Santacruz Silver Places Rosario Project on Care and Maintenance
TSX.V: SCZ
FSE: 1SZ
October 5, 2021
Santacruz Silver Places Rosario Project on Care and Maintenance
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
it is suspending operations at the Rosario Project and placing it on care and maintenance. This decision was
made following an extensive review by management of the Rosario project operations and strategic options
available including the potential sale of the operation.
Management believes that the reallocation of capital and resources to the Zimapan Mine and related satellite
properties that have stronger economics is the most prudent course of action at this time . The Company will
continue with permitting activities and remediation programs so that the Rosario Project is positioned for a
timely restart should project economics justify such.
Carlos Silva, Chief Executive Officer commented; “We have diligently tried to make the Rosario mine a
profitable operation, but due to its narrow vein system and grade variability this is a challenging project.” Mr.
Silva continued; “Putting the project i nto care and maintenance will allow us to better evaluate alternatives to
maximize the return on this asset”.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company that has one producing property, the Zimapan Mine, and two
exploration properties, the La Pechuga property and Santa Gorgonia prospect. 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,
Executive Chairman
For further information please contact:
Mars Investor Relations
Telephone: (778) 999 4653
Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (528) 183 785707
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, including statements relating to the future production at the Rosario
Project and the Company's plans for this asset. 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 that the Company's financial condition and development plans do not
change as a result of unforeseen events 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 above
prove not to be valid or reliable; market conditions an d volatility and global economic conditions, including
increased volatility and potentially negative capital raising conditions resulting from the continued COVID -19
pandemic and risks relating to the extent and duration of such pandemic and its impact on global markets; risk of
delay and/or cessation in planned work or changes in the Company's financial condition and development plans;
risks associated with the interpretation of data (including in respect of third party mineralized material) regarding
the geology, grade and continuity of mineral deposits; the uncertainty of the geology, grade and continuity of
mineral deposits and the risk of unexpected variations in mineral resources, grade and/or recovery rates; risks
related to gold, silver, base metal a nd other commodity price fluctuations; risks relating to environmental
regulation and liability; the possibility that results will not be consistent with the Company's expectations, as well
as the other risks and uncertainties applicable to mineral explora tion 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 ass ociated with this production decision. Production and economic
variables may vary considerably, due to the absence of a complete and detailed site analysis in accordance with
NI 43-101.
Zimapan Mine
Production at the Zimapan Mine is not supported by a feasibility study on mineral reserves demonstrating
economic and technical viability or any other independent economic study under NI 43-101. Accordingly, there is
increased uncertainty and economic and technical risks of failur e associated with production operations at the
Zimapan Mine. Production and economic variables may vary considerably due to the absence of a complete and
detailed site analysis in accordance with NI 43-101.