauricocha property and comprises multiple, low-tonnage bodies. This mine has produced 1,010,476 tonnes of ore averaging 135.1 g/t silver, 3.24% lead and 6.92% zinc during the period 1996 through June 2014. This mine provides about 5% of the mill throughput at Yauricocha's Chumpe Mill and has the potential to supply an increasing amount of high-grade silver and zinc feed in the future.
A total of 34 holes will be drilled at Cachi Cachi as part of the 2014 program. Nineteen of them have been completed, which are longer holes designed to extend known mineralization. Fifteen short holes are designed to provide mine planning information and will be completed after a new drilling station is completed on Level 820 to explore the Cachi Cachi bodies to depth. The station is planned to be ready in October of this year.
The results of drilling to date are illustrated in Figure 1. Figure 1 is a section along drill holes -04 and -09 with a plan map of Level 770 of the Cachi Cachi mine showing their traces, plus other holes, in the upper right corner. The section demonstrates the vertical continuity of the Angelita body, and that the body has been extended over 70 meters vertically and is open to depth.
All of the bodies of the Cachi Cachi mine are open to depth in a vertical configuration.
Table 1 below shows significant results from selected drill holes. Results from all of the mineralized holes are given in Table 2 as an appendix (Table 2). Results from drill holes -01 to -05 were reported on May 6, 2014 (May 6, 2014 PR).
Table 1: Selected Drill Results from the Cachi Cachi Mine, Yauricocha, Peru
| Hole #* | From-To (m) | Core Length (m) | Est. True Width (m) | g/t Ag | % Pb | % Cu | % Zn | g/t Au | Body |
| -04** | 59.8-95.0 | 35.2 | 22.4 | 10.3 | 1.43 | 0.33 | 7.01 | 0.55 | Angelita |
| -09 | 16.7-26.0 | 9.3 | 7.8 | 7.3 | 0.02 | 0.28 | 6.27 | 0.60 | Angelita |
| -11 | 20.8-23.0 | 2.2 | 1.6 | 19.3 | 0.04 | 0.56 | 6.86 | 0.48 | Celia |
| -12 | 14.2-16.7 | 2.5 | 1.9 | 53.3 | 2.20 | 0.06 | 7.75 | 0.21 | Karlita |
| 19.5-20.2 | 0.7 | 0.4 | 86.0 | 6.29 | 0.16 | 14.43 | 0.10 | " | |
| 28.1-32.0 | 3.9 | 3.5 | 37.3 | 3.31 | 0.07 | 8.60 | 0.01 | Karlita | |
| 58.5-64.0 | 5.5 | 4.9 | 46.3 | 1.01 | 0.25 | 4.99 | 0.44 | " | |
| -14 | 23.75-26.00 | 2.25 | 1.95 | 70.2 | 2.49 | 0.08 | 6.56 | 0.05 | Karlita |
| 33.1-38.0 | 4.9 | 4.6 | 47.2 | 0.96 | 0.21 | 5.02 | 0.01 | " | |
| -17 | 9.7-13.5 | 3.8 | 3.1 | 82.0 | 1.95 | 0.18 | 5.15 | 0.27 | Karlita |
| -18 | 25.95-32.00 | 6.05 | 5.1 | 288.3 | 3.05 | 0.21 | 20.57 | 0.48 | Zulma |
| -19 | 23.4-27.7 | 4.3 | 3.9 | 108.7 | 6.24 | 0.08 | 12.84 | 0.72 | " |
| 41.6-44.9 | 3.3 | 2.9 | 35.0 | 1.17 | 0.04 | 7.98 | 0.83 | " | |
| 89.4-106.0 | 16.6 | 12.1 | 63.1 | 2.22 | 0.31 | 6.45 | 0.47 | Escondida |
* Holes -07 to -17 have prefix CC-ANG-11-14; holes -18 & -19 have prefix TAL-ESC-12-14
** Published May 6, 2014
Drill holes CC-ANG-11-14-06 and -08 did not encounter mineralization.
2014 Drilling Programs for Resource Expansion
Three phases of drilling for resource expansion were originally planned for the Yauricocha Central Mine Area, which have now been expanded to five. The total amount of drilling now planned for this area is 18,255 meters in 50 diamond drill holes.
Another phase of drilling for resource expansion was planned for Cachi Cachi and subsequently expanded from 2,080 meters in 18 holes to 3,630 meters in 34 holes.
The total 2014 drill program is now planned at 21,855 meters in 84 holes, an increase of 2.5x.
The amount of drilling in each phase and its purpose are given in Table 3 below.
Table 3: 2014 Drill Programs for Resource Expansion, Yauricocha, Peru
| Phase | Purpose | # of Meters/Holes | Timing |
| 1 | Explore Catas & Antacaca on Level 1370 | 3,000/5 | Completed |
| 2 | Explore Antacaca Sur between Levels 970 and 1220 | 5,150/15 | Start September |
| 3 | Explore Catas to depth (Level 1570) | 4,500/6 | Start September |
| 4 | Increase certainty of mineralization in Antacaca body Levels 970 to 1120 | 3,250/12 | In progress |
| 5 | Increase certainty of mineralization in Rosaura body Levels 970 to 1120 | 2,355/12 | Start August |
| 6 | Explore Cachi Cachi bodies to depth | 3,630/34 | In progress |
Method of Analysis
Samples are prepared at the Yauricocha lab facility at the Chumpe Mill, which is on site. Core and channel samples from the mine are assayed utilizing one of two procedures. Silver, lead, zinc and copper are assayed by atomic absorption. Gold is fire-assayed with an atomic absorption finish. Diamond drill samples sent for analysis consist of half NQ-size and BQ-size diamond core split on site.
Quality Control
The quality assurance-quality control (QA-QC) program employed by Sierra Metals has been described in detail in the NI 43-101 report on Yauricocha dated May 25, 2012, prepared by Gustavson Associates of Denver, which is available for review on SEDAR.
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 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.
Contact
regarding Sierra Metals, please visit www.sierrametals.com or contact: Daniel Tellechea, President & CEO, Sierra Metals Inc., 1 (866) 493?9646; Thomas L. Robyn, Ph.D., Senior Vice President, Exploration, Sierra Metals Inc., 1 (866) 493?9646