Sierra Metals increases NI 43-101 resource at Cusi Sierra Metals increases NI 43-101 resource at Cusi
2020-11-18 07:06 ET - News Release
Mr. Luis Marchese reports
SIERRA METALS SIGNIFICANTLY INCREASES MINERAL RESOURCE ESTIMATE FOR CUSI SILVER MINE, MEXICO
Sierra Metals Inc. has updated its mineral resource estimate at the company's Cusi mine, located in Chihuahua state, Mexico.
The updated mineral resource estimate disclosed herein is the result of drilling programs completed between January, 2018, and August, 2020.
The company believes that the Santa Rosa de Lima zone and the Northeast-Southwest zone demonstrate strong potential for further structural extensions of high-grade zones at the company's Cusi mine. Conversion of some of the higher grade to measured and indicated resources has been the priority for the Cusi exploration efforts.
A technical report prepared by SRK Consulting (Canada) Inc. in accordance with National Instrument 43-101 standards of disclosure has been completed and will be filed on SEDAR within 45 days of this news release. The mineral resource estimate contained in the technical report was completed by Giovanny Ortiz, principal consultant (geology), a representative of SRK Consulting (USA) Inc.
"Sierra's management team is extremely pleased with the increases realized in the measured and indicated resources, and the significant increase in the inferred resources reported in this resource estimate for the Cusi mine," stated Luis Marchese, chief executive officer of Sierra Metals. "When compared to the previous estimate filed in February, 2018, the company saw an 18-per-cent increase to the measured and indicated resource tonnage and a 200-per-cent increase in the inferred resource tonnage. These increases represent a significant amount of additional drilling and mine exploration development work completed at the Cusi mine, which included the Santa Rosa de Lima zone as well as the Northeast-Southwest zone, which have strong potential for further structural extensions of high-grade zones."
Mr. Marchese continued: "The company remains committed to resource growth through brownfield exploration and this resource estimate confirms the presence of additional high-quality tonnage at the Cusi mine allowing the company to study the potential for production increases going forward. We remain committed to brownfield exploration programs at the Cusi mine with the aim of further mineral resource expansions."
Mr. Marchese concluded, "This updated mineral resource estimate is the foundation of our upcoming preliminary economic assessment update that will help us to determine the most capital efficient expansion scope for the Cusi mine, in a similar way that we have evaluated the Yauricocha mine in Peru and Bolivar mine in Mexico."
Mineral resource estimate
The update of the mineral resource estimate was conducted by Mr. Ortiz of SRK Consulting (U.S.) Inc., a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, using Maptek Vulcan and Leapfrog Geo software.
This release features mineral resources reported from models reviewed and estimated by SRK using criteria determined by the company and SRK to be reasonable for reporting of these resources.
SRK has worked with the company's personnel to review the geology models and independently estimated and reported the mineral resources for Cusi. Geology models were developed internally by the company's geologists and were reviewed by SRK. In all, there are 38 individual mineralized bodies identified through drilling and mine development. These were used as hard boundaries for the purposes of the estimation. The resource is supported by a database featuring over 233,750 metres of drilling and over 23,800 metres of channel sampling in mine development.
The block models were created by SRK and have been estimated using inverse distance squared methods. SRK has validated the estimation for each model using a variety of methods considered to be industry standard. These methods include a visual comparison of the blocks versus the composites, an assessment of the quality of the estimate, and comparative statistics of block estimates versus composites. The models have been depleted for previous production and reported within the boundaries of Sierra Metals' mineral titles. The mineral resources have been estimated and reported in conformity with generally accepted CIM (Canadian Institute of Mining, Metallurgy and Petroleum) "Estimation of Mineral Resource and Mineral Reserves Best Practices, November 29, 2019," guidelines.
The Aug. 31, 2020, consolidated mineral resource statement for the Cusi mine area is presented in the associated tables..
CONSOLIDATED CUSI MINERAL RESOURCE ESTIMATE AS AT AUG. 31, 2020 -- SRK CONSULTING (U.S.) INC.
Category Tonnes Ag Au Pb Zn AgEq Ag Au Pb Zn AgEq
(000) (g/t) (g/t) (%) (%) (g/t) (moz) (koz) (mlb) (mlb) (moz)
Measured 850 213 0.06 0.26 0.30 231 5.82 1.71 4.91 5.64 6.30
Indicated 4,506 176 0.13 0.54 0.63 212 25.45 18.52 53.35 62.34 30.73
M+I 5,356 182 0.12 0.49 0.58 215 31.26 20.22 58.26 67.99 37.04
Category Tonnes Ag Au Pb Zn AgEq Ag Au Pb Zn AgEq
(000) (g/t) (g/t) (%) (%) (g/t) (moz) (koz) (mlb) (mlb) (moz)
Inferred 4,893 146 0.18 0.43 0.69 183 23.00 27.70 46.07 74.81 28.82
(1) Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves
and do not have demonstrated economic viability. All figures rounded to reflect the relative accuracy
of the estimates. Gold, silver, lead and zinc assays were capped where appropriate.
(2) Mineral resources are reported at a single cut-off grade of 95 g/t AgEq based on metal price
assumptions*, metallurgical recovery assumptions, personnel costs ($10.56 (U.S.)/t), mine operation,
transport and maintenance costs ($24.86 (U.S.)/t), processing operation and maintenance ($11.86
(U.S.)/t), and general and administrative and other costs ($3.20 (U.S.)/t).
Quality control
All technical data contained in this news release have been reviewed and approved by:
Americo Zuzunaga, FAusIMM CP (mining engineer), vice-president of corporate planning, is a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
Augusto Chung, FAusIMM CP (metallurgist), vice-president of metallurgy and projects to Sierra Metals, is a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
About Sierra Metals Inc.
Sierra Metals is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha mine in Peru and Bolivar and Cusi mines in Mexico. The company is focused on increasing production volume and mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
We seek Safe Harbor.