Peru Report Features Improved After Tax NPV of US$359million
Sierra Metals Inc. (TSX: SMT) has filed an updated Preliminary Economic Assessment (PEA) report for the Yauricocha Mine in Peru.
Highlights of the new PEA versus previously reported include:
- After-tax Net Present Value (NPV): US$359 million (previously US$333 million) at an 8% discount rate
- Plant Processing Rate after expansion: 5,500 tonnes per day (TPD)
- Incremental benefit of increasing the production to 5,500 TPD from 3,780, TPD is estimated to have an after-tax NPV (@8%) of US$28.4 million (previously US$27.1 million), and an IRR of 35.7% (previously 29.5%)
- Net After-tax Cash Flow: US$527 million (previously US$495 million)
- Life of Mine & Sustaining Capital Cost: US$234.9 million (previously US$268.5 illion)
- Total Operating Unit Cost: US$42.25/tonne (previously US$48.89/tonne) and US$1.19/lb (previously US$1.28/lb) copper equivalent
- Average LOM Grades of Silver 34.2 g/t (1.1 oz/t), Copper 1.28%, Gold 0.42 g/t (0.01 oz/t), Zinc 1.71% and Lead 0.48%
- MineLife: 12 years based on updated Mineral Resource Estimate which includes a 26% increase in the Measured and Indicated Resource category and a 79% increase in the Inferred Resource category
- Life of Mine Payable Production: Copper 424 million pounds (previously 419 million pounds), Silver 13.1 million troy ounces (previously 13.7 million troy ounces), Gold 41.6 thousand troy ounces (previously 43 thousand troy ounces), Zinc 549 million pounds (previously 541 million pounds), Lead 169 million pounds (previously 167 million pounds).
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.
