Improving grades and increasing throughput deliver QoQ improvements from Yauricocha.
While results were not as impressive as the records
set in Q2 2015, operations continued to demonstrate QoQ improvements, particularly from the low point in Q4 2015 (Figure 2). The improving results
appear to be reflective of the company’s ongoing restructuring program at the mine bearing fruit. As well, the company continues to advance the recently
discovered Esperanza zone which has increased widths and could further benefit the mines economics when brought into production. A maiden resource
for the Esperanza zone is expected shortly.
Lower head grades and recoveries partially offset record plant throughput at Bolivar.
Throughput at Bolivar continues to increase,
up 8% QoQ. This improvement partially offset YoY lower grades allowing production to continue to grow (Figure 3). In H2 2016, the company expects
grades and recoveries to improve which should see production continue to grow.
Improving grades and modestly better throughput benefit Q2 2016 production at Cusi.
While grades and throughput improved QoQ,
a 7% decline in silver recoveries resulted in lower production QoQ (Figure 4).
Company description: Sierra Metals Inc. (TSX:STM, BVL:SMT) is a Canadian mining company with three operating mines in Latin America. Yauricocha mine (polymetallic) in Peru, Bolivar (copper) and Cusi (silver) mines in Mexico.
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