Yauricocha Mine Processed 202,534 Tons In Second Quarter

TORONTO - Sierra Metals Inc. reported that the Yauricocha Mine processed 202,534 tonnes during Q2 2020, which was a 20% decrease from Q2 2019, resulting from the government-imposed state of emergency, which remained in force until June 4, 2020. Higher head grades and higher gold and silver recoveries partially offset the impact of decreased throughput during Q2 2020, resulting in a 15% decrease in copper equivalent metal production compared to Q2 2019. The higher grades realized during Q2 2020 was the result of increased production from the cuerpos chicos, that contained higher grades. Higher copper head grades resulted from a greater proportion of copper sulphides processed as compared to polymetallic ore. Gold and silver recoveries were boosted by the installation of the SK-240 cells and grade analyzers.

Luis Marchese, CEO of Sierra Metals said, “The Yauricocha Mine had a good second quarter despite the negative implications of the COVID-19 related shutdowns. The Company was able to maintain essential activities while fully complying with the government protocols during the state of emergency. Throughout this period, we maintained a high level of productivity with a reduced workforce, and we reviewed our processes at the mine, with a target of improving efficiencies. As we ramp-up production at the mine we remain cognizant that COVID-19 cases remain high in Peru. As such, we continue to adhere to strict health protocols to protect our employees, and the communities in which we operate to avoid any further work stoppages. Looking ahead to the second half of the year, due to our operating flexibility we have the potential to recover some of the lost production experienced during the shutdowns. When coupled with higher copper and precious metal prices, we are optimistic we will see a stronger second half for 2020. Furthermore, we will be seeking the required permits to increase throughput at the mine to 3,600 tonnes per day. Yauricocha remains a strong revenue contributor to the Company and we look forward to stronger performance in the latter part of this year.”