Santacruz Silver Produces 4,046,328 Silver Equivalent Ounces in Q2 Bolivian Operations make Strong Contribution to Growth
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July 20, 2022
Santacruz Silver Produces 4,046,328 Silver Equivalent Ounces in Q2
Bolivian Operations make Strong Contribution to Growth
Vancouver, B.C. - Santacruz Silver Mining Ltd . (TSXV:SCZ) (“Santacruz” or “the Company”) reports production of 4,046,328 silver
equivalent ounces from the Zimapan Mine in Mexico (“the Mexican Operations”) and its Sinchi Wayra, Illapa and San Lucas companies
(“the Bolivian Operations”) which consists of a 45% interest in the Bolivar and Porco Mines, a 100% interest in the Tres Amigos, Reserva
and Colquechaquita Mines (together “the Caballo Blanco Mines”), in addition to a 100% interest in the San Lucas ore sourcing and trading
company.
Consolidated Q2 2022 Highlights:
• Silver equivalent produced of 4,046,328 ounces (+190.8% vs Q1 2022 and +406.4% vs Q2 2021);
• Silver production of 1,410,485 ounces (+200.2% vs Q1 2022 and +328.2% vs Q2 2021);
• Zinc production of 20,928 tonnes (+230.9% vs Q1 2022 and +592. 2% vs Q2 2021);
• Lead production of 3,321 tonnes (+122.4% vs Q1 2022 and +327.0% vs Q2 2021);
• Copper production of 568 tonnes (+35.5 % vs Q1 2022 and +17.9% vs Q2 2021);
• Average head grade (silver equivalent) 333 g/t (+41.6 % vs Q1 2022 and + 73.6% vs Q2 2021).
Carlos Silva, CEO of Santacruz, stated; “The s econd quarter was the first full quarter of results from the recently acquired Bolivian
Operations. At our Mexican Operations, commencing Q3 we expect to see increased production from new stopes and a reduction in
lower grade mineralized material from development works, which should positively impact AISC at the Zimapan Mine. During Q2, a new
automation processes on the primary crusher and milling circuit was completed in addition to installation and commissioning of a new zinc
column flotation cell. As a result, we look forward to improved metallurgical recoveries”.
Mr. Silva continued; “In regard to our Bolivian Operations, the transition process is proceeding smoothly and with a strong and committed
management team. Our aim is to improve production and efficiencies across all mines, in addition to ensuring the strategic operation of
the San Lucas ore sourcing and trading business”.
CONSOLIDATED (Mexican and Bolivian Operations*)
Q2 2022 Q1 2022 Q2 2021
Silver Equivalent Produced (ounces) (1) 4,046,328 1,391,590 799,057
Silver Production (ounces) 1,410,485 469,829 329,398
Gold Production (ounces) - - 53
Lead Production (tonnes) 3,321 1,493 778
Zinc Production (tonnes) 20,928 6,325 3,023
Copper Production (tonnes) 568 419 481
Material Processed (tonnes milled) 435,119 227,570 172,324
Average Head Grade (g/t AgEq) 333 235 192
Development (metres) 9,807 3,572 2,480
* the Bolivian Operations were acquired on March 18, 2022 hence only 13 days of production results are included in Q1 2022. The net assets of the Rosario
Project were disposed of in December 2021.
Q2 2022 Mine by Mine Production Table
Mine Tonnes
Milled
Head Grade Recovery
(%)
Ounces
Produced Tonnes Produced
AgEq Oz
Produced
(1) g/t %
Ag Zn Pb Cu Ag Ag Zn Pb Cu
Zimapan 200,014 72 2.05 0.61 0.39 69.0 317,086 3,055 1,043 568 914,524
Bolivar 49,333 193 7.41 0.60 n/a 90.3 276,518 3,503 272 n/a 661,879
Porco 44,744 128 7.31 0.66 n/a 91.1 167,465 3,143 256 n/a 514,146
Caballo Blanco* 75,748 170 6.27 1.65 n/a 89.7 371,662 4,440 1,125 n/a 923,508
San Lucas 65,280 159 11.08 1.18 n/a 83.4 277,754 6,787 625 n/a 1,032,271
Total 4,046,328
* The Caballo Blanco Mines consist of the Tres Amigos, Reserva and Colquechaquita Mines.
(1) Silver Equivalent Produced (ounces) in 2022 have been calculated using prices of $25.60/oz, $0.94/lb, $1.20/lb and $4.01/lb for silver, lead, zinc and
copper respectively applied to the metal production divided by the silver price plus the respective concentrate produced by the Zimapan, Bolivar, Porco,
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Tres Amigos, Reserva and Colquechaquita Mines multiplied by the respective silver content. Silver Equivalent Produced (ounces) in 2021 have been
calculated using prices of $25.00/oz, $0.85/lb, $1.05/lb and $3.00/lb for silver, lead, zinc and copper respectively applied to the metal production divided
by the silver price plus the respective concentrate produced by the Zimapan Mine and the Rosario Project, multiplied by the respective silver content.
About Santacruz Silver Mining Ltd.
The Company is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America, with a primary
focus on silver and zinc, but also including lead and copper. The Company currently has six producing projects, the Zimapan Mine,
Bolivar Mine (45% interest) , Porco Mine (45% interest) , Tres Amigos, Reserva and Colquechaquita Mines, holds two exploration
properties in its mineral property portfolio, the La Pechuga Property (Mexico) and the Santa Gorgonia Prospect (Mexico), and one
development project, the Soracaya Project (Bolivia) in addition to the San Lucas ore sourcing and trading business.
‘signed’
Arturo Préstamo Elizondo,
Executive Chairman
For further information please contact:
Mars Investor Relations
Telephone: (778) 999 4653
Arturo Préstamo Elizondo
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.
Zimapan Mine
Production at the Zimapan Mine is not supported by a feasibility study on mineral reserves demonstrating economic or technical viability
or any other independent economic study under NI 43-101. Accordingly, there is increased uncertainty and higher economic and technical
risks of failure associated with prod uction operations at the Zimapan Mine. 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. Project failure may adversely
impact the Company’s future profitability.
Bolivian Operations
Production with respect to the Bolivian Operations is not supported by a feasibility study on mineral reserves demonstrating economic or
technical viability or any other independent economic study under NI 43-101. Accordingly, there is increased uncertainty and higher
economic and technical risks of failure associated with production operations at the Bolivian Operations. 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. Project failures may adversely impact the Company’s future profitability.
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 production at the Zimapan Mine, the Bolivian Operations and the Company's plans relating
to such properties.
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 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 above prove not to be valid or reliable; market conditions and volatility
and global economic conditions, including increased volatility and potentially negative capital raising conditions resulting from the
continued, or escalation of the COVID-19 pandemic and risks relating to the ex tent and duration of such pandemic and its impact on
global markets; controls or regulations and political or economic developments in Mexico and Bolivia; risk of delay and/or cessation in
planned work or changes in the Company's financial condition and de velopment plans; risks associated with the Company’s plan to
undertake certain post-closing reorganization steps in respect of the target entities; 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,
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base metal and other commodity price fluctuations; employee relations; relationships with and claims by local communities and indigenous
populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licences and permits and the presence of laws and regulations that may impose
restrictions on mining; 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 exploration and development activities and t o
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 shoul d 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.