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
The National Environmental Certification Service of Peru has granted Sierra Metals environmental approval for its Yauricocha tailings expansion project, reversing a previous rejection of the environmental impact assessment (EIA). In December, Peru rejected the EIA, although Sierra Metals has maintained that it had submitted all the required documentation.

With an approved EIA study in hand, the miner will now proceed to obtain a construction permit for the next phase of the tailings deposition facility and will start planning for an expanded waste-rock facility.

Once those steps have been completed, Sierra Metals will be able to complete a final submission of an ITS document, which is required for any potential expansion of the mine.

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.