Santacruz Silver Produces 5,669,905 Silver Equivalent Ounces in Q3 2023
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News Release
October 18, 2023
Santacruz Silver Produces 5,669,905 Silver Equivalent Ounces in Q3 2023
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) ("Santacruz" or "the Company”) reports its Q3 2023
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.
Highlights:
• Q3 2023 metals production included:
o 1,728,863 ounces of silver;
o 3,370 tonnes of lead;
o 23,095 tonnes of zinc;
o 252 tonnes of copper;
o For silver equivalent production of 5,669,905 ounces.
• Bolivar mine processed 77,298 tonnes of mineralized material and produced 1,343,000 silver equivalent
ounces in Q3 2023, a 16% and 40% increase, respectively, when compared to Q2 2023.
• Zimapan mine processed 192,158 tonnes of mineralized material and produced 1,183,606 silver equivalent
ounces in Q3 2023, a 12% and 35% increase, respectively, when compared to Q2 2023.
Arturo Préstamo, Executive Chairman and Interim CEO of Santacruz, commented, “Our multi-asset portfolio has
been able to deliver consistent production so far this year, and in total we have produced almost 17 million silver
equivalent ounces, including just over 5 million ounces of silver. While we do expect operations to vary by asset
quarter to quarter , our objective is to deliver stable production throughout the year, while at the same time
reviewing and streamlining operations to achieve efficiencies and reduce costs.”
Santacruz processed 4 67,563 tonnes of material in Q 3 2023, a slight increase from the previous quarter. Silver
equivalent ounces produced of 5,669,905 included 1,728,863 ounces of silver, 3,370 tonnes of lead, 23,095 tonnes
of zinc and 252 tonnes of copper. The positive impact of a slight increase in material processed combined with an
increase in metal production from the Zimapan and Bolivar mines resulted in stable silver equivalent ounce
production overall.
The upgraded water handling infrastructure servicing the higher-grade Central Zone of the Bolivar mine installed
last quarter helped stabilize production from this area , and the mine processed 77,298 tonnes of mineralized
material, a 16% increase when compared to the 66,689 tonnes processed in Q2 2023. This resulted in 1,343,000
silver equivalent ounces being produced in Q3 2023, a 40% increase when compared to the 961,580 silver
equivalent ounces produced in Q2 2023.
The Zimapan mine is realizing benefits from a shift in mining strategy to higher grade areas, which is part of the
ongoing optimization of the mine plan in response to metals prices. In Q3 2023 the mine processed 192,158 tonnes
of mineralized material , a 12% increase when compared to the 171,668 tonnes processed during Q2 2023.
Zimapan also produced 1,183,606 silver equivalent ounces during Q3 2023, a 35% increase when compared to the
878,854 silver equivalent ounces produced in Q2 2023.
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The integration ramp connecting the Tres Amigos and Colquechaquita mines at the Caballo Blanco Group of mines
continues to progress well and is now 73% complete. The integration ramp consists of approximately 1,177 meters
of development including primary ramp and auxiliary drives and it is designed to facilitate increased productivity
from Colquechaquita and total production from the Caballo Blanco Group of mines . This project is expected to
be completed by the end of Q1 2024.
In Q3 2022, 500,956 tonnes of material was processed, and 5,832,882 silver equivalent ounces was produced.
While total material processed in Q3 2023 was 7% less compared to Q3 2022, total silver equivalent ounce
production was down only 3%. This was a result of higher grades mined and an increase in metal recoveries at
Bolivar and Zimapan.
Third Quarter 2023 Production Summary – Consolidated
2023-Q3 2023-Q2
Change
Q3 vs Q2
(%) 2022-Q3
Change
Q3 vs Q3
(%) 2023 YTD
2022
YTD(1)(2)
Change
’23 vs ‘22
(%)
Material Processed (tonnes milled) 467,563 443,969 5 500,956 (7) 1,394,029 1,163,645 20
Silver Equivalent Produced (AgEq ounces) (3) 5,669,905 5,569,535 2 5,832,822 (3) 16,883,779 12,368,597 37
Silver Ounces Produced 1,728,863 1,786,461 (3) 1,924,973 (10) 5,284,841 3,805,287 39
Lead Tonnes Produced 3,370 2,824 19 2,997 12 9,237 7,165 29
Zinc Tonnes Produced 23,095 22,281 4 22,830 1 67,839 49,422 37
Copper Tonnes Produced 252 297 (15) 364 (31) 964 901 7
Development Metres 10,838 10,922 (1) 10,423 4 32,333 23,802 36
Third Quarter 2023 Production Summary – By Mine
Bolivar (4) Porco (4)
Caballo
Blanco
Group(5)
San Lucas
Feed
Sourcing(6) Zimapan
Material Processed (tonnes milled) 77,298 47,786 76,864 73,456 192,158
Silver Equivalent Produced (AgEq ounces) (3) 1,343,000 625,401 1,118,711 1,399,187 1,183,606
Silver Ounces Produced 502,931 165,066 319,674 362,443 378,748
Lead Tonnes Produced 449 190 684 522 1,526
Zinc Tonnes Produced 5,214 2,891 4,805 6,454 3,731
Copper Tonnes Produced N/A N/A N/A N/A 252
Average head grades per mine:
Silver (g/t) 221 119 144 183 80
Lead (%) 0.79 0.52 1.22 1.06 0.97
Zinc (%) 7.41 6.40 6.80 9.55 2.49
Copper (%) N/A N/A N/A N/A 0.29
Metal recovery per mine:
Silver (%) 92 90 90 84 76
Lead (%) 74 76 73 66 82
Zinc (%) 91 95 92 92 78
Copper (%) N/A N/A N/A N/A 46
Development Metres 2,736 1,891 3,992 N/A 2,220
(1) On March 18, 2022 the Company closed the acquisition of all Bolivian assets from Glencore and the results of the Bolivian Operations are includ ed in the consolidated
results of the Company from that date.
(2) Bolivian production from March 18, 2022 to September 30, 2022.
(3) Silver Equivalent Produced (ounces) have been calculated using prices of $21.86/oz, $0.91/lb, $1.52/lb and $3.67/lb for silver, l ead, zinc and copper respectively applied to
the metal production divided by the silver price.
(4) Bolivar and Porco are presented at 100% production, whereas the Company records 45% of revenues and expenses in its consolidated financial statements.
(5) The Caballo Blanco Group consists of the Colquechaquita, Tres Amigos and Reserva mines.
(6) San Lucas sources mineralized material from regional suppliers and utilizes processing capacity at the Bolivar, Porco and Don Diego plants.
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Qualified Person
Wayne Corso, Chief Operating Officer of 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 pr operties 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 Interim CEO
For further information please contact:
Arturo Préstamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: +1 (528) 183 785707
Sabina Srubiski
Manager, Investor Relations
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: +1 (604) 351 7909
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 the expected completion of the integration ramp at
Caballo Blanco, and the benefits derived therefrom, the Company’s current focus on certain business objectives, and the
expectation that operations will vary by asset quarter to quarter.
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 the integration ramp at Caballo Blanco will not be completed on the expected timeline, or at all, that the
integration ramp will not provide the benefits currently expecte d by management, that the Company’s focus will not
remain on delivering stable production while also reviewing and streamlining operations to achieve efficiencies and
reduce costs, that operations will not vary by asset quarter to quarter to the degree currently expected by management,
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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 the integration ramp at Caballo Blanco will be completed on the
expected timeline, that the Company will derive the expected benefits from the integration ramp, that the Company’s
focus will remain on delivering stable production while also reviewing and streamlining operations to achieve
efficiencies and reduce costs , and that the operations will vary by asset quarter to quarter to the degree currently
expected by management.
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.