Sierra Metals (TSE:SMT)(BVL:SMT) shares gained on Thursday after the company announced a 70% increase in the silver resource ounces at its Cusihuiriachic property in Mexico.
The company said in a release earlier this morning that total estimated indicated mineral resources stand at 12.4 million ounces of contained silver from 1.665 million tonnes averaging 232 grams per tonne (g/t) silver.
The silver grade improved 40% as well compared to the prior estimate from July 2013, said Sierra.
This is in addition to total inferred resources of 2.737 million tonnes averaging 227 g/t silver, containing 20.02 million ounces, up 37% from the previous report.
"These results are a very important milestone for Sierra Metals' growth plans in silver production," said president and CEO Daniel Tellechea in the release.
"Silver resources at our Cusi Mine have increased significantly in volume and quality to a level that provides strong justification for a prefeasibility study contemplating an important expansion of production capacity from our current 400-500 tonne per day levels."
The latest resoure estimate, prepared by Gustavson Associates, contains resources from two areas of the Cusi mine which are currently in commerical production, as well as in other mines where the company is undertaking underground development, it said.
This year, Sierra is planning to invest in mine infrastructure and equipment, with the aim of increasing future production and reducing cash costs. It is also intending to complete an exploration program both at surface and underground.
The Cusi mine produced 423,000 ounces of silver last year mostly from processing development rock, with an average grade of 167 g/t silver. The average throughput in 2013 was 305 tonnes per day, with Sierra saying it is on track to boost throughput to 500 tonnes per day this year.
''We are adding value to Sierra Metals by delivering a rapid growth in high-quality silver resources at Cusi in an exploration drive that we believe is still far from over given the size of the silver mining district, the increased access to wider zones of high-grade mineralization at depth, and multiple mining and development fronts that Sierra Metals has been opening over the past two years," said the chief executive.
Since the last resource report filed last August, a total of nearly 25,000 metres was drilled and included in the document released today.
Shares of Sierra gained 2.4% to C$1.71 in Toronto on Thursday. Reported by Proactive Investors 4 hours ago.
The company said in a release earlier this morning that total estimated indicated mineral resources stand at 12.4 million ounces of contained silver from 1.665 million tonnes averaging 232 grams per tonne (g/t) silver.
The silver grade improved 40% as well compared to the prior estimate from July 2013, said Sierra.
This is in addition to total inferred resources of 2.737 million tonnes averaging 227 g/t silver, containing 20.02 million ounces, up 37% from the previous report.
"These results are a very important milestone for Sierra Metals' growth plans in silver production," said president and CEO Daniel Tellechea in the release.
"Silver resources at our Cusi Mine have increased significantly in volume and quality to a level that provides strong justification for a prefeasibility study contemplating an important expansion of production capacity from our current 400-500 tonne per day levels."
The latest resoure estimate, prepared by Gustavson Associates, contains resources from two areas of the Cusi mine which are currently in commerical production, as well as in other mines where the company is undertaking underground development, it said.
This year, Sierra is planning to invest in mine infrastructure and equipment, with the aim of increasing future production and reducing cash costs. It is also intending to complete an exploration program both at surface and underground.
The Cusi mine produced 423,000 ounces of silver last year mostly from processing development rock, with an average grade of 167 g/t silver. The average throughput in 2013 was 305 tonnes per day, with Sierra saying it is on track to boost throughput to 500 tonnes per day this year.
''We are adding value to Sierra Metals by delivering a rapid growth in high-quality silver resources at Cusi in an exploration drive that we believe is still far from over given the size of the silver mining district, the increased access to wider zones of high-grade mineralization at depth, and multiple mining and development fronts that Sierra Metals has been opening over the past two years," said the chief executive.
Since the last resource report filed last August, a total of nearly 25,000 metres was drilled and included in the document released today.
Shares of Sierra gained 2.4% to C$1.71 in Toronto on Thursday. Reported by Proactive Investors 4 hours ago.