Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) today announced drilling results demonstrating the potential to increase mineral resources between Esperanza Zone and Cuye Zone, located within the Central Mine at Yauricocha.

Two holes executed from the 1070 level of the Yauricocha Mine between the Esperanza and Cuye zones intercepted polymetallic, sulphide mineralization containing silver, zinc, copper, and lead. These results demonstrate the potential for further mineralization within the reported area, and more importantly, indicate the continued existence of mineralization at depth. These results come as part of an ongoing brownfield drilling program that is testing priority targets at the Yauricocha Mine, located 150 kilometers east-southeast of Lima in the Yauricocha Mining District (Cordillera Occidental), Peru.

Igor Gonzales, President and CEO of Sierra Metals stated: “Today’s results represent the existence of polymetallic mineralization at the northern extension of Cuye, and south extension of Esperanza”. He continued, “the Central Mine area contains several high-grade mineralized areas opening the possibility for further discoveries of additional orebodies along the Yauricocha Fault. The Company is committed to brownfield exploration with an aggressive program planned in 2018 on targets within close proximity to our existing operations. Results such as the ones released today continue to demonstrate that these investments are paying off for us demonstrating the potential for mineral resource and tonnage growth.”

Alonso Lujan, Vice President, Exploration of Sierra Metals commented: “The results reported demonstrate mineralized sulphide sectors containing silver, copper, lead and zinc as shown in table 1 below. Furthermore, the drilling indicates that the intersection of the orebody is 650 meters below the 1070 mine level, demonstrating yet another potential area to increase resources in the short term.” He added, “The existence of disseminated copper mineralization in the intrusive rock formation opens a new exploration horizon previously unknown and a new interpretation of the sources of copper mineralization in the Yauricocha district.”

A map of the Yauricocha Mine 1070 level (Central Mine) is shown, in Figure 2.  Figure 3 shows a Longitudinal Section of the Yauricocha Mine highlighting Cross Section Hole ESP-CUY 17-18-01.

Table 1

Quality Control

All samples were dried, crushed and pulverized by the Chumpe Lab at site, pulp samples were shipped by ALS Peru S.A. Lab Chemex) to their laboratory in Lima, Peru.

The quality assurance-quality control program employed by Sierra Metals has been described in detail in the NI-43-101 report for Yauricocha dated December 29, 2017, prepared by SRK Consulting in Denver, which is available for review on Sedar. Standards and blanks are inserted into the sample stream and duplicate samples are sent to the ALS Peru S.A. lab (Chemex) in Lima as per internal quality control procedures. 

Qualified Persons

The technical content of this news release has been reviewed and approved by Gordon Babcock P.Eng., Chief Operating Officer and a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. 

Americo Zuzunaga, MAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Augusto Chung, FAusIMM CP (Metallurgist) and Consultant to Sierra Metals is a Qualified Person and chartered professional qualifying as a Competent Person on metallurgical processes.

About Sierra Metals

Sierra Metals Inc. is Canadian based growing polymetallic mining company with production from its Yauricocha Mine in Peru, 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.