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:
- Total tonnes processed of 323,751 in the second quarter of 2013
compared to 325,913 tonnes in the same period of 2012. A 1%
decrease year-over-year.
- Total silver ("Ag") production of 669,620 ounces ("oz") in the
second quarter of 2013 compared to 670,706 oz for the same period
of 2012. A nil change year-over-year.
- Total copper ("Cu") production of 3.8 million pounds ("lb") in
the second quarter of 2013 compared to 4.1 million lb for the same
period of 2012. A 9% decrease year-over-year.
- Total lead ("Pb") production of 9.6 million lb in the second
quarter of 2013 compared to 9.1 million lb for the same period of
2012. A 5% increase year-over-year.
- Total zinc ("Zn") production of 12.8 million lb in the second
quarter of 2013 compared to 15.3 million lb for the same period of
2012. A 16% decrease year-over-year.
- Total gold ("Au") production from the Yauricocha Mine was 1,800
oz in the second quarter of 2013 compared to 2,876 oz for the same
period of 2012. A 37% decrease year-over-year.
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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% |
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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% |
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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% |
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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% |
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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.
PDF available at:
http://stream1.newswire.ca/media/2013/07/16/20130716_C7636_DOC_EN_29032.pdf
PDF available at:
http://stream1.newswire.ca/media/2013/07/16/20130716_C7636_DOC_EN_29030.pdf
PDF available at:
http://stream1.newswire.ca/media/2013/07/16/20130716_C7636_DOC_EN_29031.pdf