Name of the Project
Yauricocha silver/gold/copper/lead/zinc project.

Location
The project is located in the Alis district, Yauyos province, department of Lima, Peru.

Client
Sierra Metals.

Project Description
The project has measured and indicated resources of 13.21-million tonnes grading 62.26 g/t silver, 0.65 g/t gold, 1.52% copper, 0.92% lead and 2.79% zinc. Inferred resources are estimated at 6.63-million tonnes grading 43.05 g/t silver, 0.55 g/t gold, 1.19% copper, 0.47% lead and 2.16% zinc.

Sierra Metals plans to expand the Yauricocha mine from 3 000 t/d to 3 600 t/d in the first quarter of 2019, and to 5 500 t/d in 2021.

Based on the current resources and proposed 5 500 t/d of mineral production, the operation will have a ten-year mine life. Life-of-mine (LoM) payable production is estimated at 621.1-million pounds.

The geometry and grade of mineralisation at Yauricocha are suited to the sublevel caving mining method. Minerals and waste are transported by electric locomotive to the Chumpe plant for processing. The plant will need to be expanded from 3 000 t/d to 5 500 t/d, if it is to process increased mine output.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $393-million, with a payback of 4.1 years.

Value
LoM capital requirements – mine, plant and closure – to realise the proposed mine expansion to 5 500 t/d and increase processing capacity to 5 500 t/d are estimated at $238-million.

Duration
Not stated.

Latest Developments
Sierra Metals is facing a delay at its Yauricocha tailings expansion project, following the rejection of the environmental-impact assessment (EIA) study for the deposition facility.

An approved EIA is required for a construction permit for the next three phases of the tailings dam extension, which will allow for a 20% expansion of Yauricocha’s mine output to 3 600 t/d.

The company, however, maintains that it has submitted all the required documentation and that it is optimistic that the decision will be reviewed.   
Sierra Metals has said that the EIA delay could result in a 7% temporary shortfall in its daily ore production, compared with projects that have not included an EIA permit delay.

Key Contracts and Suppliers
SRK (resource estimation); Redco (production expansion evaluation), Ingenieria Carillo (engineering associated with increased Chumpe plant capacity); Anddes (expansion of tailings storage capacity); Tierra Group (memorandum tecnico) and Geoservice Engineers.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sierra Metals, Mike McAllister, tel +1866493 9646 or email info@sierrametals.com.