Name of the Project
Bolivar copper project.

Location
The mine is located in Chihuahua, Mexico.

Client
Sierra Metals.

Project Description
Bolivar has total proven and probable reserves of 7.93-million tonnes grading 18.9 g/t silver, 0.86% copper, 0.25 g/t gold and 1.14% copper equivalent.

The project aims to increase the capacity of the Bolivar mine in sustainable and staged steps from 3 000 t/d currently to 3 600 t/d in the first quarter of 2019, and to 5 000 t/d in mid-2020, based on consensus metal pricing.

The project has an 11-year mine life, based on existing mineral resource estimates.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $214-million, with a payback of 3.4 years.

Value
The project is estimated at $96-million.

Duration
Not stated.

Latest Developments
Sierra Metals has reported that its expansion plans at the Bolivar mine are on track.

The company last year announced plans to achieve a sustainable and staged increase in mine production and mill throughput from 3 000 t/d to 3 600 t/d by the first quarter of this year, and to 5 000 t/d by mid-2020.

Completion of the expansion included the installation of a refurbished mill, an electrical substation with 1 250 kVA of capacity, a secondary crusher and a hydrocyclone cluster that allows for finer grind size optionality that is estimated to improve copper recoveries at Bolivar from 80% to 86%.

The expansion was completed with zero lost-time incidents and zero accidents reported.

The company used local engineering firms and local qualified contractors and technicians for the expansion project, with Sierra Metals staff conducting most of the supervision.

Key Contracts and Suppliers
SRK Consulting (resource estimation); Redco Mining Consultants (increase in mine output to 5 000 t/d); Transmin Metallurgical Consultants (engineering associated with increased Plantas Verdes plant capacity); Anddes Asociados (tailings expansion design).

On Budget and on Time?
Yes.

Contact Details for Project Information
Sierra Metals, Mike McAllister, tel +1866493 9646 or email info@sierrametals.com.