Ms. Audra Walsh reports
SIERRA METALS REPORTS RECORD SILVER AND COPPER PRODUCTION IN FOURTH QUARTER 2014 AND ANNOUNCES 2015 PRODUCTION OUTLOOK
Sierra Metals Inc. has released production results for the fourth quarter and year ended Dec. 31, 2014, from its three underground mines in Latin America: the Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico.
Fourth-quarter production highlights:
- Total tonnes processed of 428,859; a 10-per-cent increase over the fourth quarter of 2013;
- Silver production of 875,400 ounces; a 34-per-cent increase over the fourth quarter of 2013;
- Copper production of 5.9 million pounds; a 23-per-cent increase over the fourth quarter of 2013;
- Lead production of 12.1 million pounds; a 7-per-cent increase over the fourth quarter of 2013;
- Zinc production of 13.4 million pounds; consistent with the fourth quarter of 2013;
- Gold production of 2,329 ounces; a 40-per-cent increase over the fourth quarter of 2013.
Production highlights from 2014:
- Total tonnes processed of 1,706,715; a 29-per-cent increase over 2013;
- Silver production of 3,148,145 ounces; a 23-per-cent increase over 2013;
- Copper production of 22.6 million pounds; a 42-per-cent increase over 2013;
- Lead production of 48.8 million pounds; a 29-per-cent increase over 2013;
- Zinc production of 54.3 million pounds; a 5-per-cent increase over 2013;
- Gold production of 9,457 ounces; a 40-per-cent increase over 2013.
Production guidance for 2015:
- Silver: 3,144,000 ounces to 3,668,000 ounces;
- Copper: 21.0 million pounds to 24.3 million pound;
- Lead: 44.3 million pounds to 51.8 million pounds;
- Zinc: 41.9 million pounds to 48.9 million pounds;
- Gold: 11,200 ounces to 13,000 ounces.
Audra Walsh, president and chief executive officer of Sierra Metals, commented: "Two thousand fourteen was another record year of metal production driven by organic growth in our three mines. The company's metal production exceeded the high end of the guidance for silver, gold, lead and zinc while copper production was within the guidance range. Our Q4 2014 production of 875,400 silver ounces was the highest quarter in the history of the company, as was the ore throughput. The management team remains focused on executing opportunities to further increase production and reduce costs in 2015, which we anticipate will help offset the impact of depressed metal prices. The quality of our assets will enable us to continue delivering solid production results during 2015."
Mine operations
The total tonnes of ore processed of 1,706,715 in 2014 compared with 1,321,781 in 2013 was a 29-per-cent increase year over year. The success of increasing consolidated metal production in 2014 was assisted by higher throughput at all three mines, Bolivar (76 per cent), Cusi (45 per cent) and Yauricocha (6 per cent).
CONSOLIDATED PRODUCTION
Three months ended 12 months ended
Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2013
Tonnes processed 428,859 390,781 1,706,715 1,321,781
Daily throughput 4,901 4,466 4,892 3,776
Silver production (oz) 875,400 653,705 3,148,145 2,560,467
Copper production (000 lb) 5,908 4,819 22,643 15,905
Lead production (000 lb) 12,096 11,278 48,834 37,957
Zinc production (000 lb) 13,399 13,382 54,256 51,747
Gold production (oz) 2,329 1,665 9,457 6,736
Yauricocha mine, Peru
The Yauricocha mine continued to be the company's largest producing mine with a total of 224,986 tonnes processed in the fourth quarter of 2014 representing a 5-per-cent increase compared with 214,454 tonnes in the fourth quarter of 2013. Total annual tonnes processed of 885,495 in 2014 compared with 837,496 tonnes in 2013 resulted in a 6-per-cent increase year over year. Mineralization at the Yauricocha mine is hosted in three different zones, including lead-oxide, copper-oxide and polymetallic orebodies.
During the fourth quarter of 2014, total production of these orebodies was 595,340 ounces of silver, a 28-per-cent increase year over year; 2.3 million pounds of copper, a 97-per-cent increase year over year; 11.6 million pounds of lead, a 6-per-cent increase year over year; 13.4 million pounds of zinc, consistent year over year; and 1,360 ounces of gold, an 18-per-cent decrease year over year. Higher metal production was mainly driven by an increase in the polymetallic and copper oxide throughput and by higher lead and copper head grades, and higher silver and lead recoveries. Increase in production was partially offset by lower head grades in the lead-oxide body in line with Yauricocha's mine plan.
YAURICOCHA PRODUCTION
Three months ended Dec. 31, 12 months ended Dec. 31,
2014 2013 2014 2013
Tonnes processed 224,986 214,454 885,495 837,496
Daily throughput 2,571 2,451 2,545 2,393
Polymetalic (tonnes) 178,300 164,664 703,713 641,268
Silver grade (g/t) 94.28 73.53 83.77 83.20
Copper grade 0.80% 0.49% 0.70% 0.65%
Lead grade 1.91% 1.60% 1.79% 1.48%
Zinc grade 3.87% 4.09% 3.95% 4.05%
Gold grade (g/t) 0.63 0.63 0.66 0.67
Silver recovery 79.9% 72.5% 76.5% 70.4%
Copper recovery 68.6% 65.1% 68.0% 70.6%
Lead recovery 85.8% 81.8% 83.9% 80.0%
Zinc recovery 88.1% 90.0% 88.5% 88.7%
Gold recovery 15.2% 14.1% 14.0% 16.6%
Lead oxides (tonnes) 40,572 49,789 171,829 196,228
Silver grade (g/t) 217.98 268.79 233.70 277.81
Lead grade 8.28% 8.87% 9.00% 7.71%
Gold grade (g/t) 1.09 1.65 1.27 1.71
Ag recovery 53.9% 42.2% 50.7% 37.6%
Pb recovery 68.3% 63.8% 67.9% 61.0%
Gold recovery 53.1% 45.1% 49.9% 41.1%
Copper oxides (tonnes) 6,114 0 9,953 0
Silver grade (g/t) 101.51 0.0% 91.81 0.0%
Copper grade 2.76% 0.00% 3.10% 0.00%
Lead grade 3.13% 0.00% 3.05% 0.00%
Gold grade (g/t) 0.59 0 0.54 0
Ag recovery 53.0% 0.0% 50.4% 0.0%
Cu recovery 43.1% 0.0% 36.6% 0.0%
Pb recovery 30.3% 0.0% 31.5% 0.0%
Gold recovery 45.0% 0.0% 45.4% 0.0%
Silver production (oz) 595,340 463,964 2,121,565 1,866,769
Copper production (000 lb) 2,304 1,167 7,697 6,514
Lead production (000 lb) 11,632 10,956 46,714 37,055
Zinc production (000 lb) 13,399 13,382 54,256 50,817
Gold production (oz) 1,360 1,665 5,683 6,736
Bolivar mine, Mexico
During the fourth quarter of 2014, total ore processed at the Bolivar mine increased 5 per cent with 159,904 tonnes processed compared with 152,242 tonnes in the fourth quarter of 2013. Total annual tonnes processed of 665,951 in 2014 compared with 377,432 tonnes in 2013 resulted in a 76-per-cent increase year over year. Copper production during the fourth quarter of 2014 decreased by 1 per cent with a total of 3.6 million pounds produced (compared with 3.7 million pounds in the fourth quarter 2013). Silver production at Bolivar in the fourth quarter of 2014 increased 3 per cent year over year with a total of 92,689 ounces produced (compared with 90,013 ounces in the fourth quarter of 2013). This slight increase in production was driven by higher throughput compared with the fourth quarter of 2013.
BOLIVAR PRODUCTION
Three months 12 months
ended Dec. 31, ended Dec. 31,
2014 2013 2014 2013
Tonnes processed 159,904 152,242 665,951 377,432
Daily throughput 1,827 1,740 1,903 1,078
Copper grade 1.25% 1.27% 1.22% 1.30%
Zinc grade 0.17% 0.33% 0.21% 0.47%
Silver grade (g/t) 22.03 21.59 22.54 25.87
Gold grade (g/t) 0.29 0.00 0.23 0.00
Copper recovery 82.10% 85.44% 83.28% 86.53%
Zinc recovery 0.00% 0.00% 0.00% 23.66%
Silver recovery 81.85% 85.19% 82.15% 86.21%
Gold recovery 45.32% 0.00% 49.38% 0.00%
Copper production (000 lb) 3,604 3,652 14,946 9,391
Zinc production (000 lb) 0 0 0 930
Silver production (oz) 92,689 90,013 396,421 270,610
Gold production (oz) 665 0 2,485 0
Cusi mine, Mexico
During the fourth quarter of 2014 total ore processed increased 83 per cent with a total of 43,969 tonnes of ore processed (compared with 24,085 tonnes in the fourth quarter of 2013). Total annual tonnes processed of 155,269 in 2014 compared with 106,853 tonnes in 2013 resulted in a 45-per-cent increase year over year. During the fourth quarter of 2014 production of silver at Cusi increased 88 per cent with a total of 187,371 ounces of silver (compared with 99,727 ounces in the fourth quarter of 2013).
CUSI PRODUCTION
Three months 12 months
ended Dec. 31, ended Dec. 31,
2014 2013 2014 2013
Tonnes processed 43,969 24,085 155,269 106,853
Daily throughput 503 275 444 305
Silver grade (g/t) 173.13 166.15 166.69 166.65
Gold grade (g/t) 0.33 0.00 0.42 0.00
Lead grade 0.62% 0.78% 0.78% 0.55%
Silver recovery 76.56% 77.44% 75.70% 73.83%
Gold recovery 66.08% 0.00% 61.89% 0.00%
Lead recovery 77.06% 77.94% 79.06% 69.23%
Silver production (oz) 187,371 99,727 630,159 423,089
Gold production (oz) 304 0 1,289 0
Lead production (000 lb) 464 323 2,120 902
Quality control
The technical content of this news release has been approved by Dr. Thomas L. Robyn, PhD, CPG, RPG, a qualified person as defined in National Instrument 43-101.
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