Sierra Metals Inc. has updated its Mineral Resource and Reserve Estimate at the Company's Bolivar Mine, located in Chihuahua State, Mexico.
The updated Mineral Resource and Reserve Estimate disclosed herein is the result of drilling programs completed between January 2013 and September 2016, as well as production data of September 2016. Subsequent to the cut-off date of September 2016 the updated Resource and Reserve statement does not include approximately 20,000 metres of drilling some of which is in the process of being drilled with an aim to further expand the resources and reserves at the Bolivar mine. This information will be included in an update addendum which will occur in the second half of this year. The Company's decision to file this updated technical report at this time is based on the listing requirements of the New York Stock Exchange. As noted in previous releases, the Company is aggressively pursuing this NYSE MKT listing which will allow the Company to access a larger pool of Investors and enhance the Company's Investor visibility and share trading liquidity. The Company expects the NYSE listing to take place in the near future.
Press Release Highlights:
- Total Indicated Mineral Resources for Bolivar are 9,335,000 tonnes averaging 18.1 g/t silver, 0.90% copper and 0.30 g/t gold, 1.23% CuEq
- Total Inferred Mineral Resources for Bolivar are 9,055,000 tonnes averaging 17.9 g/t silver, 0.86% copper and 0.33 g/t gold, 1.20% CuEq
- Total Probable Mineral Reserves for Bolivar are 4,327,000 tonnes averaging 17.5 g/t silver, 0.85% copper and 0.31g/t gold, 1.18% Cu Eq
- The updated Resource and Reserve Estimate varies from the 2012 Technical Report due to a variety of factors, including: an increase in the Net Smelter Return (NSR) cut off grades resulting in higher value material, reduction in commodity prices and depletion by production since the Report was completed
- The updated Resource and Reserve Estimate has incorporated new exploration drilling, sampling, and face mapping information into the geologic interpretation and grade estimations providing more refined resource models
Gordon Babcock, Chief Operating Officer of Sierra Metals Inc. commented: "We are satisfied with the updated Resource and Reserve report for the Bolivar mine and the quality of the defined areas within the Report. At Bolivar, a 20,000-meter drill program has been in execution since the latter part of 2016 with a significant portion already completed. Drilling is taking place at the Bolivar West, Bolivar Northwest and will continue at the La Sidra area. Also, a recently completed geophysical program utilizing Titan 24 techniques has targeted near-surface, coincident strong chargeability (IP) and resistivity anomalies in the Southwestern sector of the property near Bolivar West. These targets are being drilled with a diamond drilling program and subsequent exploration programs are targeted to increase tonnage and grade at Bolivar."
He continued, "4 years have passed since the last technical report was filed and the Company is confident that with this review, as well as the inclusion of the ongoing drilling, we will continue to define mineral resources and reserves in a short time frame. Recently, some important changes have occurred at the Bolivar mine including the addition of a new Mine Operations Manager, Mine Superintendent as well as a new exploration group headed up by Alonso Lujan, VP Exploration. These new additions to the Bolivar team will play an important role in the Company achieving its operational goals for 2017 and with future production increases.
Alberto Arias, Chairman, commented: "This report fulfills a critical requirement for our US Listing in the NYSE and provides a solid base upon which future updates could add further reserves and resources later this year. Our current drilling programs at key targets are already having positive results and we are encouraged by our plans to drill some geophysical anomalies identified recently in our Titan 24 geophysical survey. We believe this will be an exciting year for exploration results at Bolivar."
The incorporation of new exploration drilling, lower commodity price assumptions, sampling, face mapping information into the geologic interpretations, and grade estimations which have resulted in a further refinement of the ore body. As commodity prices improve, certain areas which have been excluded because of lower metal prices could be included in future reserve and resource updates. It is Management's view that the resulting Resource and Reserve Estimate reflects the ongoing efforts by the Company to achieve good value from the Bolivar asset while focusing on quality over quantity, given the current operating and metal price environment.