NewsFrom the current Swiss Resource Capital Newsletter:
Sierra Metals reports top-class drill-results and good quarterly numbers from Yauricocha! More top-class news from Sierra Metals. Only one week ago, the company announced record production rates in the first quarter and resource estimates from two of their mines and now, the company publishes additional top-class news!
Top-News No. 1: Sierra Metals announced from Yauiricocha the discovery of a new high-grade oxides zone, referred to as the Esperanza North zone, which is located between the Esperanza zone and Cachi-Cachi Mine. The Company also announced drilling results which demonstrate the extension of the high-grade sulfide zone, referred to as the Cuye-Mascota zone which was discovered in November 2016. This zone is located 200 meters north of the central mine area, along strike from current mining activities. The new discovery and extension come as part of an ongoing brownfield drilling program that is testing priority targets at the Yauricocha Mine.
The best drill results were:
- Hole ESP-02: 0.5 meters of 2,050.0g/t Ag, 30% Pb; and 3.0 meters of 465.27g/t Ag, 1.99% Zn, 16.29% Pb, 5.84g/t Au and
- Hole ESP-03: 2.4 meters of 985.21g/t Ag, 30% Pb, 2.40g/t Au.
All drilling that has taken place will be included in an upcoming Mineral Resource and Reserve Estimate report that is expected to be published for the Yauricocha Mine in the fourth quarter of 2017.
In addition to this, Sierra Metals was able to report very good quarterly results from its subsidiary Sociedad Minera Corona S.A., which operates the Yauricocha Mine.
Highlights were:
- Revenues of US$38.5 million vs US$12.5 million in Q1 2016
- Adjusted EBITDA of US$ 20.5 million vs US$0.9 million in Q1 2016
- Total tons processed of 251,180 vs 207,580 in Q1 2016
- Net production revenue per ton of ore milled increased by 119% to US$157.93
- All in sustaining cost (“ASIC”) per silver equivalent payable ounce lower by 30% to US$10.60
- Silver equivalent production of 2.2 million ounces vs 1.4 million ounces in Q1 2016
- Copper equivalent production of 18.8 million pounds vs 12.2 million pounds in Q1 2016
- $35.4 million of cash and cash equivalents as at March 31, 2017
- $26.0 million of working capital as at March 31, 2017
Sierra Metals continues to see a positive impact from the operational improvements program and has successfully focused on increasing the production of higher value ore, improving recoveries, while benefiting from an improved metals price environment.
Source: https://www.resource-capital.ch/en/infothek/newsletter-archiv.html