The company said doubling production from 1,200 tonnes per day to 2,400tpd would yield an estimated after-tax net present value of US$28.1 million at an 8% discount rate and an internal rate of return of 46.8%, based on a $20/oz silver price and life of mine and sustaining capital of $91 million.

Over a 13-year mine life, Cusi would produce 33.4Moz of silver at an average rate of 2.6Moz/y.

"I am very encouraged by the results of this PEA which support the Company's organic growth strategy and plan to profitably develop and expand the Cusi mine production rate," said Sierra Metals CEO Luis Marchese.

"The company plans to continue with its disciplined approach of profitable growth and now plans to proceed with the next step of the completion of a prefeasibility study to further de-risk the plan and determine the best path forward."

Cusi hosts measured and indicated silver resources of 31.3Moz and 23Moz of inferred resources.

In October, the company released a PEA to double production from its Bolivar mine in Chihuahua to 10,000tpd to produce 12.9Moz silver, 150,000oz gold and 250,000lb copper.

Sierra reported a 350% year-on-year jump in earnings in the September quarter to $18.4 million up from $4.1 million in the prior year period.

Shares in Sierra Metals are trading at C$3.81, valuing the company at $620 million.