VANCOUVER, Aug. 28, 2013 /PRNewswire/ - Sierra Metals Inc. (SMT.TO)(SMT.V) ("Sierra Metals" or the "Company") regrets to report that on August 20, 2013, an employee of a third party contractor was fatally injured when he was driving a front-end loader on a surface yard near the Promontorio silver mine and the ground below the equipment unexpectedly subsided. The Company believes the accident was caused by a ground subsidence following heavy rains recently experienced in the Cusi area. As a result of the accident, Mexican authorities have been contacted and they have directed that the Promontorio Mine temporarily stop production, pending completion of geophysical and hydrological surveys. The surveys have commenced and the Company anticipates receiving approval to restart operations by the end of this week. The Company will keep the market informed of any developments as they occur.
The safety of Sierra Metals' employees and contractors is the highest priority and the Company is conducting its own review of the incident and will put into effect recommendations as a result of those investigations to prevent such an incident occurring again in the future.
Sierra Metals production is not materially affected by the temporary shutdown of Promontorio, as this mine currently contributes approximately to 20% of Cusi's silver production and 3% of Sierra Metals' silver production. Promontorio's revenues contribute only to 1% of Sierra Metals' total revenues. Cusi's operations are comprised of five mines: Santa Eduwiges, Promontorio, La India, Minerva, and San Jose.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora, La Verde (gold) at the Batopilas Property in the state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo Property in the state of Zacatecas.
The Company's shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under the symbol "SMT".
Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "forward-looking statements", which involve various known and unknown risk and uncertainties and other factors, including market conditions that may affect the Company's ability to execute its current business plan. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
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