Sierra Metals to expand Peru underground mine
Sierra Metals is set to expand the Yauricocha polymetallic mine in Peru. The move comes after the firm bagged environmental permit that paves way for expansion process.
Sierra Metals CEO Ernesto Balarezo made the announcement and said the permit specifically allows for development and mining below the 1120 level at Yauricocha. It is anticipated to enhance throughput, reduce costs, and extend the mine’s life.
Yauricocha underground mine
The Yauricocha underground mine is located in west-central Peru, about 12km west of the Continental Divide. Ore from the mine is processed at the on-site Chumpe plant using crushing, grinding, and flotation methods. Sierra Metals, through its wholly owned subsidiary Dia Bras Peru, acquired an 82% stake in Minera Corona in May 2011. Minera Corona holds a 100% stake in the Yauricocha Mine.
The company expects to reach full production capacity from below level 1120 within six to nine months. Mining below the 1120 level is expected to increase throughput rates by approximately 40%, lower operating costs, and secure the mine’s long-term potential. Sierra Metals estimates that between $3 million to $4 million of capital is required to begin mining below level 1120, which the company plans to fund from existing sources of cash and working capital.
