USGS releases first study to assess global earthquake risk to mineral supplies
Earthquakes have the potential to substantially affect mining operations, leading to supply chain disruptions that adversely affect the global economy.
Sierra Metals Inc. (TSX: SMT) announced Monday the company has increased mill throughput capacity at its 100% owned Bolivar Mine to 2,000 tonnes per day (tpd).
The second circuit was commissioned on September 20th and is currently operating at 1,700 tpd. Ramp up to full capacity will occur in October. Sierra Metals is also evaluating a further upgrade to 3,000 tpd in 2014.
“The increase to 2,000 tonnes-per-day at the Piedras Verde plant is another important milestone achieved by the Mexico operating team,” said Sierra Metals President and CEO Daniel Tellechea. “At this rate, we expect the production costs per pound of copper to be reduced significantly.”
Sierra Metals processed over 300,000 tonnes of mineralized ore during fiscal year 2012 at its Bolivar operations and produced 6.8 million pounds of copper, 9.1 million pounds of zinc and 191,000 ounces of silver. The increase in mill capacity is expected to have a substantial impact on production totals at Bolivar in 2014.
National Instrument (NI) 43-101 Proven plus Probable mineral reserves at Bolivar currently stand at 7.5 million tonnes grading 9.5 g/t silver, 0.759% copper and 0.329% zinc. An additional eight million tonnes of similar mineralization reside in the Measured and Indicated categories.
A Pre-Feasibility Study (PFS) released for Bolivar in April calculated a pre-tax Net Present Value (NPV) of $135.6 million over an 11 year mine life. Cash costs at Bolivar during the second quarter of 2013 were $1.73 per pound of copper equivalent (CuEq).
Sierra Metals also continues to have exploration success within its 6,100 hectare land package at Bolivar. Drill results released in July highlighted 2.35 meters of true width averaging 1.049 g/t gold, 176 g/t silver and 2.03% copper.
In addition to Bolivar, Sierra Metals has two additional operating mines. This includes the 100% owned Cusi Mine in northern Mexico and the 82% owned Yauricocha Mine in central Peru.
Operations at Yauricocha produced over two million ounces of silver for fiscal year 2012 at a silver equivalent (AgEq) cash cost of -$13.78 per ounce attributed to high metal credits from zinc, lead and gold.
Shares of Sierra Metals are traded on the TSX under the ticker symbol SMT. The company has over $40 million in treasury and declared in February plans to pay a $10 million cash dividend to shareholders during 2013. Additionally, the company is in the process of repurchasing 7.8 million of its 157 million outstanding shares through a normal course issuer bid.
