Santacruz Silver Discovers Mineralized Vein Cross Cutting Membrillo Structure
TSX.V: SCZ
FSE: 1SZ
June 19, 2017
Santacruz Silver Discovers Mineralized Vein Cross Cutting Membrillo Structure
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
further to the Company’s press release of May 29, 2017 wherein it announced that it had acquired an
exclusive five year right to explore, develop and mine the Membrillo silver-zinc-lead-gold vein structure (the
“Membrillo Prospect”) located approximately four km from the Company’s Rosario Project mill facility located
near Charcas, San Luis Potosi, Mexico, Santacruz provides the following update.
Santacruz’s mining activities at the Membrillo Prospect have been focused on drifting to access the Membrillo
vein that generally strikes NW -SE and dips approximately 45 to 60 degrees to the southwest . This
underground development has intersected a previously unknown E -W st riking vein structure that dips
approximately 50 to 52 degrees to the Southwest and is infilled by quartz, carbonate and sulfide minerals. This
previously unknown vein is now known as the San Rafael v ein. To date the Company has completed
approximately 68 meters of drifting on Level 1 along the San Rafael vein where the true width of the vein is
approximately 0.50 to 1.6 meters wide.
To date the Company has received assay results for 41 chip samples completed across the San Rafael vein
on Level 1. Within the first 33 meters of Level 1, 26 chip samples returned assay results of trace-0.64 grams
per tonne gold, trace-154.29 grams per tonne silver, 0.03- 0.94 percent lead, and 0.28- 24.65 percent zinc over
sampling widths of 0.5- 4.20 meters. This is followed b y 35 meters of higher grade mineralization where 15
chip samples returned assay results of 0.28- 1.44 grams per tonne gold, 55.26- 770.54 grams per tonne silver,
0.12-15.92 percent lead and 4.23-20.09 percent zinc over sampling widths of 0.5-1.60 meters.
A review of available exploration data indicates no record of historical drill holes completed at the Membrillo
Prospect that have intersected the San Rafael vein , or other previous exploration activities on the San Rafael
vein. Currently, the vertical and horizontal continuity of the San Rafael vein and the extent of mineralization
hosted by the vein structure is unknown. Given that the San Rafael vein was intersected at a vertical depth of
only 25 meters below surface, Santacruz undertook a stripping and trenching program to trace the surface
expression of the San Rafael vein. Results are pending.
Ground conditions while drifting along the San Rafael vein are favourable with no rock bolting or other
structural support required. The dilution while mining the San Rafael vein is expected to be 25% on drifts and
15% on stopes.
“This is a very exciting development for Santacruz,” stated President and CEO Arturo Prestamo. “Not only
does the San Rafael vein potentially provide a new source of feed for our Rosario mill facility , at some of the
highest grades that the Company has ever assayed in the area, but there are three other areas on the Rosario
property where similar E -W post mineralized structures have been identified, but have never been
systematically evaluated. The NW-SE veins have been the predominant focus of most historic exploration but
with the discovery of the San Rafael vein, Santacruz will broaden its exploration focus to evaluate the E -W
structures on both the Rosario and Membrillo veins.”
In addition to development work on the San Rafael vein, the drift to intersect the Membrillo vein proximate to
where historic drilling indicates higher grade mineralization is expected to be completed within the coming
weeks. D evelopment plans at the Membrillo Prospect include the completion of a ramp to access the San
Rafael vein and the Membrillo vein from a sub- level 12 meters below Level 1. Feed from the San Rafael vein
is now being transported to the Rosario Project mill facility.
Sampling and laboratory
Chips samples are collected across the back of the underground workings at 1.5 meter sample intervals and
are oriented perpendicular to the vein structure. Blanks, standards and duplicate control samples were not
utilized in the sampling procedure.
Samples are analyzed at the Rosario laboratory, which is owned and operated by Santacruz. The Rosario
laboratory is designed to serve the mining operations at the Rosario project. It is not independent of the
Company and is not ISO certified. Samples are prepared by drying, crushing, rifle splitting and pulverizing
80% to less than 75 microns passing 200 mesh, Samples are analyzed by three- acid digestion and atomic
absorption spectrometry. Gold and silver are further analyzed by fire assay with gravimetric finish.
Qualified persons
The technical information contained in this news release has been reviewed and approved by Van Phu Bui,
B.Sc., P. Geo., 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 (Rosario, including the
Cinco Estrellas property and Membrillo Vein , and the right to operate the Veta Grande silver project and
milling facilit y); and three exploration properties including the Gavilanes property, Minillas property and
Zacatecas properties. The Company is managed by a technical team of professionals with proven track
records in developing, operating and discovering silver mines i n 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:
Neil MacRae
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (604) 569-1609
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 included in this news release, the Company has
applied several material assumptions, including but not limited to, 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 future 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 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 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) 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 f ailure associated with this production decision. 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 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 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.