Sierra Metals Reports Second Quarter Production Results for 2015 Including Record Silver Equivalent Production for a Second Consecutive Quarter
BOLIVAR HAS EXCEPTIONAL QUARTER WITH 13% INCREASE IN SILVER EQUIVALENT PRODUCTION
TORONTO, July 14, 2015 /CNW/ - Sierra Metals Inc. (TSX: SMT) (BVL: SMT) ("Sierra Metals" or "the Company") reports second quarter production results, including record silver equivalent production and tonnage processed, for the three month period ended June 30, 2015 ("Q2 2015") from its three underground mines in Latin America: the Yauricocha polymetallic mine in Peru and the Bolivar copper and Cusi silver mines in Mexico. The second quarter results represent the second consecutive quarter of record silver equivalent production and tonnage processed, following records in the first quarter of 2015.
Second Quarter Production Highlights
- Total tonnes processed of 483,374; a 12% increase over Q2 2014; a new Company record
- Silver equivalent production of 3.1 million ounces; a 7% increase over Q2 2014; a new Company record
- Silver production of 911,019 ounces; a 21% increase over Q2 2014; a new Company record
- Copper production of 6.5 million pounds; a 14% increase over Q2 2014
- Lead production of 11.1 million pounds; a 7% decrease from Q2 2014
- Zinc production of 13.0 million pounds; a 3% decrease from Q2 2014
- Gold production of 2,177 ounces; a 13% decrease from Q2 2014
The increased silver production was a result of increases in silver head grades, silver recoveries and plant throughput at our Yauricocha Mine in Peru, combined with the increase in silver head grades and plant throughput at our Cusi and Bolivar mines in Mexico.
Mark Brennan, President and CEO of Sierra Metals, commented: "We are very pleased that the Company has had record silver equivalent production and silver production for a second consecutive quarter, in addition to record ore throughput. The quality of our assets, operated by our skilled teams, enables us to continue on the path towards meeting 2015 production guidance."
Consolidated Production Results
| Consolidated Production | 3 Months Ended | 6 Months Ended | 2015 Guidance | ||||||||||
| Q2 2015 | Q1 2015 | % Var. | Q2 2014 | % Var. | H1 2015 | H1 2014 | % Var. | Low | High | ||||
| Tonnes processed (mt) | 483,374 | 472,407 | 2% | 430,766 | 12% | 955,781 | 847,331 | 13% | 1,805,000 | 2,105,000 | |||
| Daily throughput | 5,524 | 5,399 | 2% | 4,923 | 12% | 5,462 | 4,842 | 13% | |||||
| Silver ounces | 911,019 | 899,691 | 1% | 750,283 | 21% | 1,810,710 | 1,478,495 | 22% | 3,144,000 | 3,668,000 | |||
| Copper pounds (000's) | 6,508 | 6,484 | 0% | 5,697 | 14% | 12,992 | 11,426 | 14% | 21,000 | 24,300 | |||
| Lead pounds (000's) | 11,116 | 12,115 | -8% | 12,005 | -7% | 23,232 | 24,185 | -4% | 44,300 | 51,800 | |||
| Zinc pounds (000's) | 13,019 | 10,461 | 24% | 13,457 | -3% | 23,480 | 26,189 | -10% | 41,900 | 48,900 | |||
| Gold ounces | 2,177 | 2,661 | -18% | 2,499 | -13% | 4,838 | 4,984 | -3% | 11,200 | 13,000 | |||
| Silver equivalent ounces (000's)(1) | 3,115 | 3,050 | 2% | 2,910 | 7% | 6,165 | 5,776 | 7% | 10,800 | 12,600 | |||
| (1) Silver equivalent ounces 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 continued to be the Company's largest producing mine with a total of 224,988 tonnes processed in Q2 2015 representing a 2% increase compared to Q2 2014. Mineralization at the Yauricocha Mine is hosted in three different zones including Lead-Oxide, Copper-Oxide and Polymetallic ore-bodies. During Q2 2015, aggregate production was 576,537 ounces of silver, a 20% increase over Q2 2014; 2.0 million pounds of copper, a 16% increase over Q2 2014; 10.8 million pounds of lead, a 4% decrease from Q2 2014; 13.0 million pounds of zinc, a 3% decrease from Q2 2014; and 1,232 ounces of gold, a 17% decrease from Q2 2014.
Higher silver production was driven by higher head grades and recoveries from the polymetallic concentrate. The increase in copper production and decrease in lead production was due to an increase in copper-oxide production and a decrease in lead-oxide production during the latter part of the quarter. The decrease in zinc production was due to lower zinc head grades from the polymetallic concentrate which is in line with Yauricocha's mine plan.
A summary of production from the Yauricocha Mine for Q2 2015 has been provided below:
| Yauricocha Production | 3 Months Ended | 6 Months Ended | ||||||
| Q2 2015 | Q2 2014 | % Var. | H1 2015 | H1 2014 | % Var. | |||
| Tonnes processed (mt) | 224,988 | 219,988 | 2% | 444,957 | 435,538 | 2% | ||
| Daily throughput | 2,571 | 2,514 | 2% | 2,543 | 2,489 | 2% | ||
| Silver grade (g/t) | 109.77 | 106.26 | 3% | 112.48 | 110.83 | 1% | ||
| Copper grade | 0.81% | 0.66% | 22% | 0.74% | 0.67% | 12% | ||
| Lead grade | 2.79% | 3.12% | -10% | 3.01% | 3.24% | -7% | ||
| Zinc grade | 3.67% | 3.86% | -5% | 3.41% | 3.84% | -11% | ||
| Gold Grade (g/t) | 0.65 | 0.86 | -24% | 0.72 | 0.84 | -15% | ||
| Silver recovery | 74.56% | 69.42% | 7% | 73.55% | 68.89% | 7% | ||
| Copper recovery | 64.83% | 67.43% | -4% | 66.70% | 68.46% | -3% | ||
| Lead recovery | 81.02% | 79.67% | 2% | 81.25% | 79.57% | 2% | ||
| Zinc recovery | 90.01% | 88.61% | 2% | 89.62% | 89.05% | 1% | ||
| Gold Recovery | 24.21% | 19.62% | 23% | 24.55% | 20.45% | 20% | ||
| Silver ounces | 576,537 | 479,254 | 20% | 1,126,510 | 973,548 | 16% | ||
| Copper pounds (000's) | 2,037 | 1,755 | 16% | 3,749 | 3,494 | 7% | ||
| Lead pounds (000's) | 10,751 | 11,206 | -4% | 22,489 | 22,888 | -2% | ||
| Zinc pounds (000's) | 13,019 | 13,457 | -3% | 23,480 | 26,189 | -10% | ||
| Gold ounces | 1,232 | 1,480 | -17% | 2,819 | 2,954 | -5% | ||
| Silver equivalent ounces (000's)(1) | 2,035 | 1,951 | 4% | 3,936 | 3,899 | 1% | ||
| (1) Silver equivalent ounces 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
During Q2 2015, Bolivar has an exceptional quarter with a 13% increase in silver equivalent production. Total ore processed of 209,459 tonnes at the Bolivar Mine increased 24% compared to Q2 2014. Copper production of 4.5 million pounds increased 13%, silver production of 113,512 ounces increased 9% and gold production of 804 ounces increased 24% compared to Q2 2014. The increase in copper, silver and gold production was driven by higher plant throughput, higher gold head grades and higher recoveries of copper and silver compared to Q2 2014.
A summary of production for the Bolivar Mine for Q2 2015 has been provided below:
| Bolivar Production | 3 Months Ended | 6 Months Ended | ||||||
| Q2 2015 | Q2 2014 | % Var. | H1 2015 | H1 2014 | % Var. | |||
| Tonnes processed (mt) | 209,459 | 169,149 | 24% | 412,818 | 337,339 | 22% | ||
| Daily throughput | 2,394 | 1,933 | 24% | 2,359 | 1,928 | 22% | ||
| Copper grade | 1.14% | 1.28% | -11% | 1.19% | 1.25% | -5% | ||
| Silver grade (g/t) | 20.40 | 23.53 | -13% | 22.84 | 21.72 | 5% | ||
| Gold grade (g/t) | 0.31 | 0.27 | 14% | 0.31 | 0.20 | 55% | ||
| Copper recovery | 85.06% | 82.88% | 3% | 85.53% | 85.48% | 0% | ||
| Silver recovery | 82.62% | 81.12% | 2% | 83.18% | 82.98% | 0% | ||
| Gold recovery | 39.11% | 44.44% | -12% | 42.45% | 56.90% | -25% | ||
| Copper pounds (000's) | 4,471 | 3,941 | 13% | 9,242 | 7,932 | 17% | ||
| Silver ounces | 113,512 | 103,794 | 9% | 252,132 | 195,454 | 29% | ||
| Gold ounces | 804 | 646 | 24% | 1,723 | 1,218 | 41% | ||
| Silver equivalent ounces (000's)(1) | 834 | 735 | 13% | 1,746 | 1,461 | 19% | ||
| (1) Silver equivalent ounces 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
During Q2 2015, total ore processed of 48,928 tonnes increased 18% compared to Q2 2014. Silver production of 220,970 ounces increased 32%, while gold production of 142 ounces and lead production of 0.4 million pounds decreased by 62% and 54%, respectively, compared to Q2 2014. The increase in silver production during Q1 2015 was due to higher plant throughput, higher silver head grades and higher silver recoveries.
A summary of production for the Cusi Mine for Q2 2015 has been provided below:
| Cusi Production | 3 Months Ended | 6 Months Ended | ||||||
| Q2 2015 | Q2 2014 | % Var. | H1 2015 | H1 2014 | % Var. | |||
| Tonnes processed (mt) | 48,928 | 41,629 | 18% | 98,006 | 74,454 | 32% | ||
| Daily throughput | 559 | 476 | 18% | 560 | 425 | 32% | ||
| Silver grade (g/t) | 179.58 | 165.60 | 8% | 176.52 | 167.17 | 6% | ||
| Gold grade (g/t) | 0.18 | 0.43 | -57% | 0.19 | 0.55 | -66% | ||
| Lead grade | 0.46% | 1.10% | -59% | 0.46% | 0.98% | -53% | ||
| Silver recovery | 78.22% | 75.45% | 4% | 77.68% | 77.29% | 1% | ||
| Gold recovery | 48.92% | 65.02% | -25% | 49.41% | 61.18% | -19% | ||
| Lead recovery | 74.32% | 79.08% | -6% | 75.12% | 80.54% | -7% | ||
| Silver ounces | 220,970 | 167,235 | 32% | 432,068 | 309,492 | 40% | ||
| Gold ounces | 142 | 373 | -62% | 297 | 812 | -63% | ||
| Lead pounds (000's) | 365 | 800 | -54% | 742 | 1,297 | -43% | ||
| Silver equivalent ounces (000's)(1) | 245 | 225 | 9% | 482 | 415 | 16% | ||
| (1) Silver equivalent ounces 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 Thomas L. Robyn, Ph.D., CPG, RPG, Senior Vice-President Exploration 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.
Contact
regarding Sierra Metals, please visit www.sierrametals.com or contact: Mike McAllister, Director, Corporate Development, Sierra Metals Inc., 1 (866) 493-9646, Email: info@sierrametals.com; Mark Brennan, President & CEO, Sierra Metals Inc., 1 (866) 493-9646