Sierra Metals has obtained the environmental permit for its Yauricocha polymetallic (copper, lead, zinc) mine in Peru, allowing it to expand operations.
The permit is expected to allow the company to enhance throughput, reduce costs, and extend the mine’s life.
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Sierra Metals said the permit will allow for the development and mining below the 1120 level at Yauricocha.
The company expects to reach full production capacity from below level 1120 at the underground mine in six to nine months.
Sierra Metals CEO Ernesto Balarezo said: “We are very excited to have received the environmental permit to mine below the 1120 level at our Yauricocha Mine. As I have stated before, this permit is a game changer for Yauricocha and a key pillar to support the overall growth strategy for Sierra Metals.
“The ore body below the 1120 level is vast and is expected to allow us to raise throughput rates back to full mill capacity of 3,600 tons per day, representing an increase of approximately 40% from current levels; lower operating costs given higher production volumes and less expensive mining methods; and secure Yauricocha’s long-term potential.”
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By GlobalDataLast month, the company said it expects between $3m–4m of capital is required to begin mining below level 1120 with plans to fund it from existing sources of cash and working capital.
Located in west-central Peru in the Yauyos province, about 12km west of the Continental Divide, the Yauricocha underground mine has been producing for more than 68 years.
Ore from the mine is processed at the on-site Chumpe plant using a combination of crushing, grinding and flotation.
Sierra Metals, through its wholly owned subsidiary Dia Bras Peru, acquired a 82% stake in Minera Corona in May of 2011. Corona holds a 100% stake in the Yauricocha Mine.
