Santacruz Silver Discovers Three High Grade Veins During Initial Holes of Phase 1 Drilling of Veta Grande Property, Zacatecas
TSX.V: SCZ
FSE: 1SZ
Jul 09, 2018
Santacruz Silver Discovers Three High Grade Veins During Initial Holes of Phase 1 Drilling of
Veta Grande Property, Zacatecas
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports initial
Phase I drill results from ongoing drill program at the Garcia and Armados mines that form part of the
Company’s Veta Grande Project located in the Zacatecas mining district, Zacatecas, Mexico. The objective of
the drill program is to better define the down dip extension of the Veta Grande and Armados veins through
surface and underground core drilling. To date ten drill holes totaling 3,323 meters of core drilling has been
competed on the property and the Company has received results for the first six drill holes.
Seven drill holes (AR18 -001 to AR18-007) were collared from underground drill stations at the Armados mine
where core drilling has led to the discovery of three on echelon high grade vein s (named San Abraham, San
Patricio and Sistema Santacruz) that are located in the footwall of the Armados vein. The mineral tenure of the
three new veins demonstrates much higher lead (up to 11.5%) , zinc (up to 19.6%), copper (up to 0.43%), and
gold (up to 1.91 g/t) than is seen in the Armados vein where lead and zinc grades are typically less than 0.5%
and where gold is typically absent. Additional core drilling is required to adequately characterize these new
veins. With the present information, m anagement believes the new veins may represent a separate
mineralizing event than that associated with the Armados vein. With the discovery of t he new veins, together
with the Armados and Veta Grande veins, eight epithermal veins have so far been explored by core drilling on
the Veta Grande Project by the Company (Veta Grande, Armados, San Jose, La Flor, Esperanza, San
Abraham, San Patricio and Sistema Santacruz).
At the Garcia mine, three drill holes (VG18 -001, VG18 -002 and VG18 -003) were collared from surface a nd
intersected the mineralized down dip extension of the Veta Grande, La Esperanza and La Flor veins . The
Company elected to initially target the Veta Grande vein near the southern border of the property based upon
its proximity to historic underground wor kings and published drill results from the adjoining property that
indicated potential for high grade material. The three holes completed in this area intersected the targeted
structures including wide intervals of quartz vein material . Unfortunately the assay results associated with
these wide quartz vein intercepts did not carry high grade mineralization.
All exploration work to date at both the Garcia and Armados mines has been focused on the southernmost
500 metres strike length of the Veta Grande vei n system with no systematic exploration having been
undertaken on the northern extension of the vein systems.
Carlos Silva, COO of Santacruz, commented; “ The Company is excited about the discovery of the three high
grade veins at the Armados mine which appear to be within about 20 meters of each other and approximately
parallel to the Armados vein. This discovery supports our view of the strong mineral potential of this historical
mining district of Zacatecas.” Mr. Silva continued; “Our exploration thesis is that higher grade mineralization
occurs at depth. In addition, t he Company intends to begin exploration on the northern portions of the Veta
Grande property which has seen limited historic work. Drilling to the north will begin in proximity to a 1940’s
era shaft in the general area where initial surface chip sampling has encountered higher silver grades over
greater true widths than results from the southern portions of the Veta Grande vein system . Drilling will test
the Veta Grande vein structure to depths of up to 600 metres.”
VETA GRANDE PROJECT ASSAY RESULTS
VEIN DDH From To Length True Width Au Ag Pb Zn Cu AgEq
m m m m g/t g/t % % % g/t
ARMADOS AR18-001 30.8 31.9 1.1 1 0.05 209 0.08 0.34 0.01 239.06
SAN
ABRAHAM AR18-001 169.5 169.85 0.35 0.32 0.37 312 0 0.61 0.03 383.48
ARMADOS AR18-002 34.3 36 1.7 1.4 0.06 168 0.06 0.17 0 185.65
SAN
ABRAHAM AR18-002 196.85 198 1.15 0.95 1.36 235 7.52 8.75 0.19 1261.59
including 197.25 198 0.75 0.62 1.91 307 11.5 13.3 0.28 1857.72
SAN
PATRICIO AR18-002 204.4 205.1 0.7 0.58 0.22 84 6.06 10.6 0.34 1088.09
SAN JOSE AR18-003 79.35 79.5 0.15 0.1 0.52 843 0.06 0.07 0.09 903.13
SAN
ABRAHAM AR18-003 150.8 151.6 0.8 0.65 0 292 0.04 0.05 0.01 298.26
ARMADOS AR18-004 52.2 52.55 0.35 0.25 0 292 0.04 0.05 0.01 298.26
SAN JOSE AR18-005 123.1 123.65 0.55 0.4 0.01 8 0.07 0.18 0.01 24.43
SAN
ABRAHAM AR18-005 178.95 179.65 0.7 0.5 0.02 5 0 0 0.01 7.98
SAN
PATRICIO AR18-005 191.4 192.3 0.9 0.65 0.01 4 0 0 0.01 6.41
SISTEMA
SANTACRUZ AR18-005 217.75 218.35 0.6 0.43 0.65 124 6.33 19.6 0.43 1748.77
SISTEMA
SANTACRUZ AR18-005 226.8 227.3 0.5 0.36 0.71 80 1.81 9.19 0.18 818.13
LA
ESPERANZA VG18-001 409 410.5 1.5 1.1 0.78 27 0.36 0.38 0.09 141.1
VETAGRANDE VG18-001 490.8 492 1.2 0.88 1.73 34 0.15 0.33 0.01 200.63
No significant results are reported for VG18-002 and VG18-003. Assay results for AR18-006 and AR18-007
are pending.
Silver Equivalent (AgEq) in the drill results assumes $1,331per 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) = (Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)+(Cu*Pcu*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 analyses. Drill core
samples were analysed 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 limit for Pb, Zn and Cu were further
analysed by sodium peroxide fusion of a 0.5 -gram sample followed by ICP -AES finish. Au and Ag was also
analysed by fire assay of a 30 g 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. 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 Bu i,
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 pr oducing silver projects ( Veta Grande Project and
Rosario Project) and two exploration properties (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 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 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 expect ations, 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 uncertaintie s 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 Co mpany'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 deposit s; 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, bu t
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 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 demonstrati ng 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 complet e and detailed site analysis according to and
in accordance with NI 43-101.