Santacruz Silver Continues to Expand the High Grade Foot-Print At its Veta Grande Property in Zacatecas
TSX.V: SCZ
FSE: 1SZ
October 22nd, 2018
Santacruz Silver Continues to Expand the High Grade Foot-Print
At its Veta Grande Property in Zacatecas
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) is pleased to provide an
update from the Phase I drill program ongoing on the Veta Grande , Armados, and Navidad vein s that form part of the
Company’s Veta Grande Project located in the Zacatecas mining district , Zacatecas, Mexico (see press release dated
July 9, 2018). Diamond drilling is well on its way to better define the Veta Grande and Navidad veins from surface while
an underground drill rig will be used to better define the Armados vein. To date, 19 drill holes totalling 6,165 metres have
been completed.
Initial drill results at the Navidad vein are confirming high -grade vein intersections near surface and close to existing mine
workings. Highlights include drill hole NA18-006 that intersected 668.84 grams per tonne silver , 0.17 grams per tonne
gold, and 0.12 percent copper (698.35 grams per tonne silver -equivalent) over 1.95 metr es (approximated true width ),
from 56.6 metres to 58.75 metr es. In addition to this, the Veta Grande vein is also confirming strong mineralization to the
north.
Carlos Silva, COO of Santacruz, commented; “ With th ese drill results at the Navidad vein, and higher grade intercepts
along the northern strike of the Veta Grande vein, we continue to demonstrate the potential of this high-grade mineralized
district.” Mr. Silva added; “ We recently identified the potential of the Navidad vein, which has never b een systematically
explored, and results thus far are extremely encouraging. Drilling is continuing with an additional 14,000 metr es of
diamond drilling budgeted.”
Veta Grande Project Assay Results
Length True Width Au Ag Pb Zn Cu AgEq
mts. mts. g/t
ARMADOS AR18-006 184.85 185.2 0.35 0.33 0.63 68.00 2.92 10.40 0.35 948.66
ARMADOS AR18-007
ARMADOS AR18-008 113.95 114.65 0.7 0.36 0.06 304.00 0.00 0.83 0.02 363.28
NAVIDAD NA18-001 159.5 160.35 0.85 0.51 0.20 65.41 0.00 1.08 0.40 199.75
NAVIDAD NA18-001 72.25 73.75 1.5 0.36 0.00 105.00 0.04 0.07 0.00 111.21
NAVIDAD NA18-002 67.15 68.1 0.95 0.82 0.01 284.00 0.00 0.00 0.07 293.42
NAVIDAD NA18-002 88 89.55 1.55 1.34 0.57 19.29 0.56 2.07 0.26 253.26
NAVIDAD NA18-002 94.35 95 0.65 0.56 1.60 69.00 4.71 9.52 0.89 1124.46
NAVIDAD NA18-002 127.75 129.65 1.9 1.65 0.81 38.16 3.25 11.30 0.01 960.57
Including 128 129 1 0.87 1.12 55.00 5.64 16.80 0.01 1456.14
NAVIDAD (ALTO) NA18-003 67.9 70.95 3.05 2.34 0.17 35.00 0.79 5.72 0.07 451.73
NAVIDAD NA18-004 79 81.1 2.1 1.48 0.12 312.67 0.00 0.53 0.29 393.25
NAVIDAD NA18-004 111.1 111.6 0.5 0.38 0.30 0.00 0.00 1.42 0.16 132.83
NAVIDAD NA18-004 112.85 113.45 0.6 0.46 0.33 0.00 0.00 6.12 0.10 421.96
NAVIDAD NA18-004 116.05 116.4 0.35 0.27 0.36 18.00 1.44 1.39 0.25 231.75
NAVIDAD (ALTO) NA18-005
NAVIDAD (ALTO) NA18-006 56.6 58.75 2.15 1.95 0.17 668.84 0.00 0.00 0.12 698.35
Including 56.6 57.5 0.9 0.82 0.29 1220.00 0.00 0.00 0.12 1258.54
NAVIDAD (ALTO) NA18-006 61.75 62.55 0.8 0.75 0.02 128.00 0.00 0.00 0.07 138.17
NAVIDAD (ALTO) NA18-006 65.6 66.45 0.85 0.77 0.03 92.76 0.00 0.00 0.03 98.61
NAVIDAD NA18-006 165.85 166.2 0.35 0.27 0.59 259.00 0.00 0.00 0.28 341.91
SAN LORENZO (NAVIDAD) NA18-006 168 170 2 1.88 0.56 129.15 0.00 3.03 0.63 444.62
VETA GRANDE (ESPERANZA) VG18-004 443.95 446.25 2.3 2.26 0.05 43.87 1.43 1.40 1.02 333.48
VETA GRANDE (LA FLOR) VG18-004 459.2 465.55 6.35 4.86 0.16 30.48 0.14 0.70 1.89 337.29
VETA GRANDE VG18-005 425.6 429.55 3.95 3.03 0.13 57.51 1.47 1.82 1.87 490.30
Including 426.65 427.1 0.45 0.34 0.07 195.00 10.20 11.20 5.79 2117.88
No Significant Intersections
No Significant Intersections
VEIN DDH From To g/t %
Silver equivalent (AgEq) in the drill results assumes $1,331 per ounce Au (Pau), $16.73 per ounce Ag (Pag),
$1.13 per pound Pb (Ppb), $1.53 per pound Zn (Pzn), and $3.14 per pound Cu (Pcu) with 100-per-cent metallurgical
recovery. The formula used in the calculation is as follows:
EqAg (g/t) equals [(Au multiplied by Pau divided by 31.1035) plus (Ag multiplied by Pag divided by 31.1035) plus (Pb
multiplied by Ppb multiplied by 22.05) plus (Zn multiplied by Pzn multiplied by 22.05) plus (Cu multiplied
by Pcu multiplied by 22.05)] divided by (Pag).
Quality control/quality assurance program
All drill core was logged, photographed and cut in half with a diamond saw. Half -core samples were sent to SGS Minerals
Services in Durango, Mexico (17025 accredited), for preparation and analysis. Drill core samples were analyzed for 33
elements by four -acid digestion of a 0.5 -gram sample followed by an ICP -AES (inductively coupled plasma atomic
emission spectroscopy) finish. Overlimit for Pb, Zn and Cu were further analyzed by sodium peroxide fusion of a 0.5 -gram
sample followed by ICP -AES finish. Au and Ag was also analyzed by f ire assay of a 30 -gram sample followed by AAS
(atomic absorption spectroscopy) finish for Au and gravimetric finish for Ag.
As part of the company's quality assurance/quality control (QA/QC) program, independently certified control samples
(standard and blank pulp samples) were inserted in each analytical batch. Field duplicate samples were also submitted for
analysis. The control and duplicate sample results were then checked to ensure proper QA/QC.
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 wi th two pr oducing silver projects ( Veta Grande Project and Rosario
Project) and two exploration properties (Minillas P roperty and Zacatecas Properties). The Company is managed by a
technical team of professionals with proven track records in developing, ope rating 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: (011) (52) 81 8378 5707
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. 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 statements in cluded in this news release, the Company has applied several material assumptions, that
the Company's financial condition and development plans do not change as a result of unforeseen events, that third party
mineralized material to be milled by the Compan y will have properties consistent with management's expectations, that
the Company will receive all required regulatory approvals, and that future metal prices and the demand and market
outlook for metals will remain stable or improve. Forward -looking inf ormation 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 forward -looking information. Factors that could cause the forward -looking in formation 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 prove not to be
valid or reliable, which could result in lower revenue, higher cost, or lower production levels; delays and/or cessation in
planned work; changes in the Company's financial condition and development plans; delays in regulatory approval; risks
associated with the interpretation of data (including in respect of the third party mineralized material) rega rding the
geology, grade and continuity of mineral deposits; the possibility that results will not be consistent with the Company's
expectations, as well as the other risks and uncertainties applicable to mineral exploration 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, a s 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.
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 r eserves 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 associated with this production decisio n. 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.
Veta Grande Project
The decision to commence production at Veta Grande Project was not ba sed 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. Production and economic varia bles may vary considerably due to
the absence of a complete and detailed site analysis according to and in accordance with NI 43 -101.