Sierra Metals Inc. [SMT-TSX] has announced updated NI 43-101-compliant mineral resources estimates for mines in Peru and Mexico.
Sierra Metals is focused on copper production with additional base and precious metals credits at the Yauricocha polymetallic mine in Peru and Bolivar copper mine in Mexico. In the first quarter of 2024, the company reported consolidated production of 19.97 million pounds of copper equivalent (including 11.2 million pounds of copper and 10.1 million pounds of zinc).
Production highlights, included another record quarter at the Bolivar mine, continuing its upward trend of quarterly increases in metal production. The Bolivar mine is located in Chihuahua State. The company has said it is conducting pre-feasibility studies to further assess the economics of doubling production to 10,000 tonnes per day. Bolivar features skarn-type copper-zinc-silver-gold mineralization that is structurally controlled.
The Yauricocha Mine is located in the Allis district, Yauyos province, department of Lima. Polymetallic mineralization has been mined from Yauricocha for more than 50 years. The majority of the mining is executed through mechanized sub-level caving with a relatively small portion of the mining using cut and fill.
Mineralized material is transported via rail to a processing facility, located roughly one kilometre from the mine site. The company said underground development below the 1120 level is progressing as planned and the mine is expected to operate at full capacity by the fourth quarter of this year.
In the latest update, Sierra said Yauricocha hosts a measured and indicated resource of 10.37 million tonnes of grade 1.30% copper, 2.195% zinc, and 42.28 g/t silver, 0.48 g/t gold and 0.55% lead. That’s enough material to support an 8.0-year mine life, the company said in a press release.
On top of that is an inferred resource of 13.2 million tonnes of 1.30% copper, 1.59% zinc, 34.42 g/t silver, 0.43 g/t gold and 0.49% lead.
The latest estimates include 6.4 million tonnes of proven and probable reserves.
Sierra recently said throughput from the Yauricocha mine was 240,686 tonnes in the first quarter, a 10% increase from Q1, 2023 due to increased access to mining areas.
The measured and indicated resource at the Bolivar Mine stands at 18.4 million tonnes of 0.76% copper, 15.29 g/t silver, 0.25 g/t gold. That amounts to 306 million pounds of copper, 9.03 million ounces of silver and 150,000 ounces of gold, or enough material to support a seven-year mine life, the company said.
On top of that is an inferred resource of 12.1 million tonnes, containing 193 million pounds of copper, 4.75 million ounces of silver and 70,000 ounces of gold
Sierra Metals shares were virtually unchanged on the news, easing 1.2% or $0.01 to 85 cents. The shares trade in a 52-week range of $1.00 and 34 cents.
