Santacruz Silver Produces 4,644,013 Silver Equivalent Ounces in Q3 2024 Including 1,703,387 ounces of silver and 23,143 tonnes of zinc
Santacruz Silver Produces 4,644,013 Silver
Equivalent Ounces in Q3 2024
Including 1,703,387 ounces of silver and 23,143 tonnes of zinc
VANCOUVER, BC
,
Oct. 24, 2024
/CNW/ -
Santacruz Silver Mining Ltd.
(TSXV: SCZ) (OTCQB:
SCZMF) (FSE: 1SZ) ("Santacruz" or "the Company") reports its Q3 2024 production results from its
Bolivar mine, Porco mine, Caballo Blanco Group of mines ("Caballo Blanco") and the
San Lucas
feed
sourcing business ("San Lucas"), all located in
Bolivia
, and the
Zimapan
mine located in
Mexico
.
Q3 Production Highlights:
Silver Equivalent Production:
4,644,013 silver equivalent ounces
Silver Production:
1,703,387 ounces
Zinc Production:
23,143 tonnes
Lead Production:
3,027 tonnes
Copper Production:
270 tonnes
Underground Development:
10,933 meters
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, "During Q3 2024,
Santacruz continued to demonstrate steady operational performance, processing 491,260 tonnes of
ore, yielding 4,644,013 silver equivalent ounces. Notably, silver production increased by 2%
compared to Q2 2024, reaching 1,703,388 ounces. This improvement in silver production, combined
with favorable trends in silver prices has further enhanced our revenue-generating capabilities. It also
underscores Santacruz´s ongoing efforts to optimize mining and processing operations, reflecting our
commitment to operational excellence. We expect these production levels to provide a strong
foundation for the remainder of the year. Mr. Préstamo continued: "All of our operations
demonstrated strong results, but in particular, I would like to commend our team in
Zimapan,
Mexico
, for their consistently improved performance, delivering meaningful quarter-over-quarter
increases in both throughputs and grades processed."
Production Summary
–
Total
Production Summary – Total (CNW Group/Santacruz Silver Mining Ltd.)
(1)
Silver Equivalent Produced (ounces) have been calculated using prices of $23.85/oz, $1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper respectively applied to the
metal production divided by the silver price as stated here.
Bolivar Mine
Bolivar Mine (CNW Group/Santacruz Silver Mining Ltd.)
(1)
Bolivar is presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements.
(2)
Silver Equivalent Produced (ounces) have been calculated using prices of $23.85/oz, $1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper respectively applied
to the metal production divided by the silver price as stated here.
In Q3 2024, Bolivar processed 70,271 tonnes of ore, yielding 1,017,362 silver equivalent ounces,
comprised of 483,300 ounces of silver and 4,553 tonnes of zinc. Compared to Q2 2024, the ore
processed decreased by 3%, while silver production saw a significant increase of 13%, driven by
improved silver head grades and higher recoveries at the mill, a positive outcome given the strong
silver prices and favorable market trends. Zinc production, however, decreased by 12% due to
lower head grades. Despite this, overall silver equivalent production was only marginally lower by
1% compared to Q2 2024.
When comparing Q3 2024 to Q3 2023, the volume of ore processed decreased by 9%. This quarter
had fewer working days due to certain logistical challenges, which were addressed satisfactorily and
positively.
Porco Mine
Porco Mine (CNW Group/Santacruz Silver Mining Ltd.)
(1)
Porco is presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements.
(2)
Silver Equivalent Produced (ounces) have been calculated using prices of $23.85/oz, $1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper respectively applied to the
metal production divided by the silver price as stated here.
In Q3 2024, Porco processed 48,714 tonnes of ore, yielding 482,620 silver equivalent ounces, which
included 171,972 ounces of silver and 2,626 tonnes of zinc. Compared to Q2 2024, processed
material decreased by 5%, and silver-equivalent production declined by 10%. However, silver
production saw a 14% increase, supported by access to higher silver head grade zones.
When comparing Q3 2024 to Q3 2023, ore processed increased by 2%, demonstrating operational
stability. Silver production rose 4%. With solid silver prices, this increase positions Porco to leverage
favorable market conditions.
Caballo Blanco Group
Caballo Blanco Group (CNW Group/Santacruz Silver Mining Ltd.)
(1)
The Caballo Blanco Group consists of the Colquechaquita, Tres Amigos and Reserva mines.
(2)
Silver Equivalent Produced (ounces) have been calculated using prices of $23.85/oz, $1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper respectively applied to the
metal production divided by the silver price as stated here.
In Q3 2024, the Caballo Blanco Group implemented a key operational adjustment aimed at
optimizing the performance of the Don Diego mill. During this quarter, only ore from the
Colquechaquita and Tres Amigos mines was blended and processed together, while ore from the
Reserva mine was sold to San Lucas S.A. and blended with other third party mineralized material for
processing. This strategic shift has already led to improvements in milling recovery performance as
Santacruz continues to focus its efforts on enhancing silver recoveries into the lead concentrates,
where silver generates more value.
As a result of this change, the volume of ore processed at Caballo Blanco decreased by 30%.
However, this reduction cannot be directly compared to Q2 2024 or Q3 2023 figures. This is due not
only to the decision to process ore from just two mines but also because the ore sold to
San Lucas
is not included in Caballo Blanco's Material Processed data for Q3. The operational adjustment has
proven to be a positive step, especially in enhancing mill performance and overall operational
efficiency.
San Lucas Feed Sourcing
San Lucas Feed Sourcing (CNW Group/Santacruz Silver Mining Ltd.)
(1)
Silver Equivalent Produced (ounces) have been calculated using prices of $23.85/oz, $1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper respectively applied to the
metal production divided by the silver price as stated here.
In Q3 2024,
San Lucas
achieved a 15% increase in ore treatment volume due to the commercial
strategies implemented in the Company´s current markets and the purchases of ore from Reserva
mine production. The collaborative efforts between the commercial and metallurgical teams resulted
in a 4% increase in silver recoveries, primarily in the Bolivar and Porco plants. Santacruz will
continue to focus its efforts on enhancing silver recoveries into the lead concentrates, where silver
generates significantly more value.
In Q3 2024, logistical challenges resulted in temporary disruptions in the transportation of ore
production from Reserva mine to the Don Diego plant. However, due to
San Lucas's
business model,
the Company successfully maintained the ore processing capacity at the Don Diego mill by utilizing
third-party tolling, which prevented mill downtime and mitigated additional costs. Once the logistical
issues were resolved, ore transportation resumed, resulting in an inventory of 12,443 tonnes of
unprocessed ore from Reserva. The remaining inventory from Reserva is scheduled to be processed
during Q4 2024.
Zimapan Mine
Zimapan Mine (CNW Group/Santacruz Silver Mining Ltd.)
(1)
Silver Equivalent Produced (ounces) have been calculated using prices of $23.85/oz, $1.21/lb, $0.94/lb and $3.91/lb for silver, zinc, lead and copper respectively applied to the
metal production divided by the silver price as stated here.
In Q3 2024, Zimapan processed 217,741 tonnes of mineralized material and produced 1,155,097
silver equivalent ounces, including 444,634 ounces of silver and 4,322 tonnes of zinc. Compared to
Q2 2024, material processed increased by 4%, while silver equivalent production grew by 6%,
primarily driven by higher throughput and improved metallurgical recoveries. Silver production
increased by 9% quarter-over-quarter, benefiting from higher silver grades and stable recovery
rates, a positive outcome given the strong silver prices and favorable market trends. Zinc production
increased by 5%, supported by improved higher head grades.
Comparing Q3 2024 to Q3 2023,
Zimapan
processed 13% more mineralized material,
demonstrating continued operational improvements and higher processing capacity. Silver equivalent
production increased by 13% year-over-year, reflecting better throughput and increased head
grades and recoveries. Silver production grew by 17% compared to Q3 2023, while zinc production
increased by 16%, reflecting the positive impact of sourcing from higher head grade zones.
Santacruz anticipates that the higher head grade material from
Lomo del Toro
, Estaca and
Horizontes areas will continue to support a robust production level in the coming quarters as
preparation of
Zimapan
producing mines is well advanced.
Investor Relations Partnership
Santacruz also announces that it has partnered with Adelaide Capital ("Adelaide"), a leading investor
relations and capital markets advisory firm, to provide investor relations and consulting services to
the Company.
Adelaide
is a full-service investor relations firm that brings a unique and powerful perspective and a
re-engineered investor relations business model.
Adelaide
will work closely with Santacruz to
develop and deploy a comprehensive capital markets program, which includes assisting with non-
deal roadshows, virtual campaigns, social media, conferences and assisting with investor
communication. In exchange for
Adelaide's
services, and pursuant to the agreement, the Company
has agreed to pay a monthly fee of C$10,000 for a six-month term in addition to 150,000 stock
options (the "Options") to
Adelaide
under the Company's omnibus incentive plan (the "Plan"). Subject
to the policies of the TSX Venture Exchange (the "Exchange") and the terms and conditions of the
Plan, the Options will have an exercise price of
C$0.41
and shall expire five years from the date of
issuance and shall vest in four equal proportions every three months after the grant date for a period
of 12 months.
Qualified Person
Wayne Corso
, a consultant to the Company, is a qualified person under NI 43-101 and has approved
the scientific and technical information related to operational matters contained in this news release.
About Santacruz Silver Mining Ltd.
Santacruz Silver
is engaged in the operation, acquisition, exploration, and development of mineral
properties in
Latin America
. The Bolivian operations are comprised of the Bolivar, Porco and the
Caballo Blanco Group, which consists of the Tres Amigos, Reserva and Colquechaquita mines. The
Soracaya exploration project and
San Lucas
ore sourcing and trading business are also in
Bolivia
.
The
Zimapan
mine is in
Mexico
.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and CEO
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
This news release includes certain statements and information that may constitute forward-looking
information within the meaning of applicable Canadian securities laws. Forward-looking statements
relate to future events or future performance and reflect the expectations or beliefs of management
of the Company regarding future events. Generally, forward-looking statements and information
can be identified by the use of forward-looking terminology such as "intends", "expects" or
"anticipates", or variations of such words and phrases or statements that certain actions, events or
results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and
these statements, referred to herein as "forward
looking statements", are not historical facts, are
made as of the date of this news release and include without limitation, statements regarding future
quarterly production results being in line with past quarterly production results, mining and
processing rates at Caballo Blanco being consistent for the rest of the year, the improved
dewatering system upgrades providing dry working areas for the rest of the year at the Bolivar
mine, the reconfigured mine plan to enable better productivity at the Porco mine, mining in areas
with similar silver grades mined in the first half of 2024 for the remainder of the year at the Caballo
Blanco Group of mines.
These forward
looking statements involve numerous risks and uncertainties and actual results
might differ materially from results suggested in any forward-looking statements. These risks and
uncertainties include, among other things, risks that future quarterly production result will be in line
with past quarterly production results, mining and processing rates at Caballo Blanco will be
consistent for the rest of the year, the improved dewatering system upgrades will provide dry
working areas for the rest of the year at the Bolivar mine, the reconfigured mine plan will enable
better productivity at the Porco mine, mining will occur in areas with similar silver grades mined in
the first half of 2024 for the remainder of the year at the Caballo Blanco Group of mines, risks
related to changes in general economic, business and political conditions, including changes in the
financial markets, changes in applicable laws, and compliance with extensive government
regulation, as well as those risk factors discussed or referred to in the Company's disclosure
documents filed with the securities regulatory authorities in certain provinces of
Canada
and
available at
www.sedarplus.ca
.
In making the forward-looking statements in this news release, the Company has applied several
material assumptions, including without limitation, the assumption that future quarterly production
results will be in line with past quarterly production results, mining and processing rates at Caballo
Blanco being will be consistent for the rest of the year, the improved dewatering system upgrades
providing dry working areas for the rest of the year at the Bolivar mine, the reconfigured mine plan
to enabling better productivity at the Porco mine, mining in areas with similar silver grades mined
in in the first half of 2024 for the remainder of the year at the Caballo Blanco Group of mines.
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.
SOURCE
Santacruz Silver Mining Ltd.
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For further information:
For further information please contact: Arturo Préstamo, Santacruz Silver
Mining Ltd., Email: [email protected], Telephone: +52 81 83 785707; Andrés Bedregal,
Santacruz Silver Mining Ltd., Email: [email protected] , Telephone: +591 22444849
CO: Santacruz Silver Mining Ltd.
CNW 07:00e 24-OCT-24