Sierra Metals drilling at its Yauricocha Mine, Peru, demonstrates 150 meter depth extension to orebodies with high grades of gold, silver, copper, lea

Thursday, Jan 10, 2013

TORONTO, Jan. 9, 2013 /PRNewswire/ - Sierra Metals Inc. (TSXV: SMT) (BVL: SMT) ("Sierra Metals" or the "Company") is pleased to announce that continued drilling at its Yauricocha mine in Peru has expanded to depth known mineralization in the Central Mine Area.  The positive results of the drilling programme will be documented in a forth-coming NI 43-101 resource update, scheduled for early 2013.

The Company's press release of September 6, 2012 described the result of the first round of resource-expansion drilling, which more than tripled Proven and Probable Reserves to 4.2 million tonnes and quantified 1.8 million tonnes of Inferred Resources.

The second round of drilling, which is the focus of this press release, had the objective to increase further the total resource tonnage of these orebodies, increase the tonnes in Measured & Indicated Resources, and demonstrate the longer mine life expected by the Company.  In order to accomplish this goal, during this second round the Company has drilled 12,263.2 meters of diamond core in 65 holes.  The coding for the drill hole numbers is as follows: for drill hole ANT-11-12-08 the sequence is: Orebody Drilled - Level from which hole was drilled - year hole was drilled - number of hole drilled from that level.

The attached long section shows the piercing points of the drill holes reported herein and significant assay results from recent drill holes are shown in the tables below.  Results from earlier holes in the second round have been reported previously (see press release of October 12, 2012).  A complete list of drill holes and assay results for this second round of drilling can be found here.

Examination of the attached long section shows that potentially-economic intercepts have been made under the known mineralization of the Cuye-Catas zone and the Antacaca-Rosaura-Antacaca Sur zone.

SOURCE Sierra Metals Inc.