Sierra Metals Inc. has updated its Mineral Resource Estimate for the company's Cusi Mine, located in Chihuahua State, Mexico.
The updated Mineral Resource Estimate is the result of drilling programmes completed between January 2014 and August 2017. Subsequent to the cut-off date of 31 August 2017 the updated Resource statement includes additional 48 684 m drilling programme that was focussed on the high-grade Santa Rosa de Lima zone and Promontorio.
The company believes that the Santa Rosa de Lima zone demonstrates strong potential for further structural extensions of high-grade zones at the company's Cusi Mine. Conversion of some of the higher grade to measured and indicated resources has been the priority for the Cusi exploration efforts.
A Technical Report prepared by SRK Consulting (US) Inc. in accordance with NI 43-101 standards of disclosure has been completed and will be filed on SEDAR within 45 days of this news release.
"Sierra's management team is extremely pleased with the significant increases realised in the measured and indicated resource, and the increase in inferred resources reported in this resource estimate for the Cusi Mine" stated President and CEO of Sierra Metals Inc., Igor Gonzales. "When compared to the previous estimate from January 2017, the company saw a 129% increase to the measured and indicated resource tonnage and a 36% increase in the inferred resource tonnage. These increases represent a significant amount of additional drilling and mine exploration development work completed at the Cusi Mine which included the Santa Rosa de Lima Zone which has strong potential for further structural extensions of high-grade zones. Furthermore, the increased resource tonnage volume is a result of wider, higher-grade silver zones which are the foundation for the company's new operating plan which should significantly improve the cashflow prospects for Cusi in 2018 and beyond."
"The company remains committed to resource growth through brownfield exploration and this resource estimate confirms the presence of additional high-quality tonnage at the Cusi Mine allowing the company to study the potential for production increases going forward. We remain committed to brownfield exploration programmes at the Cusi mine over the next year with the aim of further mineral resource expansions," Gonzales continued.