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 has completed all the necessary work and has submitted all the required documentation to the authorities for its Yauricocha mine and expects to receive its environmental-impact assessment permit shortly. 

It has also completed the refurbishment of the lower part of the Mascota shaft, as well as the infrastructure and tie-ins for the Yauricocha tunnel, allowing for faster turnaround in the cycle time of the trolley locomotives, and providing for increased capacity and handling of larger volumes of ore and waste.

Tonnage through the tunnel can be ramped up further as larger locomotives and ore cars are added in the future.

In the first quarter of 2019, shaft sinking will continue to the 1 270 level to provide access to further reserves and resources at the mine, while loading pockets will be added later this year on the 1 210 level.

Also, work will start on a ramp connecting the 920 level with the 720 level, providing for an additional 10 000 t/m of increased capacity to move ore and waste from the mine.

The company’s 2019 cost and capital expenditure guidance will be provided this month, as the planning and costing of various capital projects, which have been recently added or modified, are being completed.

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.