4.5% Growth In Ore Throughput In Peru And Mexico
Sierra Metals Inc. (TSX: SMT) has announced positive first quarter 2021 production results for the Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver mines in Mexico, featuring 4.5% growth of consolidated ore throughput.
First Quarter 2021 Production Highlights
- Silver production of 1.0 million ounces; a 1% increase from Q1 2020
- Copper production of 7.9 million pounds; a 33% decrease from Q1 2020; mainly due to a temporary shift from copper-rich zones to lower grade polymetallic areas at Yauricocha caused by temporary operational challenges.
- Lead production of 9.0 million pounds; a 1% decrease from Q1 2020
- Zinc production of 24.1 million pounds; an 11% increase from Q1 2020
- Gold production of 2,636 ounces; a 28% decrease from Q1 2020
- Copper equivalent production of 25.5 million pounds; an 18% decrease from Q1 2020
- Record quarterly throughput of 3,728 tpd at the Yauricocha Mine
CEO, Luis Marchese, said the Yauricocha Mine achieved 14% higher throughput as compared to Q1 2020 despite the various operational challenges still posed by the COVID-19 pandemic. Lower grades for all metals negated the impact of higher throughput resulting in a 21% decrease in copper equivalent pounds produced during Q1 2021 compared to Q1 2020.
At Bolivar, a 2% decrease in throughput combined with lower grades for all metals resulted in a 20% decrease in copper equivalent pounds produced during Q1 2021 as compared to Q1 2020. At Cusi, 30% higher silver grades offset the impact of 2% lower throughput in Q1 2021 as compared to Q1 2020, resulting in 17% higher silver equivalent Q1 2021 production.
“The health and safety of our work force and surrounding communities continues to be of the upmost importance and we continue to manage the implications of COVID-19 using best practices with a goal of avoiding any mine closures, while continuing to aim for production targets,” Mr Marchese said.
“Facing ongoing operational difficulties due to Covid-19 in Peru and México, the Company performed relatively well during the first quarter with a 4.5% increase in consolidated throughout as well as record quarterly throughput at Yauricocha.
“These results were despite of other additional challenges, including a power failure at the Cusi Mine resulting from the large scale power outage originating in Texas.
“Additionally, at Yauricocha we experienced some operational issues at the Esperanza Zone which provides most of the copper ore for the mine. However, these have since been resolved and normal operations have resumed. Furthermore, the annual production guidance previously provided remains in place without any changes.”
“The coming months continue to look challenging for the company due to Covid-19 operational constraints at all mines but particularly in Peru.
“We expect to improve upon the first quarter production results and continue to work on completion of Preliminary Feasibility Studies for all three mines building upon the positive Preliminary Economic Assessments released in 2020.
“Brownfield and Greenfield Exploration continues, and we strive to optimise and improve operations with an aim of reducing costs where possible at all mines.”
