Santacruz Silver Intersects Membrillo Vein and Discovers Two Additional Veins Cross Cutting the Membrillo Structure
TSX.V: SCZ
FSE: 1SZ
June 28, 2017
Santacruz Silver Intersects Membrillo Vein and Discovers Two Additional Veins Cross
Cutting the Membrillo Structure
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
the Company has now intersected a targeted high- grade zone of the Membrillo vein at the Membrillo Prospect
(see news release dated June 19, 2017) . Eight preliminary rock samples of muck material removed from the
first 10.60 metres of the production drift along the Membrillo vein on Level 1.5 returned assay results that
range from 0.10 - 0.59 grams per tonne gold, 8.0 - 121.0 grams per tonne silver, 0.12 - 0.40 percent lead, and
0.62 - 7.07 percent zinc. The true thickness of the Membrillo vein in the production drift is approximately 0.40 -
0.90 meters. Systematic chip sampling is currently in progress and assay results are pending. The extent of
mineralization of this high-grade zone is currently unknown.
Additionally, the Company announces that as a result of surface prospecting and development drifting
underground it has discovered two previously unknown and unexplored vein s, the Santa Ana and the San
Jose veins, which are located approximately 100 and 75 metres south east respectively of and running parallel
to the San Rafael vein (see press release dated June 19, 2017). These structures were formed in shales and
sandstones of the Triassic Zacatecas Formation and characterized by breccia textures infilled with quartz,
sphalerite and galena. Underground and surface g eochemical sampling and geological mapping are currently
being conducted and results are pending. At this time the Company has not completed sufficient work to
determine if these veins are economically viable.
“We are encouraged with the continuing positive developments at the Membrillo Prospect.” commented Arturo
Prestamo, CEO of the Company, adding “ The previously announced San Rafael vei n together with the main
Membrillo vein should enhance the overall impact of the Membrillo Prospect on the Rosario Project. Based on
these recent discoveries w e will re-evaluate and study the over all geological potential of both the Membrillo
Prospect and the Rosario Mine.”
Management anticipates delivering 250 tpd of material from the Membrillo Prospect to the Rosario mill for
processing during the third quarter of 2017.
Private Placement
The Company also announces a non- brokered private placement (the "Private Placement") of up to 7,500 ,000
units (the “Units”) at a purchase price of $0.20 per Unit, f or gross proceeds to the Company of up to
$1,500,000. Each Unit will consist of one common share of the Company and one common share purchase
warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company at a
price of $0.28 per share for a period of 30 months following the closing of the Private Placement. The
Company may pay a finder’s fee to arm’s-length finders in connection with the issue and sale of any or all of
the securities under the Private Placement. The finder’s fee shall consist of not more than a 6% cash payment,
calculated with reference to the gross proceeds of the Private Placement in relation to subscribers introduced
by any particular finder.
The proceeds from the Private Placement are expected to be used by the Company for general working
capital and corporate purposes. All securities issued will be subject to a four month hold period.
Closing of the Private Placement is anticipated to occur in one or more tranches on or before July 19, 2017
and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture
Exchange.
Sampling and laboratory
Rock samples of muck material are collected from muck piles that result from blasting of the underground
working face. 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 per son" 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 facility); 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 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:
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 ass ociated 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.