FILES NI 43-101 TECHNICAL REPORT ON
Results are from
First Quarter 2017 Production Highlights
- Total tonnes processed of 529,695; an 11% increase over Q1 2016
- Silver equivalent production of 3.0 million ounces; a 28% increase from Q1 2016
- Copper equivalent production of 26.1 million pounds; a 28% increase from Q1 2016
- Increase of 54% in silver equivalent production and 21% increase in throughput at Yauricocha during Q1 2017 vs Q1 2016
During the first quarter of 2017, consolidated metal production increased 28% compared to Q1 2016. The increase in metal production was due to higher throughput, higher silver, copper and zinc head grades as well as higher recoveries for all metals, except gold, at Yauricocha. Additionally, the Company saw higher throughput and recoveries of all metals at Bolivar but this was partially offset by lower throughput, head grades and recoveries of all metals at Cusi.
“
Consolidated Production Results
Consolidated Production |
3 Months Ended |
2017 Guidance |
||||
Q1 2017 |
Q1 2016 |
% Var. |
Low |
High |
||
Tonnes processed (mt) |
529,695 |
476,220 |
11% |
|||
Daily throughput |
6,054 |
5,443 |
11% |
|||
Silver ounces (000's) |
698 |
588 |
19% |
2,987 |
3,485 |
|
Copper pounds (000's) |
7,290 |
5,836 |
25% |
31,050 |
36,200 |
|
Lead pounds (000's) |
9,143 |
8,255 |
11% |
31,100 |
36,300 |
|
Zinc pounds (000's) |
18,137 |
10,919 |
66% |
61,800 |
72,100 |
|
Gold ounces |
1,777 |
2,236 |
-21% |
7,800 |
9,100 |
|
Silver equivalent ounces (000's)(1) |
3,050 |
2,375 |
28% |
11,534 |
13,454 |
|
Copper equivalent pounds (000's)(1) |
26,086 |
20,309 |
28% |
98,642 |
115,066 |
(1) Silver equivalent ounces & copper equivalent pounds were calculated using the following metal prices: |
Continued production from higher grade ore zones, including the
A summary of production from the
Yauricocha Production |
3 Months Ended |
|||
Q1 2017 |
Q1 2016 |
% Var. |
||
Tonnes processed (mt) |
251,180 |
207,580 |
21% |
|
Daily throughput |
2,871 |
2,372 |
21% |
|
Silver grade (g/t) |
81.37 |
74.21 |
10% |
|
Copper grade |
0.81% |
0.75% |
8% |
|
Lead grade |
1.76% |
2.29% |
-23% |
|
Zinc grade |
3.60% |
2.68% |
35% |
|
Gold Grade (g/t) |
0.56 |
0.63 |
-11% |
|
Silver recovery |
75.95% |
57.19% |
33% |
|
Copper recovery |
62.00% |
54.23% |
14% |
|
Lead recovery |
85.96% |
66.17% |
30% |
|
Zinc recovery |
89.12% |
83.98% |
6% |
|
Gold Recovery |
17.25% |
25.33% |
-32% |
|
Silver ounces (000's) |
499 |
283 |
76% |
|
Copper pounds (000's) |
2,783 |
1,863 |
49% |
|
Lead pounds (000's) |
8,382 |
6,944 |
21% |
|
Zinc pounds (000's) |
17,774 |
10,281 |
73% |
|
Gold ounces |
779 |
1,062 |
-27% |
|
Silver equivalent ounces (000's)(1) |
2,202 |
1,432 |
54% |
|
Copper equivalent pounds (000's)(1) |
18,829 |
12,246 |
54% |
(1) Silver equivalent ounces & copper equivalent pounds were calculated using the following metal prices: |
Bolivar had another quarter of consistent plant throughput in Q1 2017 with 243,974 tonnes processed which was an 11% increase when compared to Q1 2016. The higher throughput and recoveries of all metals helped offset the lower head grades encountered and resulted in a 9% increase in copper equivalent production compared to Q1 2016. Plant improvements completed at Bolivar during the second half of 2016, including the installation of a new vibrating screen and cyclones which contributed to the improvement in recoveries of all metals during Q1 2017.
Copper production of 4.5 million pounds increased 13%, silver production of 94,000 ounces decreased 3% and gold production of 840 ounces decreased 2% in Q1 2017 compared to Q1 2016.
The Company's focus at Bolivar during the remainder of 2017 will be on improving production volume through the procurement of new equipment including Jumbos, Scoops and Trucks expected to arrive in stages with full delivery complete by the end of the second quarter with the intention of moving more material from available production stopes within the mine.
A summary of production for the
Bolivar Production |
3 Months Ended |
|||
Q1 2017 |
Q1 2016 |
% Var. |
||
Tonnes processed (mt) |
243,974 |
218,886 |
11% |
|
Daily throughput |
2,788 |
2,502 |
11% |
|
Copper grade |
1.03% |
1.06% |
-3% |
|
Silver grade (g/t) |
15.25 |
18.37 |
-17% |
|
Gold grade (g/t) |
0.20 |
0.27 |
-23% |
|
Copper recovery |
81.49% |
77.69% |
5% |
|
Silver recovery |
78.95% |
75.40% |
5% |
|
Gold recovery |
52.49% |
45.99% |
14% |
|
Copper pounds (000's) |
4,508 |
3,973 |
13% |
|
Silver ounces (000's) |
94 |
97 |
-3% |
|
Gold ounces |
840 |
859 |
-2% |
|
Silver equivalent ounces (000's)(1) |
680 |
622 |
9% |
|
Copper equivalent pounds (000's)(1) |
5,820 |
5,323 |
9% |
(1) Silver equivalent ounces & copper equivalent pounds were calculated using the following metal prices: |
Total ore processed of 34,541 tonnes during Q1 2017 decreased 31% compared to Q1 2016. Lower head grades and recoveries for all metals contributed to the 48% decrease in silver equivalent production.
Silver production of 104,000 ounces decreased 50%, gold production of 159 ounces decreased 49%, lead production of 0.8 million pounds decreased 42%, and zinc production of 0.4 million pounds decreased 43% compared to Q1 2016.
Despite the decreases in tonnage and metal production at Cusi it is very important to note that the Company is currently re-evaluating its development plan at the mine following a successful reinterpretation of the mine's geology. Management are very encouraged by data from a recently completed 15,000-metre drilling program that was focused on the high-grade
Management plans to focus on improving head grades and maintaining production at a rate of approximately 400tpd, while stockpiling ore at the plant and producing it in batches. The Company will be drifting on the
A summary of production for the
Cusi Production |
3 Months Ended |
|||
Q1 2017 |
Q1 2016 |
% Var. |
||
Tonnes processed (mt) |
34,541 |
49,753 |
-31% |
|
Daily throughput |
395 |
569 |
-31% |
|
Silver grade (g/t) |
146.13 |
174.38 |
-16% |
|
Gold grade (g/t) |
0.25 |
0.29 |
-16% |
|
Lead grade |
1.25% |
1.41% |
-12% |
|
Zinc grade |
1.26% |
1.38% |
-9% |
|
Silver recovery |
64.18% |
74.16% |
-13% |
|
Gold recovery |
57.87% |
66.84% |
-13% |
|
Lead recovery |
80.22% |
84.92% |
-6% |
|
Zinc recovery |
37.91% |
42.02% |
-10% |
|
Silver ounces (000's) |
104 |
207 |
-50% |
|
Gold ounces |
159 |
314 |
-49% |
|
Lead pounds (000's) |
761 |
1,312 |
-42% |
|
Zinc pounds (000's) |
363 |
638 |
-43% |
|
Silver equivalent ounces (000's)(1) |
168 |
320 |
-48% |
|
Copper equivalent pounds (000's)(1) |
1,437 |
2,740 |
-48% |
(1) Silver equivalent ounces & copper equivalent pounds were calculated using the following metal prices: |
The Report includes Resources for the
Total Indicated Mineral Resources of 1,990,000 tonnes averaging 237 g/t silver, 0.53% lead, 0.53% zinc, 0.16 g/t gold, 283 g/t AgEq and 18.3 Moz AgEq
Total Inferred Mineral Resources of 1,200,000 tonnes averaging 305 g/t silver, 0.51% lead, 0.64% zin, 0.14 g/t gold, 354 g/t AgEq and 13.7 Moz Ag Eq
Notes on Reserve and Resource Estimate
The effective date of the mineral resource statement for the
Metal price assumptions considered for the calculation of the cut-off grade and equivalency are:
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
For a specific breakdown of each category of resources (indicated and inferred), please refer to the Report.
The Report dated
The Report is available for review on both SEDAR (www.sedar.com) and the Company's website (www.sierrametals.com).
Quality Control
All technical data contained in this news release has been reviewed and approved by
About
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Forward-Looking Statements
This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general.
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