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01-2016
Sierra Metals discovers a significant new high grade zone at its Yauricocha
mine in Peru
___________________________________________________________________
Drill hole highlights include:
Hole ESP-10: 1.1% Cu, 4.9% Zn, 2.2% Pb, 0.25 gpt Au, 61.2 gpt Ag over 70.6m
Hole ESP-14: 3.2% Cu, 1.7% Zn, 0.4% Pb, 1.01 gpt Au, 48.5 gpt Ag over 69.2m
Hole ESP-15: 1.8% Cu, 3.2% Zn, 1.4% Pb, 0.32 gpt Au, 61.5 gpt Ag over 70.0m
Toronto, ON January 28, 2016 Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (Sierra
Metals or the Company) today announced the discovery of a new high grade sulfide zone,
referred to as the Esperanza zone, located 400 metres north of the central mine area, along
strike from current mining activities. The discovery comes as part of ongoing drill testing of
priority targets at its Yauricocha Mine located 150km east southeast of Lima in the Yauricocha
Mining District (Cordillera Occidental), Peru.
The Esperanza zone has returned the thickest sulfide intercepts in the 60 year mining history
at Yauricocha. Hole ESP-14 returned a length weighted average of 3.2% Cu, 1.7% Zn, 0.4%
Pb, 1.01 gpt Au, 48.5 gpt Ag over 69.2 metres, hole ESP-15 returned a length weighted
average of 1.8% Cu, 3.2% Zn, 1.4% Pb, 0.32 gpt Au, 61.5 gpt Ag over 70.0 metres and hole
ESP-10 returned a length weighted average of 1.1% Cu, 4.9% Zn, 2.2% Pb, 0.25 gpt Au, 61.2
gpt Ag over 70.6 metres. The mineralization is hosted by a thick sequence of marble and
consists of sulfide replacement and variably altered copper-magnetite skarn (chalcopyrite,
bornite, chalcocite +/- native copper) with extensive lead and zinc sulfide replacement.
The area was identified as a high priority target adjacent to and along strike from the current
underground mining activity. To the end of December 2015, a total of 15 holes (total of 3,922.8
metres) were drilled through the target area from the 870 and 920 level of the mine (607
metres and 657 metres below surface respectively). All holes intersected the zone with the
exception of ESP-11 which tested the upper limit of the zone. Drilling to date demonstrates
the zone has a strike length of at least 240 metres, has been successfully tested to a depth of
170 metres below the 870 level and is open along strike at depth. The majority of this zone
appears to be located below the 870 level however additional drilling is required to define the
upper limit of the zone. There are currently two drills operating on the 870 level that are
focused on delineation and expansion of the Esperanza zone as it is a priority to fast track this
material into the production schedule. Underground development has been initiated to support
additional drill locations for further exploration and delineation of the zone. Assays received to
date for all holes are summarized as length weighted composite intervals in Table 1, below.
The discovery of the Esperanza zone demonstrates the untapped potential close to the
existing mine workings at Yauricocha stated Matthew Wunder, Vice President Exploration of
Sierra Metals. Intercepts such as returned in ESP-10, ESP-14 and ESP-15 are not common
in mineral exploration and suggests that we are closing in on a more productive part of the
mineralizing system and may lead to the source of the hydrothermal system. There is
reasonable potential to expand the Esperanza zone at depth and along strike to the north as
these areas have never been drill tested. We look forward to an exciting future exploring the
Yauricocha Mine and district.
Esperanza is the most important discovery in the history of the Yauricocha mine and in the
history of Sierra Metals stated Mark Brennan, President and CEO of Sierra Metals.
Esperanza is unique due to its high-grade copper, silver, and zinc sulfide intercepts, along
with its exceptionally wide thickness of its mineralized zones, and its proximity to existing mine
infrastructure. We are working towards accessing part of the orebody as early Q3 of 2016
which would have a positive impact on head grades in the second half of 2016 as well as on
the Companys cash flow.
He continued, Unlocking Yauricochas potential through new discoveries such as the
Esperanza zone are a key part of our growth strategy. While we continue to improve existing
mine operations and production capabilities, we are very excited by this discovery and look
forward to continuing to unlock value through further brownfields discoveries.
To
Metres
Ag
(gpt)
Pb
(%)
Cu
(%)
Zn
(%)
Au
(gpt)
Zone
Name
ESP-01
ESP-01
ESP-01
ESP-01
83.2
101.2
186.0
291.5
86.3
104.1
192.1
318.5
3.1
2.9
6.1
27.0
229.2
165.4
45.4
19.7
21.0
17.3
0.3
0.2
0.2
0.2
0.0
1.2
24.2
24.8
0.9
0.3
0.24
0.62
1.43
0.81
Esp
ESP-02
ESP-02
205.6
304.3
207.3
313.3
1.7
9.0
78.7
42.2
6.5
0.3
0.1
1.2
11.1
1.1
0.44
0.67
Esp
ESP-03
121.7
141.6
19.9
28.5
0.3
0.4
0.6
0.21
Esp
ESP-04
ESP-04 Incl.
ESP-04 Incl.
ESP-04
ESP-04
13.8
17.8
31.0
61.5
185.0
46.5
24.0
45.0
63.9
204.2
32.7
6.2
14.0
2.4
19.2
28.5
64.4
28.4
100.5
26.0
4.4
8.3
4.7
5.2
0.4
0.3
0.1
0.6
0.2
0.7
8.8
16.5
9.7
11.8
1.3
0.26
0.33
0.36
0.24
0.24
Esp
ESP-05
ESP-05
ESP-05 Incl.
106.2
125.0
125.0
111.2
153.0
137.0
5.0
28.0
12.0
84.4
71.7
143.7
1.4
0.6
1.4
0.6
3.7
4.8
2.5
1.4
3.0
0.45
0.87
0.90
Esp
Esp
ESP-06
ESP-06 Incl.
ESP-06 Incl.
109.6
109.6
140.0
151.3
114.5
145.0
41.7
4.9
5.0
108.0
505.0
148.9
0.2
0.3
0.4
2.0
8.9
4.1
0.4
0.6
1.1
0.60
1.22
0.61
Esp
Esp
Esp
ESP-07
ESP-07
ESP-07
59.2
116.8
136.8
61.0
120.7
148.0
1.8
3.9
11.2
292.4
60.0
4.6
7.4
5.0
0.1
0.9
0.4
0.2
19.2
14.0
1.2
0.34
0.11
0.09
Esp
ESP-08
ESP-08 Incl.
132.0
132.0
158.8
147.0
26.8
15.0
26.8
28.0
0.1
0.2
1.2
1.9
0.3
0.4
0.60
0.74
Esp
Esp
ESP-09
ESP-09 Incl.
112.5
115.0
154.0
133.0
41.5
18.0
68.4
49.2
4.3
9.0
1.5
0.2
5.1
9.4
0.19
0.11
Esp
Esp
Hole
ESP-10
ESP-10
ESP-10
ESP-10
ESP-10
ESP-10
Incl.
Incl.
Incl.
Incl.
ESP-11
71.0
92.2
92.2
113.05
129.2
156.4
77.8
162.8
102.0
121.0
135.0
162.8
6.8
70.6
9.8
7.95
5.8
6.4
82.2
61.2
84.9
168.2
97.0
75.2
3.6
2.2
5.4
7.7
0.2
1.4
0.8
1.1
0.2
2.1
5.4
1.6
13.3
4.9
12.0
14.4
0.7
4.4
0.16
0.25
0.10
0.41
0.52
0.54
Esp
Esp
Esp
Esp
Esp
No Significant Values
ESP-12
146.0
153.8
7.8
47.3
3.9
0.1
6.2
0.19
Esp
ESP-13
132.4
140.5
8.1
54.6
0.3
0.0
0.7
0.25
Esp
ESP-14
ESP-14
ESP-14 Incl.
ESP-14 Incl.
ESP-14 Incl.
ESP-14 and Incl.
53.7
125.0
125.0
152.8
171.0
171.0
57.0
194.2
134.0
166.0
194.2
187.7
3.3
69.2
9.0
13.2
23.2
16.7
438.3
48.5
85.8
45.6
73.2
89.6
0.6
0.4
2.6
0.0
0.0
0.1
8.1
3.2
2.3
3.7
6.0
7.2
2.4
1.7
10.5
0.0
0.1
0.1
0.26
1.01
0.39
0.43
1.89
2.39
Esp
Esp
Esp
Esp
Esp
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
55.65
56.0
131.0
138.0
153.2
198.9
215.0
223.7
75.8
64.0
201.0
149.1
178.5
201.0
235.0
235.0
20.15
8.0
70.0
11.1
25.3
2.1
20.0
11.3
147.8
156.1
61.5
96.6
115.4
91.4
35.2
41.6
0.1
0.1
1.4
0.7
2.4
10.0
0.3
0.1
5.6
6.5
1.8
2.1
3.8
0.3
1.6
2.5
0.1
0.2
3.2
2.8
5.8
17.3
0.6
0.3
0.36
0.46
0.32
0.47
0.57
0.51
0.70
0.82
Esp
Esp
Esp
Esp
Esp
Esp
Incl.
Incl.
Incl.
Incl.
Incl.
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 is a plan map through the Esperanza zone
at the 920 level and Figures 3, 4 and 5 are cross sections through the Esperanza zone (reference lines for the
cross sections are located on Figure 2). A complete list of assays for the drill holes presented in this news release
are available on the Sierra Metals website at:
https://sierrametals.com/files/doc_news/2016/News-Release-Jan-28-2016-Individual-Assay-Table-for-Website-1130am-Jan-27th-2016.pdf
Via phone:
For those who prefer to listen by phone, dial-in instructions are below. To ensure your
participation, please call approximately five minutes prior to the scheduled start time of the
call.
Participant Number (Toll Free Peru): 0800-53-840
Participant Number (Toll Free North America): (877) 201-0168
Participant Number (International): (647) 788-4901
Conference ID: 40995275
Method of Analysis
Samples are prepared at the Yauricocha lab facilities at the Chumpe Mill, which is located on
site. Drill core samples from the mine are assayed utilizing two procedures. Silver, lead, zinc
and copper are assayed by atomic absorption. Gold is fire-assayed with an atomic
absorption finish. Diamond drill core samples sent for analysis consist of half NQ size or BQ
size drill core which is split 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 May 25, 2012, prepared by
Gustavson Associates 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 Matthew Wunder, B.Sc,
P.Geo. and Qualified Person as defined in NI-43-101.
Matthew Wunder
Vice President, Exploration
Sierra Metals Inc.
(416) 366-7777
Mark Brennan
President & CEO
Sierra Metals Inc.
(416) 366-7777
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 Companys plans, estimates, forecasts, projections, expectations or beliefs as to
future events or results. These statements reflect the Companys 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.