Arizona Gold and Golden Predator File Joint Circular

 

TORONTO, July 27, 2021 (GLOBE NEWSWIRE) — Arizona Gold Corp. (“Arizona”) (TSX: AZG, OTCQB: AGAUF) and Golden Predator Mining Corp. (“Golden Predator”) (TSX.V:GPY; OTCQX:NTGSF) announced today that they have filed a joint management information circular (the “Circular”), which will be mailed out to their respective shareholders for the meetings to be held on August 25, 2021, in connection with the previously announced transaction (the “Transaction”) whereby Arizona will acquire all of the issued and outstanding shares of Golden Predator pursuant to a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia) previously announced on June 28, 2021.

Arizona and Golden Predator encourage shareholders to read the meeting materials in detail. An electronic copy of the Circular is available on Arizona’s website at www.arizona-gold.com and on Golden Predator’s website at www.goldenpredator.com. The Circular is also available on SEDAR under the issuer profiles of both companies at www.sedar.com. Shareholders are strongly encouraged to vote online following the instructions set out on the form of proxy or voting instruction form which will be mailed along with the Circular.

TRANSACTION HIGHLIGHTS

• Creates a diversified near-term gold producer in North America through sequential development of the fully permitted Copperstone mine in Arizona followed by the Brewery Creek mine in the Yukon;
• Combined resource base¹ of approximately 1.1 million oz gold in the Measured & Indicated categories, plus an additional approximate 1.5 million oz gold in the Inferred category, paired with considerable exploration upside at each project;
• Improved capital markets scale to enhance investor visibility and positioning amongst peers, plus a broadened shareholder base;
• Combined cash and investments of $23M², including shareholdings in Seabridge Gold Inc., C2C Gold Corp. and Group 11 Technologies Inc.;
• Experienced leadership team including Giulio Bonifacio as President & CEO and William Sheriff as Non-Executive Chairman, to be supported by a technical team with backgrounds in both mine-building and operations; and
• On closing of the Transaction, it is anticipated that Arizona will change its name to Sabre Gold Mines Corp.

Shareholders of each of Arizona and Golden Predator holding, in the aggregate, approximately 36.20% of the issued and outstanding Arizona shares and approximately 22.03% of the issued and outstanding Golden Predator shares, respectively, as at July 23, 2021, have entered into voting support agreements pursuant to which they have agreed, among other things, to vote in favour of the Share Issuance Resolution and the Arrangement Resolution, respectively (each as hereinafter defined). These include voting support agreements from entities affiliated with Eric Sprott, in the case of Arizona and Golden Predator, and from PowerOne Capital Limited and Pat DiCapo, in the case of Golden Predator.

ARIZONA MEETING

The meeting of holders of Arizona common shares (the “Arizona Meeting”) will be held at 1:00 p.m. (Toronto time) on Wednesday, August 25, 2021 at the offices of Peterson McVicar LLP, Suite 902, 18 King Street East, Toronto, Ontario, Canada, M5C 1C4.

Holders of Arizona common shares (“Arizona Shareholders”) of record at the close of business on July 26, 2021 will be entitled to vote at the Arizona Meeting. Out of an abundance of caution and in an effort to adopt measures that assist our community in slowing the spread of the novel coronavirus disease 2019, also known as COVID-19, in order to protect the health and safety of our community, Arizona Shareholders, employees and other stakeholders, we are inviting Arizona Shareholders to attend the Arizona Meeting virtually, which will be conducted via live audio webcast online at https://virtual-meetings.tsxtrust.com/1212.

Arizona Shareholders will be asked to consider and pass an ordinary resolution (the “Share Issuance Resolution”) approving the issuance of Arizona common shares to Golden Predator shareholders (the “Share Issuance”) in connection with the Transaction, pursuant to which, among other things, all of the issued and outstanding common shares of Golden Predator will be exchanged for Arizona common shares on the basis of 1.65 Arizona common shares per common share of Golden Predator. Upon completion of the Transaction, existing Arizona and Golden Predator shareholders will own approximately 55% and 45% of the combined company common shares, respectively, on an outstanding basis.

Arizona Shareholders will also be asked to consider and pass a special resolution (the “Name Change Resolution”) to change the name of Arizona to “Sabre Gold Mines Corp.” or such other name to be determined by Arizona, effective on or around the completion of the Transaction.

The meeting materials provided to Arizona Shareholders contain important information regarding voting, the Transaction and a summary of the events leading up to the Transaction, including the reasons that led to Arizona’s Board of Directors (the “Arizona Board”) to unanimously determine that the Transaction is fair, from a financial point of view, to Arizona. The Arizona Board unanimously recommends that Arizona Shareholders vote for the Share Issuance Resolution and Name Change Resolution at the Meeting.

The meeting materials are available on Arizona’s website at www.arizona-gold.com and under Arizona’s SEDAR profile at www.sedar.com.

GOLDEN PREDATOR MEETING

The meeting of holders of Golden Predator common shares (the “Golden Predator Meeting”) will be held at 10:00 a.m. (Vancouver time) on Wednesday, August 25, 2021 at the offices of Morton Law LLP, 1200 – 750 West Pender Street, Vancouver, British Columbia, Canada, V6C 2T8.

Holders of Golden Predator common shares (“Golden Predator Shareholders”) of record at the close of business on July 16, 2021 will be entitled to vote at the Golden Predator Meeting. Out of an abundance of caution and in an effort to adopt measures that assist our community in slowing the spread of the novel coronavirus disease 2019, also known as COVID-19, in order to protect the health and safety of our community, Golden Predator Shareholders, employees and other stakeholders, we are inviting Golden Predator Shareholders to attend the Meeting virtually by contacting Golden Predator by telephone at 604-260-0289 or by email at info@goldenpredator.com to be provided with a virtual conference link.

Golden Predator Shareholders will be asked to consider and, if deemed advisable, pass a special resolution approving the Arrangement (the “Arrangement Resolution”). To be effective, the Arrangement Resolution must be approved at the Golden Predator Meeting by (i) at least 66 ?% of the votes cast on the Arrangement Resolution by the Golden Predator Shareholders, and (ii) at least a majority of the votes cast on the Arrangement Resolution, excluding any “interested party”, as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

The meeting materials provided to Golden Predator Shareholders contain important information regarding voting, the Transaction and a summary of the events leading up to the Transaction, including the reasons that led to Golden Predator’s Board of Directors unanimously determining that the Transaction is fair, from a financial point of view, to Golden Predator Shareholders and in the best interest of Golden Predator. The Golden Predator Board unanimously recommends that Golden Predator Shareholders vote for the Arrangement Resolution at the Meeting.

The meeting materials are available on Golden Predator’s website at www.goldenpredator.com and under Golden Predator’s SEDAR profile at www.sedar.com.

CONDITIONS FOR COMPLETION OF THE TRANSACTION

The Transaction is subject to various closing conditions, including receipt of (i) final court approval of the Arrangement, (ii) the required approval at the Arizona Meeting of the Share Issuance Resolution, (iii) the required approval at the Golden Predator Meeting of the Arrangement Resolution, and (iv) regulatory approvals of the Transaction, including TSX approval of the Share Issuance and TSXV approval of the Transaction.

For additional information on Arizona and the Copperstone mine, please visit the website at www.arizona-gold.com. For additional information on Golden Predator and the Brewery Creek mine, please visit the website at www.goldenpredator.com.

Cautionary Statements

Certain information contained herein constitutes forward-looking information or statements under applicable securities legislation and rules. Such statements include, but are not limited to, statements with respect to the anticipated completion of the Transaction. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Arizona and/or Golden Predator to be materially different from those expressed or implied by such forward-looking statements, including, but not limited to: (i) any inability of the parties to satisfy the conditions to the completion of the Transaction on acceptable terms or at all; and (ii) receipt of necessary stock exchange, court and shareholder approvals. Although management of each of Arizona and Golden Predator has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Neither party will update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. The parties caution readers not to place undue reliance on these forward-looking statements and it does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

This press release is not and is not to be construed in any way as, an offer to buy or sell securities in the United States. The distribution of the Arizona common shares in connection with the transactions described herein will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”) and the Arizona common shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Arizona common shares, nor shall there be any offer or sale of the Arizona common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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

¹ For Copperstone, please reference the independent technical report titled “National Instrument 43-101 Technical Report: Preliminary Feasibility Study for the Copperstone Project, La Paz County, Arizona, USA” completed by Hard Rock Consulting, LLC, effective date April 1, 2018. For Brewery Creek, please reference the Independent technical report titled “NI 43-101 Technical Report on Resources – Brewery Creek Project, Yukon, Canada” completed by Gustavson Associates LLC, effective date May 31, 2020.

² Includes pro forma cash of $9.6M at March 31, 2021 and pro forma equity investments calculated as at June 25, 2021, excluding transaction costs.

Arizona Gold and Golden Predator File Joint Circular

 

TORONTO, July 27, 2021 (GLOBE NEWSWIRE) — Arizona Gold Corp. (“Arizona”) (TSX: AZG, OTCQB: AGAUF) and Golden Predator Mining Corp. (“Golden Predator”) (TSX.V:GPY; OTCQX:NTGSF) announced today that they have filed a joint management information circular (the “Circular”), which will be mailed out to their respective shareholders for the meetings to be held on August 25, 2021, in connection with the previously announced transaction (the “Transaction”) whereby Arizona will acquire all of the issued and outstanding shares of Golden Predator pursuant to a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia) previously announced on June 28, 2021.

Arizona and Golden Predator encourage shareholders to read the meeting materials in detail. An electronic copy of the Circular is available on Arizona’s website at www.arizona-gold.com and on Golden Predator’s website at www.goldenpredator.com. The Circular is also available on SEDAR under the issuer profiles of both companies at www.sedar.com. Shareholders are strongly encouraged to vote online following the instructions set out on the form of proxy or voting instruction form which will be mailed along with the Circular.

TRANSACTION HIGHLIGHTS

• Creates a diversified near-term gold producer in North America through sequential development of the fully permitted Copperstone mine in Arizona followed by the Brewery Creek mine in the Yukon;
• Combined resource base¹ of approximately 1.1 million oz gold in the Measured & Indicated categories, plus an additional approximate 1.5 million oz gold in the Inferred category, paired with considerable exploration upside at each project;
• Improved capital markets scale to enhance investor visibility and positioning amongst peers, plus a broadened shareholder base;
• Combined cash and investments of $23M², including shareholdings in Seabridge Gold Inc., C2C Gold Corp. and Group 11 Technologies Inc.;
• Experienced leadership team including Giulio Bonifacio as President & CEO and William Sheriff as Non-Executive Chairman, to be supported by a technical team with backgrounds in both mine-building and operations; and
• On closing of the Transaction, it is anticipated that Arizona will change its name to Sabre Gold Mines Corp.

Shareholders of each of Arizona and Golden Predator holding, in the aggregate, approximately 36.20% of the issued and outstanding Arizona shares and approximately 22.03% of the issued and outstanding Golden Predator shares, respectively, as at July 23, 2021, have entered into voting support agreements pursuant to which they have agreed, among other things, to vote in favour of the Share Issuance Resolution and the Arrangement Resolution, respectively (each as hereinafter defined). These include voting support agreements from entities affiliated with Eric Sprott, in the case of Arizona and Golden Predator, and from PowerOne Capital Limited and Pat DiCapo, in the case of Golden Predator.

ARIZONA MEETING

The meeting of holders of Arizona common shares (the “Arizona Meeting”) will be held at 1:00 p.m. (Toronto time) on Wednesday, August 25, 2021 at the offices of Peterson McVicar LLP, Suite 902, 18 King Street East, Toronto, Ontario, Canada, M5C 1C4.

Holders of Arizona common shares (“Arizona Shareholders”) of record at the close of business on July 26, 2021 will be entitled to vote at the Arizona Meeting. Out of an abundance of caution and in an effort to adopt measures that assist our community in slowing the spread of the novel coronavirus disease 2019, also known as COVID-19, in order to protect the health and safety of our community, Arizona Shareholders, employees and other stakeholders, we are inviting Arizona Shareholders to attend the Arizona Meeting virtually, which will be conducted via live audio webcast online at https://virtual-meetings.tsxtrust.com/1212.

Arizona Shareholders will be asked to consider and pass an ordinary resolution (the “Share Issuance Resolution”) approving the issuance of Arizona common shares to Golden Predator shareholders (the “Share Issuance”) in connection with the Transaction, pursuant to which, among other things, all of the issued and outstanding common shares of Golden Predator will be exchanged for Arizona common shares on the basis of 1.65 Arizona common shares per common share of Golden Predator. Upon completion of the Transaction, existing Arizona and Golden Predator shareholders will own approximately 55% and 45% of the combined company common shares, respectively, on an outstanding basis.

Arizona Shareholders will also be asked to consider and pass a special resolution (the “Name Change Resolution”) to change the name of Arizona to “Sabre Gold Mines Corp.” or such other name to be determined by Arizona, effective on or around the completion of the Transaction.

The meeting materials provided to Arizona Shareholders contain important information regarding voting, the Transaction and a summary of the events leading up to the Transaction, including the reasons that led to Arizona’s Board of Directors (the “Arizona Board”) to unanimously determine that the Transaction is fair, from a financial point of view, to Arizona. The Arizona Board unanimously recommends that Arizona Shareholders vote for the Share Issuance Resolution and Name Change Resolution at the Meeting.

The meeting materials are available on Arizona’s website at www.arizona-gold.com and under Arizona’s SEDAR profile at www.sedar.com.

GOLDEN PREDATOR MEETING

The meeting of holders of Golden Predator common shares (the “Golden Predator Meeting”) will be held at 10:00 a.m. (Vancouver time) on Wednesday, August 25, 2021 at the offices of Morton Law LLP, 1200 – 750 West Pender Street, Vancouver, British Columbia, Canada, V6C 2T8.

Holders of Golden Predator common shares (“Golden Predator Shareholders”) of record at the close of business on July 16, 2021 will be entitled to vote at the Golden Predator Meeting. Out of an abundance of caution and in an effort to adopt measures that assist our community in slowing the spread of the novel coronavirus disease 2019, also known as COVID-19, in order to protect the health and safety of our community, Golden Predator Shareholders, employees and other stakeholders, we are inviting Golden Predator Shareholders to attend the Meeting virtually by contacting Golden Predator by telephone at 604-260-0289 or by email at info@goldenpredator.com to be provided with a virtual conference link.

Golden Predator Shareholders will be asked to consider and, if deemed advisable, pass a special resolution approving the Arrangement (the “Arrangement Resolution”). To be effective, the Arrangement Resolution must be approved at the Golden Predator Meeting by (i) at least 66 ?% of the votes cast on the Arrangement Resolution by the Golden Predator Shareholders, and (ii) at least a majority of the votes cast on the Arrangement Resolution, excluding any “interested party”, as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

The meeting materials provided to Golden Predator Shareholders contain important information regarding voting, the Transaction and a summary of the events leading up to the Transaction, including the reasons that led to Golden Predator’s Board of Directors unanimously determining that the Transaction is fair, from a financial point of view, to Golden Predator Shareholders and in the best interest of Golden Predator. The Golden Predator Board unanimously recommends that Golden Predator Shareholders vote for the Arrangement Resolution at the Meeting.

The meeting materials are available on Golden Predator’s website at www.goldenpredator.com and under Golden Predator’s SEDAR profile at www.sedar.com.

CONDITIONS FOR COMPLETION OF THE TRANSACTION

The Transaction is subject to various closing conditions, including receipt of (i) final court approval of the Arrangement, (ii) the required approval at the Arizona Meeting of the Share Issuance Resolution, (iii) the required approval at the Golden Predator Meeting of the Arrangement Resolution, and (iv) regulatory approvals of the Transaction, including TSX approval of the Share Issuance and TSXV approval of the Transaction.

For additional information on Arizona and the Copperstone mine, please visit the website at www.arizona-gold.com. For additional information on Golden Predator and the Brewery Creek mine, please visit the website at www.goldenpredator.com.

Cautionary Statements

Certain information contained herein constitutes forward-looking information or statements under applicable securities legislation and rules. Such statements include, but are not limited to, statements with respect to the anticipated completion of the Transaction. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Arizona and/or Golden Predator to be materially different from those expressed or implied by such forward-looking statements, including, but not limited to: (i) any inability of the parties to satisfy the conditions to the completion of the Transaction on acceptable terms or at all; and (ii) receipt of necessary stock exchange, court and shareholder approvals. Although management of each of Arizona and Golden Predator has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Neither party will update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. The parties caution readers not to place undue reliance on these forward-looking statements and it does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

This press release is not and is not to be construed in any way as, an offer to buy or sell securities in the United States. The distribution of the Arizona common shares in connection with the transactions described herein will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”) and the Arizona common shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Arizona common shares, nor shall there be any offer or sale of the Arizona common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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

¹ For Copperstone, please reference the independent technical report titled “National Instrument 43-101 Technical Report: Preliminary Feasibility Study for the Copperstone Project, La Paz County, Arizona, USA” completed by Hard Rock Consulting, LLC, effective date April 1, 2018. For Brewery Creek, please reference the Independent technical report titled “NI 43-101 Technical Report on Resources – Brewery Creek Project, Yukon, Canada” completed by Gustavson Associates LLC, effective date May 31, 2020.

² Includes pro forma cash of $9.6M at March 31, 2021 and pro forma equity investments calculated as at June 25, 2021, excluding transaction costs.

Chakana Intersects 12m of Massive Sulfide with 27.39% Copper, 967.7 g/t Silver, and 0.38 g/t Gold at Soledad, Peru

Soledad Project Highlights Include:

• Huancarama East – 41m of 1.40 g/t Au, 1.24% Cu, and 79.5 g/t Ag (2.83% Cu-eq) from 112m depth;

• Paloma West – 48.45m of 1.09 g/t Au, 0.84% Cu, and 39.6 g/t Ag (1.89% Cu-eq) starting at 20.3m depth;

• Bx1 – 53m of 4.51 g/t Au, 1.22% Cu, and 55.5 g/t Ag (4.64% Cu-eq) starting at 40m depth; and 12m of 0.38 g/t Au, 27.39% Cu, and 967.7 g/t Ag (35.91% Cu-eq) starting at 140m depth;

• Bx7 – 39m of 1.39 g/t Au, 0.13% Cu, and 50.4 g/t Ag (2.25 g/t Au-eq) starting at 211m depth.

Vancouver, B.C., July 27, 2021 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to provide results from nine resource definition and exploration holes totaling 1,993.15m from the Soledad project, Ancash, Peru (Table 1). Drilling continues as part of a fully funded 26,000m exploration and resource drilling program planned for 2021 (Fig. 1). The Company will complete approximately 16,000m of resource definition drilling. These results will increase confidence in the initial resource estimate, anticipated in Q4 of 2021.

“These results are an outstanding continuation of the drill program we started in 2020. We have seen zones of massive sulfide at Soledad before but never to this extent. Even with 55,000 metres drilled to date on multiple mineralized breccia pipes, we are still encountering these types of features, which demonstrates the exceptional upside potential of this project. This is particularly significant when you consider that we have only tested 15 out of 110 targets thus far,” stated President and CEO David Kelley.

Drill Results

Table 1. Mineralized intervals from drilling at:

Huancarama (Resource Definition)

Paloma West (Resource Definition)

Bx 1 (Resource Definition)

Bx 7 (Exploration)

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Huancarama East

Three holes were drilled through the Huancarama East breccia pipe to the northeast from a platform on the south side of the complex (Figs. 2 and 3). All three holes intersected mineralized breccia, with depths ranging between approximately 70m to 200m below surface. The breccia pipe has approximate lateral dimensions of 100m by 60m and is open at depth. Additional infill holes have been drilled as part of the ongoing drill program. Examples of mineralized drill core from these holes are shown in Figure 5.

Paloma West

Paloma West is located 300m northwest of Huancarama and is part of the Paloma trend (Fig. 2). Three holes were drilled to further define mineralization from surface to a depth of approximately 100m depth. The breccia pipe demonstrates zoning with stronger gold and silver grades near surface and increasing copper grades with depth. Mineralization is open at depth. Examples of mineralized drill core from these holes are shown in Figure 5.

Bx 1

There are two breccia pipes at Bx 1, the Main Zone that crops out at surface, and the North Zone that is 40 metres north of the Main Zone and 125m below surface (Fig. 3). Additional holes were planned to penetrate the north zone to fill in gaps for the resource estimate (see news release dated June 26, 2018). A significant zone of massive sulfide was intersected in hole SDH21-208 (Figs. 4 and 5). Textures indicate sulfide replacement of tourmaline breccia, a common feature documented in several of the breccia pipes. The massive sulfide zone is part of a continuous mineralized interval of 163.6m length, starting at 132.4m depth within the North Zone. Assay composites for the massive sulfide interval were averaged separately from the overlying and underlying intervals given the extreme grade ranges. Additional in-fill holes have been completed at Bx1 to supplement the existing drilling for the resource estimate.

Bx 7

One exploration hole was completed in Bx 7, a mineralized breccia pipe located 300 metres northeast of Bx 1. The hole encountered two mineralized intervals with elevated gold and silver grades, and low overall copper grades. Mineralization is open at depth. Additional holes are needed to define the geometry of the breccia pipe and grade characteristics.

2021 Resource and Exploration Drill Program

Results reported here are part of the fully funded 2021 drill program of 26,000m. Combined with the drilling in the second half of 2020, approximately 32,000m is anticipated through 2021. Of this, 15,939.35m have been reported in 76 drill holes. The remaining metres will focus on new targets located in the northern half of the project that have not been drilled previously but are strategic to any eventual development at Soledad. Exploration targets have been ranked based on their technical merit, access, and logistics.

About Chakana Copper

Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 55,000 metres of exploration and resource definition drilling has been completed since 2017, testing 15 of 110 total exploration targets, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

Sampling and Analytical Procedures

Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru. Sample batches include certified reference materials, blank, and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t by AA24. Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person

David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD
(signed) “David Kelley”
David Kelley
President and CEO

For further information contact:
Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email:jjobin@chakanacopper.com

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

Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-silver project (the “Project”), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within unexplored parts of the Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward- looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

Figure 1 – View looking north showing outcropping breccia pipes and occurrences within the northern Soledad cluster. Pipes that have been drilled in previous campaigns are shown in red. Breccia pipes shown in green are new discoveries made in 2020. Other pipes and occurrences remain to be tested by drilling. Additional breccia pipes occur on the south half of the property and are not shown here.

Figure 2 – Map showing drill holes reported in this release, outcropping tourmaline breccias (darker red shapes), and modeled breccia pipes (light red shapes) based on all drill holes. Light gray contours are 25m interval. Untested outcropping targets are also shown. Blue rectangle in the inset map shows the area of Figure 2 within the overall Chakana property.

Figure 3 – 3D sectional views of the various breccia pipes reported in this release. Light red 3D shapes show breccia pipe geometry based on all drill holes within each pipe. All breccia pipes are presented at the same scale.

Figure 4 – Massive sulfide intersected in the North Zone breccia pipe at Bx 1. Core diameter is 6.35cm (HQ).

Figure 5 – Select core photos from Paloma West, Huancarama East, and Bx 1 reported in this release: Paloma West SDH21-202 (34.7m) mosaic tourmaline breccia with chalcopyrite-pyrite cement; Paloma West SDH21-204 (97.3m) mosaic breccia with chalcopyrite filling void space in breccia; Huancarama East SDH21-205 (112.9m) black tourmaline breccia with chalcopyrite filling void spaces; Bx 1 SDH21-206 (47.15m) shingle breccia with selective partial clast replacement by chalcopyrite and pyrite; Bx 1 SDH21-208 (246.9) mosaic breccia cemented with chalcopyrite and pyrite. Core diameter is 6.35cm (HQ) in all instances.

Palladium One Expands the Tyko Sulphide Nickel-Copper Project to 24,500 hectares and Completes VTEM Survey

 

KEY HIGHLIGHTS

• Two Earn-in agreements expand the Tyko Nickel-Copper Project by 950 hectares
• Additionally, 3,500 hectares were purchased from the original Optionors of the Tyko Project.
• Tyko Nickel-Copper Project currently over 24,500 hectares
• 3,100-kilometer airborne Electro Magnetic (VTEMmax) geophysical survey completed
• Summer exploration field crews are onsite conducting reconnaissance mapping, prospecting and soil sampling. The first 1,000 soil samples have been sent for assaying, results pending

July 27, 2021 – Toronto, Ontario – The footprint of the Tyko Nickel-Copper Project, which returned drill intercepts from massive magmatic sulphide of up to 9.9% Nickel equivalent (“Ni_Eq”), (23.0% Copper equivalent, 30.1 g/t Gold equivalent*) over 3.8 meters in hole TK21-023 (Table 1) has been expanded by 4,400 hectares, said Palladium One Mining (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today.

Tyko has grown from 20,100 hectares to over 24,500 hectares since the Phase II drill program was completed.

An option agreement with First Class Metals Ltd, for the Pickle Lake property, consists of 700 hectares located on the west side of the Tyko project and is proximal to the historic RJ zone which returned up to 1.2% Ni_Eq (2.78% Cu_Eq and 3.6g/t Au_Eq*) over 16.2 meters in hole TK16-002 (see news release April 12, 2016). A second option agreement for the Cupa Lake property with a local prospector consists of 250 hectares and is located 8km east of the Smoke Lake Zone.

President and CEO, Derrick Weyrauch commented, “Tyko continues to impress and warrants increased levels of expenditure and exploration. Results to date demonstrate robust mineralization spread over at least 18 kilometers, yet the area has seen virtually no government mapping or exploration. We believe that in addition to the high-grade Smoke Lake zone, there are new zones off nickel-copper mineralization yet to be discovered. We are awaiting result from the 3,100-kilometer airborne Electro Magnetic (VTEMmax) survey which will guide further exploration.”

200-square kilometer, VTEMmax survey

Geotech’s Versatile Time Domain Electromagnetic airborne system (VTEMmax) survey has been completed across the entire Tyko project. The survey comprised greater than 3,100-line kilometers of closely spaced (100-meter) flight lines. It is the most comprehensive and sensitive airborne geophysical survey ever flown on the Tyko property and covered large areas for which no airborne Electro Magnetic surveys had ever been flown, including the area surrounding the Shabotik showing, having up to 1.0% Nickel, see press release August 19, 2019.

Summer Field Program

Mapping, prospecting and soil sampling is well underway with 1,000 soil samples having already been submitted to the assay lab. This program is designed to ground truth historic and new geophysical anomalies. The vast majority of the Tyko project has seen little to no exploration, or even government mapping.

Figure 1. Tyko Project, with various historic total field magnetic surveys as the background. Newly acquired ground is shown in black hatched areas.

Table 1: Select 2020 & 2021 Drill Results from the Smoke Lake

(1) Reported widths are “drilled widths” not true widths.
(2) * Au_Equivalent is calculated for comparison purposes using recent spot prices, $8lb nickel, $4.4/lb copper, $19/lb cobalt, $2,700/oz palladium, $1,150/oz platinum, $1,900/oz gold.
(3) **Italicised orange highlighted results are previously released results see news release June 23, 2021

*Nickel Equivalent (“Ni_Eq”) and Copper Equivalent (“Cu_Eq”)
Nickel and copper equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne (US$3.00 per pound) for copper, US$15,432 per tonne (US$7.00 per pound) for nickel and US$30,865 per tonne (US$14 per pound) for Cobalt. This calculation is consistent with the commodity prices used in the Company’s September 2019 NI 43-101 Kaukua resource estimate.

Transaction Details

First Class Metals Ltd. – Pickle Lake (formerly, Pezim II) Property – 700 hectares – Grant of Earn-In Right

The Company can earn up to an 80% undivided working interest and a royalty Buy-Back Right, in the Earn-In Properties, over a 3-year earn-in period by incurring Canadian Exploration Expenses as follows:

Year 1 – an amount of not less than C$25,000 on or before the 1st anniversary of the Effective Date:

Year 2 – an amount of not less than C$135,000 (for an aggregate amount of $160,000) on or before the second anniversary of the Effective Date to earn a 51% interest; and

Year 3 – an amount of not less than C$165,000 (for an aggregate amount of not less than $325,000) and by preparing a National Instrument 43-101 (“NI43-101”) Technical Report with respect to the Earn-In Properties on or before the third anniversary of the Effective Date to earn an additional 29% (for a total aggregate 80% interest).

Upon the Company earning either a 51% or 80% working interest in the Earn-In Properties, a Joint Venture Agreement shall be formed and the Company shall be the operator. Should either party not fully participate in future expenditures, its ownership interest shall be diluted and if one party is diluted to a 10% working interest, that party (“NSR Holder”) shall be granted a 1% NSR Royalty in respect of the Earn-In Properties, while the Surviving Party shall be granted a 100% undivided working interest. The Surviving Party shall have the right at any time to purchase from the NSR Holder the 1% NSR Royalty by way of a one-time payment to the NSR Holder of $1,000,000 for the full 1% NSR.

A 2% NSR royalty (“Existing NSR) right in the Earn-In Properties is subject to a 100% Buy-Back Right in favor of the Joint Venture or Surviving Party. Each 1% of the NSR royalty can be bought back and extinguished at a fixed price of C$500,000.

Prospector –Cupa Lake Property – 250 hectare – Grant of Earn-In Right

The Company will earn a 100% working interest in the Prospector Earn-In Properties by incurring exploration expenses in relation to the properties, paying both cash and common share consideration, and granting a 1% Net Smelter Return Royalty (the “NSR Royalty”), as follows:

(i) Upon signing this agreement – Optionee to pay the Optionor $4,000 in cash and shall issue to the Optionor 10,000 common shares of Palladium One Mining Inc.

(ii) Year 1 – Canadian Exploration Expenses in the amount of not less than $20,000, and paying the Optionor $6,000 in cash and issuing the Optionor 20,000 common shares of Palladium One Mining Inc. on or before the 1st anniversary of the Effective Date;

(iii) Year 2 – additional Canadian Exploration Expenses in the amount of not less than $40,000 (for an aggregate amount of $60,000) and paying the Optionor $12,000 in cash and issuing the Optionor 30,000 common shares of Palladium One Mining Inc. on or before the second anniversary of the Effective Date; and

(iv) Year 3 – additional Canadian Exploration Expenses in the amount of not less than $120,000 (for an aggregate amount of not less than $180,000) and paying the Optionor $36,000 in cash and issuing the Optionor 30,000 common shares of Palladium One Mining Inc. on or before the third anniversary of the Effective Date

The Company shall maintain the right at any time to purchase from the Prospector one-half (50%) of the 1% NSR royalty interest by way of a one-time payment to the Prospector of $1,000,000.

Claim Purchase

The Company has acquired 3,500 hectares of new clams by re-imbursing staking costs to the original optionors of the Tyko Project. These new claims are considered part of the original option agreement and thus are subject to a 3% NSR for which one half (50%) can be purchased at any time for $1,500,000.

QA/QC
The Phase II drilling program was carried out under the supervision of Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company.

Drill core samples were split using a rock saw by Company staff, with half retained in the core box. The drill core samples were transported by company staff the Company’s core handling facility, to Actlabs laboratory in Thunder Bay, Ontario. Actlabs, is an accredited lab and are ISO compliant (ISO 9001:2015, ISO/IEC 17025:2017). PGE analysis was performed using a 30 grams fire assay with an ICP-MS or ICP-OES finish. Multi-element analyses, including copper and nickel were analysed by four acid digestion using 0.5 grams with an ICP-MS or ICP-OES finish.

Certified standards, blanks and crushed duplicates are placed in the sample stream at a rate of one QA/QC sample per 10 core samples. Results are analyzed for acceptance at the time of import. All standards associated with the results in this press release were determined to be acceptable within the defined limits of the standard used

About Tyko Ni-Cu-PGE Project
The Tyko Ni-Cu-PGE Project, is located approximately 65 kilometers northeast of Marathon Ontario, Canada. Tyko is an early stage, high sulphide tenor, nickel-copper (2:1 ratio) project with the most recent drill hole intercepts returning up to 9.9% Ni_Eq over 3.8 meters (8.1% Ni, 2.9% Cu, 1.3g/t PGE) in hole TK-20-023.

Qualified Person
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.

About Palladium One
Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper-nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium-dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact:
Derrick Weyrauch, President & CEO
Email: info@palladiumoneinc.com

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Thursday, July 22, 2021

Sierra Metals (SMTS)(SMT:CA)
Lowering Expectations for 2021 Due to Negative COVID Impacts

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

SMTS reports second quarter production results. Compared with the prior year period, second quarter production of copper declined 1.8% to 9.5 million pounds, while silver, zinc and lead increased 66.8%, 53.8% and 24.3% to 954 thousand ounces, 21.1 million pounds and 7.9 million pounds, respectively. Gold production increased 1.8% to 2,812 ounces relative to the prior year period. Sequentially, copper and gold production increased 20.8% and 6.7%, respectively. Production of zinc, lead, and silver fell 12.4%, 11.6%, and 0.7%, respectively. Operations continue to be negatively impacted by the pandemic although management expects operations to show some improvement throughout the year and will update its full year guidance with the release of second quarter financial results.


Updating estimates.  We are lowering our 2021 EPS and EBITDA estimates to $0.25 and $140.5 million from $0.32 and $163.3 million, respectively, to reflect lower full year production. Based on production in the first half, we think it may be challenging for the company to achieve the low end of its production guidance for copper and zinc. Our 2022 EPS and EBITDA estimates remain $0.45 and $208.2 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Sierra Metals Reports Second Quarter 2021 Production Results Including Record Throughput at Its Yauricocha Mine in Peru

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE AMERICAN:SMTS) (“Sierra Metals” or “the Company”) is reporting second-quarter 2021 production results, as the Company continues to deal with the effect of the COVID-19 pandemic at its operations.

Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver Mines in Mexico.

Second Quarter 2021 Production Highlights

• Copper production
  of 9.5 million pounds; a 2% decrease from Q2 2020
• Silver production
  of 1.0 million ounces; a 67% increase from Q2 2020
• Gold production of
  2,812 ounces; a 2% increase from Q2 2020
• Zinc production of
  21.1 million pounds; a 54% increase from Q2 2020
• Lead production of
  8.0 million pounds; a 24% increase from Q2 2020
• Copper equivalent
  production of 24.8 million pounds; a 9% increase from Q2 2020

The Company achieved 62% and 25% increase in throughput as compared to Q2 2020, at its Yauricocha and Bolivar mines respectively. The Yauricocha mine achieved 328,909 tonnes during the quarter at an average rate of 3,759 tpd. Earlier during the quarter, the Company announced receipt of permit to build and operate an expansion of its capacity to 3,600 tpd plus an allowance for up to an additional 5%.

Consolidated copper production decreased 2% to 9.5 million pounds, silver increased 67% to 1.0 million ounces, zinc increased 54% to 21.1 million pounds, lead increased 24% to 8.0 million pounds, and gold increased 2% to 2,812 ounces compared to Q2 2020.

Luis Marchese, President, and CEO of Sierra Metals commented: “Despite the
challenges we have faced due to the Covid-19 Pandemic, I am pleased with the
relatively solid production performance in Q2 2021. The Company continues to
face operational difficulties related to COVID-19 at all mines but particularly
in Peru. We expect that we will continue to be impacted for the remainder of
the year and as such we are reviewing our production guidance and may revise it
as part of our Q2-2021 consolidated financial results.”

He continued
, “Looking ahead to the second half of 2021, we anticipate seeing
an improvement in production results over the first half of the year as we
continue to manage the implications of COVID-19 using best practices. Our goal continues
to be avoiding any mine closures while ensuring that strict protocols remain in
place to protect the wellbeing of our employees as well as the local
communities. Additionally, we have commenced implementation on a 500,000 tonne
per year magnetite concentrate plant at Bolivar which is expected to be
operational early next year. We also received the final permit required for the
construction and operation of the expansion of throughput at Yauricocha to
3,600 tonnes per day. We continue to work on the completion of Preliminary
Feasibility Studies for all three mines to support planned expansions at all
mines starting in 2024. Brownfield and greenfield exploration programs
continue, and we continue to strive to optimize and improve operations with an
aim of reducing costs where possible in this challenging environment.”

Consolidated Production Results

Consolidated Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed	787,534	511,485	54%	1,561,955	1,252,183	25%
Daily throughput	9,000	5,846	54%	8,925	7,155	25%
Silver production (000 oz)	954	572	67%	1,915	1,520	26%
Copper production (000 lb)	9,535	9,708	-2%	17,430	21,484	-19%
Lead production (000 lb)	7,960	6,406	24%	16,964	15,485	10%
Zinc production (000 lb)	21,133	13,741	54%	45,256	35,387	28%
Gold Production (oz)	2,812	2,762	2%	5,448	6,419	-15%
Silver equivalent ounces (000’s)(1)	4,043	3,297	23%	7,778	8,028	-3%
Copper equivalent pounds (000’s)(1)	24,786	22,743	9%	50,157	54,016	-7%
Zinc equivalent pounds (000’s)(1)	81,114	61,353	32%	160,750	146,032	10%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Yauricocha Mine, Peru

The Yauricocha Mine demonstrated its operational flexibility by processing a record 328,909 tonnes during Q2 2021, which is a 62% increase from Q2 2020. On June 16, 2021, the Company announced receipt of a permit from the Peruvian Ministry of Energy and Mines, which allows for the construction and operation at a capacity of 3,600 tpd.

The higher throughput was partially offset by lower head grades for all metals, resulting in a 7% higher copper equivalent production as compared to Q2 2020. In terms of zinc equivalents, this was a 29% increase over the same quarter of 2020. Copper production for the quarter was 11% lower, while silver, lead, zinc and gold production increased by 35%, 22%, 54% and 23% respectively as compared to Q2 2020. Due to COVID-19 operating restrictions the focus has been on larger but lowered grade ore bodies to meet tonnages with a reduced work force.

A summary of production from the Yauricocha Mine for Q2 2021 is provided below:

Yauricocha Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed	328,909	202,534	62%	655,120	487,759	34%
Daily throughput	3,759	2,315	62%	3,744	2,787	34%
Silver grade (g/t)	56.94	66.37	-14%	55.65	66.07	-16%
Copper grade	0.70%	1.21%	-42%	0.63%	1.17%	-46%
Lead grade	1.20%	1.63%	-26%	1.27%	1.59%	-20%
Zinc grade	3.27%	3.48%	-6%	3.49%	3.74%	-7%
Gold Grade (g/t)	0.45	0.62	-27%	0.44	0.66	-33%
Silver recovery	80.14%	82.82%	-3%	79.70%	82.82%	-4%
Copper recovery	72.67%	77.19%	-6%	69.84%	77.19%	-10%
Lead recovery	90.14%	88.08%	2%	90.15%	88.08%	2%
Zinc recovery	89.23%	88.32%	1%	89.82%	88.32%	2%
Gold Recovery	21.99%	21.18%	4%	20.91%	21.18%	-1%
Silver production (000 oz)	483	358	35%	934	853	9%
Copper production (000 lb)	3,697	4,164	-11%	6,379	9,548	-33%
Lead production (000 lb)	7,831	6,406	22%	16,537	15,014	10%
Zinc production (000 lb)	21,133	13,741	54%	45,256	35,387	28%
Gold Production (oz)	1,043	850	23%	1,933	2,104	-8%
Copper equivalent pounds (000’s)(1)	15,308	14,354	7%	31,142	34,549	-10%
Zinc equivalent pounds (000’s)(1)	49,923	38,723	29%	99,701	93,404	7%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Bolivar Mine, Mexico

The Bolivar Mine processed 385,331 tonnes in Q2 2021, which is a 25% increase from the Q2 2020 throughput. The average daily throughput realized during the quarter was 4,404 tpd. Head grades for copper, silver, and gold were 8%, 27%, and 30% lower, respectively, as compared to Q2 2020. Copper equivalent production for Q2 2021 decreased 8% as compared to Q2 2020, because of lower silver (6%) and gold (15%) production offset by 5% higher copper production. Production continues to be focused more on the Mina de Fierro zone in Q2 2021 as part of our COVID-19 management plan. Mina de Fierro is a larger ore body with greater tonnages; however, the head grades and recoveries are lower than the Bolivar West zone. It is expected that as the Bolivar Mine returns to more normal operations and more ore is taken from the Bolivar West zone that we will see and improvement in head grades and recoveries in the future.

A summary of production for the Bolivar Mine for Q2 2021 is provided below:

Bolivar Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed (t)	385,331	308,951	25%	756,939	686,513	10%
Daily throughput	4,404	3,531	25%	4,325	3,923	10%
Copper grade	0.86%	0.93%	-8%	0.82%	0.91%	-10%
Silver grade (g/t)	19.06	26.00	-27%	19.31	23.30	-17%
Gold grade (g/t)	0.21	0.30	-30%	0.20	0.29	-31%
Copper recovery	79.89%	87.09%	-8%	82.25%	86.45%	-5%
Silver recovery	85.74%	82.80%	4%	85.13%	82.41%	3%
Gold recovery	63.19%	63.79%	-1%	66.95%	63.84%	5%
Copper production (000 lb)	5,838	5,544	5%	11,051	11,935	-7%
Silver production (000 oz)	202	214	-6%	399	424	-6%
Gold production (oz)	1,627	1,912	-15%	3,218	4,103	-22%
Copper equivalent pounds (000’s)(1)	7,754	8,389	-8%	15,024	17,541	-14%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Cusi Mine, Mexico

The Cusi Mine throughput for Q2 2021 was 73,294 tonnes or 838 tpd. There was no production during the same quarter of 2020, as Cusi remained in care and maintenance throughout that quarter, due to the government-mandated shutdown to contain the advancement of COVID-19. Silver head grade for Q2 2021 was 138.94 g/t resulting in silver production of 269,000 ounces. Additionally, gold production was 142 ounces and lead production was 129,000 pounds respectively during the quarter.

A summary of production for the Cusi Mine for Q2 2021 is provided below:

Cusi Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed (t)	73,294	–	N.A.	149,896	77,911	92%
Daily throughput	838	–	N.A.	857	890	-4%
Silver grade (g/t)	138.94	–	N.A.	148.28	120.88	23%
Gold grade (g/t)	0.16	–	N.A.	0.16	0.18	-11%
Lead grade	0.10%	–	N.A.	0.16%	0.33%	-52%
Silver recovery (flotation)	81.96%	–	N.A.	81.39%	80.21%	1%
Gold recovery (lixiviation)	37.41%	–	N.A.	38.51%	46.53%	-17%
Lead recovery	82.95%	–	N.A.	81.90%	84.17%	-3%
Silver production (000 oz)	269	–	N.A.	582	243	140%
Gold production (oz)	142	–	N.A.	297	212	40%
Lead production (000 lb)	129	–	N.A.	427	471	-9%
Silver equivalent ounces (000’s)(1)	283	–	N.A.	617	286	116%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Quality Control

All technical data contained in this news release has been reviewed and approved by Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves.

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.

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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, 2020 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
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
info@sierrametals.com

Luis
Marchese
CEO
Sierra Metals Inc.
+1 (416) 366-7777

Source: Sierra Metals Inc.

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Aurania Reports that Drilling at Tsenken N1 Provides Evidence of a Link with the Tiria-Shimpia Target

 

Toronto, Ontario, July 21, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports that review of drill core shows that the fault system which links the Tsenken target with the Tiria-Shimpia target, moved periodically throughout the development of the sedimentary basin, providing a pumping mechanism for metal-bearing fluids that deposited sediment-hosted zinc-silver at Tiria-Shimpia and copper-silver at Tsenken.  Further scout drilling at Tsenken N1 is focusing on sediment-hosted copper-silver adjacent to this fault system that extends 45 kilometres from the copper area in the south to the zinc zone in the north in the central part of the Company’s Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.

Professor Gregor Borg, an expert on sediment-hosted copper systems, who has worked both in the Central African Copperbelt and the European Kupferschiefer, recently visited site to review the exploration programs and drill core from Tsenken and Tiria-Shimpia.

Professor Borg commented, “I have not seen many mineralized systems that extend 45 kilometres along a fault system as we see in the central part of Aurania’s Lost Cities Project.  The change from copper-centric in the Tsenken area to zinc-rich in the Tiria-Shimpia target is consistent metal zoning that is evident in the Kupferschiefer.  I came away from my second review of Aurania’s sedimentary copper exploration program as convinced as I was on my first visit that the red-bed basin is highly fertile and has very good potential for sediment-hosted copper. We optimized some of the concepts on the basis of the features that we saw in the drill core, and I have encouraged the exploration team to keep drilling.”

Five drill holes have been completed at Tsenken N1 and hole 6 is underway – the objective being to explore the same sedimentary layer in the Tsenken area that contains zinc-silver in the Tiria-Shimpia area as illustrated in Figure 1.

Figure 1.  Vertical profile illustrating the target concept for the current drill hole, TSN1-006.  The target is copper in the same sedimentary unit in the Tsenken area as contains zinc-silver in the Tiria-Shimpia area.  This target is brought to relatively shallow depth on a geological fault as illustrated in Figure 2.

Geological Detail of Tsenken N1 Drilling

Five drill holes, for a total of 2,184 metres (“m”), have been drilled in the Tsenken N1 target area and hole 6 is underway.  The sedimentary layers targeted in hole 6 have been elevated to within a few hundred metres of surface, as illustrated in Figure 2, by faults that are known to have provided pathways for the metal-bearing fluids.

Drill results received to date are not economically significant but do show a clear trend with contained copper increasing towards the east: drill hole TSN1-002 – the westernmost – having no copper, hole TSN1-001 having 0.23% over 1m and hole TSN1-003 – the easternmost – having two mineralized zones; the upper sedimentary layer with 1m at 0.47% copper and the lower with 0.15% copper over 2.6m.  Observations from the drill core show that the fault system was active at the time of accumulation of the red-beds in the Tsenken area and field mapping and satellite imagery show that this fault system extends into the Tiria-Shimpia area where it is linked with zinc-silver mineralization.

Holes TSN1-004 and TSN1-005 were collared further north, closer to Tiria-Shimpia and results will be reported when available.

Figure 2.  Vertical profile interpretation through the Tsenken N1 area showing the location of drill holes 1, 2 and 3 that tested for sediment-hosted copper-silver in red-beds beneath a lava seal.  Hole 6 is testing for expected sediment-hosted copper in a similar position in the sedimentary layering as the silver-zinc mineralization at Tiria-Shimpia is located.  The fault system shown in red is suspected to have fed copper into the sediments in a similar way that it did zinc-silver into the Tiria-Shimpia area.  (Evap. is evaporite (salt) and Int. is intrusive such as a porphyry).

Drilling at Tiria-Shimpia

A second drill rig has completed the first hole at Tiria-Shimpia and the second scout drilling hole is underway.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”)

Laboratories: The samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.

Analytical procedure:  Approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS.  For the over-limit samples, those that had a grade of greater than 1% copper, zinc and lead, and 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Aurania Reports that Drilling at Tsenken N1 Provides Evidence of a Link with the Tiria-Shimpia Target

 

Toronto, Ontario, July 21, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports that review of drill core shows that the fault system which links the Tsenken target with the Tiria-Shimpia target, moved periodically throughout the development of the sedimentary basin, providing a pumping mechanism for metal-bearing fluids that deposited sediment-hosted zinc-silver at Tiria-Shimpia and copper-silver at Tsenken.  Further scout drilling at Tsenken N1 is focusing on sediment-hosted copper-silver adjacent to this fault system that extends 45 kilometres from the copper area in the south to the zinc zone in the north in the central part of the Company’s Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.

Professor Gregor Borg, an expert on sediment-hosted copper systems, who has worked both in the Central African Copperbelt and the European Kupferschiefer, recently visited site to review the exploration programs and drill core from Tsenken and Tiria-Shimpia.

Professor Borg commented, “I have not seen many mineralized systems that extend 45 kilometres along a fault system as we see in the central part of Aurania’s Lost Cities Project.  The change from copper-centric in the Tsenken area to zinc-rich in the Tiria-Shimpia target is consistent metal zoning that is evident in the Kupferschiefer.  I came away from my second review of Aurania’s sedimentary copper exploration program as convinced as I was on my first visit that the red-bed basin is highly fertile and has very good potential for sediment-hosted copper. We optimized some of the concepts on the basis of the features that we saw in the drill core, and I have encouraged the exploration team to keep drilling.”

Five drill holes have been completed at Tsenken N1 and hole 6 is underway – the objective being to explore the same sedimentary layer in the Tsenken area that contains zinc-silver in the Tiria-Shimpia area as illustrated in Figure 1.

Figure 1.  Vertical profile illustrating the target concept for the current drill hole, TSN1-006.  The target is copper in the same sedimentary unit in the Tsenken area as contains zinc-silver in the Tiria-Shimpia area.  This target is brought to relatively shallow depth on a geological fault as illustrated in Figure 2.

Geological Detail of Tsenken N1 Drilling

Five drill holes, for a total of 2,184 metres (“m”), have been drilled in the Tsenken N1 target area and hole 6 is underway.  The sedimentary layers targeted in hole 6 have been elevated to within a few hundred metres of surface, as illustrated in Figure 2, by faults that are known to have provided pathways for the metal-bearing fluids.

Drill results received to date are not economically significant but do show a clear trend with contained copper increasing towards the east: drill hole TSN1-002 – the westernmost – having no copper, hole TSN1-001 having 0.23% over 1m and hole TSN1-003 – the easternmost – having two mineralized zones; the upper sedimentary layer with 1m at 0.47% copper and the lower with 0.15% copper over 2.6m.  Observations from the drill core show that the fault system was active at the time of accumulation of the red-beds in the Tsenken area and field mapping and satellite imagery show that this fault system extends into the Tiria-Shimpia area where it is linked with zinc-silver mineralization.

Holes TSN1-004 and TSN1-005 were collared further north, closer to Tiria-Shimpia and results will be reported when available.

Figure 2.  Vertical profile interpretation through the Tsenken N1 area showing the location of drill holes 1, 2 and 3 that tested for sediment-hosted copper-silver in red-beds beneath a lava seal.  Hole 6 is testing for expected sediment-hosted copper in a similar position in the sedimentary layering as the silver-zinc mineralization at Tiria-Shimpia is located.  The fault system shown in red is suspected to have fed copper into the sediments in a similar way that it did zinc-silver into the Tiria-Shimpia area.  (Evap. is evaporite (salt) and Int. is intrusive such as a porphyry).

Drilling at Tiria-Shimpia

A second drill rig has completed the first hole at Tiria-Shimpia and the second scout drilling hole is underway.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”)

Laboratories: The samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.

Analytical procedure:  Approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS.  For the over-limit samples, those that had a grade of greater than 1% copper, zinc and lead, and 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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Sierra Metals Reports Second Quarter 2021 Production Results Including Record Throughput at Its Yauricocha Mine in Peru

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT) (BVL:SMT) (NYSE AMERICAN:SMTS) (“Sierra Metals” or “the Company”) is reporting second-quarter 2021 production results, as the Company continues to deal with the effect of the COVID-19 pandemic at its operations.

Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver Mines in Mexico.

Second Quarter 2021 Production Highlights

• Copper production
  of 9.5 million pounds; a 2% decrease from Q2 2020
• Silver production
  of 1.0 million ounces; a 67% increase from Q2 2020
• Gold production of
  2,812 ounces; a 2% increase from Q2 2020
• Zinc production of
  21.1 million pounds; a 54% increase from Q2 2020
• Lead production of
  8.0 million pounds; a 24% increase from Q2 2020
• Copper equivalent
  production of 24.8 million pounds; a 9% increase from Q2 2020

The Company achieved 62% and 25% increase in throughput as compared to Q2 2020, at its Yauricocha and Bolivar mines respectively. The Yauricocha mine achieved 328,909 tonnes during the quarter at an average rate of 3,759 tpd. Earlier during the quarter, the Company announced receipt of permit to build and operate an expansion of its capacity to 3,600 tpd plus an allowance for up to an additional 5%.

Consolidated copper production decreased 2% to 9.5 million pounds, silver increased 67% to 1.0 million ounces, zinc increased 54% to 21.1 million pounds, lead increased 24% to 8.0 million pounds, and gold increased 2% to 2,812 ounces compared to Q2 2020.

Luis Marchese, President, and CEO of Sierra Metals commented: “Despite the
challenges we have faced due to the Covid-19 Pandemic, I am pleased with the
relatively solid production performance in Q2 2021. The Company continues to
face operational difficulties related to COVID-19 at all mines but particularly
in Peru. We expect that we will continue to be impacted for the remainder of
the year and as such we are reviewing our production guidance and may revise it
as part of our Q2-2021 consolidated financial results.”

He continued
, “Looking ahead to the second half of 2021, we anticipate seeing
an improvement in production results over the first half of the year as we
continue to manage the implications of COVID-19 using best practices. Our goal continues
to be avoiding any mine closures while ensuring that strict protocols remain in
place to protect the wellbeing of our employees as well as the local
communities. Additionally, we have commenced implementation on a 500,000 tonne
per year magnetite concentrate plant at Bolivar which is expected to be
operational early next year. We also received the final permit required for the
construction and operation of the expansion of throughput at Yauricocha to
3,600 tonnes per day. We continue to work on the completion of Preliminary
Feasibility Studies for all three mines to support planned expansions at all
mines starting in 2024. Brownfield and greenfield exploration programs
continue, and we continue to strive to optimize and improve operations with an
aim of reducing costs where possible in this challenging environment.”

Consolidated Production Results

Consolidated Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed	787,534	511,485	54%	1,561,955	1,252,183	25%
Daily throughput	9,000	5,846	54%	8,925	7,155	25%
Silver production (000 oz)	954	572	67%	1,915	1,520	26%
Copper production (000 lb)	9,535	9,708	-2%	17,430	21,484	-19%
Lead production (000 lb)	7,960	6,406	24%	16,964	15,485	10%
Zinc production (000 lb)	21,133	13,741	54%	45,256	35,387	28%
Gold Production (oz)	2,812	2,762	2%	5,448	6,419	-15%
Silver equivalent ounces (000’s)(1)	4,043	3,297	23%	7,778	8,028	-3%
Copper equivalent pounds (000’s)(1)	24,786	22,743	9%	50,157	54,016	-7%
Zinc equivalent pounds (000’s)(1)	81,114	61,353	32%	160,750	146,032	10%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Yauricocha Mine, Peru

The Yauricocha Mine demonstrated its operational flexibility by processing a record 328,909 tonnes during Q2 2021, which is a 62% increase from Q2 2020. On June 16, 2021, the Company announced receipt of a permit from the Peruvian Ministry of Energy and Mines, which allows for the construction and operation at a capacity of 3,600 tpd.

The higher throughput was partially offset by lower head grades for all metals, resulting in a 7% higher copper equivalent production as compared to Q2 2020. In terms of zinc equivalents, this was a 29% increase over the same quarter of 2020. Copper production for the quarter was 11% lower, while silver, lead, zinc and gold production increased by 35%, 22%, 54% and 23% respectively as compared to Q2 2020. Due to COVID-19 operating restrictions the focus has been on larger but lowered grade ore bodies to meet tonnages with a reduced work force.

A summary of production from the Yauricocha Mine for Q2 2021 is provided below:

Yauricocha Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed	328,909	202,534	62%	655,120	487,759	34%
Daily throughput	3,759	2,315	62%	3,744	2,787	34%
Silver grade (g/t)	56.94	66.37	-14%	55.65	66.07	-16%
Copper grade	0.70%	1.21%	-42%	0.63%	1.17%	-46%
Lead grade	1.20%	1.63%	-26%	1.27%	1.59%	-20%
Zinc grade	3.27%	3.48%	-6%	3.49%	3.74%	-7%
Gold Grade (g/t)	0.45	0.62	-27%	0.44	0.66	-33%
Silver recovery	80.14%	82.82%	-3%	79.70%	82.82%	-4%
Copper recovery	72.67%	77.19%	-6%	69.84%	77.19%	-10%
Lead recovery	90.14%	88.08%	2%	90.15%	88.08%	2%
Zinc recovery	89.23%	88.32%	1%	89.82%	88.32%	2%
Gold Recovery	21.99%	21.18%	4%	20.91%	21.18%	-1%
Silver production (000 oz)	483	358	35%	934	853	9%
Copper production (000 lb)	3,697	4,164	-11%	6,379	9,548	-33%
Lead production (000 lb)	7,831	6,406	22%	16,537	15,014	10%
Zinc production (000 lb)	21,133	13,741	54%	45,256	35,387	28%
Gold Production (oz)	1,043	850	23%	1,933	2,104	-8%
Copper equivalent pounds (000’s)(1)	15,308	14,354	7%	31,142	34,549	-10%
Zinc equivalent pounds (000’s)(1)	49,923	38,723	29%	99,701	93,404	7%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Bolivar Mine, Mexico

The Bolivar Mine processed 385,331 tonnes in Q2 2021, which is a 25% increase from the Q2 2020 throughput. The average daily throughput realized during the quarter was 4,404 tpd. Head grades for copper, silver, and gold were 8%, 27%, and 30% lower, respectively, as compared to Q2 2020. Copper equivalent production for Q2 2021 decreased 8% as compared to Q2 2020, because of lower silver (6%) and gold (15%) production offset by 5% higher copper production. Production continues to be focused more on the Mina de Fierro zone in Q2 2021 as part of our COVID-19 management plan. Mina de Fierro is a larger ore body with greater tonnages; however, the head grades and recoveries are lower than the Bolivar West zone. It is expected that as the Bolivar Mine returns to more normal operations and more ore is taken from the Bolivar West zone that we will see and improvement in head grades and recoveries in the future.

A summary of production for the Bolivar Mine for Q2 2021 is provided below:

Bolivar Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed (t)	385,331	308,951	25%	756,939	686,513	10%
Daily throughput	4,404	3,531	25%	4,325	3,923	10%
Copper grade	0.86%	0.93%	-8%	0.82%	0.91%	-10%
Silver grade (g/t)	19.06	26.00	-27%	19.31	23.30	-17%
Gold grade (g/t)	0.21	0.30	-30%	0.20	0.29	-31%
Copper recovery	79.89%	87.09%	-8%	82.25%	86.45%	-5%
Silver recovery	85.74%	82.80%	4%	85.13%	82.41%	3%
Gold recovery	63.19%	63.79%	-1%	66.95%	63.84%	5%
Copper production (000 lb)	5,838	5,544	5%	11,051	11,935	-7%
Silver production (000 oz)	202	214	-6%	399	424	-6%
Gold production (oz)	1,627	1,912	-15%	3,218	4,103	-22%
Copper equivalent pounds (000’s)(1)	7,754	8,389	-8%	15,024	17,541	-14%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Cusi Mine, Mexico

The Cusi Mine throughput for Q2 2021 was 73,294 tonnes or 838 tpd. There was no production during the same quarter of 2020, as Cusi remained in care and maintenance throughout that quarter, due to the government-mandated shutdown to contain the advancement of COVID-19. Silver head grade for Q2 2021 was 138.94 g/t resulting in silver production of 269,000 ounces. Additionally, gold production was 142 ounces and lead production was 129,000 pounds respectively during the quarter.

A summary of production for the Cusi Mine for Q2 2021 is provided below:

Cusi Production	Three Months Ended June 30			Six Months Ended June 30
	2021	2020	% Var.	2021	2020	% Var.
Tonnes processed (t)	73,294	–	N.A.	149,896	77,911	92%
Daily throughput	838	–	N.A.	857	890	-4%
Silver grade (g/t)	138.94	–	N.A.	148.28	120.88	23%
Gold grade (g/t)	0.16	–	N.A.	0.16	0.18	-11%
Lead grade	0.10%	–	N.A.	0.16%	0.33%	-52%
Silver recovery (flotation)	81.96%	–	N.A.	81.39%	80.21%	1%
Gold recovery (lixiviation)	37.41%	–	N.A.	38.51%	46.53%	-17%
Lead recovery	82.95%	–	N.A.	81.90%	84.17%	-3%
Silver production (000 oz)	269	–	N.A.	582	243	140%
Gold production (oz)	142	–	N.A.	297	212	40%
Lead production (000 lb)	129	–	N.A.	427	471	-9%
Silver equivalent ounces (000’s)(1)	283	–	N.A.	617	286	116%

^{(1) Silver equivalent ounces and copper and zinc equivalent pounds
for Q2 2021 were calculated using the following realized prices: $26.80/oz Ag,
$4.37/lb Cu, $1.34/lb Zn, $0.97/lb Pb, $1,818/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for Q2 2020 were calculated using the
following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb,
$1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds
for 6M 2021 were calculated using the following realized prices: $26.62/oz Ag,
$4.13/lb Cu, $1.29/lb Zn, $0.94/lb Pb, $1,798/oz Au. Silver equivalent ounces
and copper and zinc equivalent pounds for 6M 2020 were calculated using the
following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb,
$1,654/oz Au.}

Quality Control

All technical data contained in this news release has been reviewed and approved by Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves.

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.

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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, 2020 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
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
info@sierrametals.com

Luis
Marchese
CEO
Sierra Metals Inc.
+1 (416) 366-7777

Source: Sierra Metals Inc.