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Sierra Metals Drilling At Its Yauricocha Mine, Peru, Demonstrates 150 Meter Depth Extension To Orebodies With High Grades Of Gold, Silver, Copper, Lead And Zinc Over Wide Widths

Toronto, Ontario - January 9, 2013 - Sierra Metals Inc. (TSX-V: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.
 

  Press Release Highlights:

  • The Company has completed its second round of drilling to expand resources and reserves in the Central Mine Area by completing 12,263.2 meters of diamond drilling in 65 holes.
     
  • Drilling has extended known mineralization an additional 150 meters to depth in the Rosaura and Antacaca Sur orebodies.
     
  • Drilling has increased the certainty of mineralization in the Antacaca, Antacaca Sur, Catas and Rosaura orebodies.
     
  • Wide widths of high grade mineralization have been intercepted in all three of the major ore deposit types and high grades of gold continue to be found in the pyritic ore type; for example:
     
    • Polymetallic Ore: 5.0 meters (true width) averaging 238 g/t silver, 2.62% lead, 1.08% copper, 17.90% zinc and 1.64 g/t gold in hole ANT-11-12-15
       
    • Copper Ore: 25.7 meters (true width) averaging 21.6 g/t silver, 3.20% copper and 0.93 g/t gold in hole CAT-14-12-25.
       
    • Oxide Ore: 5.3 meters (true width) averaging 58 g/t silver, 3.56% lead and 8.83% zinc in hole CAT-14-12-22.
       
    • Pyritic Ore: 2.4 meters (true width) averaging 3.67 g/t gold, 34.3 g/t silver, 3.99% zinc and 0.63% copper in hole CAT-14-12-22.

“These results are important because these holes are the deepest in the mine’s history and demonstrate that the orebodies of the Central Mine Area have good depth potential,” said Daniel Tellechea, the Company’s President and CEO. “The high grade intercepts over wide widths reported in this press release indicate that the mineralizing processes in this area were strong even in the deepest levels of the mine and we expect that these orebodies will continue to significant depths. Our drilling success with high grade intercepts at Catas and Antacaca Sur will help us upgrade resources from Inferred to Measured and Indicated Resources and increases our certainty that the Antacaca Sur and Rosaura orebodies have significant depth extensions. Moreover, we have just begun to evaluate the exploration potential outside the immediate mine area and we will continue our aggressive program to add to the mine’s resources.”

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 http://sierrametals.com/_resources/news/Seccion-Longitudinal-Catas-Antacaca-Rosaura-Antacaca-Sur.jpg 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 at
http://sierrametals.com/_resources/news/2013_01_09-Assay_Tables-Yauricocha_PR.pdf .

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.

Antacaca Orebody Drill Results Level 920 to Level 970


Hole #*
To-From (m)
Core Length (m)
Est. True Width (m)
g/t Ag
% Pb
% Cu
% Zn
Au g/t
Mineralization Type
01
132.0-137.2
5.2
4.7
32.6
0.04
4.02
0.08
2.04
Copper
02
113.6-117.5
3.9
3.3
69.4
0.52
0.71
11.90
0.44
Polymetallic
and
124.0-127.4
3.4
2.8
104.2
0.31
0.91
1.97
0.60
Pyritic
03
123.0-129.1
6.1
5.3
66.6
0.02
3.43
0.03
2.50
Copper
04
127.0-129.3
2.3
1.9
23.0
0.03
1.40
0.10
0.78
Copper
05
127.0-129.0
2.0
1.4
45.0
0.09
0.60
0.13
1.17
Pyritic
and
129.0-131.5
2.5
1.9
69.3
0.07
1.61
0.05
1.66
Copper

* All holes have the prefix ANT-14-12-

Antacaca Sur Orebody Drill Results Level 770


Hole #*
To-From (m)
Core Length (m)
Est. True Width (m)
g/t Ag
% Pb
% Cu
% Zn
Au g/t
Mineralization Type
12
97.2-99.5
2.3
1.9
50.4
5.57
0.18
12.17
1.45
Polymetallic
and
106.7-111.0
4.3
3.8
387.8
3.11
0.96
11.44
1.50
Polymetallic
13
110.8-128.4
17.6
13.4
55.8
3.11
0.20
11.45
0.72
Polymetallic
14
111.6-121.0
9.4
7.9
86.4
2.35
0.34
8.97
1.41
Polymetallic
15
112.6-119.0
6.4
5.0
238.1
2.62
1.08
17.90
1.64
Polymetallic
16
122.9-132.0
9.1
7.1
109.8
2.11
0.40
13.44
1.34
Polymetallic
and
132.0-137.9
5.9
3.9
53.8
0.19
0.54
0.28
1.09
Pyritic
17
117.8-130.0
12.2
9.4
158.9
5.15
1.29
10.31
1.47
Polymetallic
18
138.4-144.0
5.6
4.8
244.1
7.45
0.95
14.21
2.37
Polymetallic
19
144.7-150.0
5.3
4.7
77.4
0.62
0.27
4.94
1.64
Polymetallic

* All holes have the prefix ANT-11-12-

Catas Orebody Drill Results Level 920 to Level 1220


Hole #*
To-From (m)
Core Length (m)
Est. True Width (m)
g/t Ag
% Pb
% Cu
% Zn
Au g/t
Mineralization Type
21
74.5-76.3
1.8
1.5
1,003.5
35.84
0.19
21.35
0.26
Oxide
and
232.0-235.0
3.0
2.7
77.5
0.18
1.68
1.06
2.37
Pyritic
and
235.0-249.2
14.2
13.9
30.3
0.09
0.40
0.47
2.10
Pyritic
22
89.1-95.0
5.9
5.3
58.0
3.56
0.39
8.83
0.10
Oxide
and
194.7-201.0
6.3
5.7
9.1
0.02
0.01
7.96
0.02
Polymetallic
and
226.1-234.0
7.9
7.3
56.2
2.97
0.12
7.82
0.52
Polymetallic
and
262.0-265.0
3.0
2.4
34.3
0.07
0.62
3.99
3.67
Pyritic
23
57.9-60.1
2.2
1.8
538.3
22.27
0.15
2.05
1.69
Oxide
and
220.6-222.4
1.8
1.4
116.5
2.12
0.57
6.73
0.36
Polymetallic
and
322.1-336.0
13.9
13.5
30.0
0.08
0.22
8.33
0.09
Polymetallic
24
107.5-112.6
5.1
4.6
196.8
10.09
0.52
34.43
0.21
Polymetallic
25
132.0-139.4
7.4
6.0
183.9
7.22
0.11
11.4
0.66
Polymetallic
and
347.0-373.1
26.1
25.7
21.6
0.02
3.20
0.03
0.93
Copper
26
233.1-242.0
8.9
8.2
54.6
0.21
0.75
4.25
1.87
Polymetallic
27
273.8-281.0
7.2
6.8
36.2
0.05
1.70
0.25
0.78
Copper
28
301.95-305.0
3.05
2.6
68.8
0.58
0.34
25.13
0.17
Polymetallic
and
313.0-315.0
2.0
1.6
61.9
0.23
0.23
8.74
0.08
Polymetallic
and
390.0-392.0
2.0
1.6
25.4
0.02
3.57
0.02
0.54
Copper
29
78.5-80.5
2.0
1.4
13.3
0.15
0.05
17.85
0.04
Oxide

* All holes have the prefix CAT-14-12

Rosaura Orebody Drill Results Level 920 to Level 970


Hole #*
To-From (m)
Core Length (m)
Est. True Width (m)
g/t Ag
% Pb
% Cu
% Zn
Au g/t
Mineralization Type
01
132.2-137.0
4.8
4.1
48.4
1.82
0.05
3.46
0.47
Polymetallic
and
137.0-143.8
6.8
6.1
27.8
0.05
0.29
0.14
1.22
Pyritic
02
156.2-160.0
3.8
3.2
58.8
0.57
0.29
2.91
1.82
Polymetallic
and
160.0-161.9
1.9
1.3
115.5
0.23
2.69
0.44
0.51
Copper
03
164.0-173.0
9.0
8.7
60.5
6.45
0.44
12.45
0.88
Polymetallic
and
173.0-176.0
3.0
2.7
25.8
0.75
0.03
1.45
0.12
Pyritic
and
176.0-183.0
7.0
6.7
56.0
1.49
0.52
6.73
0.97
Polymetallic
04
218.0-220.0
2.0
1.5
36.8
0.06
1.69
0.52
1.15
Pyritic

* All holes have the prefix ROS-14-12- 

Exploration Programme

Drilling continues in the Central Mine Area from Level 920 with the objective of exploring the orebodies Antacaca, Antacaca Sur and Rosaura to the 1220 level, a vertical distance of 300 meters below the existing workings. These results will be used to determine the continuity of these bodies to depth and to estimate additional mineral resources that will be converted to mine reserves according to NI 43-101 standards.

In the Cachi Cachi mine area, a drilling program will be conducted to explore the Privatizadora, Manuelita, Elissa and other bodies with the objective of augmenting the mineral resources in this area of the property.


Quality Control
The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, and a Qualified Person as defined in NI 43-101.

About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its Yauricocha mine in Peru and its Bolivar mine in Mexico. The Company is also advancing its Cusi silver project in Mexico from advanced development into commercial production. 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. 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.

For further information on Sierra Metals, please visit www.sierrametals.com or contact:

Daniel Tellechea
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646

 

Matt Morrish
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646

This press release does not constitute an offer to sell or solicitation of an offer to buy the securities in the United States or any other jurisdiction. The Common Shares will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

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.