Sierra Metals (TSX: SMT) shares gained momentum after the company outlined its commitment to increase high grade tonnage at its Yauricocha polymetallic mine in Peru and Bolivar and Cusi mines in Mexico through brownfield programs.
“Sierra Metals is now on track to see strong exploration growth and exploration success. We believe the past year’s preparation should lead to the rubber hitting the road, which should increase shareholder value for the company and its shareholders,” Mark Brennan, the company’s president and CEO, said on a conference call.
At the underground Yauricocha silver-copper-zinc-lead-gold operation in Yauyos province, Sierra is wrapping up the first phase of its optimization program. The program has boosted quarterly production and throughput since the fourth quarter of 2015. The program, which began in late 2015, focuses on controlling water inflow, improving mine sequencing and introducing mechanized mining methods. (The company is replacing conventional jackleg mining with mechanized jumbo mining.)
In the second quarter, Yauricocha’s silver equivalent output grew 24% over the first quarter to 1.85 million oz, despite a 4% increase in throughput, Brennan says. Compared to the second quarter of 2015, silver equivalent ounces, however, decreased by 14%.
Read the entire story at www.NorthernMiner.com/news/sierra-sees-exploration-growth