Santacruz Silver Continues to Intersect High Grade Mineralization at Its Veta Grande Project IN Zacatecas, Mexico
TSX.V: SCZ
FSE: 1SZ
June 26, 2019
SANTACRUZ SILVER CONTINUES TO INTERSECT HIGH GRADE MINERALIZATION
AT ITS VETA GRANDE PROJECT IN ZACATECAS, MEXICO
Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) provides an update from the Phase
1 drill program on the Veta Grande, Armados and Navidad veins that form part of the Company's Veta Grande
project located in the Zacatecas mining dist rict, Zacatecas, Mexico (see press release dated July 9, 2018). To
date, the Company has completed 43 diamond drill holes totalling 13,665 metres on the property. This update
references 24 of the 43 drill holes, representing 7,500 metr es of surface exploration drilling at the Garcia and
Navidad mines since October 2018 (see news release dated October 22, 2018). Drilling is ongoing.
Fourteen drill holes totalling 2,473 metres completed at the Navidad mine (Navidad vein) continues to intersect
mineralized quartz veins approximately 20-40 metres below the existing mine workings. In addition, a fan of five
drill holes located 130 metr es south of the historically mined stopes have confirmed the continuation of
mineralization along strike. Drill hole intercept highlights stated as approximate true width include:
• NA18-009: 761.00 grams per tonne (“g/t”) silver, 0.20 g/t gold, 0.86 % lead, 1.84 % zinc and 0.04 %
copper (918.11 g/t silver equivalent (“AgEq”)) over 0.55 metres, from 51.20 metres, and
• NA18-010: 65.05 g/t silver, 0.75 g/t gold, 1.23 % lead, 3.84 % zinc and 0.03 % copper (391.57 g/t AgEq)
over 1.94 metres, from 134.85 metres.
Ten drill holes totalling 5,027 metr es completed at the Garcia mine (Veta Grande and Esperanza veins)
continues to intersect the Veta Grande and Esperanza veins approximately 10 -100 metres below the existing
mine workings on the northwest area of the mine. Drill hole intercept highlights stated as approximate true width
include:
• VG18-010: 227.51 g/t silver, 0.88 g/t gold, 2.71 % lead, 2.64 % zinc and 0.19 % copper (581.47 g/t
AgEq) over 2.40 metres from 512.45 metres, and
• VG18-014a: 280.10 g/t silver, 0.61 g/t gold, 3.60 % lead, 3.24 % zinc and 0.22 % copper (684.94 g/t
AgEq) over 1.59 metres, from 489.85 metres.
Quartz veins described in this release generally consist of banded, cockade and brecciated quartz vein textures
typical of the low -sulfidation epithermal style vei ning present at the Veta Grande project. In drill core, visible
mineralization consists of argentite, galena and sphalerite.
Carlos Silva, Chief Operating Officer of Santacruz, commented, “We are pleased with the progress of Phase 1
of the diamond drilling campaign . These drill results , in addition to those previously announced , confirm the
continuation of the targeted mineralized veins along strike and at depth. ” Mr. Silva continued , “We have just
started to realize the potential of this Zacatecas historical mining district where we control over 9,000 hectares
covering a significant number of known veins and mineralized areas. Our plan is to build in Zacatecas a solid
silver producing asset.”
Veta Grande Project Assay Results
VEIN DDH
From
(m)
To
(m)
Length
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
AgEq
(g/t)
Navidad Lower NA18-007 145.40 145.95 0.55 0.53 0.05 94.00 0.06 0.17 0.04 114.47
Navidad Upper NA18-008 48.25 48.70 0.45 0.44 0.02 179.00 0.15 0.30 0.01 203.64
Navidad Upper NA18-009 51.20 51.75 0.55 0.52 0.20 761.00 0.86 1.84 0.04 918.11
Navidad NA18-010 134.85 137.80 2.95 1.94 0.75 65.05 1.23 3.84 0.03 391.57
(other) And 155.00 155.40 0.40 0.26 2.19 222.00 0.42 0.79 0.06 473.05
Navidad NA18-011 185.30 186.30 1.00 0.42 2.02 48.50 2.05 4.25 0.09 544.09
Navidad Upper NA19-018 90.05 90.65 0.30 0.30 0.07 254.00 0.23 0.70 0.03 310.73
Navidad NA19-020 83.55 87.40 1.15 1.15 0.09 100.00 0.09 0.18 0.01 122.33
Esperanza VG18-006 329.10 329.50 0.40 0.31 0.62 893.00 1.20 1.22 0.14 1078.44
Veta Grande And 403.20 408.45 5.25 4.02 0.16 68.38 2.89 3.94 0.28 450.56
Veta Grande VG18-008 459.05 459.75 0.70 0.47 0.56 39.00 0.43 0.39 0.02 127.53
Veta Grande And 464.05 464.75 0.70 0.47 0.77 41.00 1.33 2.69 0.09 318.51
Veta Grande And 465.80 470.95 5.15 3.45 0.46 60.09 1.42 1.89 0.14 277.56
Veta Grande And 471.50 472.20 0.70 0.47 0.33 40.00 0.58 0.41 0.08 123.32
(other) VG18-009 494.75 495.80 1.05 0.94 0.62 50.00 0.02 0.02 0.03 107.39
(other) And 504.40 505.35 0.95 0.85 0.10 65.32 1.85 1.95 0.11 270.68
(other) And 514.50 515.30 0.80 0.72 0.02 53.00 3.27 3.46 0.13 395.76
Veta Grande And 533.70 534.50 0.80 0.72 0.08 33.00 1.51 2.66 0.10 259.41
Veta Grande And 538.00 538.60 0.60 0.54 0.04 36.00 2.07 1.46 0.12 220.18
Veta Grande VG18-010 512.45 515.50 3.05 2.40 0.88 227.51 2.71 2.64 0.19 581.47
Veta Grande Including 512.45 513.05 0.60 0.47 1.06 633.00 1.24 2.93 0.13 948.60
(other) And 528.60 529.80 1.20 0.95 0.22 18.50 0.47 1.56 0.09 152.52
(other) And 530.85 532.40 1.55 1.22 0.04 25.19 0.73 1.25 0.07 134.73
Veta Grande
Upper VG19-012 329.60 331.60 2.00 1.78 2.41 64.68 2.65 7.64 0.16 810.21
Veta Grande
Upper And 332.65 334.50 1.85 1.65 0.67 17.31 0.05 2.10 0.03 193.62
Veta Grande
Upper And 335.05 336.90 1.85 1.65 1.27 31.76 0.08 3.49 0.12 344.85
Veta Grande And 354.45 358.45 4.00 3.56 2.15 23.51 0.03 3.36 0.04 391.58
Veta Grande And 360.35 361.00 0.65 0.58 0.97 11.00 0.01 1.10 0.01 153.55
Veta Grande And 362.95 363.50 0.55 0.49 0.69 112.00 0.77 1.50 0.02 285.89
(other) VG19-013 268.15 268.60 0.45 0.35 0.64 119.00 10.90 2.43 0.08 774.45
Esperanza And 346.05 347.35 1.30 1.02 1.61 79.69 0.04 3.97 0.05 437.13
Veta Grande VG19-
014A 489.85 491.70 1.85 1.59 0.61 280.10 3.60 3.24 0.22 684.94
Veta Grande Including 490.55 491.00 0.55 0.47 0.44 512.00 0.49 0.89 0.08 627.12
Veta Grande And 493.45 495.40 1.95 1.67 0.13 102.92 2.85 0.42 0.04 261.83
Veta Grande Including 494.65 495.40 0.75 0.64 0.05 146.00 7.10 0.41 0.06 480.11
No significant intersections were encountered in drill holes NA18-012 to NA18-17, NA18-19, VG18-007, VG18-
011, and VG18-014. Drill hole VG18 -014 was abandoned due to poor ground conditions and drill hole VG18 -
014A was completed in its place. Mineralized intersections were selected based on a 100g/t AgEq cut-off grade.
AgEq in the drill results assumes $1,281 per ounce Au (Pau), $15 .25 per ounce Ag (Pag), $0.94 per pound Pb
(Ppb), $1.20 per pound Zn (Pzn) and $2.70 per pound Cu (Pcu) with 100-per-cent metallurgical recovery (US
Dollars).
The formula used in the calculation is as follows:
AgEq (g/t) equals (Au multiplied by Pau divided by 31.1035) plus (Ag multiplied by Pag/31.1035) (plus Pb multiplied by
Ppb multiplied by 22.05) plus by (Zn multiplied by Pzn multiplied by 22.05) plus (Cu multiplied by Pcu multiplied by
22.05) (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. Over -limits for lead, zinc and copper 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 fire 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 certif ied control
samples (standard and blank pulp samples) were inserted in each analytical batch. The control 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 with two producing silver projects (Veta Gr ande project and
Rosario project). The Veta Grande project includes the producing Veta Grande property and two exploration
properties – the Minillas and Zacatecas properties. The Rosario project includes the producing Membrillo
prospect. The company is man aged by a technical team of professionals with proven records in developing,
operating and discovering silver mines in Mexico. The company's corporate objective is to become a mid -tier
silver producer.
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 informa tion is provided and is subject to certain factors and
assumptions. In making the forward-looking statements included 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 Company will have
properties consistent with management's expectations, that the Company will receive all required regulatory
approvals, and that futu re metal prices and the demand and market 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 mater ially 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 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; risk s 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 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, 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.
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 associated with this production decision. Production and economic
variables may vary considerably, due to the absence of a complete and detailed site ana lysis according to and
in accordance with NI 43-101.
Veta Grande Project
The decision to commence production at Veta Grande 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. Production and eco nomic
variables may vary considerably due to the absence of a complete and detailed site analysis according to and
in accordance with NI 43-101.