Sierra Metals Inc. (TSX:SMT, BVL:SMT,NYSE:SMTS) reported an updated resource estimate for Yauricocha, which included 80,000m of drilling and 10,000m
of mine exploration development from Mina Central, Esperanza, Cachi-Cachi, Escondida and Cuye-Mascota. The update resulted in a significant increase
in tonnage 71% (Measured and Indicated plus Inferred). Grades were roughly unchanged, with the exception of an 18% increase in overall copper grade.
As a result contained metal increased significantly for all metals, notably copper, driven by recent discoveries of copper rich zones. Importantly,
results benefitted from increased zinc and copper prices, up 33% and 14% as compared to the last update in 2016. Head grades for both metals increased,
18% for copper and 7% for zinc including although decreased for lead (7%), silver (2%) and gold (9%) (Figure 1). We anticipate a strong 2017 from Sierra
as operations continue to improve and exploration advances, all of which should further enhance the company’s value.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
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Sierra Metals Inc. - TSX:SMT, BVL:SMT, NYSE:SMTS - 2
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