Santacruz Silver Achieves Record Production of 394,160 Silver Equivalent Ounces in October
TSX.V: SCZ
FSE: 1SZ
November 18, 2020
Santacruz Silver Achieves Record Production of 394,160 Silver Equivalent Ounces in October
Vancouver, B.C. – Santacruz Silver Mining Lt d. (TSX.V:SCZ) (the “Company” or “S antacruz”) is pleased to
announce that total consolidated production for the month of October of 2020 reached 394,160 silver equivalent
ounces (“AgEq”) at the Zimapan Mine and Rosario Mine in Mexico.
Mr. Carlos Silva, CEO, stated; “After recently closing our private placemen t and securing new underground
equipment, our mines immediately saw efficiency and production improvements which are reflected in the monthly
production statistics. We expect continued improvements and anticipate a robust production increase for this
fourth quarter of 2020.” M r. Silva continued; “The acquisition of the new mining equipment when taken tog ether
with the organizational changes and strategic decisions made during Q2 are resulting in more rel iable operations
at improved production rates and related lower production costs.”
October Consolidated Production Results
Summary of Production Results October
2020
Monthly
Average
Q3 2020
Third
Quarter
2020
Material Processed (tonnes milled) 68,862 58,880 176,640
Silver eqv. ounce production(1) (2) 394,160 325,893 977,679
Silver production (ounces) (2) 129,192 101,374 304,123
Gold production (ounces) (2) 26 19 59
Lead production (tonnes) (2) 469 360 1,080
Zinc production (tonnes) (2) 1,189 1,013 3,041
Copper production (tonnes) (2) 143 77 395
Average Head Grade (g/t Ag Eqv.)(1) 246 231 231
Development (metres) 1,015 701 2,103
October Zimapan Mine Production Results
Summary of Production Results October
2020
Monthly
Average
Q3 2020
Third
Quarter
2020
Material Processed (tonnes milled)(2) 62,543 54,948 164,846
Silver eqv. ounce production(1) (2) 363,715 306,995 920,985
Silver production (ounces)(2) 114,039 94,253 282,760
Silver head grade (g/t) 81 73 73
Lead head grade (%/t) 0.81 0.72 0.72
Zinc head grade (%/t) 2.60 2.40 2.40
Copper head grade (%/t) 0.32 0.33 0.33
Silver recovery (%) 69.8 72.3 72.3
Lead production (tonnes)(2) 446 349 1,048
Zinc production (tonnes)(2) 1,111 947 2,841
Copper production (tonnes)(2) 143 131 395
Average Head Grade (g/t Ag Eqv.)(1) 253 234 234
Development (metres) 777 567 1,701
October Rosario Project Production Results
Summary of Production Results October
2020
Monthly
Average
Q3 2020
Third
Quarter
2020
Material Processed (tonnes milled) 6,319 3,931 11,794
Silver eqv. ounce production(1) 30,344 18,897 56,693
Silver production (ounces) 15,153 7,121 21,363
Silver head grade (g/t) 85 66 66
Gold head grade (g/t) 0.20 0.24 0.24
Lead head grade (%/t) 0.43 0.31 0.31
Zinc head grade (%/t) 1.46 2.06 2.06
Silver recovery (%)(2) 87.9 85.9 85.9
Gold production (ounces) 26 19.6 59
Lead production (tonnes) 24 10.6 32
Zinc production (tonnes) 77 66.6 200
Average Head Grade (g/t Ag Eqv.)(1) 178 183 183
Development (metres) 238 134 402
(1) AgEqvOz = (Au*Pau)+(Ag*Pag)+(Pb*Ppb*2205)+(Zn*Pzn*2205)+(Cu*Pcu*2205)
(Pag)
Metal Prices 2020: Ag $17.85, Au $1,480, Pb $0.92, Zn $1.09, Cu $2.80
Metal Prices 2019: Ag $15.25, Au $1,281, Pb $0.94, Zn $1.20, Cu $2.92
(2) Q3 2019 production results at the Zimapan Mine reflect 50% of total production whereas the Q2 and Q3 2020 results reflect 100%.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company that curren tly owns and operates the Rosario Mine. The
Company also owns 100% of Carrizal Mining S.A. de C.V. Carrizal Mining holds a 20% w orking interest in the
Company’s Veta Grande Project and has the right to operate the Zimapan Mine until December 31, 2020 under a
mining lease agreement. On July 28, 2020 the Company announced that it had reach ed agreement with Minera
Cedros, S.A. de C.V . (“Minera Cedros”), a wholly owned subsidiary of Industrias Peñoles, S.A.B. de C.V., to
acquire outright the Zimapan Mine for US$20 .0 million (plus applicable IVA of US$3.2 million ), subject to a
number of condi tions, including receipt of all necessary re gulatory approvals including approval of the TSX
Venture Exchange (" TSXV") to the transaction which will constitute a "Fund amental Acquisition" pursuant to
TSXV Policy 5.3.
The Company is managed by a technical team of professionals with proven track records in developing, operating
and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.
‘signed’
Arturo Préstamo Elizondo,
Excutive Chairman
For further information please contact:
Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: +52 81 8378-5707
Mars Investor Relations
+ 1(778) 999-4653
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 information
Certain statements contained in this news release constitute "forward-looking information" as such term is used in
applicable Canadian securities laws , including the agreement with Minera Cedros and the acquisition of the
Zimapan Mine by the Company . Forward-looking information is based on plans, expectations and estimates of
management at the date the information is provided and is subject to certain factors and assumptions. In mak ing
the forward -looking statements included in this news release, the Company has applied several material
assumptions, including that the Company's financial condition and development plans do not change as a result
of unforeseen events, that the Company will receive all required regulatory approvals and that future metal prices
and the deman d and market outl ook for metals will remain stable or improve. Forward -looking information is
subject to a variety of risks and uncertainties and other factors that c ould cause plans, estimates and actual
results to vary materially from those projected in such forward-looking information. Factors that could cause the
forward-looking information in this news release to change or to be inaccurate include, but are not li mited to,
unanticipated delays in obtaining or failure to obtain regulatory or stock exch ange approvals; the risk that any of
the assumptions referred to above prove not to be valid or reliable; there can be no assurance that the Company
will be successful in completing the acquisition of the Zimapan Mine (including obtaining the necessary fun ding);
risk of de lays or inability to obtain the approval of the TSXV to the acquisition of the Zimapan Mine; market
conditions and volatility and global economic cond itions, including increased volatility and potentially negative
capital raising condition s resulting from the continued COVID-19 pandemic and risks relating to the extent and
duration of such pandemic and its impact on global markets ; risk of delay and/or cessation in planned work or
changes in the Company's financial condition and development plans; risks ass ociated with the interpreta tion of
data (including in respect of the third party mineralized material) regarding the geology, grade and continuity of
mineral deposits; the uncertainty of the geology, grade and continuity of mineral deposit s and the risk of
unexpected variations in m ineral resources, grade and/or recovery rates; risks related to gold, silver, base metal
and other commodity price fluctuat ions; risks relating to environmental regulation and liability; the possibility that
results will not be c onsistent with the Company' s expectations, as well as the other risks and uncertainties
applicable to mineral exploration and development activities a nd to the Company as set forth in the Company's
continuous disclosure filings filed under the Company's pr ofile at www.sedar.com. There can be no assurance
that any forward -looking information will prove to be accurate , as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance
on forward-looking information or statements. The Company undertakes no obligation to updat e forward-looking
information or statements, other than as required by applicable law.
Rosario Project
The decisions to commence prod uction at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect
were not based on a feasibility study of minera l reserves demonstrating economic and technical viability, but
rather on a more prelimi nary estimate of in ferred mineral resources. A ccordingly, there is increased uncertainty
and economic and technical risks of failure associated with this production deci sion. Production and economic
variables may vary considerably, due to the absence of a complete and detailed site analysis according to and in
accordance with NI 43-101.
Zimapan Mine
Production at the Zimapan Mine is not supported by a feasibility study on mineral reserves demonstrating
economic and technical viability or any other independent economic study under NI 43-101. Accordingly, there is
increased uncertainty and economic and technical risks of failure associated with production operations at the
Zimapan Mine. Production and economic variables may vary considerably due to the absence of a complete and
detailed site analysis accordi ng to and in accordance wit h NI 43 -101. There is no assurance that the Company
will be successful in negotiating and completing any acquisition of the Zimapan Mine. Any transaction to acquire
the Zimapan Min e will be subject to receipt of all necessary reg ulatory approvals, includin g Santacruz obtaining
the approval of the TSX Venture Exchange.