SCZ.V · 2024-08-21 12:00:00

Santacruz Silver Announces Mineral Resources and Reserves and Files NI 43-101 Technical Reports for its Bolivian Assets

Resource Estimates Technical Reports (NI 43-101)

News Release

August 21, 2024

Santacruz Silver Announces Mineral Resources and Reserves and Files NI 43-101

Technical Reports for its Bolivian Assets

Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz” or “the Company”) is pleased to

announce its National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant

Mineral Resource and Reserve estimates for its three Bolivian producing assets, the Bolivar mine, Porco mine, and

Caballo Blanco Group of mines (“Caballo Blanco” , and together with the Bolivar mine and the Porco mine, the

“Bolivian Producing Mines” ), and the Sor acaya exploration project (“Soracaya”), also located in Bolivia . The

Mineral Resources and Reserves for the Bolivian Producing Mines were prepared on behalf of the Company by

JDS Energy & Mining Inc . (“JDS”), an international firm specializing in mineral resource evaluation and

development, and the Mineral Resource for Soracaya was prepared on behalf of the Company by Kirkham

Geosystems Ltd. The effective date of all the technical reports is January 1, 2024 , the technical reports for the

Bolivian Producing Mines have been filed on www.sedarplus.ca, and the Soracaya technical report will be filed on

www.sedarplus.ca within 45 days of this news release. All figures are in US dollars unless otherwise indicated.

Highlights:

• Total Proven and Probable Mineral Reserves of 54 million silver equivalent ounces including 19 million ounces

of silver and 259 thousand tonnes of zinc.

• Total Measured and Indicated Resources of 102 million silver equivalent ounces including 32 million ounces

of silver and 518 thousand tonnes of zinc.

• Total Inferred Resources at the Bolivian Producing Mines of 189 million silver equivalent ounces including 72

million ounces of silver and 882 thousand tonnes of zinc.

• Initial Inferred Resource for Soracaya of 35 million ounces of silver.

• Independent third-party verification of Santacruz’ estimation processes reinforce the quality of our Mineral

Resources and Reserves, and the methodology in place to accurately represent them. Garth Kirkham, P.Geo,

FGC, of Kirkham Geosystems Ltd., Richard G oodwin, P.Eng., and Shane Tad Crowie, P. Eng., of JDS who are

Independent Qualified Persons, as defined by NI 43-101 performed the verification.

Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, “This marks a noteworthy milestone for

Santacruz as we continue to build a mid-tier silver and base metals company. The verified Mineral Resources and

Reserves underscore our solid asset base. It is important to note that our Bolivian producing mines are open along

strike and at depth, and with our ongoing exploration program, we believe there is potential to grow the current

Mineral Resources and Reserves.”

Mr. Prestamo added, “The Mineral Reserve estimates use actual information from recent operating data

including: operating costs, selling costs, metallurgical recoveries and smelter cont racts. As such, these estimates

should accurately reflect costs and conditions of exploitation that enabled the application of meaningful cut-off-

grades to the deposit, such that confidence in the resultant mine plans are high. As well, the existing methodology

for Mineral Reserve calculation was verified during the NI 43-101 review, which adds additional confidence to the

veracity of our mine plans and development strategies. In addition, the initial Inferred Resource estimate for

Soracaya suggests that we have another high-quality silver project in our portfolio.”

Important Notes to Mineral Resource and Mineral Reserve tables below:

Mineral Resources and Reserves are stated for the first time under NI 43-101 standards of disclosure and verified

by independent Qualified Persons. Garth Kirkham, P.Geo, FGC, of Kirkham Geosystems Ltd., Richard Goodwin,

P.Eng., and Shane Tad Crowie, P. Eng., of JDS who are Independent Qualified Persons, as defined by NI 43 -101

performed the verification.

Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)

Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices (2019) prepared by the CIM

Standing Committee on Reserve Definitions and adopted by CIM Council.

Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate

of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical,

marketing, or other relevant issues.

An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource

and must not be converted to a mineral reserve. It is reasonably expected that most of the inferred mineral

resources could be upgraded to indicated mineral resources with continued exploration.

Updated structure for operating and sustaining capital costs were applied to the Mineral Resource to confirm

Santacruz generated Mineral Reserves at projected metal prices of $21.00 per ounce silver, $1.15 per pound

zinc, $1.00 per pound lead and $3.65 per pound copper.

Mineral Reserve estimates are derived using actual mining and metallurgical performance data from 2022 at

each operation to deliver robust estimates.

The effective date of the Mineral Resource and Reserve estimates at the Bolivian Producing Mines is January 1,

2023. The effective date of the Mineral Resource estimate at Soracaya is January 1, 2024. Production data for the

calendar year 2023 has been included in Section 24 of the various NI 43 -101 compliant technical reports for the

Bolivian Producing Mines and shows the depletion and typical replenishment of resources and reserves over a

calendar year.

Total Bolivian Producing Mines

Grade Contained Metal

Tonnes

(kt)

(g/t)

(%)

AgEq

(g/t)

(koz)

(kt)

AgEq

(koz)

Measured Mineral Resources 2,147 292 15.01 1.80 915 20,155 322.3 38.8 63,132

Indicated Mineral Resources 1,431 263 13.70 1.77 836 12,118 196.1 25.3 38,460

Measured & Indicated Mineral

Resources 3,578 281 14.49 1.79 883 32,274 518.4 64.1 101,592

Inferred Mineral Resources 7,426 303 11.88 1.32 792 72,395 881.8 98.2 189,169

Proven Mineral Reserves 1,473 255 10.57 1.45 699 12,053 155.7 21.3 33,083

Probable Mineral Reserves 1,117 192 9.22 1.35 582 6,886 103.0 15.1 20,901

Proven & Probable Mineral

Reserves 2,590 227 9.99 1.41 648 18,939 258.6 36.4 53,983

Notes:

1. The combined Mineral Resources and Mineral Reserves include all Bolivian Producing Mines including Bolivar, Porco and the Caballo

Blanco group of mines which consist of the Colquechaquita, Tres Amigos and Reserva mines.

2. The Mineral Resource and Mineral Reserves Estimates were prepared for each operation using a zinc equivalent (ZnEq) cut-off grade

and reporting silver equivalent (AgEq) grade that varies for each operation due to costs and economic parameters that are specific

to each operation and are detailed within the footnotes for each as shown in the following tables.

3. AgEq grade information is presented in this table reflects metal prices of $21.00/oz Ag, $1.15/lb Zn, and $1.00/lb Pb.

4. Certain totals may not add due to the use of rounded numbers.

Bolivar Mine, Bolivia

Grade Contained Metal

Tonnes

(kt)

(g/t)

(%)

(koz)

(kt)

Measured Mineral Resources 855 327 12.78 1.37 9,003 109.3 11.7

Indicated Mineral Resources 677 295 12.24 1.25 6,426 82.9 8.4

Measured & Indicated Mineral

Resources 1,532 313 12.54 1.32 15,429 192.2 20.2

Inferred Mineral Resources 4,202 403 10.35 1.00 54,436 434.8 41.9

Proven Mineral Reserves 742 299 10.65 1.31 7,144 79.1 9.7

Probable Mineral Reserves 495 233 8.92 0.97 3,705 44.1 4.8

Proven & Probable Mineral Reserves 1,237 273 9.96 1.17 10,849 123.2 14.5

Notes:

1. The Mineral Resource estimate was prepared using a 10.6% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz

silver, $1.38/lb zinc and $1.20/lb lead, and process recoveries of 91% for zinc, 70% for lead, and 89.7% for silver.

2. The Mineral Reserve estimate was prepared using a 12.7% zinc equivalent cut-off grade, using the formula ZnEQV = Zn% + 0.7 x Pb%

+ 0.046 x Ag (g/t). This cut-off grade was based on current smelter agreements and metal prices of $21.00/oz silver, $1.15/lb zinc and

$1.00/lb lead, total OPEX costs of $120.22/t based on 2022 actual costs plus capital costs of $48.68/t, with process recoveries of 91.0%

for zinc, 70.0% for lead, and 89.7% for silver.

3. Bolivar and Porco Mines are part of the Illapa Joint Operation with COMIBOL. Bolivar and Porco are presented at 100% production,

whereas the Company records 45% of revenues and expenses in its consolidated financial statements. The Joint Operation agreement

expires in 2028.

Porco Mine, Bolivia

Grade Contained Metal

Tonnes

(kt)

(g/t)

(%)

(koz)

(kt)

Measured Mineral Resources 566 202 17.17 0.88 3,672 97.2 5.0

Indicated Mineral Resources 253 166 16.38 1.02 1,349 41.4 2.6

Measured & Indicated Mineral

Resources 819 191 16.92 0.92 5,021 138.7 7.6

Inferred Mineral Resources 1,007 117 15.16 0.92 3,775 152.6 9.2

Proven Mineral Reserves 162 181 12.53 0.68 944 20.3 1.1

Probable Mineral Reserves 157 142 12.90 0.77 718 20.3 1.2

Proven & Probable Mineral Reserves 319 162 12.71 0.72 1,662 40.6 2.3

Notes:

1. The Mineral Resource estimate was prepared using a 11.2% zinc equivalent cut-off grade. Cut-off grades were derived from $25.2/oz

silver, $1.38/lb zinc and $1.20/lb lead; and process recoveries of 94.3% for zinc, 75.6% for lead, and 88.6% for silver.

2. The Mineral Reserve estimate was prepared using a 13.4% zinc equivalent cut-off grade, using the formula ZnEQV = Zn% + 1.14 x Pb%

+ 0.044 x Ag (g/t). This cut-off grade was based on current smelter agreements and metal prices of $21.00/oz silver, $1.15/lb zinc and

$1.00/lb lead, total OPEX costs of $1 25.02/t based 2022 actual costs plus capital costs of $ 21.79/t, with process recoveries of 9 4.3%

for zinc, 75.6% for lead, and 88.6% for silver.

3. Bolivar and Porco Mines are part of the Illapa Joint Operation with COMIBOL. Bolivar and Porco are presented at 100% production,

whereas the Company records 45% of revenues and expenses in its consolidated financial statements. The Joint Operation agreement

expires in 2028.

Caballo Blanco Group of Mines, Bolivia

Grade Contained Metal

Tonnes

(kt)

(g/t)

(%)

(koz)

(kt)

Measured Mineral Resources 726 321 15.96 3.03 7,481 115.8 22.0

Indicated Mineral Resources 502 269 14.32 2.86 4,343 71.8 14.3

Measured & Indicated Mineral

Resources 1,227 300 15.29 2.96 11,824 187.6 36.4

Inferred Mineral Resources 2,217 199 13.28 2.12 14,183 294.4 47.1

Proven Mineral Reserves 569 217 9.90 1.85 3,965 56.3 10.5

Probable Mineral Reserves 465 165 8.30 1.96 2,463 38.6 9.1

Proven & Probable Mineral Reserves 1,034 193 9.18 1.90 6,428 94.9 19.6

Notes:

1. Caballo Blanco Group of Mines consists of the Colquechaquita, Tres Amigos and Reserva mines.

2. The Mineral Resource estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz

silver, $1.38/lb zinc and $1.20/lb lead; and process recoveries of 92.1% for zinc, 77.2% for lead and 90.8% for silver.

3. The Mineral Reserve estimate was prepared using a 11.9% zinc equivalent cut-off grade, using the formula ZnEQV = Zn% + 1.22 x Pb%

+ 0.051 x Ag (g/t). This cut-off grade was based on current smelter agreements and metal prices of $21.00/oz silver, $1.15/lb zinc and

$1.00/lb lead, total OPEX costs of $106.94/t based on 2022 actual costs plus capital costs of $42.33/t, with process recoveries of 92.1%

for zinc, 77.2% for lead, and 90.8% for silver.

Soracaya Exploration Project, Bolivia

Grade Contained Metal

Tonnes

(kt)

(g/t)

(%)

(koz)

(kt)

Inferred Mineral Resources 4,137 260 1.23 7.23 34,550 50.9 299.1

Notes:

1. The Mineral Resource estimate was prepared using a 10.0% zinc equivalent cut-off grade. Cut-off grades were derived from $25.20/oz

silver, $1.38/lb zinc and $1.20/lb lead; and process recoveries of 92.1% for zinc, 77.2% for lead and 90.8% for silver.

2. A full technical report for Soracaya will be prepared in accordance with NI 43-101 and will be filed on SEDAR+ within 45 days of this news

release.

Quality Assurance/Quality Control and Data Verification

Mineral Resources for the Bolivian Producing Mines were previously performed by local Bolivian staff supported

by Glencore. Currently, the same local technical resources are employed by Santacruz ensuring continuity and

consistency. The Glencore, and now Santacruz, procedures and methods remain and are adhered to. These

procedures and methods have been well documented and follo w industry best practice guidelines and the QP

(Kirkham) performed extensive site investigations for due diligence and audit to validate and verify.

The Boliv ian sites utilize internal laboratories that were reviewed by the technical report authors. Assay

preparation and analytical procedures and methods were reviewed and were acceptable for resource estimation

purposes. Following the facilities visit to the laboratories, systematic checks of the assay databases against the

certified and internal assay databases showed good agreement and the transfer of data is automated to ensure

against transpositional errors. The assay database was in good agreement with the laboratory database. The

laboratory at the Don Deigo process plant in Bolivia is an ISO 17025:2018 certified laboratory.

Independent samples were taken and analysed by an outside independent umpire assay laboratory, SGS Peru

which is ISO 9001 certified laboratory. The results showed good agreement with the original sample assays while

validating and verifying the results of the internal assay laboratories.

The resource block models have been created and maintained in the DatamineTM System, a well-known resource

modelling and mine planning system. The vein domain models were created within LeapFrog TM. Block and vein

domain models were imported into secondary modelling system MineSight TM and were validated and verified.

Furthermore, estimation vein domains and resource block models were independently created by QP (Kirkham)

which showed good agreement with Santacruz models and results.

For all the operating mines, checks were performed to ensure that pillars, sterilized areas and mined out volumes

were accounted for and excluded along with material below topography and overburden. Classification criteria

and methodology was reviewed show ing reasonable and even conservative judgment with respect to threshold

distances and grades for drillhole and channel sample data. Geological and grade continuity was demonstrated,

and cut -off grades were calculated using updated metal prices and actual m ine operating costs. Design

underground stope shapes were utilized for the reporting of resources demonstrating Reasonable Prospect of

Eventual Economic Extraction (“RP3E”).

In conclusion, the assay data, domain models and block estimation models have been validated and verified by

QP (Kirkham). Economic and classification criteria have been adjusted to insure reasonable prospect of eventual

economic extraction. Kirkham assumes responsibility for the resources and states that the data, models and

results reported in the resource estimates may be relied upon to report.

The reserves for all assets were prepared by Sinchi Wayra in DeswikTM. JDS (QP Goodwin) verified that the correct

dilution and recovery factors were applied to the stope shapes, that inferred resources were not used in any stope

reserves, manually checked all calculations, and verified the tonnages and metal content of each reserve estimate.

Other factors that were checked include equipment rates, historic production performance, predicted stoping

productivities, and mining sequence assumptions. On the basi s of this QA/QC review, the QP (Goodwin) verified

that the Deswik-based reserves have been correctly estimated and assumes responsibility for them.

Cutoff grade (COG) criteria were also developed using the site metallurgical data and smelter contracts. The final

reserve was estimated by the application of these factors (mining dilution, mining recovery, COG) to the LOM plan

and the elimination of all inferred resources in the stope shapes.

The QP (Goodwin) is satisfied that this exercise resulted in a valid result and assumes responsibility for the reserve

estimation.

Qualified Person

The Mineral Resource and Reserve estimates were prepared under the supervision of Garth Kirkham, P.Geo, FGC,

of Kirkham Geosystems Ltd., Richard Goodwin, P.Eng., and Shane Tad Crowie, P. Eng., of JDS who are Independent

Qualified Persons, as defined by N I 43-101. Mr. Kirkham , Mr. Goodwin , and Mr . Crowie have reviewed and

approved the scientific and technical information contained in this news release.

Wayne Corso, P.Eng., a consultant to the Company, is a qualified person under NI 43-101 and has approved the

scientific and technical information related to operational matters contained in this news release.

About Santacruz Silver Mining Ltd.

Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral properties in

Latin America. The Bolivian operations are comprised of the Bolivar, Porco and the Caballo Blanco Group, which

consists of the Tres Amigos, Reserva and Colquechaquita mines. The Soracaya exploration project and San Lucas

feed sourcing business are also in Bolivia. The Zimapan mine is located in Mexico.

‘signed’

Arturo Préstamo Elizondo,

Executive Chairman and CEO

For further information please contact:

Arturo Préstamo

Santacruz Silver Mining Ltd.

Email: [email protected]

Telephone: +52 81 83 785707

Sabina Srubiski

Manager, Investor Relations

Santacruz Silver Mining Ltd.

Email: [email protected]

Telephone: +1 888 883 2011

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

This news release includes certain statements and information that may constitute forward-looking information

within the meaning of applicable Canadian securities laws. Forward -looking statements relate to future events

or future performance and reflect th e expectations or beliefs of management of the Company regarding future

events. Generally, forward-looking statements and information can be identified by the use of forward -looking

terminology such as “intends”, “expects” or “anticipates”, or variations of such words and phrases or statements

that certain actions, events or results “may”, “could”, “should”, “would” or will “potentially” or “likely” occur.

This information and these statements, referred to herein as "forward‐looking statements", are not his torical

facts, are made as of the date of this news release and include without limitation, statements regarding the

Company continuing to build a mid -tier silver and base metals company , the filing of a technical report for

Soracaya on SEDAR+, the accuracy of the Mineral Reserve and Resource estimates, and the potential to grow the

current Mineral Resources and Reserves.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ

materially from results suggested in any forward -looking statements. These risks and uncertainties include,

among other things, risks that the Company will not continue to build a mid-tier silver and base metals company,

that the Company will not file a technical report for Soracaya on SEDAR+ on the anticipated timeline, or at all,

that the Mineral Reserve and Resource estimates will be less accurate than management currently anticipates,

that it is not possible to grow the current Mineral Resources and Reserves , risks related to changes in general

economic, business and political conditions, including changes in the financial markets, changes in applicable

laws, and compliance with extensive government regulation, as well as those risk factors discussed or referred to

in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of

Canada and available at www.sedarplus.ca.

In making the forward -looking statements in this news release, the Company has applied several material

assumptions, including without limitation, the assumption that the Company will continue to pursue its goal of

building a mid-tier silver and base metals company, that the Company will file a technical report for Soracaya on

SEDAR+ within 45 days of this news release, that there is the potential to grow the current Mineral Resources

and Reserves, that because the Mineral Reserve estimates use actual information from recent operating data

they should accurately reflect costs and conditions of exploitation that enabled the application of meaningful

cut-off-grades to the deposit, and that the estimation of Mineral Resources may be impacted by environmental,

permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

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 update forward-looking information or statements, other than as required by applicable law.

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