Drill hole highlights include: drilled from
720 level Klepetko tunnel to 1394.60m
in depth
|
From
|
To
|
Cu
|
Mo
|
Co
|
|
Hole E PORF
10-18-01
|
798m
|
806m
|
0.46%
|
219
ppm
|
24.25
ppm
|
over
8
meters
|
|
822m
|
844m
|
0.46%
|
134
ppm
|
10.73
ppm
|
over
22
meters
|
|
854m
|
872m
|
0.54%
|
131
ppm
|
17.67
ppm
|
over
18
meters
|
|
950m
|
958m
|
0.49%
|
110
ppm
|
6.25
ppm
|
over
8
meters
|
|
968m
|
980m
|
0.45%
|
68
ppm
|
6.50
ppm
|
over
12
meters
|
TORONTO, Oct. 1, 2018 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") today confirms the discovery of a new
style of mineralization (copper - molybdenum porphyry). Today's
results are from testing of the geophysical anomalies, in the
quartz monzonite intrusive, in the eastern part of the mineralized
area. This area is known as the Central Mine which is located
between the Cuye and Esperanza zones. The discovery comes as part
of an ongoing drilling program to test priority geophysical
anomalies at the Yauricocha Mine, located 150 kilometers
east-southeast of Lima in the Yauricocha Mining District
(Cordillera Occidental), Peru.
Prior evidence of copper-molybdenum porphyry mineralization had
been observed on surface within the monzonite intrusive and had
previously been sampled by Rio Tinto Zinc. Subsequently, drill core
was sampled at 10-meter intervals over the entire hole length and
the Company obtained 122 samples. The hole was drilled from the
Klepetko Tunnel located on the 720 level to a depth of 1,394.6
meters. The samples indicated an average of >0.1% Copper.
A recently completed TITAN 24 Geophysical Study identified more
than 100 anomalies at Yauricocha and a program to test this first
geophysical anomaly was designed. Hole (E-PORF 10-18-01) was
drilled from the Klepetko Tunnel to test the priority anomaly
located in the monzonite intrusive as this zone had high
conductivity within the Intrusive. A copper-molybdenum mineralized
porphyry was discovered.
Results to date show mineralized sectors with notable grades of
copper and molybdenum (see table 1) and this discovery confirms the
existence of a new style of mineralization at Yauricocha. The
Company will continue with a drilling program which will allow for
a better understanding of the distribution of mineralization.
Alonso Lujan, Vice President of
Exploration stated: "We are excited as these drilling results
demonstrate the possibility to define a copper – molybdenum
porphyry deposit with significant dimensions. The TITAN 24 anomaly
areas have shown an excellent relationship between conductivity,
chargeability and the orebodies. We have several higher-grade
intercepts between 798 and 980 meters and now the objective of our
follow-up drilling programs is to define the geometry of the
higher-grade core of the porphyry."
He added, "the discovery and location of the porphyry serves
as an important milestone at Yauricocha as it helps us to better
understand the magnitude of the district's mineralization. It
also helps us to better relate the recent discoveries of the skarn
and breccia orebodies to the location of the porphyry. Breccias and
skarn related to porphyry orebodies represent important exploration
targets for the Company."
Igor Gonzales, President and CEO
of Sierra Metals commented: "Brownfield exploration continues to
be a key part of Sierra Metals' growth plan. Today's
announcement of a porphyry discovery at Yauricocha supports further
growth and development at the Yauricocha Mine and subsequently
supports the Company's overall growth plans in Peru."
Table 1 - Shows the results of the samples obtained from the
drill hole E-PORF 10-18-01.
Figure 2 - Shows the Yauricocha Porphyry System.
Figure 3 - Cross Section Drill Hole E-PORF 10-18-01 shows the relationship with Cuye
orebody.
Figure 4 - L14 Resistivity (Geophysical Study) shows the
relationship between Cuye orebody results from samples of hole
E-PORF 10-18-01 and conductivity.
Figure 5 - Map of Yauricocha Area shows Geochemical Anomalies on
Surface.
Figure 6 - Photographs of drill hole E-PORF 10-18-01.
Table 1 – Assays obtained from Drill Hole E PORF 10-18-10 showing copper, molybdenum and cobalt
values.
Description
|
From
|
To
|
Width
|
Cu
|
Mo
|
Co
|
|
|
|
m
|
%
|
ppm
|
Ppm
|
|
|
|
|
|
|
|
|
396.00
|
418.00
|
22.00
|
0.13
|
19.45
|
7.73
|
|
418.00
|
432.00
|
14.00
|
0.08
|
25.71
|
6.71
|
|
432.00
|
454.00
|
22.00
|
0.11
|
27.36
|
8.55
|
|
454.00
|
468.00
|
14.00
|
0.07
|
26.00
|
6.29
|
|
468.00
|
574.00
|
106.00
|
0.13
|
39.60
|
10.70
|
|
574.00
|
600.00
|
26.00
|
0.07
|
20.00
|
7.69
|
|
600.00
|
702.00
|
102.00
|
0.15
|
94.84
|
8.69
|
|
702.00
|
798.00
|
96.00
|
0.19
|
48.02
|
11.27
|
|
798.00
|
806.00
|
8.00
|
0.46
|
219.00
|
24.25
|
|
806.00
|
822.00
|
14.00
|
0.21
|
39.57
|
10.57
|
|
822.00
|
844.00
|
22.00
|
0.46
|
133.73
|
10.73
|
|
844.00
|
854.00
|
10.00
|
0.18
|
104.00
|
10.60
|
|
854.00
|
872.00
|
18.00
|
0.54
|
131.44
|
17.67
|
|
872.00
|
950.00
|
78.00
|
0.15
|
68.41
|
7.05
|
|
950.00
|
958.00
|
8.00
|
0.49
|
110.00
|
6.25
|
|
958.00
|
968.00
|
10.00
|
0.23
|
50.40
|
7.80
|
|
968.00
|
980.00
|
12.00
|
0.45
|
68.00
|
6.50
|
|
980.00
|
1024.00
|
44.00
|
0.19
|
55.23
|
9.50
|
|
1024.00
|
1072.00
|
48.00
|
0.23
|
90.33
|
5.33
|
|
1072.00
|
1092.00
|
20.00
|
0.21
|
173.30
|
4.30
|
|
1092.00
|
1294.00
|
202.00
|
0.15
|
194.00
|
3.90
|
A complete list of assays for all drill holes presented in this
news release are listed here:
https://www.dropbox.com/s/800568wfxsbgaz3/Complete%20Drill%20Hole%20TAL_E_PORF_10_18_01-Yauricocha-1394.pdf?dl=0
Quality Control
All samples that were obtained from the drills were prepared on
site and sent to ALS Minerals (Chemex Lab) in Lima for analysis, by ICP-AES and Atomic
Absorption methods.
The quality assurance-quality control (QA-QC) program employed
by Sierra Metals has been described in detail in the NI-43-101
report for Yauricocha dated November 10,
2017, prepared by SRK Consulting in Denver, which is available for review on
Sedar. Standards and blanks are inserted into the sample stream and
duplicate samples are sent to the ALS Peru S.A. lab (Chemex) in
Lima as per internal quality
control procedures.
Qualfied Persons
The technical content of this news release has been approved by
Gordon Babcock P. Eng. COO, and is a
Qualified Person as defined in NI-43-101.
Americo Zuzunaga, MAusIMM CP
(Mining Engineer) and Vice President of Corporate Planning is a
Qualified Person and chartered professional qualifying as a
Competent Person under the Joint Ore Reserves Committee (JORC)
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Augusto Chung, FAusIMM CP
(Metallurgist) and Consultant to Sierra Metals is a Qualified
Person and chartered professional qualifying as a Competent Person
on metallurgical processes.
About Sierra Metals
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 key discoveries and still has many more
exciting brownfield exploration opportunities at all three Mines in
Peru and Mexico that are within close proximity to the
existing mines. Additionally, the Company also has large land
packages at all three mines with several prospective regional
targets providing longer-term exploration upside and mineral
resource growth potential.
The Company's Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock
Exchange under the symbol "SMT" and on the NYSE American Exchange
under the symbol "SMTS."
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals
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Inc
Forward-Looking Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of Canadian and
U.S. securities laws related to the Company (collectively,
"forward-looking information"). Forward-looking information
includes, but is not limited to, statements with respect to the
Company's operations, including the anticipated developments in the
Company's operations in future periods, the Company's planned
exploration activities, the adequacy of the Company's financial
resources, and other events or conditions that may occur in the
future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties
are developed or further developed. These statements relate to
analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives",
"potential" or variations thereof, or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking information.
Forward-looking information is subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking information, including,
without limitation, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions,
cave-ins, weather conditions and criminal activity; commodity price
fluctuations; higher operating and/or capital costs; lack of
available infrastructure; the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; risks associated with the estimation of
mineral resources and the geology, grade and continuity of mineral
deposits and the inability to replace reserves; fluctuations in the
price of commodities used in the Company's operations; risks
related to foreign operations; changes in laws or policies, foreign
taxation, delays or the inability to obtain necessary governmental
permits; risks relating to outstanding borrowings; issues regarding
title to the Company's properties; risks related to environmental
regulation; litigation risks; risks related to uninsured hazards;
the impact of competition; volatility in the price of the Company's
securities; global financial risks; inability to attract or retain
qualified employees; potential conflicts of interest; risks related
to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral
reserves and resources; potential dilutive transactions; foreign
currency risks; risks related to business cycles; liquidity risks;
reliance on internal control systems; credit risks, including risks
related to the Company's compliance with covenants with respect to
its BCP Facility; uncertainty of production and cost estimates for
the Yauricocha Mine, the Bolivar Mine and the Cusi Mine; and other
risks identified in the Company's filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission ("SEC"),
which filings are available at www.sedar.com and www.sec.gov,
respectively.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking information. Forward-looking
information includes statements about the future and are inherently
uncertain, and the Company's actual achievements or other future
events or conditions may differ materially from those reflected in
the forward-looking information due to a variety of risks,
uncertainties and other factors. The Company's statements
containing forward-looking information are based on the beliefs,
expectations, and opinions of management on the date the statements
are made, and the Company does not assume any obligation to update
forward-looking information if circumstances or management's
beliefs, expectations or opinions should change, other than as
required by applicable law. For the reasons set forth above, one
should not place undue reliance on forward-looking information.
Note Regarding Reserve and Resource Estimates
All reserve and resource estimates reported by the Company are
calculated in accordance with the Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects and the
Canadian Institute of Mining and Metallurgy Classification system.
These standards differ significantly from the requirements of the
SEC. The differences between these standards are discussed in our
SEC filings. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.
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SOURCE Sierra Metals Inc.