VANCOUVER,
Aug. 28, 2013 /CNW/ - Sierra
Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the
"Company") regrets to report that on August
20, 2013, an employee of a third party contractor was
fatally injured when he was driving a front-end loader on a surface
yard near the Promontorio silver mine and the ground below the
equipment unexpectedly subsided. The Company believes the
accident was caused by a ground subsidence following heavy rains
recently experienced in the Cusi area. As a result of the accident,
Mexican authorities have been contacted and they have directed that
the Promontorio Mine temporarily stop production, pending
completion of geophysical and hydrological surveys. The surveys
have commenced and the Company anticipates receiving approval to
restart operations by the end of this week. The Company will keep
the market informed of any developments as they occur.
The safety of Sierra Metals' employees and
contractors is the highest priority and the Company is conducting
its own review of the incident and will put into effect
recommendations as a result of those investigations to prevent such
an incident occurring again in the future.
Sierra Metals production is not materially
affected by the temporary shutdown of Promontorio, as this mine
currently contributes approximately to 20% of Cusi's silver
production and 3% of Sierra Metals' silver production.
Promontorio's revenues contribute only to 1% of Sierra Metals'
total revenues. Cusi's operations are comprised of five mines:
Santa Eduwiges, Promontorio, La India, Minerva, and San Jose.
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.