VANCOUVER, July 8, 2014 /PRNewswire/ – Sierra Metals Inc . CA:SMT 0.00% (bvl:SMT) ("Sierra Metals" or "the Company") is pleased to announce its production results for the second quarter of 2014.
Press Release Highlights:
Total tonnes processed of 430,766 in the second quarter of 2014 compared to 323,751 tonnes in the same period of 2013. A 33% increase year-over-year. Total tonnes processed of 847,331 in the first six months of 2014 compared to 641,387 tonnes in the same period of 2013. A 32% increase year-over-year.
Total silver ("Ag") production of 750,283 ounces ("oz") in the second quarter of 2014 compared to 669,620 oz for the same period of 2013. A 12% increase year-over-year. Total silver production of 1,478,495 oz in the first six months of 2014 compared to 1,280,028 oz for the same period of 2013. A 16% increase year-over-year.
Total copper ("Cu") production of 5.7 million pounds ("lb") in the second quarter of 2014 compared to 3.8 million lb for the same period of 2013. A 52% increase year-over-year. Total copper production of 11.4 million lb in the first six months of 2014 compared to 7.8 million lb for the same period of 2013. A 46% increase year-over-year.
Total lead ("Pb") production of 12.0 million lb in the second quarter of 2014 compared to 9.6 million lb for the same period of 2013. A 26% increase year-over-year. Total lead production of 24.2 million lb in the first six months of 2014 compared to 18.0 million lb for the same period of 2013. A 34% increase year-over-year.
Total zinc ("Zn") production of 13.5 million lb in the second quarter of 2014 compared to 12.8 million lb for the same period of 2013. A 5% increase yer-over-year. Total zinc production of 26.2 million lb in the first six months of 2014 compared to 26.1 million lb for the same period of 2013. Representing no variation year-over-year.
Total gold ("Au") production from the Yauricocha Mine was 2,499 oz in the second quarter of 2014 compared to 1,800 oz for the same period of 2013. A 39% increase year-over-year. Total gold production was 4,984 oz in the first six months of 2014 compared to 3,398 oz for the same period of 2013. A 47% increase year-over-year.
Daniel Tellechea, President and CEO of Sierra Metals, commented: "Sierra's strong production results during the second quarter were mainly driven by higher lead head grades and silver recoveries at Yauricocha, and higher throughputs at Bolivar and Cusi. We expect to continue reporting solid production results in the third quarter and we are on target to meet our production guidance for 2014."
Mine Operations
During this period, the Company achieved a total of 430,766 tonnes of ore processed (compared to 323,751 tonnes in 2013) from all operations, representing a 33% increase year-over-year. Total tonnes processed of 847,331 in the first six months of 2014 compared to 641,387 tonnes in the same period of 2013. A 32% increase year-over-year. The increase during the first half of 2014 mainly resulted from higher throughput at our three mines, but especially in Bolivar (107% increase year-over-year) and Cusi (30% year-over-year). These achievements are part of the Company's growth strategy to expand production in Mexico during 2014. In addition, Sierra has achieved higher lead head grades and recoveries at Yauricocha and higher silver head grades and recoveries at Cusi. A summarized table of consolidated production results is presented below:
| Consolidated Production | 3 Months Ended | 6 Months Ended | ||||
| Jun 30, 2014 | Jun 30, 2013 | % Var. | Jun 30, 2014 | Jun 30, 2013 | % Var. | |
| Silver production (oz) | 750,283 | 669,620 | 12% | 1,478,495 | 1,280,028 | 16% |
| Copper production (000 lb) | 5,697 | 3,755 | 52% | 11,426 | 7,816 | 46% |
| Lead production (000 lb) | 12,005 | 9,559 | 26% | 24,185 | 18,087 | 34% |
| Zinc production (000 lb) | 13,457 | 12,776 | 5% | 26,189 | 26,080 | 0% |
| Gold Production (oz) | 2,499 | 1,800 | 39% | 4,984 | 3,398 | 47% |
Yauricocha Mine, Peru
The Yauricocha Mine continued to be the Company's largest producing mine with a total of 219,988 tonnes processed in the second quarter of 2014 representing a 7% increase compared to 206,407 tonnes in 2013. Total tonnes processed of 435,538 in the first six months of 2014 compared to 421,274 tonnes in the same period of 2013. A 3% increase year-over-year. Mineralization at the Yauricocha Mine is hosted in two different zones including Lead-Oxide ("Oxides") and Polymetallic ore-bodies.
During the second quarter of 2014, aggregate production of these ore bodies was 479,254 oz of silver, representing no significant variation year-over-year; 1.8 million lb of copper, a 2% increase year-over-year; 11.2 million lb of lead, a 19% increase year-over year; 13.5 million lb of zinc, a 11% increase year-over year; and 1,480 oz of gold, a 18% decrease year-over-year. Higher metal production is mainly driven by higher throughput and by higher silver and lead recoveries. Increase in production was partially offset by lower head grades in line with Yauricocha's mine plan. A summary of production from the Yauricocha Mine for the second quarter of 2014 has been provided below:
| Yauricocha Production | 3 Months Ended | 6 Months Ended | ||||
| Jun 30, 2014 | Jun 30, 2013 | % Var. | Jun 30, 2014 | Jun 30, 2013 | % Var. | |
| Silver production (oz) | 479,254 | 481,058 | 0% | 973,548 | 955,660 | 2% |
| Copper production (000 lb) | 1,755 | 1,714 | 2% | 3,494 | 3,889 | -10% |
| Lead production (000 lb) | 11,206 | 9,382 | 19% | 22,888 | 17,761 | 29% |
| Zinc production (000 lb) | 13,457 | 12,121 | 11% | 26,189 | 25,167 | 4% |
| Gold Production (oz) | 1,480 | 1,800 | -18% | 2,954 | 3,398 | -13% |
Bolivar Mine, México
During the second quarter of 2014, total ore processed at the Bolivar Mine increased 91% with 169,149 tonnes processed compared to 88,406 tonnes in 2013. Total tonnes processed of 337,339 in the first six months of 2014 compared to 162,861 tonnes in the same period of 2013, a 107% increase year-over-year. Copper production during the period increased 93% with a total of 3.9 million lb produced (compared to 2.0 million lb in 2013). Silver production at Bolivar increased 40% year over-year with a total of 103,794 oz produced (compared to 74,037 in 2013). This substantial increase in production is mainly driven by higher throughput compared to the second quarter of 2013. A summary of production for the Bolivar Mine for the second quarter of 2014 has been provided below:
| Bolivar Production | 3 Months Ended | 6 Months Ended | ||||
| Jun 30, 2014 | Jun 30, 2013 | % Var. | Jun 30, 2014 | Jun 30, 2013 | % Var. | |
| Copper production (000 lb) | 3,941 | 2,042 | 93% | 7,932 | 3,927 | 102% |
| Zinc production (000 lb) | 0 | 655 | -100% | 0 | 914 | -100% |
| Silver production (oz) | 103,794 | 74,037 | 40% | 195,454 | 128,099 | 53% |
| Gold production (oz) | 646 | 0 | N.A. | 1,218 | 0 | N.A. |
Cusi Mine, México
During the second quarter of 2014 total ore processed increased 44% with a total of 41,629 tonnes of ore processed (compared to 28,937 tonnes in 2013). Total tonnes processed of 74,454 in the first six months of 2014 compared to 57,252 tonnes in the same period of 2013. A 30% increase year-over-year. During the second quarter of 2014 production of silver at Cusi increased 46% with a total of 167,235 oz of silver (compared to 114,525 oz in 2013). This increase is mainly driven by higher throughput compared to the second quarter of 2013 (41,629 tonnes versus 28,937 tonnes). A summary of production for the Cusi Mine for the second quarter of 2014 has been provided below:
| Cusi Production | 3 Months Ended | 6 Months Ended | ||||
| Jun 30, 2014 | Jun 30, 2013 | % Var. | Jun 30, 2014 | Jun 30, 2013 | % Var. | |
| Silver production (oz) | 167,235 | 114,525 | 46% | 309,492 | 196,269 | 58% |
| Lead production (000 lb) | 800 | 177 | 351% | 1,297 | 326 | 298% |
Quality Control
The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora, La Verde (gold) at the Batopilas Property in the state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo Property in the state of Zacatecas.
The Company's shares trade on the Bolsa de Valores de Lima and the TSX under the symbol "SMT".
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. Other than statements of historical fact, all statements are "forward-looking statements", which involve various known and unknown risk and uncertainties and other factors, including market conditions that may affect the Company's ability to execute its current business plan and to continue to pay a quarterly dividend. 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 and until 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 atwww.sedar.com .
SOURCE Sierra Metals Inc
