“The company remains committed to growth through brownfield exploration,” Sierra Metals President and CEO Igor Gonzales said about Yauricocha.
Sierra Metals (TSX:SMT,NYSEMKT:SMTS) released an updated resource estimate for its Yauricocha mine in Peru on Thursday (September 28), gaining 1 percent during mid-morning trading the next day.
The mine’s measured and indicated resource now stands at 13,206,000 tonnes containing 26.4 million ounces of silver, 443.6 million tonnes of copper, 813.3 million pounds of zinc, 269.1 million pounds of lead and 274,000 ounces of gold.
Contained copper rose the most at 128 percent, while contained silver, zinc, lead and gold rose 72 percent, 74 percent, 64 percent and 61 percent, respectively. Grades for the measured and indicated resource are 62.3 g/t silver, 1.5 percent copper, 2.8 percent zinc, 0.9 percent lead and 0.6 g/t gold.
Meanwhile, the inferred resource for Yauricocha is up 77 percent from the previous estimate. It now sits at 6,632,000 tonnes grading 43 g/t silver (9.2 million ounces contained metal), 1.2 percent copper (174.4 million pounds contained metal), 0.5 percent lead (68 million pounds contained metal), 2.2 percent zinc (315.2 million pounds contained metal) and 0.5 g/t gold (117,000 ounces contained metal).
The new resource estimate for Yauricocha integrates updated drill results from the Mina Central, Esperanza, Cachi-Cachi, Escondida and Cuye-Mascota zones at the mine. The company said SRK Consulting is preparing a NI 43-101 technical report that will be filed on SEDAR and with the US Securities and Exchange Commission within the next 45 days.
“The company remains committed to growth through brownfield exploration and today’s resource estimate confirms the presence of additional high quality tonnage at the Yauricocha Mine and will allow the company to look at potential production increases going forward. We will continue our brownfield exploration programs at the Yauricocha mine over the next year with the aim of further mineral resource expansions,” said President and CEO Igor Gonzales.
Yauricocha has been operating since the 1940s, and since 1979 it has produced an average of 413,000 tonnes per year. The mine had five years of life left in 2016, according to a resources and reserves report, but the company said at the time that, “there is the potential to extend the mine life further than what is currently supported by reserves.”
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.