Sierra Metals Inc.
Sierra Metals Inc. is a 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 discoveries and still has additional brownfield exploration opportunities at all three mines in Peru and Mexico that are within or close proximity to the existing mines. Additionally, the Company has large land packages at all three mines with several prospective regional targets providing longer term exploration upside and mineral resource growth potential.
PROJECTS ON HAND
(1) Yauricocha Silver-Copper-Lead-Zinc-Gold Project, Lima, Western Central Peru
Acquired in 2011, Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. It has been in continuous operation since 1948. The Yauricocha property covers 18,000 hectares that straddle a 20 km strike length of the prolific Yauricocha fault. The mined ore is processed at the Chumpe processing plant. The daily mining rate is approximately 3,000 tonnes and the Chumpe plant has a daily capacity of 3,000 tonnes. Five different types of ore concentrates are produced, transported to Lima and then sold.
Based on current proven and probable mineral reserves and current throughput rates, Yauricocha has an expected mine life of approximately 8.7 years. However, extensive deep drilling was completed in 2016 and 2017 to expand the mine life.
Reserves and Resources
On November 13, 2017, the Company released an updated NI 43-101 compliant reserve and resource estimate for the Yauricocha Mine.
* Measured and Indicated Resources include Proven and Probable Reserves.
Regional Growth Potential Targets
(2) Bolivar and Cusi Projects, Chihuahua, Mexico
Sierra Metals Inc. is a significant mineral property holder in Mexico with a land package of over 142,000 hectares. The Company's key assets in Mexico include the 100% owned producing Bolivar and Cusi mines located in southwest and central Chihuahua State, respectively.
Bolivar Copper Project
On April 19, 2017, the Company released an updated NI 43-101 compliant reserve and resource estimate for the Bolivar Mine.
Bolivar Northwest and Bolivar West Targets
Cusi Silver Project
On April 17, 2017, the Company released announced an updated NI 43-101 reserve and resource estimate for the Cusi Mine:
Santa Rosa de Lima Zone
Management and Directors
Igor Gonzales, President & Chief Executive Officer, Director
Mr. Gonzales has more than 35 years of experience in the mining industry, most recently he was COO at Buenaventura and prior to that was with Barrick Gold from 1998 to 2013 where he most recently held the position of Executive VP and COO. Prior to joining Barrick, he served in various roles with Southern Peru Copper.
Gordon Babcock, P.Eng., Chief Operating Officer
Over 34 years of experience in mine production management, project development, engineering, exploration and mine consulting in precious, base metals and aggregate operations in the Americas. Most recently COO at Jaguar Mining.
Ed Guimaraes, CPA, CA, Chief Financial Officer
25 years experience in the mining industry, most recently in a consulting role and several Board directorships. He was Executive Vice-President, Finance and Chief Financial Officer of Aur Resources.
Alonso Lujan, Vice President Exploration
26 years international experience in mineral exploration with a positive track record for increasing companies' resources, output and company value. Mr. Lujan most recently spent 6 years with Mata-Trafigura as the General Manger.
Americo Zuzunaga, CP (Geologist by Mining Engineer), Vice President of Corporate Planning
Over 30 years of international experience in mining operations, mine and business planning, engineering studies, project management and optimizing development. Mr. Zuzunaga was most recently at BISA as a Technical Studies Manager.
Dante Vargas, Vice President of Human Resources and Continuous Improvement
Over 35 years of experience in management, strategic planning, organizational effectiveness and security and risk management in different countries in Latin America. Most recently he was the Operational Excellence Manager for Buenaventura.
Mike McAllister, Vice President of Corporate Development
13 years experience working with public mining companies, the last 8 as a mining specialized investor relations professional
Worked for Avion Gold, Savary Gold, Alder Resources and Black Iron. Previously Mr. McAllister worked at BMO Capital Markets
Augusto Chung, CP (Metallurgist), Consultant to Sierra Metals
34 years metallurgical and mine management experience with a positive track record for increasing companies' output and company value. Mr. Chung was most recently with Rio Alto Mining as the Vice President of Projects.
J. Alberto Arias, Chairman
Mr. Arias has over 21 years of experience in the field of international mining finance. He is the founder and President of Arias Resource Capital Management LP.
Douglas Cater, Director
Steven Dean, Director
Philip Renaud, Director
Dionisio Romero Paoletti, Director
Jose Alberto Vizquerra-Benavides, Director
On June 18, 2018, Sierra Metals Inc. has released the results of a preliminary economic assessment (PEA) regarding the Company's Cusi mine, located in Chihuahua state, Mexico.
Highlights of the PEA include:
· After-tax net present value (NPV): $92.2-million (U.S.) at an 8-per-cent discount rate;
· Plant processing rate: currently 650 tonnes per day (tpd) growing to 1,200 tpd by the first quarter of 2019 and 2,700 tpd by mid-2021;
On June 7, 2018, Sierra Metals Inc. reported positive drilling results from high-grade polymetallic structures including five meters of 36% zinc, 9% lead, 175 g/t silver located 250 meters east of current mine operations at the Yauricocha mine, Peru.
On June 6, 2018, Sierra Metals Inc. has released results of an infill drilling program evaluating the continuity and characteristics of geophysical anomalies that were previously tested as part of a recent Titan 24 geophysical survey and deemed high-value targets at the Bolivar property, Chihuahua, Mexico. Sierra Metals confirmed northern extension of the Bolivar northwest orebody containing an average grade of 1.37% copper and an average true width of 8.1 meters at the Bolivar mine, Mexico.
On June 5, 2018, Sierra Metals Inc. has released drilling results demonstrating the potential to increase mineral resources between Esperanza zone and Cuye zone, located within the central mine at Yauricocha. Sierra Metals deepest drilling results of 1.7 km yields high grade results and confirms new mineralized zone including 120 g/t Au, 0.85% Pb, 0.01% Cu, 7.78% Zn, 0.34 g/t Au over 2.9 meters between the Esperanza and Cuye zones at Yauricocha mine, Peru
On June 4, 2018, Sierra Metals Inc. has released the voting results from the Company's annual general meeting of shareholders held on May 30, 2018. Shareholders voted in favour of all matters brought before the meeting, including the reappointment of PricewaterhouseCoopers as auditor for the ensuing year and the election of management's nominees as directors. Sierra Metals shareholders elect seven directors at AGM.
On June 4, 2018, Sierra Metals Inc. has released drilling results demonstrating high-grade polymetallic ore and a new mineralization style of hydrothermal breccias located at the Contacto Oriental zone extension situated within the central mine at Yauricocha. Sierra Metals discovers new high-grade zone including 1.86 g/t Ag, 0.54% Pb, 0.28% Cu, 9.53% Zn over 57 meters located 220 meters east of the current mine operations at the Yauricocha mine, Peru.
On May 22, 2018, Sierra Metals Inc. has updated its mineral reserve and resource estimate at the company's Bolivar mine, located in Chihuahua state, Mexico. A technical report prepared by SRK Consulting (U.S.) Inc. in accordance with National Instrument 43-101 standards of disclosure has been completed and will be filed on SEDAR within 45 days of this news release.
On May 09, 2018, Sierra Metals Inc. had revenue of $61.7-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $27.4-million on throughput of 557,710 tonnes, and metal production of 4.4 million silver equivalent (AgEq) ounces, 23.4 million copper equivalent (CuEq) pounds and 47.2 million zinc equivalent (ZnEq) pounds, for the three-month period ended March 31, 2018. The Company achieved record quarterly throughput from both the Yauricocha and Bolivar Mines, continuing the successful production increases realized during 2017. Consolidated production of copper increased 11%, silver decreased 15%, lead decreased 31%, zinc was flat, and gold increased 10% compared to Q1 2017.
On April 30, 2018, Sierra Metals' Corona earns $15.1M (U.S.) in Q1. Revenues of $46.6-million versus $38.5-million in the first quarter of 2017; and the adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $24.2-million versus $20.5-million in the first quarter of 2017
On April 11, 2018, Sierra Metals Inc. has released first quarter 2018 production results featuring the highest level of consolidated quarterly throughput to date.
Results are from Sierra Metals' three underground mines in Latin America: the Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.
First quarter 2018 production highlights: