Study Doubles Output At Mexican Project to 2,400 Tonnes Per Day
Sierra Metals Inc. (TSX: SMT) has filed an independent technical report on the Preliminary Economic Assessment for its Cusi Mine in the Chihuahua State of Mexico.
Highlights of the PEA filed include:
- After-tax Net Present Value (NPV): US$81 Million at an 8% discount rate assuming a long-term silver price of US$20/oz
- Incremental benefit of increasing the production to 2,400 TPD from 1,200 TPD is estimated to have an after tax NPV (@8%) of US$28.1 million, and IRR of 46.8%
- Net After-tax Cash Flow: US$134 Million
- Life of Mine & Sustaining Capital Cost: US$91 Million
- Total Operating Unit Cost: US$35.24/tonne and US$8.83/oz silver equivalent
- Plant Processing Rate after expansion: 2,400 tonnes per day (TPD)
- Average LOM Grades for Silver 127.2 g/t (4.1 oz/t), Gold 0.12 g/t, Zinc 0.48% and Lead 0.34%
- Mine Life: 13 years based on existing Mineral Resource Estimate
- Life of Mine Silver Payable Production: 33.4 million ounces
The Cusi Property is located in the Cusihuarachi District of Chihuahua State, Mexico, approximately 135 km southwest of Chihuahua City. Epithermal mineralisation has been mined in the area since its discovery in the early 1800’s.
Mineralisation is bound between regionally significant northwest trending faults; eight mineralised zones are recognised at the property, mineralised zones are up to 10 meters across and include silicified faults, veins, and breccias.
Seven epithermal veins are recognized at the property, veins typically range between 0.5 and 2.0 meters wide, dip steeply, extend 100 to 200 meters along strike, and extend up to 400 meters depth. Vein orientations range between northeast and northwest.
Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico.
The company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines.
Additionally, the company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
