SMTS - Sierra Metals (SMTS)(SMT:CA) - Brownfield Exploration Reveals New High-Grade Zone at Yauricocha
Brownfield exploration yields results. Sierra Metals released drilling results that revealed high-grade oxide polymetallic ore in an area between the Cachi Cachi and Esperanza Zones along the Yauricocha Fault within the Yauricocha mine's operating footprint. The company’s brownfield drilling program is testing high priority targets at the Yauricocha Mine. Drilling intercepted oxide mineralization containing high-grade gold, silver, copper, zinc, and lead and highlights the potential for additional resource growth and high-value tonnage. To date, 21 holes have been drilled and more drilling is planned.Planned expansions. Management anticipates receipt in the second quarter of the final permit to increase throughput at the Yauricocha mine by 20% to 3,600 tonnes per day. The company has published preliminary economic assessments for all three mines which support planned expansions and is working toward completion of preliminary feasibility studies. Longer-term expansions could increase capacity to nearly 18,000 tonnes per day by year-end 2024.First quarter 2021 financial results. Sierra Metals will release first quarter 2021 financial results after the market close on May 6, 2021. Management will host a webcast and investor call on May 7, 2021 at 10:30 am ET.Rating is Outperform. In our opinion, Sierra Metals offers an attractive valuation and favorable long-term growth outlook driven by a favorable metals price outlook and the company’s increasing production profile. The company has a history of organic growth through brownfield exploration and the latest drill results underscore the potential of Sierra’s mineral endowment. Additionally, Sierra Metals is well-positioned to benefit from growing demand for its metals driven by economic growth, increased infrastructure spending, and growing use of metals such as copper and silver in electric vehicle batteries, charging stations, and solar and renewable power technologies.Read More >>