Sierra Metals has filed a technical report prepared in accordance with NI 43-101 on the proposed expansion of Yauricocha mine. Yauricocha is located in the Alis district, Yauyos Province, Department of Lima, approximately 12 km west of the Continental Divide and 60 km south of the Pachacayo railway station. The report is based on technical inputs from various independent consulting groups, including; SRK, Redco, Ingenieria Carillo, Anddes, Tierra Group and Geoservice Engineers and was compiled under NI 43-101 standards by Mining Plus Peru SAC. The report included PEA results with:
- After-tax NPV: $393 million at an 8% discount rate
- Return on Investment (ROI): 486%
- After-tax payback period life of mine capital: 4.1 years
- Life of mine capital cost: $238 million
- Net after-tax cash flow: $532 million
- Total operating unit cost: $43.86/t
- Mine processing rate: 5,500 t/d
- Plant processing rate: 5,500 t/d
- Life of mine: 10 years based on existing mineral resource estimate
- Life of mine zinc payable production 621.1 Mlb.
The report dated August 8, 2018, with an effective date of July 31, 2017, is entitled “NI 43-101Preliminary Economic Assessment (PEA) for the Yauricocha Mine Peru.”
Sierra Metals Inc. is Canadian based growing polymetallic mining company with production from Yauricocha, and its 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.
