- INCREASE IN PRODUCTION OF 32% AT ITS BOLIVAR MINE AND 18% AT
ITS CUSI MINE OFFSET BY TEMPORARY DECLINE of 14% AT ITS YAURICOCHA
MINE IN THE FOURTH QUARTER 2015
TORONTO, Feb. 9, 2016 /CNW/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) ("Sierra Metals" or "the Company")
reports fourth quarter production results including an increase in
copper equivalent production and record throughput at its Bolivar
Mine, and an increase in silver equivalent production at its Cusi
Mine, while the restructuring process at its Yauricocha Mine
continued to temporarily depress throughput and grades resulting in
lower production for the three-month period ended December 31, 2015 ("Q4 2015").
Total consolidated tonnes processed increased by 9%, however
silver equivalent and copper equivalent production both decreased
by 7% respectively for the twelve-month period. Results are from
Sierra Metal's three underground mines in Latin America: the Yauricocha polymetallic
Mine in Peru and the Bolivar
copper and Cusi silver Mines in Mexico.
Fourth Quarter Production Highlights
- Total tonnes processed of 456,842; a 7% increase over Q4
2014
- Silver equivalent production of 2.3 million ounces; a 23%
decrease from Q4 2014
- Copper equivalent production of 15.6 million pounds; a 23%
decrease from Q4 2014
Fourth Quarter consolidated metal production declined as a
result of reduced plant throughput of 14% and lower ore grades at
the Yauricocha Mine in Peru which
was partially offset by the increase in throughput at both the
Bolivar and Cusi Mines. The decrease
in throughput at the Yauricocha Mine continues to be attributable
to the ongoing restructuring that has addressed the management of
water control issues, and is focused on the improvement of mine
sequencing and implementation of best practices and mechanization
of the Mine.
"While we anticipate improved consolidated results in the
current year, we are extremely pleased to see increased copper
equivalent production at Bolivar and growth in silver equivalent
production at Cusi." commented Mark Brennan, President and
CEO of Sierra Metals. "We continue to focus on the
restructuring and rehabilitation at the Yauricocha Mine with the
implementation of best practices and the introduction of modern
methodologies. Management is optimistic that these beneficial
changes that have resulted in lower production in the near term
will serve to increase production in the coming years."
He continued, "Further success in brownfields exploration
such as the recent discovery of the Esperanza Zone at our
Yauricocha Mine, combined with our production optimization program
shall enable Sierra Metals to continue on a solid path of increased
production and resource growth for the foreseeable
future."
Production Guidance for 2016
The company is pleased to announce consolidated production
guidance for 2016.
|
2016
Guidance
|
|
Low
|
High
|
|
|
|
Silver
ounces
|
2,600,000
|
3,200,000
|
Copper pounds
(000's)
|
24,400
|
30,100
|
Lead pounds
(000's)
|
26,700
|
32,900
|
Zinc pounds
(000's)
|
43,200
|
53,400
|
Gold
ounces
|
9,100
|
11,200
|
Silver equivalent
ounces (000's)(1)
|
10,400
|
12,800
|
Copper equivalent
pounds (000's)(1)
|
69,100
|
85,300
|
|
|
|
(1) 2016 Silver
equivalent ounces & copper equivalent pounds were calculated
using the following metal prices: $14.96/oz Ag, $2.25/lb Cu,
$0.75/lb Pb, $0.73/lb Zn, $1,112/oz Au.
|
All metals have a higher production guidance for 2016 than
compared to 2015 production with the exception of lead.
Production of lead at the Yauricocha Mine is forecasted to be lower
due to required stope development which has yet to be completed as
well as anticipated lower grades at depth in the central mine zone.
Replacement of Higher grade lead zones are expected to come from
the recently discovered Esperanza
zone in the future.
Consolidated Production Results
Consolidated
Production
|
3 Months
Ended
|
12 Months
Ended
|
2015
Guidance
|
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
Low
|
High
|
|
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
456,842
|
428,859
|
7%
|
1,864,706
|
1,706,715
|
9%
|
1,805,000
|
2,105,000
|
|
Daily
throughput
|
5,221
|
4,901
|
7%
|
5,328
|
4,892
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver
ounces
|
603,114
|
875,400
|
-31%
|
3,104,952
|
3,148,145
|
-1%
|
3,144,000
|
3,668,000
|
Copper pounds
(000's)
|
5,493
|
5,908
|
-7%
|
23,197
|
22,643
|
2%
|
21,000
|
24,300
|
Lead pounds
(000's)
|
7,920
|
12,096
|
-35%
|
42,177
|
48,834
|
-14%
|
44,300
|
51,800
|
Zinc pounds
(000's)
|
9,265
|
13,399
|
-31%
|
42,077
|
54,256
|
-22%
|
41,900
|
48,900
|
Gold
ounces
|
2,201
|
2,329
|
-6%
|
9,066
|
9,457
|
-4%
|
11,200
|
13,000
|
Silver equivalent
ounces (000's)(1)
|
2,341
|
3,058
|
-23%
|
10,943
|
11,788
|
-7%
|
10,800
|
12,600
|
Copper equivalent
pounds (000's)(1)
|
15,609
|
20,385
|
-23%
|
72,946
|
78,588
|
-7%
|
72,400
|
84,300
|
(1) Silver equivalent
ounces & copper equivalent pounds were calculated using the
following metal prices: $20/oz Ag, $3.00/lb Cu, $0.85/lb Pb,
$0.95/lb Zn, $1,250/oz Au.
|
Yauricocha Mine, Peru
The Yauricocha Mine processed a total of 193,710 tonnes in Q4
2015 representing a 14% decrease compared to Q4 2014.
Lower metal production was driven by lower plant throughput and
lower head grades from the polymetallic and lead-oxide
concentrates.
Lower recoveries of lead and silver were a consequence of lower
head grades in the ore sources available to be mined in 2015 versus
2014.
A summary of production from the Yauricocha Mine for Q4 2015 has
been provided below:
Yauricocha
Production
|
3 Months
Ended
|
12 Months
Ended
|
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
193,710
|
224,986
|
-14%
|
832,225
|
885,495
|
-6%
|
|
Daily
throughput
|
2,214
|
2,571
|
-14%
|
2,378
|
2,545
|
-6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver grade
(g/t)
|
86.13
|
116.78
|
-26%
|
102.62
|
112.95
|
-9%
|
|
Copper
grade
|
0.38%
|
0.71%
|
-47%
|
0.49%
|
0.59%
|
-17%
|
|
Lead grade
|
2.46%
|
3.09%
|
-21%
|
2.93%
|
3.20%
|
-8%
|
|
Zinc grade
|
2.48%
|
3.07%
|
-19%
|
2.57%
|
3.14%
|
-18%
|
|
Gold Grade
(g/t)
|
0.63
|
0.71
|
-11%
|
0.70
|
0.78
|
-10%
|
|
|
|
|
|
|
|
|
Silver
recovery
|
53.53%
|
70.48%
|
-24%
|
65.23%
|
65.97%
|
-1%
|
|
Copper
recovery
|
64.94%
|
65.52%
|
-1%
|
61.68%
|
66.70%
|
-8%
|
|
Lead
recovery
|
64.98%
|
75.85%
|
-14%
|
73.28%
|
74.70%
|
-2%
|
|
Zinc
recovery
|
87.45%
|
88.08%
|
-1%
|
89.38%
|
88.54%
|
1%
|
|
Gold
Recovery
|
26.38%
|
26.41%
|
0%
|
26.74%
|
25.69%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver
ounces
|
287,140
|
595,340
|
-52%
|
1,791,056
|
2,121,565
|
-16%
|
Copper pounds
(000's)
|
1,047
|
2,304
|
-55%
|
5,567
|
7,697
|
-28%
|
Lead pounds
(000's)
|
6,814
|
11,632
|
-41%
|
39,430
|
46,714
|
-16%
|
Zinc pounds
(000's)
|
9,265
|
13,399
|
-31%
|
42,077
|
54,256
|
-22%
|
Gold
ounces
|
1,041
|
1,360
|
-23%
|
5,018
|
5,683
|
-12%
|
Silver equivalent
ounces (000's)(1)
|
1,239
|
2,157
|
-43%
|
6,614
|
8,194
|
-19%
|
Copper equivalent
pounds (000's)(1)
|
8,259
|
14,378
|
-43%
|
44,094
|
54,625
|
-19%
|
(1) Silver equivalent
ounces & copper equivalent pounds were calculated using the
following metal prices: $20/oz Ag, $3.00/lb Cu, $0.85/lb Pb,
$0.95/lb Zn, $1,250/oz Au.
|
Bolivar Mine, México
Bolivar had an exceptional quarter in Q4, 2015 with a 22%
increase in copper equivalent production and record quarterly plant
throughput of 211,311 tonnes, a 32% increase compared to Q4 2014.
Copper production of 4.4 million pounds increased 23%, silver
production of 102,894 ounces increased 11% and gold production of
833 ounces increased 25% compared to Q4 2014. The increase in
copper, silver and gold production was driven by higher plant
throughput, higher gold head grades and higher recoveries of copper
compared to Q4 2014.
A summary of production for the Bolivar Mine for Q4 2015 has
been provided below:
Bolivar
Production
|
3 Months
Ended
|
12 Months
Ended
|
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
211,311
|
159,904
|
32%
|
830,447
|
665,951
|
25%
|
|
Daily
throughput
|
2,415
|
1,827
|
32%
|
2,373
|
1,903
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
grade
|
1.13%
|
1.25%
|
-9%
|
1.15%
|
1.22%
|
-6%
|
|
Silver grade
(g/t)
|
19.37
|
22.03
|
-12%
|
20.57
|
22.54
|
-9%
|
|
Gold grade
(g/t)
|
0.31
|
0.29
|
6%
|
0.30
|
0.23
|
29%
|
|
|
|
|
|
|
|
|
Copper
recovery
|
84.29%
|
82.10%
|
3%
|
84.02%
|
83.28%
|
1%
|
|
Silver
recovery
|
78.18%
|
81.85%
|
-4%
|
80.18%
|
82.15%
|
-2%
|
|
Gold
recovery
|
40.04%
|
45.32%
|
-12%
|
40.49%
|
49.38%
|
-18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper pounds
(000's)
|
4,447
|
3,604
|
23%
|
17,629
|
14,946
|
18%
|
Silver
ounces
|
102,894
|
92,689
|
11%
|
440,401
|
396,421
|
11%
|
Gold
ounces
|
833
|
665
|
25%
|
3,216
|
2,485
|
29%
|
Silver equivalent
ounces (000's)(1)
|
822
|
675
|
22%
|
3,286
|
2,794
|
18%
|
Copper equivalent
pounds (000's)(1)
|
5,480
|
4,499
|
22%
|
21,904
|
18,624
|
18%
|
(1) Silver equivalent
ounces & copper equivalent pounds were calculated using the
following metal prices: $20/oz Ag, $3.00/lb Cu, $0.85/lb Pb,
$0.95/lb Zn, $1,250/oz Au.
|
Cusi Mine, México
Total ore processed of 51,821 tonnes during Q4, 2015 increased
18% compared to Q4 2014 and the average daily throughput of 597
tonnes per day was the highest ever achieved in a quarter at Cusi.
Silver production of 213,080 ounces increased 14%, while gold
production of 327 ounces and lead production of 1.1 million pounds
increased by 8% and 138% respectively, compared to Q4 2014. The
increase in metal production during Q4 2015 was due to higher plant
throughput, higher silver and lead head grades and higher gold and
lead recoveries.
A summary of production for the Cusi Mine for Q4 2015 has been
provided below:
Cusi
Production
|
3 Months
Ended
|
12 Months
Ended
|
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
Dec 31,
2015
|
Dec 31,
2014
|
%
Var.
|
|
|
|
|
|
|
|
Tonnes processed
(mt)
|
51,821
|
43,969
|
18%
|
202,033
|
155,269
|
30%
|
|
Daily
throughput
|
592
|
503
|
18%
|
577
|
444
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver grade
(g/t)
|
175.20
|
173.13
|
1%
|
175.88
|
166.69
|
6%
|
|
Gold grade
(g/t)
|
0.29
|
0.33
|
-12%
|
0.22
|
0.42
|
-47%
|
|
Lead grade
|
1.19%
|
0.62%
|
93%
|
0.78%
|
0.78%
|
0%
|
|
|
|
|
|
|
|
|
Silver
recovery
|
73.00%
|
76.56%
|
-5%
|
76.46%
|
75.70%
|
1%
|
|
Gold
recovery
|
67.91%
|
66.08%
|
3%
|
57.22%
|
61.89%
|
-8%
|
|
Lead
recovery
|
81.10%
|
77.06%
|
5%
|
79.08%
|
79.06%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver
ounces
|
213,080
|
187,371
|
14%
|
873,496
|
630,159
|
39%
|
Gold
ounces
|
327
|
304
|
8%
|
831
|
1,289
|
-36%
|
Lead pounds
(000's)
|
1,106
|
464
|
138%
|
2,747
|
2,120
|
30%
|
Silver equivalent
ounces (000's)(1)
|
281
|
226
|
24%
|
1,043
|
801
|
30%
|
Copper equivalent
pounds (000's)(1)
|
1,870
|
1,507
|
24%
|
6,948
|
5,339
|
30%
|
(1) Silver equivalent
ounces & copper equivalent pounds were calculated using the
following metal prices: $20/oz Ag, $3.00/lb Cu, $0.85/lb Pb,
$0.95/lb Zn, $1,250/oz Au.
|
Quality Control
All technical data contained in this news release has been
reviewed and approved by Gordon
Babcock, P.Eng., Chief Operating Officer and a Qualified
Person under National Instrument 43-101 – Standards of Disclosure
for Mineral Projects.
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, and its Bolivar Mine and
Cusi Mine in Mexico. In addition,
Sierra Metals is exploring several precious and base metals 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.