Idaho Champion Reports Results of 2020 Core Drilling at Champagne Project, Idaho including 1.04 g/t Gold Equivalent over 42.98 Metres

Toronto, ON – February 16, 2021 – Idaho Champion Gold Mines Canada Inc. (CSE: ITKO; OTCQB: GLDRF; FSE: 1QB1)(“Idaho Champion” or the “Company“) is pleased to report the results from its 2020 diamond core (“Core“) drilling campaign at its 100% controlled Champagne Gold Project (“Champagne“) near the city of Arco, Butte County, Idaho.

2020 Champagne Drilling Highlights:

• Drill hole DDH-CC-20-02 intersected 1.04 g/t gold equivalent (“AuEq”) for the interval 123.14-166.12 m (42.98 m core length), including 1.22 g/t AuEq for the interval 123.14-157.06 m (31.93 m core length).
• Drill hole DDH-CC-20-02 was collared at Mine Hill in the approximate center of the unmined 300 m interval between the North and South Pits (Bema Gold c. 1989-90).
• This mineralized interval is associated with shallow induced polarization anomalies in chargeability and resistivity as reported in the Idaho Champion press release dated Feb 2, 2021.

“Core drilling and results of our IP survey have provided data to better formulate a conceptual geologic model for the Champagne District,” stated President and CEO, Jonathan Buick. “The promising mineralization from the program demonstrates there is gold in the system below the historic mined pits where we are confident that we can identify additional resources. Our evolving geologic model indicates that the base, or roots, of a larger system that may have been the feeder for all mining in this district lies off to the west. This large body of anomalous chargeability will be drill tested in 2021.”

Champagne Drilling Technical Summary

The 2020 core drilling program consisted of seven (7) diamond drill holes totaling 2,818 Metres (Fig. 1). Five core holes (DDH-CC-20-01 through DDH-CC-20-05) were positioned on Mine Hill in the vicinity of the North and South Pits and two core holes (DDH-CC-20-06 and DDH-CC-20-07) were located further north near the Ella Mine breccia vein.

Three holes (DDH-CC-20-01, -02, -07) intersected promising precious metals mineralization, with the strongest presence of gold and silver intersected in DDH-CC-20-02. The spatial relationships of these three holes to results of the recently completed induced polarization (IP) survey are represented in Figs. 2-3 (see also Idaho Champion press release of February 2, 2021). An inferred low-angle detachment fault represented in Fig. 2 is interpreted to have displaced the shallow IP anomaly at Mine Hill from a larger and deeper anomaly 800 m west of Mine Hill.

Figure 1: Champagne Gold Project 2020 Exploration Drill Hole Locations

Figure 2: Cross sections showing downhole AuEq intervals (red disks) plotted on 3D IP chargeability model. High AuEq values are associated with chargeability highs. The large, buried IP chargeability high is currently interpreted to be the center of the mineralizing system. Details about the recently competed IP survey at Champagne can be found in Idaho Champion’s news release dated 2 February 2021.

Figure 3: 2020 Idaho Champion Core and Reverse Circulation Drill Holes and 2020 3D IP Chargeability Model

DDH-CC-20-01 (Fig. 4) was inclined westward beneath the central part of the North Pit across a series of mineralized and altered breccia and fractured intervals. The intervals represent a sheeted pyritiferous breccia zone, the upper oxidized portion of which was mined for gold and silver in the North Pit. Below the pit floor, the breccia intervals in the intercept were found to be separated by intervals of less-altered andesite. DDH-CC-20-01 is interpreted to have progressed from the very top of the hydrothermal mineralizing system down into increasingly gold-bearing parts of the system. This gradient of increasing gold with depth also correlates to intervals of increased levels of anomalous pathfinder metals (principally As, Hg, Sb, and Bi).

Figure 4: Champagne Gold Project Drill Section and AuEq Results: DDH-CC-20-01

DDH-CC-20-02 (Fig. 5) was sited to test the projected trace of the Last Chance Zone, which had historically been exploited for oxide-silver (Horn Silver Mine) and deeper lead-zinc-silver sulfide mineralization. The reported common occurrence of accessory famatinite (copper-antimony sulfosalt) and aikinite (copper-bismuth sulfosalt) with the sulfide ore is also of exploration interest. The Last Chance Zone was intersected between drilling depths of 123.14 to 166.12 Metres and is comprised of strongly pyritized breccia and brecciated andesite with sulfide intervals approaching semi-massive character.

The results show that the zinc and lead values appear to be tapering off down hole, but anomalous gold content continues to depth, as does silver and copper. The pathfinder metal mercury reaches very high levels with scattered intervals of strong arsenic and scattered intervals of anomalous antimony and bismuth. A fault that is interpreted as a low-angle detachment structure was encountered below the intersection of the Last Chance Zone.

Figure 5. Drill Section and AuEq Results: DDH-CC-20-02

DH-CC-20-07 (Fig. 6) was designed to test the Ella Mine breccia vein but is interpreted to have instead pierced the detachment fault at shallow depth. The hole was advanced through propylitically altered footwall ash-fall and crystal tuff units in an effort to penetrate the eastern edge of the IP anomaly on Lines 4 and 5. Strong sericite-silica alteration and well-developed mosaic brecciation was intersected beginning at a depth of 340 m. The pyrite content increased to 3 – 8% with the sericite and silica alteration and is accompanied by anomalous silver, zinc, lead and arsenic (as well as weakly anomalous gold values). At depths of 441.96 to 452.63 Metres, anomalous silver (up to 42.3 g/t), copper (up to 0.22%), and anomalous gold (up to 0.107 g/t) occur within a brecciated interval. Zinc, lead, and arsenic are also anomalous within this interval. At a depth of 475 m, the hole returned to dominantly propylitic alteration with diminished pyrite content. The direction and angle of the hole suggests that only the outer-most edge of the IP anomaly was intersected.

Quality Assurance/Quality Control Procedure

Idaho Champion Gold adheres strictly to a regimented drill core handling and processing procedure. Core from the drill rig(s) is logged for lithology, mineralization, structure, alteration, and veining. During the logging process 1 to 2 meter samples are delineated by company geologists. Core is then photographed and sawn in half. Following sawing, individual samples are extracted from core boxes and inserted into individual sacks with a unique waterproof sample number tag and sealed. The remaining half-core is left in core boxes for post-cut photographing and storage. Sacks containing samples are kept indoors on site until they are transported to the assay lab.

Quality control (QC) samples are inserted into the sample stream such that there is one QC sample for every ten drill core samples. These QC samples consist of certified standards (known metallic content) and blanks (known barren of metals). Two styles of blank material were used: a coarse blank and a pulverized blank. QC sample insertions alternate between standard and blank.

The first sample shipment was delivered to ALS Geochemistry’s facility in Elko, NV. All subsequent sample shipments were delivered to American Assay Labs (AAL) in Sparks, NV. ALS and AAL conform to ISO 17025 requirements. All drill samples and coarse blanks are crushed to 70% passing 2mm at the assay lab, and 1 kg material is split and pulverized to 85% passing 75 micron. All samples are processed by 30 gram fire assay- Inductively coupled plasma optical emission spectrometry (ICP-OES). Samples are additionally analyzed for 35, 36, or 61 multi-element analysis by ICP-OES and/or inductively coupled plasma mass spectrometry (ICP-MS). Samples containing Au or Ag above detection limits by ICP-OES analysis are automatically re-analyzed by fire assay with a gravimetric finish.

All drill intervals reported in this release are calculated using a 0.10 g/t gold cut-off grade and a maximum of 3 Metres consecutive waste.

About the Champagne Project

The Champagne Mine* was operated by Bema Gold as a heap leach operation on an epithermal gold-silver system that occurs in volcanic rocks. Bema Gold drilled 72 shallow reverse circulation holes on the project, which complement drilling and trenching from other previous operators. The property has had no deep drilling or significant modern exploration since the mine closure in early 1992. The Champagne Deposit contains epigenetic style gold and silver mineralization that occurs in strongly altered Tertiary volcanic tuffs and flows of acid to intermediate composition. Champagne has a near surface cap of gold-silver mineralization emplaced by deep-seated structures that acted as conduits for precious metal rich hydrothermal fluids. Higher grade zones in the Champagne Deposit appear to be related to such feeder zones.

* The Company cautions that the information about the past-producing mine may not be indicative of mineralization on Champion’s property, and if mineralization does occur, that it will occur in sufficient quantity or grade that would result in an economic extraction scenario. The historic data were simply used to evaluate the prospective nature of the property. The Company has not yet conducted sufficient exploration to ascertain if a mineral resource is present on the property.

Qualified Person

The technical information in this press release has been reviewed and approved by Peter Karelse P.Geo., a consultant to the Company, who is a Qualified Person as defined by NI 43-101. Mr. Karelse has more than 30 years of experience in exploration and development.

About Idaho Champion

Idaho Champion is a discovery-focused gold exploration company that is committed to advancing its 100% owned highly prospective mineral properties located in Idaho, United States. The Company’s shares trade on the CSE under the trading symbol “ITKO”, on the OTCQB under the trading symbol “GLDRF”, and on the Frankfurt Stock Exchange under the symbol “1QB1”. Idaho Champion is vested in Idaho with the Baner Project in Idaho County, the Champagne Project located in Butte County near Arco, and four cobalt properties in Lemhi County in the Idaho Cobalt Belt. Idaho Champion strives to be a responsible environmental steward, stakeholder and a contributing citizen to the local communities where it operates. Idaho Champion takes its social license seriously, employing local community members and service providers at its operations whenever possible.

For further information, please visit the Company’s SEDAR profile at www.sedar.com or the Company’s corporate website at www.idahochamp.com.

Cautionary Statements

Neither the Canadian Securities Exchange nor its regulation services provider has reviewed or accepted responsibility for the adequacy or accuracy of this press release

This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Investor Contacts

Nicholas Konkin
Marketing and Communications
Phone: 416-567-9087
Email address: nkonkin@idahochamp.com

Source: Idaho Champion

Sierra Metals Reports Q4-2020 Financial Results At Its Sociedad Minera Corona Subsidiary In Peru

Consolidated Financial Results for Sierra Metals to Be Released on March 18, 2021

(All metal prices and amounts reported in USD)

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT, BVL:SMT, NYSE AMERICAN:SMTS) (“Sierra Metals” or the “Company”) announces the filing of Sociedad Minera Corona S.A.’s (“Corona”) unaudited Financial Statements and the Management Discussion and Analysis (“MD&A”) for the fourth quarter of 2020 (“Q4 2020”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210216005467/en/

The Company holds an 81.8% interest in Corona. All amounts are presented in US dollars unless otherwise stated and have not been adjusted for the 18.2% non-controlling interest.

Corona’s Highlights for the Three Months Ended December 31, 2020

• Revenues of US$45.2 million vs. US$42.2 million in Q42019
• Adjusted EBITDA of US$22.5 million vs. US$17.9 million in Q4 2019
• Total tonnes processed decreased by 3% to 311,946 vs. 321,701 in Q4 2019
• Net production revenue per tonne of ore milled increased by 8% to US$148.13
• Cash cost per copper equivalent payable pound decreased by 1% at US$1.16 in Q4 2020
• All-in sustaining cost (“AISC”) per copper equivalent payable increased 17% to US$2.47 in Q4 2020
• Copper equivalent production of 18.4 million pounds vs. 23.1 million pounds in Q4 2019
• US$65.0 million of cash and cash equivalents as at December 31, 2020
• US$92.0 million of working capital as at December 31,2020

Annual throughput of 1,117,860 was in line with the 2019 annual production, despite the impact of COVID-19 related shutdowns faced in Q2 2020 and other COVID-19 related challenges throughout the year. Throughput for Q4 2020 decreased by 3% as compared to Q4 2019, as a result of operational downtimes and minor production disruptions. Copper and zinc equivalent metal production in Q4 2020 decreased by 20% and 14%, respectively, due to lower throughput and lower head grades. Additionally, lower workforce availability continued to impact mine development, leading to lower ore contribution from the high-grade cuerpos chicos zones. Year over year, copper equivalent production decreased 4% in 2020 compared to the prior year. During 2020, zinc and gold’s annual production increased 1% and 3%, respectively, while copper and lead annual production decreased by 2% and 9%. Silver production for 2020 was in line with the 2019 annual silver production.

Q4 2020 revenues increased by 7% compared to Q4 2019 as a result of higher metal prices realized. Annual revenues were 6% lower due to the impact of a 66% increase in the treatment and refining costs. Adjusted EBITDA increased by 25% and 4% during Q4 2020 and the year respectively compared to the same periods of 2019, as operating costs excluding COVID-19 costs were lower than the prior year.

Cash and cash equivalents increased by $30 million during the year due to a combined result of a 27% increase in operating cash flows and a decrease of 26% in cash used in investing activities, as some capital expenditures were deferred considering the uncertainties related to the impacts of COVID-19. Cash costs per copper equivalent payable pound for 2020 decreased by 10% due to lower operating costs per tonne. AISC per copper equivalent payable pound for 2020 increased 10% primarily due to a 66% increase in treatment and refining costs partially offset by lower cash costs.

Luis Marchese,CEO of Sierra Metals,commented, “I am pleased with Yauricocha’s performance in the fourth quarter of 2020, which saw increases in revenue and adjusted EBITDA compared to the same quarter in 2019. The Company also realized increased EBITDA but lower revenue on a year over year basis primarily due to lower incomes resulting from significant increases to the treatment and refining charges. Overall, the Company performed well and produced solid results, given the challenging year we had due to the effects of dealing with the COVID-19 pandemic. I want to thank all employees for their efforts to help the Company achieve these results.”

He continued, “Looking ahead, 2021 is an exciting time for the Company as we continue advancing important projects, operational improvements, and exploration at Yauricocha. We also look forward to receiving the necessary permits at Yauricocha to increase throughput by 20% to the 3,600 tonne per day level. Furthermore, we recently completed and published a Preliminary Economic Assessment at Yauricocha with favourable economics to examine increasing throughput to 5,500 tonnes per day starting in 2024. We look forward to releasing a Preliminary Feasibility Study in the coming months to support that expansion further.”

He concluded, “Corona continues to have a solid balance sheet and strong liquidity. Management remains optimistic that continued operational efficiencies can be obtained at the Yauricocha Mine as well as capitalizing on further operational and resource growth opportunities.”

The following table displays selected financial information for the three months and year ended December 31, 2020:

1 Adjusted EBITDA includes adjustments for depletion and depreciation, interest expense and other financing costs, interest income, share-based compensation, Foreign Exchange (gain) loss and income taxes; see non-IFRS Performance Measures section of the Company’s MD&A.
2 All-In Sustaining Cost per copper equivalent pound sold are non-IFRS performance measures and include cost of sales, treatment and refining charges, sustaining capital expenditures, general and administrative expense, and selling expense, and exclude workers’ profit sharing, depreciation, and other non-cash provisions; Cash cost per copper equivalent pound sold, net production revenue per tonne of ore milled, and cash cost per tonne of ore milled are non- IFRS performance measures; see non-IFRS Performance Measures section of the Company’s MD&A.

Corona’s Financial Highlights for the Three Months and Year Ended December 31, 2020

• Revenues of $45.2 million for Q4 2020 compared to $42.2 million in Q4 2019 and revenues of $146.9 million for the year ended December 31, 2020, compared to $156.0 million for the same period in 2018. The increase in revenues during Q4 2020 compared to Q4 2019 was primarily driven by higher realized prices for all metals except lead. Revenues were higher for the quarter despite significant increases in the treatment and refining charges and lower metal sales resulting from lower throughput and grades. Revenues for the year ended December 31, 2020, were 6% lower than the same period in 2019 due to the 66% increase in treatment and refining charges offset by the increase in the average realized sale price for gold (9%) and zinc (4%). Average realized prices in 2020 were higher for copper (3%), silver (26%) and gold (26%), but lower for zinc (10%) and lead (9%) as compared to the average realized prices in 2019.
• Cash cost per copper equivalent pound sold at the Yauricocha Mine of $1.16 for Q4 2020 compared to $1.17 for Q4 2019; and $1.01 for the year ended December 31, 2020, compared to $1.12 for the same period in 2019. All-in sustaining cost (“AISC”) per copper equivalent pound sold of $2.47 for Q4 2020 compared to $2.11 for Q4 2019 and $2.11 for the year ended December 31, 2020, comparedto $1.91 for the same period in 2019. The increase in the AISC per copper equivalent payable pound for Q4 2020 and full year 2020 comparedto the same periods in 2019 was a combined result of higher treatment and refining charges and lower copper equivalent payable pounds sold.
• Adjusted EBITDA of $22.5 million for Q4 2020 compared to $17.9 million for Q4 2019 and $66.3 million for the year ended December 31, 2020, comparedto $64.0 million for the same period in 2019.
• Operating cash flows before movements in working capital was $23.3 million for Q4 2020, compared to US$18.3 million for Q4 2019, and $65.0 million for the year ended December 31, 2020, compared to $63.9 million for the same period in 2019. An increase in operating cash flows resulted from an increase in gross margins compared to 2019, mainly due to lower workforce and contractor costs.
• Cash and cash equivalents of $65.0 million as at December 31, 2020, compared to $35.0 million as at December 31, 2018. The increase in cash and cash equivalents was driven largely by operating cash flows of $48.6 million (after movement in working capital) offset by capital expenditures of $19.2 million.
• Net income of $11.5 million, or $0.32 per share for Q4 2019, compared to net income of $10.3 million, or $0.29 per share for Q4 2019. Net income of $28.2 million, or $0.78 per share, for the year ended December 31, 2020, compared to $34.6 million, or $0.96 per share, for the same period in 2019.

Corona’s Operational Highlights for the Three Months and Year Ended December 31, 2020

The following table displays the production results for the three months and year ended December 31, 2020, for further production details please refer the Company’s Q4 production press release dated January 18, 2021:

1 Daily throughput is calculated using 350 operating days for the year.
2 Copper equivalent pounds were calculated using the following realized prices: for Q4 2020 – $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au, for Q4 2019 – $17.42/oz Ag, $2.69/lb Cu, $1.07/lb Zn, $0.92/lb Pb, $1,506/oz Au, for full year 2020 – $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au, for full year 2019 – $16.29/oz Ag, $2.73/lb Cu, $/1.14lb Zn, $0.91/lb Pb, $1,404/oz Au.

Sierra Metals to release Q4/YE 2020 Financial Results on March 18, 2021

The Company will release Q4-2020 financial results on Thursday March 18, 2021, after the Market close. Senior Management will also host a webcast and conference call on Friday March 19, 2021, at 10:30am EDT. Details of the Conference Call and Webcast are as follows:

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/2947459/6CFF80ECA94506BA22260486A6292C76

The webcast, along with presentation slides, will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. A confirmation will be sent through email, including dial-in details and unique conference call codes for entry after registering.

Registration is open throughout the live call; however, to ensure you are connected for the entire call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link:

http://www.directeventreg.com/registration/event/4514269

Quality Control

All technical data contained in this news release has been reviewed and approved by:

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Augusto Chung, FAusIMM CP (Metallurgist) and Vice President of Metallurgy and Projects to Sierra Metals is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

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

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
Vice President, Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

Luis Marchese
CEO

Sierra Metals Inc.
Tel: +1 (416) 366-7777

Source: Sierra Metals Inc.