High-grade silver discovery at Cusi. Sierra Metals announced the discovery of a new high-grade silver zone composed of multiple veins extending over 300 meters in length which are in proximity to the Cusi mine’s existing operations. The company plans to drill an additional 1,000 meters to better understand the extension of the zone at depth.New resources could support Cusi mine expansion. The discovery of a new high-grade silver zone should better position the Cusi mine for longer-term production expansion and greater profitability. Additionally, reinterpretation of the geological system from a stockwork tonnage system to a vein model system using different mining techniques is expected to result in higher grades and greater productivity. Cusi expected to resume production. Cusi production is expected to resume in the third quarter once mine development is completed and COVID testing and quarantine protocols are implemented. Management is contemplating a ramp in production to 1,200 tonnes per day by the end of the year. Rating remains Outperform. In our view, the new discovery and rethinking of Cusi's operational design significantly enhance the mine's long-term outlook. Our rating is based on Sierra Metals' attractive valuation and favorable long term growth outlook driven by the company’s increasing production profile and productivity improvements.Read More >>