- Continues to intersect high-grade sulfide intercepts in drill
program on the deepest level of the mine at the 1070 level
horizon
Current Program Drill hole highlights include:
Hole D-ESP-02: 1.54% Cu,
3.99% Zn, 1.49% Pb, 0.70 gpt Au, 52.42 gpt Ag over
48.5m
Hole D-ESP-03: 1.03% Cu, 17.43% Zn, 7.56% Pb, 0.35 gpt
Au, 154.38 gpt Ag over 22.1m
Hole D-ESP-01B: 3.34% Cu, 2.62% Zn, 1.02% Pb, 0.67 gpt
Au, 76.39 gpt Ag over 34.50m
TORONTO, Oct. 24, 2016 /PRNewswire/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) ("Sierra Metals" or "the
Company") today announced the results of its continuing drill
program targeting the maiden discovery of its new high grade
sulfide zone, referred to as the "Esperanza" zone, located 400
metres north of the central mine area and 100 metres along strike
from current mining activities. The results reveal the zone is open
on strike and at depth and comes as part of an ongoing drill
program at this high priority target at the Yauricocha Mine located
150 kilometers southeast of Lima in the Yauricocha Mining District
(Cordillera Occidental), Peru.
The company continues with the exploration, development and
definition drill program on the Esperanza ore body from the 1070 level of the
mine which is the deepest level in the mine. The program
continues to realize intercepts at depth (100 meters below
previously drilled holes) in two holes drilled at -50 degree angles
as well as with five horizontal holes providing evidence of
increased mineralization at the 1070 level. Drilling will continue
from the 1070 level horizon with additional flat holes to the south
of hole D-ESP-05 as well with
additional inclined holes at depth.
The current program reports seven holes drilled with assay
results from ALS Minerals Laboratories. The program identified the
continuance of the orebody on the 1070 level with an intermittent
strike length of 150 meters with widths varying from 2m to sections
in excess of 20 meters with zones of lead and zinc sulfide
mineralization as well as zones of predominantly copper sulfide
mineralization. At depth, mineralization continues below the 1170
level horizon.
The current drill program has, in addition to intercepts at the
Esperanza zone, also intercepted
new "Cuerpos Pequenos" ore bodies with high grade lead, zinc,
silver values (one such zone is noted in TABLE 1 and identified as
the "Millet" zone).
These new small ore bodies on the 1070 level were not present in
the upper part of the mine near the Central orebody nor in the
Mascota mining area. There exists
a possibility that this type of discovery could also be present in
the Central ore body zone to the East of Esperanza on the 1070 level horizon since this
area has not been explored or developed to the extent of
Esperanza.
Hole D-ESP-03 from 90.20 to 112.30
meters (22.10 meter intercept) depicts the mineralized structure
with sulfide minerals Galena, Sphalerite, Pyrite which we have
named Millet with the following grades: 154.38 gpt Ag; 7.56 % Pb;
1.03 % Cu; 17.43% Zn and 0.35 gpt Au.
"The extension of the Esperanza mineralized zone at the 1070 level
and below to the 1170 level horizon continues to demonstrate the
untapped potential of this area close to the existing mine
production areas" stated Gord Babcock, COO Sierra Metals. "As it stands now the
Esperanza zone extends from the
870 to below the 1170 level of the mine and has a demonstrated
strike length in excess of 240 meters in the upper levels of the
mine. We are optimistic that the mineralization will continue to
the South and North on strike. In addition to the continued
positive progress on the Esperanza
main zone, the presence of additional mineralized new "Cuerpos
Pequenos" zones in the marble unit has also been a welcome addition
from the drilling program. We look forward to continuing to explore
this area and opening up the untapped potential at the Yauricocha
mine."
Mark Brennan, President and CEO
of Sierra Metals commented "Esperanza remains one of the most important
discoveries in the history of the Yauricocha mine and in the
history of Sierra Metals. The Esperanza zone is unique due to its high-grade
copper, silver, and zinc sulfide intercepts, along with the
significant width of its mineralized zones and its proximity to
existing mine infrastructure. Esperanza was first announced in January this
year and began mining the upper levels in July, demonstrating a
very quick turn-around time from discovery to production.
Esperanza will continue to
positively impact head grades and cash flow for the remainder of
2016 and beyond."
He continued, "Unlocking Yauricocha's potential through
brownfield exploration and new discoveries such as the Esperanza zone and now the new "Cuerpos
Pequenos" zones are a key part of the Company's growth strategy.
Having completed key aspects of the operational improvements
program we continue to work to improve production capabilities and
we are very excited by the continued growth potential of the
Esperanza zone and look forward to
continuing to growing all our assets through further brownfields
discoveries."
Table 1 - Length Weighted Composite Intervals
Hole
|
From
|
To
|
Meters
|
Ag(gpt)
|
Pb
%
|
Cu
%
|
Zn
%
|
Au(gpt)
|
Zone
Name
|
D-ESP-01
|
3.70
|
7.30
|
3.60
|
137.04
|
9.44
|
0.20
|
15.89
|
0.21
|
|
D-ESP-01
|
15.50
|
17.00
|
1.50
|
45.20
|
3.25
|
0.14
|
7.03
|
0.11
|
|
D-ESP-01
|
70.90
|
72.00
|
1.10
|
103.64
|
2.64
|
1.42
|
7.31
|
0.08
|
|
D-ESP-01
|
73.50
|
81.50
|
8.00
|
254.57
|
1.91
|
5.85
|
3.36
|
0.13
|
|
D-ESP-01
|
113.30
|
147.80
|
34.50
|
50.47
|
0.61
|
1.93
|
0.92
|
0.59
|
Esp.
|
D-ESP-01
Incl.
|
113.30
|
126.10
|
12.80
|
78.79
|
0.99
|
2.99
|
1.39
|
0.88
|
Esp.
|
D-ESP-01
Incl.
|
132.00
|
134.00
|
2.00
|
12.15
|
0.01
|
1.31
|
0.02
|
0.41
|
Esp.
|
D-ESP-01
Incl.
|
137.00
|
144.00
|
7.00
|
43.15
|
0.49
|
2.20
|
0.66
|
0.32
|
Esp.
|
D-ESP-01
Incl.
|
146.00
|
147.80
|
1.80
|
175.44
|
2.38
|
3.12
|
3.17
|
0.25
|
Esp.
|
|
|
|
|
|
|
|
|
|
|
D-ESP-02
|
6.70
|
9.00
|
2.30
|
75.67
|
3.56
|
0.32
|
8.41
|
0.38
|
|
D-ESP-02
|
91.00
|
93.00
|
2.00
|
3.43
|
0.01
|
0.01
|
3.51
|
0.04
|
|
D-ESP-02
|
116.00
|
164.50
|
48.50
|
52.42
|
1.49
|
1.54
|
3.99
|
0.70
|
Esp.
|
D-ESP-02
Incl.
|
116.00
|
122.00
|
6.00
|
31.48
|
0.88
|
0.18
|
3.35
|
0.43
|
Esp.
|
D-ESP-02
Incl.
|
126.70
|
149.40
|
22.70
|
45.46
|
0.35
|
2.65
|
1.00
|
0.73
|
Esp.
|
D-ESP-02
Incl.
|
149.40
|
160.00
|
10.60
|
90.61
|
5.33
|
0.22
|
13.41
|
0.71
|
Esp.
|
D-ESP-02
Incl.
|
160.00
|
164.50
|
4.50
|
45.12
|
0.07
|
1.90
|
0.12
|
1.06
|
Esp.
|
|
|
|
|
|
|
|
|
|
|
D-ESP-03
|
0.60
|
2.20
|
1.60
|
24.71
|
3.95
|
0.06
|
8.96
|
0.22
|
|
D-ESP-03
|
17.95
|
21.00
|
3.05
|
14.10
|
0.71
|
0.05
|
3.59
|
0.06
|
|
D-ESP-03
|
90.20
|
112.30
|
22.10
|
154.38
|
7.56
|
1.03
|
17.43
|
0.35
|
Millet
|
D-ESP-03
|
123.00
|
125.00
|
2.00
|
73.54
|
2.88
|
0.33
|
7.79
|
0.50
|
|
D-ESP-03
|
145.00
|
147.30
|
2.30
|
123.41
|
12.18
|
0.42
|
17.58
|
0.25
|
|
D-ESP-03
|
179.70
|
184.40
|
4.70
|
118.12
|
0.46
|
0.98
|
0.60
|
0.47
|
Esp.
|
|
|
|
|
|
|
|
|
|
|
D-ESP-04
|
126.00
|
128.00
|
2.00
|
41.14
|
0.88
|
0.75
|
2.86
|
0.32
|
|
D-ESP-04
|
138.00
|
140.00
|
2.00
|
130.97
|
0.71
|
3.71
|
1.63
|
0.32
|
|
D-ESP-04
|
228.00
|
229.10
|
1.10
|
12.69
|
3.19
|
0.07
|
5.83
|
0.29
|
Esp.
|
|
|
|
|
|
|
|
|
|
|
D-ESP-05
|
3.85
|
9.95
|
6.10
|
119.80
|
9.91
|
0.15
|
13.87
|
0.29
|
|
D-ESP-05
|
9.95
|
14.70
|
4.75
|
49.99
|
2.98
|
0.11
|
5.18
|
0.09
|
|
D-ESP-05
|
98.40
|
126.90
|
28.50
|
37.12
|
0.39
|
0.80
|
0.82
|
0.35
|
Esp.
|
D-ESP-05
Incl.
|
98.40
|
103.00
|
4.60
|
85.92
|
1.40
|
0.61
|
2.51
|
0.29
|
Esp.
|
D-ESP-05
Incl.
|
110.50
|
115.70
|
5.20
|
53.98
|
0.32
|
2.51
|
0.94
|
0.77
|
Esp.
|
|
|
|
|
|
|
|
|
|
|
D-ESP-01B
|
13.70
|
14.00
|
0.30
|
87.77
|
2.94
|
0.18
|
4.84
|
0.06
|
|
D-ESP-01B
|
14.90
|
16.40
|
1.50
|
77.35
|
4.16
|
0.13
|
10.56
|
0.31
|
|
D-ESP-01B
|
131.80
|
166.30
|
34.50
|
76.39
|
1.02
|
3.34
|
2.62
|
0.67
|
Esp.
|
D-ESP-01B
Incl.
|
131.80
|
142.30
|
10.50
|
18.73
|
1.88
|
0.14
|
5.72
|
0.36
|
Esp.
|
D-ESP-01B
Incl.
|
142.30
|
166.30
|
24.00
|
101.61
|
0.64
|
4.75
|
1.27
|
0.81
|
Esp.
|
|
|
|
|
|
|
|
|
|
|
D-ESP-01A
|
6.50
|
8.20
|
1.70
|
61.65
|
1.50
|
0.22
|
2.39
|
0.17
|
|
D-ESP-01A
|
13.55
|
15.80
|
2.25
|
102.08
|
3.68
|
0.33
|
5.77
|
0.39
|
|
D-ESP-01A
-Incl.
|
116.00
|
133.00
|
17.00
|
56.51
|
0.47
|
0.92
|
1.25
|
0.51
|
Esp.
|
D-ESP-01A
-Incl.
|
117.10
|
119.00
|
1.90
|
56.06
|
2.61
|
0.52
|
6.25
|
1.25
|
Esp.
|
D-ESP-01A
-Incl.
|
128.10
|
133.00
|
4.90
|
100.67
|
0.12
|
2.01
|
1.05
|
0.21
|
Esp.
|
All reported intercepts are core length as further drilling is
required to determine true thicknesses.
A plan map of the Yauricocha mine area is shown in Figure 1,
Figure 2,3 are cross sections through the Esperanza zone at the 1070 level depicting
transverse sections from inclined holes D-ESP 01B and D-ESP-01A (reference section lines
are noted in Figure 1 in yellow highlights).
Method of Analysis
Samples are prepared at ALS MINERALS (Chemex) – Lima. Assay
using ICP-AES and atomic absorption for silver, zinc, lead and
copper. Gold is fire assayed with atomic absorption finish. Diamond
drill core samples which are sent for analysis consist of one half
HQ or NQ size drill core which is split on site, one half is
assayed remainder stored on site.
Quality Control
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 September 9,
2016, 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
Sierra Metals and Qualified Person
as defined in NI-43-101.
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.