No.

01-2016

Sierra Metals discovers a significant new high grade zone at its Yauricocha
mine in Peru

Thickest high-grade sulfide intercepts in the 60 year history of the mine

adjacent to existing underground operations

Announces investor conference call and webcast to review drill results

___________________________________________________________________
Drill hole highlights include:
Hole ESP-10: 1.1% Cu, 4.9% Zn, 2.2% Pb, 0.25 gpt Au, 61.2 gpt Ag over 70.6m
Hole ESP-14: 3.2% Cu, 1.7% Zn, 0.4% Pb, 1.01 gpt Au, 48.5 gpt Ag over 69.2m
Hole ESP-15: 1.8% Cu, 3.2% Zn, 1.4% Pb, 0.32 gpt Au, 61.5 gpt Ag over 70.0m
Toronto, ON January 28, 2016 Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (Sierra
Metals or the Company) today announced the discovery of a new high grade sulfide zone,
referred to as the Esperanza zone, located 400 metres north of the central mine area, along
strike from current mining activities. The discovery comes as part of ongoing drill testing of
priority targets at its Yauricocha Mine located 150km east southeast of Lima in the Yauricocha
Mining District (Cordillera Occidental), Peru.
The Esperanza zone has returned the thickest sulfide intercepts in the 60 year mining history
at Yauricocha. Hole ESP-14 returned a length weighted average of 3.2% Cu, 1.7% Zn, 0.4%
Pb, 1.01 gpt Au, 48.5 gpt Ag over 69.2 metres, hole ESP-15 returned a length weighted
average of 1.8% Cu, 3.2% Zn, 1.4% Pb, 0.32 gpt Au, 61.5 gpt Ag over 70.0 metres and hole
ESP-10 returned a length weighted average of 1.1% Cu, 4.9% Zn, 2.2% Pb, 0.25 gpt Au, 61.2
gpt Ag over 70.6 metres. The mineralization is hosted by a thick sequence of marble and
consists of sulfide replacement and variably altered copper-magnetite skarn (chalcopyrite,
bornite, chalcocite +/- native copper) with extensive lead and zinc sulfide replacement.
The area was identified as a high priority target adjacent to and along strike from the current
underground mining activity. To the end of December 2015, a total of 15 holes (total of 3,922.8
metres) were drilled through the target area from the 870 and 920 level of the mine (607
metres and 657 metres below surface respectively). All holes intersected the zone with the
exception of ESP-11 which tested the upper limit of the zone. Drilling to date demonstrates
the zone has a strike length of at least 240 metres, has been successfully tested to a depth of
170 metres below the 870 level and is open along strike at depth. The majority of this zone
appears to be located below the 870 level however additional drilling is required to define the
upper limit of the zone. There are currently two drills operating on the 870 level that are
focused on delineation and expansion of the Esperanza zone as it is a priority to fast track this
material into the production schedule. Underground development has been initiated to support
additional drill locations for further exploration and delineation of the zone. Assays received to
date for all holes are summarized as length weighted composite intervals in Table 1, below.
The discovery of the Esperanza zone demonstrates the untapped potential close to the
existing mine workings at Yauricocha stated Matthew Wunder, Vice President Exploration of
Sierra Metals. Intercepts such as returned in ESP-10, ESP-14 and ESP-15 are not common
in mineral exploration and suggests that we are closing in on a more productive part of the
mineralizing system and may lead to the source of the hydrothermal system. There is

reasonable potential to expand the Esperanza zone at depth and along strike to the north as
these areas have never been drill tested. We look forward to an exciting future exploring the
Yauricocha Mine and district.
Esperanza is the most important discovery in the history of the Yauricocha mine and in the
history of Sierra Metals stated Mark Brennan, President and CEO of Sierra Metals.
Esperanza is unique due to its high-grade copper, silver, and zinc sulfide intercepts, along
with its exceptionally wide thickness of its mineralized zones, and its proximity to existing mine
infrastructure. We are working towards accessing part of the orebody as early Q3 of 2016
which would have a positive impact on head grades in the second half of 2016 as well as on
the Companys cash flow.
He continued, Unlocking Yauricochas potential through new discoveries such as the
Esperanza zone are a key part of our growth strategy. While we continue to improve existing
mine operations and production capabilities, we are very excited by this discovery and look
forward to continuing to unlock value through further brownfields discoveries.

Table 1 - Length Weighted Composite Intervals

From

To

Metres

Ag
(gpt)

Pb
(%)

Cu
(%)

Zn
(%)

Au
(gpt)

Zone
Name

ESP-01
ESP-01
ESP-01
ESP-01

83.2
101.2
186.0
291.5

86.3
104.1
192.1
318.5

3.1
2.9
6.1
27.0

229.2
165.4
45.4
19.7

21.0
17.3
0.3
0.2

0.2
0.2
0.0
1.2

24.2
24.8
0.9
0.3

0.24
0.62
1.43
0.81

Esp

ESP-02
ESP-02

205.6
304.3

207.3
313.3

1.7
9.0

78.7
42.2

6.5
0.3

0.1
1.2

11.1
1.1

0.44
0.67

Esp

ESP-03

121.7

141.6

19.9

28.5

0.3

0.4

0.6

0.21

Esp

ESP-04
ESP-04 Incl.
ESP-04 Incl.
ESP-04
ESP-04

13.8
17.8
31.0
61.5
185.0

46.5
24.0
45.0
63.9
204.2

32.7
6.2
14.0
2.4
19.2

28.5
64.4
28.4
100.5
26.0

4.4
8.3
4.7
5.2
0.4

0.3
0.1
0.6
0.2
0.7

8.8
16.5
9.7
11.8
1.3

0.26
0.33
0.36
0.24
0.24

Esp

ESP-05
ESP-05
ESP-05 Incl.

106.2
125.0
125.0

111.2
153.0
137.0

5.0
28.0
12.0

84.4
71.7
143.7

1.4
0.6
1.4

0.6
3.7
4.8

2.5
1.4
3.0

0.45
0.87
0.90

Esp
Esp

ESP-06
ESP-06 Incl.
ESP-06 Incl.

109.6
109.6
140.0

151.3
114.5
145.0

41.7
4.9
5.0

108.0
505.0
148.9

0.2
0.3
0.4

2.0
8.9
4.1

0.4
0.6
1.1

0.60
1.22
0.61

Esp
Esp
Esp

ESP-07
ESP-07
ESP-07

59.2
116.8
136.8

61.0
120.7
148.0

1.8
3.9
11.2

292.4
60.0
4.6

7.4
5.0
0.1

0.9
0.4
0.2

19.2
14.0
1.2

0.34
0.11
0.09

Esp

ESP-08
ESP-08 Incl.

132.0
132.0

158.8
147.0

26.8
15.0

26.8
28.0

0.1
0.2

1.2
1.9

0.3
0.4

0.60
0.74

Esp
Esp

ESP-09
ESP-09 Incl.

112.5
115.0

154.0
133.0

41.5
18.0

68.4
49.2

4.3
9.0

1.5
0.2

5.1
9.4

0.19
0.11

Esp
Esp

Hole

ESP-10
ESP-10
ESP-10
ESP-10
ESP-10
ESP-10

Incl.
Incl.
Incl.
Incl.

ESP-11

71.0
92.2
92.2
113.05
129.2
156.4

77.8
162.8
102.0
121.0
135.0
162.8

6.8
70.6
9.8
7.95
5.8
6.4

82.2
61.2
84.9
168.2
97.0
75.2

3.6
2.2
5.4
7.7
0.2
1.4

0.8
1.1
0.2
2.1
5.4
1.6

13.3
4.9
12.0
14.4
0.7
4.4

0.16
0.25
0.10
0.41
0.52
0.54

Esp
Esp
Esp
Esp
Esp

No Significant Values

ESP-12

146.0

153.8

7.8

47.3

3.9

0.1

6.2

0.19

Esp

ESP-13

132.4

140.5

8.1

54.6

0.3

0.0

0.7

0.25

Esp

ESP-14
ESP-14
ESP-14 Incl.
ESP-14 Incl.
ESP-14 Incl.
ESP-14 and Incl.

53.7
125.0
125.0
152.8
171.0
171.0

57.0
194.2
134.0
166.0
194.2
187.7

3.3
69.2
9.0
13.2
23.2
16.7

438.3
48.5
85.8
45.6
73.2
89.6

0.6
0.4
2.6
0.0
0.0
0.1

8.1
3.2
2.3
3.7
6.0
7.2

2.4
1.7
10.5
0.0
0.1
0.1

0.26
1.01
0.39
0.43
1.89
2.39

Esp
Esp
Esp
Esp
Esp

ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15
ESP-15

55.65
56.0
131.0
138.0
153.2
198.9
215.0
223.7

75.8
64.0
201.0
149.1
178.5
201.0
235.0
235.0

20.15
8.0
70.0
11.1
25.3
2.1
20.0
11.3

147.8
156.1
61.5
96.6
115.4
91.4
35.2
41.6

0.1
0.1
1.4
0.7
2.4
10.0
0.3
0.1

5.6
6.5
1.8
2.1
3.8
0.3
1.6
2.5

0.1
0.2
3.2
2.8
5.8
17.3
0.6
0.3

0.36
0.46
0.32
0.47
0.57
0.51
0.70
0.82

Esp
Esp
Esp
Esp
Esp
Esp

Incl.
Incl.
Incl.
Incl.
Incl.

All reported intercepts are core length as further drilling is required to determine true thicknesses.
A plan map of the Yauricocha mine area is shown in Figure 1, Figure 2 is a plan map through the Esperanza zone
at the 920 level and Figures 3, 4 and 5 are cross sections through the Esperanza zone (reference lines for the
cross sections are located on Figure 2). A complete list of assays for the drill holes presented in this news release
are available on the Sierra Metals website at:
https://sierrametals.com/files/doc_news/2016/News-Release-Jan-28-2016-Individual-Assay-Table-for-Website-1130am-Jan-27th-2016.pdf

Conference Call Webcast

Sierra Metals senior management will host a conference call on Tuesday, February 2, 2016
at 10:30 AM (E.S.T.) to discuss the Companys drill results at Esperanza.
Via Webcast:
A live audio webcast of the meeting will be available on the Companys website
www.sierrametals.com or at:
http://event.on24.com/wcc/r/1126434/ACAD9C9D4973272BE4B28BD5C5942BB4
The webcast along with presentation slides will be archived for 180 days on
www.sierrametals.com

Via phone:
For those who prefer to listen by phone, dial-in instructions are below. To ensure your
participation, please call approximately five minutes prior to the scheduled start time of the
call.
Participant Number (Toll Free Peru): 0800-53-840
Participant Number (Toll Free North America): (877) 201-0168
Participant Number (International): (647) 788-4901
Conference ID: 40995275

Figure 1 - Plan View

Figure 2 - Plan View

Figure 3 Cross Section

Figure 4 - Cross Section

Figure 5 Cross Section

Method of Analysis
Samples are prepared at the Yauricocha lab facilities at the Chumpe Mill, which is located on
site. Drill core samples from the mine are assayed utilizing two procedures. Silver, lead, zinc
and copper are assayed by atomic absorption. Gold is fire-assayed with an atomic
absorption finish. Diamond drill core samples sent for analysis consist of half NQ size or BQ
size drill core which is split on site.

Quality Control
The quality assurance-quality control (QA-QC) program employed by Sierra Metals has been
described in detail in the NI-43-101 report for Yauricocha dated May 25, 2012, prepared by
Gustavson Associates in Denver, which is available for review on Sedar. Standards and
blanks are inserted into the sample stream and duplicate samples are sent to the ALS Peru
S.A. lab (Chemex) in Lima as per internal quality control procedures.
Qualfied Persons
The technical content of this news release has been approved by Matthew Wunder, B.Sc,
P.Geo. and Qualified Person as defined in NI-43-101.

About Sierra Metals

Sierra Metals Inc. is a Canadian mining company focused on production of precious and base
metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico. In
addition, Sierra Metals is exploring several precious and base metals targets in Peru and
Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic)
at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in
Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora and La Verde
(gold) at the Batopilas Property in the state of Chihuahua.
The Companys shares trade on the Lima Stock Exchange (Bolsa de Valores de Lima) and
on the TSX under the symbol SMT.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Mike McAllister
Director, Corporate Development
Sierra Metals Inc.
(416) 366-7777
Email: info@sierrametals.com

Matthew Wunder
Vice President, Exploration
Sierra Metals Inc.
(416) 366-7777

Mark Brennan
President & CEO
Sierra Metals Inc.
(416) 366-7777

Forward-Looking Statements
Except for statements of historical fact contained herein, the information in this press release
may constitute forward-looking information within the meaning of Canadian securities law.
Statements containing forward-looking information express, as at the date of this news
release, the Companys plans, estimates, forecasts, projections, expectations or beliefs as to
future events or results. These statements reflect the Companys current views with respect
to future events and are necessarily based upon a number of assumptions and estimates that,
while considered reasonable by the Company, are inherently subject to significant business,
economic, competitive, political and social uncertainties and contingencies. Actual results
might differ materially from results suggested in any forward-looking statements. The
Company assumes no obligation to update the forward-looking statements, or to update the
reasons why actual results could differ from those reflected in the forward-looking statements
unless required by securities laws applicable to the Company. Additional information
identifying risks and uncertainties is contained in filings by the Company with the Canadian
securities regulators, which filings are available at www.sedar.com.