Sierra Metals Reports Third Quarter 2014 Production Results
VANCOUVER, Oct. 23, 2014 /CNW/ - Sierra Metals Inc. (TSX: SMT) (BVL: SMT) ("Sierra Metals" or "the Company") reports production for the quarter ended September 30, 2014 ("Q3 2014") from its three underground mines in Latin America, the Yauricocha polymetallic mine in Peru and the Bolivar copper and Cusi silver mines in Mexico.
Third Quarter Production High-lights
- Total tonnes processed of 430,523; a 49% increase over Q3 2013
- Silver production of 794,251 ounces; a 27% increase over Q3 2013
- Copper production of 5.3 million pounds; a 62% increase over Q3 2013
- Lead production of 12.6 million pounds; a 46% increase over Q3 2013
- Zinc production of 14.7 million pounds; a 19% increase over Q3 2013
- Gold production of 2,143 ounces; a 28% increase over Q3 2013
Audra Walsh, President and CEO of Sierra Metals, commented: "Sierra's results for the third quarter 2014 are a testament to the quality of the assets and strength of the teams at the sites. The teams remain focused on executing opportunities to increase production, which we anticipate will translate directly to our financial results. We expect to continue delivering solid production results in the fourth quarter and are on target to achieve our production guidance for 2014."
Mine Operations
The total tonnes processed year-to date of 1,277,855 was a 37% increase year-over-year. The increase during the first nine months of 2014 mainly resulted from higher throughput at our three mines, but especially in Bolivar (125%) and Cusi (34%).
These achievements are part of Sierra Metals' growth strategy to strengthen production in Mexico during 2014. In addition, Sierra Metals has achieved higher lead head grades and recoveries at Yauricocha. A summarized table of consolidated production results is presented below:
| Consolidated Production | 3 Months Ended | 9 Months Ended | |||||
| Sep 30, 2014 | Sep 30, 2013 | % Var. | Sep 30, 2014 | Sep 30, 2013 | % Var. | ||
| Tonnes processed | 430,523 | 289,614 | 49% | 1,277,855 | 931,001 | 37% | |
| Daily throughput | 4,920 | 3,310 | 49% | 4,868 | 3,547 | 37% | |
| Silver production (oz) | 794,251 | 626,735 | 27% | 2,272,746 | 1,906,763 | 19% | |
| Copper production (000 lb) | 5,309 | 3,270 | 62% | 16,735 | 11,086 | 51% | |
| Lead production (000 lb) | 12,553 | 8,591 | 46% | 36,738 | 26,678 | 38% | |
| Zinc production (000 lb) | 14,668 | 12,284 | 19% | 40,857 | 38,365 | 6% | |
| Gold Production (oz) | 2,143 | 1,673 | 28% | 7,127 | 5,071 | 41% | |
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the Company's largest producing mine with a total of 224,970 tonnes processed in Q3 2014 representing a 11% increase compared to 201,769 tonnes in 2013. Total tonnes processed of 660,509 in the first nine months of 2014 compared to 623,043 tonnes in the same period of 2013 resulting in a 6% increase year-over-year. Mineralization at the Yauricocha Mine is hosted in two different zones including Lead-Oxide and Polymetallic ore-bodies.
During the third quarter of 2014, aggregate production of these ore bodies was 552,677 oz of silver, a 24% increase year-over year; 1.9 million lb of copper, a 30% increase year-over-year; 12.2 million lb of lead, a 46% increase year-over year; 14.7 million lb of zinc, a 20% increase year-over year; and 1,369 oz of gold, a 18% decrease year-over-year. Higher metal production is mainly driven by an increase in the polymetallic throughput and by higher lead and copper head grades and higher silver and lead recoveries. Increase in production was partially offset by lower head grades in the Lead Oxides body in line with Yauricocha's mine plan. A summary of production from the Yauricocha Mine for Q3 2014 has been provided below:
| Yauricocha Production | 3 Months Ended | 9 Months Ended | |||||
| Sep 30, 2014 | Sep 30, 2013 | % Var. | Sep 30, 2014 | Sep 30, 2013 | % Var. | ||
| Tonnes processed | 224,970 | 201,769 | 11% | 660,509 | 623,043 | 6% | |
| Daily throughput | 2,571 | 2,306 | 11% | 2,516 | 2,373 | 6% | |
| Polymetalic | 177,784 | 151,419 | 17% | 525,413 | 476,604 | 10% | |
| Silver grade (g/t) | 88.48 | 83.64 | 6% | 80.21 | 86.54 | -7% | |
| Copper grade | 0.69% | 0.65% | 6% | 0.67% | 0.71% | -5% | |
| Lead grade | 1.99% | 1.42% | 40% | 1.75% | 1.44% | 21% | |
| Zinc grade | 4.27% | 4.18% | 2% | 3.98% | 4.04% | -1% | |
| Gold Grade (g/t) | 0.61 | 0.67 | -8% | 0.67 | 0.68 | -2% | |
| Silver recovery | 77.27% | 69.33% | 11% | 75.12% | 69.74% | 8% | |
| Copper recovery | 66.33% | 67.09% | -1% | 67.72% | 71.94% | -6% | |
| Lead recovery | 84.15% | 77.22% | 9% | 83.19% | 79.25% | 5% | |
| Zinc recovery | 87.74% | 87.99% | 0% | 88.58% | 88.18% | 0% | |
| Gold Recovery | 13.98% | 16.33% | -14% | 13.61% | 17.36% | -22% | |
| Lead Oxides | 43,348 | 50,350 | -14% | 131,257 | 146,439 | -10% | |
| Silver grade (g/t) | 217.81 | 262.21 | -17% | 238.45 | 280.87 | -15% | |
| Lead grade | 8.50% | 7.25% | 17% | 9.22% | 7.32% | 26% | |
| Gold grade (g/t) | 1.19 | 1.57 | -24% | 1.33 | 1.74 | -24% | |
| Ag recovery | 51.13% | 38.84% | 32% | 49.85% | 36.15% | 38% | |
| Pb recovery | 68.00% | 58.21% | 17% | 67.72% | 59.57% | 14% | |
| Gold Recovery | 51.23% | 45.03% | 14% | 49.04% | 39.81% | 23% | |
| Copper Oxides | 3,839 | 0 | N.A. | 3,839 | 0 | N.A. | |
| Silver grade (g/t) | 95.99 | 0.00 | N.A. | 95.99 | 0.00 | N.A. | |
| Copper grade | 3.21% | 0.00% | N.A. | 3.21% | 0.00% | N.A. | |
| Lead grade | 3.33% | 0.00% | N.A. | 3.33% | 0.00% | N.A. | |
| Gold Grade (g/t) | 0.58 | 0.00 | N.A. | 0.58 | 0.00 | N.A. | |
| Ag recovery | 56.67% | 0.00% | N.A. | 56.67% | 0.00% | N.A. | |
| Cu recovery | 38.75% | 0.00% | N.A. | 38.75% | 0.00% | N.A. | |
| Pb recovery | 40.81% | 0.00% | N.A. | 40.81% | 0.00% | N.A. | |
| Gold recovery | 45.48% | 0.00% | N.A. | 45.48% | 0.00% | N.A. | |
| Silver production (oz) | 552,677 | 447,145 | 24% | 1,526,225 | 1,402,805 | 9% | |
| Copper production (000 lb) | 1,899 | 1,458 | 30% | 5,393 | 5,347 | 1% | |
| Lead production (000 lb) | 12,194 | 8,338 | 46% | 35,082 | 26,099 | 34% | |
| Zinc production (000 lb) | 14,668 | 12,268 | 20% | 40,857 | 37,435 | 9% | |
| Gold Production (oz) | 1,369 | 1,673 | -18% | 4,323 | 5,071 | -15% | |
Bolivar Mine, México
During the third quarter of 2014, total ore processed at the Bolivar Mine increased 171% with 168,708 tonnes processed compared to 62,329 tonnes in 2013. Total tonnes processed of 506,047 in the first nine months of 2014 compared to 225,191 tonnes in the same period of 2013, a 125% increase year-over-year. Copper production during the period increased 88% with a total of 3.4 million lb produced (compared to 1.8 million lb in 2013). Silver production at Bolivar increased 106% year-over-year with a total of 108,278 oz produced (compared to 52,498 in 2013). This substantial increase in production is driven by higher throughput compared to the third quarter of 2013. A summary of production for the Bolivar Mine for Q3 2014 has been provided below:
| Bolivar Production | 3 Months Ended | 9 Months Ended | |||||
| Sep 30, 2014 | Sep 30, 2013 | % Var. | Sep 30, 2014 | Sep 30, 2013 | % Var. | ||
| Tonnes processed (t) | 168,708 | 62,329 | 171% | 506,047 | 225,191 | 125% | |
| Daily throughput | 1,928 | 712 | 171% | 1,928 | 858 | 125% | |
| Copper grade | 1.15% | 1.47% | -22% | 1.22% | 1.33% | -8% | |
| Zinc grade | 0.27% | 0.27% | -1% | 0.23% | 0.57% | -60% | |
| Silver grade (g/t) | 24.66 | 29.09 | -15% | 22.70 | 28.76 | -21% | |
| Gold grade (g/t) | 0.26 | 0.00 | N.A. | 0.22 | 0.00 | N.A. | |
| Copper recovery | 79.70% | 89.86% | -11% | 83.66% | 87.23% | -4% | |
| Zinc recovery | 0.00% | 4.29% | -100% | 0.00% | 33.08% | -100% | |
| Silver recovery | 80.94% | 90.05% | -10% | 82.24% | 86.72% | -5% | |
| Gold recovery | 42.26% | 0.00% | N.A. | 51.05% | 0.00% | N.A. | |
| Copper production (000 lb) | 3,410 | 1,812 | 88% | 11,342 | 5,739 | 98% | |
| Zinc production (000 lb) | 0 | 16 | -100% | 0 | 930 | -100% | |
| Silver production (oz) | 108,278 | 52,498 | 106% | 303,732 | 180,597 | 68% | |
| Gold production (oz) | 601 | 0 | N.A. | 1,820 | 0 | N.A. | |
Cusi Mine, México
During the third quarter of 2014 total ore processed increased 44% with a total of 36,845 tonnes of ore processed (compared to 25,516 tonnes in 2013). Total tonnes processed of 111,300 in the first nine months of 2014 compared to 82,768 tonnes in the same period of 2013, resulting in a 34% increase year-over-year. During the third quarter of 2014 production of silver at Cusi increased 5% with a total of 133,296 oz of silver (compared to 127,093 oz in 2013). This increase is mainly driven by higher throughput compared to the third quarter of 2013. A summary of production for the Cusi Mine for the Q32014 has been provided below:
| Cusi Production | 3 Months Ended | 9 Months Ended | |||||
| Sep 30, 2014 | Sep 30, 2013 | % Var. | Sep 30, 2014 | Sep 30, 2013 | % Var. | ||
| Tonnes processed (t) | 36,845 | 25,516 | 44% | 111,300 | 82,768 | 34% | |
| Daily throughput | 421 | 292 | 44% | 424 | 315 | 34% | |
| Silver grade (g/t) | 158.05 | 197.31 | -20% | 164.15 | 166.79 | -2% | |
| Gold grade (g/t) | 0.25 | 0.00 | N.A. | 0.45 | 0.00 | N.A. | |
| Lead grade | 0.58% | 0.61% | -5% | 0.85% | 0.49% | 74% | |
| Silver recovery | 71.20% | 78.33% | -9% | 75.35% | 72.79% | 4% | |
| Gold recovery | 58.57% | 0.00% | N.A. | 60.71% | 0.00% | N.A. | |
| Lead recovery | 76.53% | 73.72% | 4% | 79.63% | 65.17% | 22% | |
| Silver production (oz) | 133,296 | 127,093 | 5% | 442,788 | 323,362 | 37% | |
| Gold production (oz) | 173 | 0 | N.A. | 985 | 0 | N.A. | |
| Lead production (000 lb) | 359 | 253 | 42% | 1,656 | 579 | 186% | |
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 and La Verde (gold) at the Batopilas Property in the state of Chihuahua.
The Company's shares trade on the Lima Stock Exchange (Bolsa de Valores de Lima) and on 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. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. 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 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
please visit www.sierrametals.com or contact: Audra Walsh, President & CEO, Sierra Metals Inc., 1 (866) 493-9646; Victoria Vargas, Vice President, Investor Relations, Sierra Metals Inc., 1 (866) 493-9646, info@sierrametals.com