Santacruz Silver Produces 956,482 Silver Equivalent Ounces in Third Quarter
TSX.V: SCZ
FSE: 1SZ
October 30, 2019
Santacruz Silver Produces 956,482 Silver Equivalent Ounces in Third Quarter
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
the Company’s total production in the third quarter of 2019 reached 956,482 silver equivalent ounces,
representing a 176% increase compared with Q2 2019 and a 38 1% increase compared to Q3 2018. The Q3
2019 production figure includes only 50% of the Zimapan mine ’s quarterly production as Santacruz did not
complete the acquisition of the final 50% of PCG Mining , S.A. de C.V. (“PCG Mining”) until October 4, 2019
(see press releases dated July 2 and October 7, 2019).
Highlights:
• Consolidated silver equ ivalent production increase d by 176% as compared to Q 2 2019 and 381% as
compared to Q3 2018
• Zimapan Mine produced 1.2 million silver equivalent ounces during Q3 of which 50% is attributable to
Santacruz
• Veta Grande silver equivalent production increased by 5% as compared to Q 2 2019 and by 59% as
compared to Q3 2018
• Rosario silver equivalent production decreased by 7% as compared to Q2 2019 and increased by
105% as compared to Q3 2018
Mr. Carlos Silva, Chief Operating Officer, stated “The acquisition of the initial 50% ownership of PCG Mining at
the beginning of Q3 has resulted in a material positive impact on production during the quarter . With the
recent acquisition of the remaining 50% of PCG Mining, we expect a further significant production increase in
Q4 and into 2020 as a result of Grupo Penoles agree ing on October 29, 2019 to extend the Zimapan Mine
lease to December 31, 2020 . We continue to have positive discussions with Grupo Penoles, the owner of the
Zimapan Mine, with respect to acquiring the mine outright.” Mr. Silva continued; “During Q3, production from
Veta Grande increased steadily during the quarter while at Rosario production decrease d by 7% but is
expected to return to budgeted levels during Q4 and should not impact the Rosario mine plan for the year.”
2019 Third Quarter Consolidated Production Results
Summary of Production Results 2019 Q3 2019 Q2 2018 Q3
Material Processed (tonnes milled) 148,289 57,945 57,976
Silver eqv. ounce production(1) (2) 956,482 346,020 199,044
Silver production (ounces) (2) 256,878 107,582 62,497
Gold production (ounces) (2) 273 258 174
Lead production (tonnes) (2) 918 388 238
Zinc production (tonnes) (2) 2,393 946 526
Copper production (tonnes) 316 - -
Average Head Grade (g/t Ag Eqv.)(1) 278 263 213
Development (metres) 3,333 1,759 1,581
2019 Third Quarter Zimapan Mine Production Results (amounts reflect Santacruz’s 50% proportion al
ownership of PCG Mining)
Summary of Production Results 2019 Q3 2019 Q2 2018 Q3
Material Processed (tonnes milled) 82,242 - -
Silver eqv. ounce production(1) 606,589 - -
Silver production (ounces) 151,464 - -
Silver head grade (g/t) 75 - -
Gold head grade (g/t) - - -
Lead head grade (%/t) 0.59 - -
Zinc head grade (%/t) 2.28 - -
Copper head grade (%/t) 0.48 - -
Silver recovery (%) 75 - -
Lead production (tonnes) 463 - -
Zinc production (tonnes) 1,492 - -
Copper production (tonnes) 316 - -
Average Head Grade (g/t Ag Eqv.)(1) 286 - -
Development (metres) 1,489 - -
2019 Third Quarter Veta Grande Project Production Results
Summary of Production Results 2019 Q3 2019 Q2 2018 Q3
Material Processed (tonnes milled) 43,999 37,156 42,011
Silver eqv. ounce production(1) (2) 214,282 204,612 134,788
Silver production (ounces) (2) 62,394 59,864 46,054
Silver head grade (g/t) 99 101 77
Gold head grade (g/t) 0.24 0.21 0.26
Lead head grade (%/t) 1.45 1.11 0.80
Zinc head grade (%/t) 2.11 2.12 1.94
Silver recovery (%) (2) 45 50 44
Gold production (ounces) (2) 139 120 99
Lead production (tonnes) (2) 370 300 204
Zinc production (tonnes) (2) 519 541 312
Average Head Grade (g/t Ag Eqv.)(1) 294 280 235
Development (metres) 870 828 1,070
2019 Third Quarter Rosario Project Production Results
Summary of Production Results 2019 Q3 2019 Q2 2018 Q3
Material Processed (tonnes milled) 22,048 20,789 15,965
Silver eqv. ounce production(1) (2) 131,961 141,409 64,256
Silver production (ounces) (2) 43,020 47,717 16,894
Silver head grade (g/t) 65 74 41
Gold head grade (g/t) 0.25 0.28 0.26
Lead head grade (%/t) 0.40 0.44 0.23
Zinc head grade (%/t) 2.04 2.13 1.58
Silver recovery (%)(2) 93 97 80
Gold production (ounces) (2) 134 137 74
Lead production (tonnes) 83 87 34
Zinc production (tonnes) (2) 383 405 213
Average Head Grade (g/t Ag Eqv.)(1) 213 231 156
Development (metres) 975 932 511
(1) AgEqvOz = (Au*Pau)+(Ag*Pag)+(Pb*Ppb*2205)+(Zn*Pzn*2205)+(Cu*Pcu*2205)
(Pag)
Metal Prices 2019: Ag $15.25, Au $1,281, Pb $0.94, Zn $1.20, Cu $2.92
Metal Prices 2018: Ag $17.00, Au $1,295, Pb $1.00, Zn $1.35
(2) The comparative figures for 2019 Q2 and 2018 Q3 have been restated from the originally disclosed amounts based on an internal
review of past metallurgical reporting practice and the adoption by management of new procedures designed to more accurately calculate
the relevant data.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects, Veta Grande and Rosario,
and two exploration properties, the Minillas property and Zacatecas p roperties. The Company also owns 100%
of Carrizal Mining S.A. de C.V. Carrizal Mining is a private Mexican mining company that holds a 20% working
interest in the Company’s Veta Gra nde Project and has the right to operate the Zimapan Mine until December
31, 2020 under a mining lease agreement.
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:
Arturo Prestamo
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 , including statements relating to the potential acquisition of the
Zimapan Mine by the Company from the owner . 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; there can be no assurance that the Company
will be successful in either negotiating an y further extensions to the lease of the Zimapan Mine or acquiring
outright the Zimapan Mine (including obtaining the necessary funding for the purchase price thereof), and
therefore the re is a risk that the allocation to the Company of production from the Zimapan Mine will
discontinue after December 31, 20 20, which would result in a significant reduction to future production results
as compared to the results contained in this ne ws release; delays and/or cessation in planned work; changes
in the Company's financial condition and development plans; risks associated with the interpretation of data
(including in respect of the third party mineralized material) regarding the geology, grade an d 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; market conditions and volatility and
global economic conditions; risks related to gold, silver, base metal and 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 oth er 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 c an 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 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 the 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 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.
Zimapan Mine
Production at t he Zimap an 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 failure 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 according to and in accordance with NI 43 -101. There is no assurance that
the Company will be successful in negotiating and completing any acquisition of the Zimapan Mine. Any
transaction to acquire the Zimapan Mine will be subject to receipt of all necessary regulatory approvals,
including Santacruz obtaining the approval of the TSX Venture Exchange.