Sierra Metals Inc. (TSX:SMT, Stock Forum) has been drilling up a storm as the company announced today that it had encountered wide zones of high-grade zinc mineralization at the Cachi Cachi mine, located immediately north of the Central Mine Area of its Yauricocha property in Peru.
The company also announced that it has expanded its planned 2014 drilling for resource expansion at Yauricocha by 2.5 times.
According to the news release, a total of 34 holes will be drilled at Cachi Cachi during 2014 with 19 longer holes, designed to extend known mineralization, already completed, and another 15 shorter holes, designed to provide mine planning information, scheduled to be completed after a new drilling station is finished on Level 820 in October this year.
Highlights from the released results included 288.3 g/t silver, 20.57% zinc and 3.05% lead over a true width of 5.1 metres at ESC-12-14-18 and 6.27% zinc (278.4 g/t silver equivalent grade) over a true width of 7.8 metres.
Company president and CEO, Daniel Tellechea, commented, “These results from Cachi Cachi are encouraging, especially since our geologists believe that these multiple orebodies continue to depth for a significant distance.”
Then he concluded, “As at the Central Mine Area, our drilling continues to expand the mineralized bodies and we expect a significant increase in resources in our next NI 43-101 update. Our confidence in our ability to expand resources is illustrated by the significant expansion of drilling planned for this year.”
Sierra Metals was in the news recently when the company provided a dividend update five days ago.
Currently there are 159.2m outstanding shares with a market cap of $300.9 million.
FULL DISCLOSURE: Sierra Metals is a Stockhouse Publishing client.