Santacruz Silver Acquires La Pechuga Project Adjacent to Zimapan Mine, Hidalgo,Mexico
TSX.V: SCZ
FSE: 1SZ
January 20, 2020
Santacruz Silver Acquires La Pechuga Project Adjacent to Zimapan Mine, Hidalgo,Mexico
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santa cruz”) reports that
its Mexican subsidiary , Carrizal Mining, S.A de C.V. (“Carrizal”), has acquire d by staking the La Pechuga
property (the “Property”) located adjacent to the Zimapan Mine at Zimapan, Hidalgo, Mexico.
The Property is comprised of one mining concession that covers a land area of approximately 3,025 hectares
and is located 25 kilometers southeast of the Zimapan Mine. It contains several historic mines with
mineralization hosted in carbonate replacement (skarn) of variable width of 3 -8 m, wh ich is intruding the
limestones of the El Doctor Formation. Previous work by Mexico´s Consejo de Recursos Minerales (CRM),
Mexico´s Geological Survey , reported nine underground chip samples collected from the San Miguel mine on
the 120 level with assay results that contain 34 to 770 grams per tonne (“gpt”) silver, trace to 0.50 gpt gold,
0.80% to 21.9% lead, 1.7% to 13.4% zinc and trace to 0.47% copper. Sampling lengths range between 0.80
and 3.00 m and represent the apparent th ickness of the mineralization o n the 120 level **. The 120 level and
the chip samples reported are not representative of the typical mineralization at La Pechuga but is an
indication of strongly polymetallic mineralization within the project area. Santacruz and a qualified person have
not performed sufficient work to verify this information and the information is considered historical.
Mr. Carlos Silva, Chief Operating Officer, stated “ This property is situated in a very promising zone of the
Zimapan Mining District and its proximity to the producing Zimapan Mine makes it a strategic acquisition for
Santacruz.” Mr. Silva continued; “With respect to the Zimapan Mine, management discussions with Peñoles
are at an advanced stage with respect to final terms of an agreement which would allow Santacruz to acquire
the Zimapan assets.”
Any transaction involving the acquisition of the Zimapan assets by the Company will be subject to , among
other things, all necessary regulatory filings and approval s, including the approval of the TSX Venture
Exchange.
** Source: Broines, Alejandro. Estudio Geologica-Minero de Los Fundos San Miguel y Ampliacion san Miguel,
La Pechuga, Municipio de Ixmiquilpan, Hidalgo. Archivo Tecnico 130038, 1976.
Qualified persons
The technical information contained in this news release has been reviewed and approved by Van Phu Bui,
BSc, PGeo, who is independent of the Company and a qualified person under National Instrument 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two p roducing silver projects, Veta Grande and Rosario,
and two exploration properties, the Minillas property and Zacatecas properties. T he Company also owns 100%
of Carrizal Mining S.A. de C.V. Carrizal Mining is a private Mexican mining company, the principa l asset of
which is a 20% working interest in the Company’s Veta Grande Project. Carrizal Mining also has the right to
operate the Zimapan Mine until December 31, 2020 under a mining lease agreement.
The Company is managed by a technical team of profess ionals 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,
President, Chief Executive Officer and Director
For further information please contact:
Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (604) 569-1609
Neither the TSX Venture Exchange nor its Regulation Ser vices 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 contai ned in this news release constitute "forward -looking information" as such term is
used in applicable Canadian securities laws , including statements relating to the finalization of an agreement
with Peñoles and the potential acquisition of the Zimapan Mine by the Company from Peñoles. 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 making the forward -looking statemen ts
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, and
that future metal prices and the demand and m arket outlook for metals will remain stable or improve.
Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause
plans, estimates and actual results to vary materially from those projected in such f orward-looking information.
Factors that could cause the forward-looking information in this news release to change or to be inaccurate
include, but are not limited to, 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 su ccessful in entering into a binding purchase
and sale agreement and thereafter completing the acquisition of the Zimapan Mine (including obtaining the
necessary funding for the purchase price thereof); risk of delay and/or cessation in planned work or changes in
the Company's financial condition and development plans; risks associated with the interpretation 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 deposits and the risk of
unexpected variations in mineral resources, grade and/or recovery rates; market conditions and volatility and
global economic conditions; risks related to gold, silver, base metal an d other commodity price fluctuations;
risks relating to environmental regulation and liability; the possibility that results will not be consistent with the
Company's expectations, as well as the oth er risks and uncertainties applicable to mineral explorat ion and
development activities and to the Company as set forth in the Company's continuous disclosure filings filed
under the Company's profile 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 u ndertakes no obligation to update forward -looking
information or statements, other than as required by applicable law.
Rosario Project
The decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect
were not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but
rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased
uncertainty and economic and technical risks of failure asso ciated with this production decision. Production
and economic variables may vary considerably, due to the absence of a complete and detailed site analysis in
accordance with NI 43-101.
Veta Grande Project
The decision to commence production at the Veta Gra nde Project was not based on a feasibility study on
mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty
and economic and technical risks of failure associated with this production decision. Productio n and economic
variables may vary considerably due to the absence of a complete and detailed site analysis in accordance
with NI 43-101.
Zimapan Mine
Production at t he 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 econo mic variables may vary considerably due to the absence of a
complete and detailed site analysis in accordance with NI 43-101.