Santacruz Silver Reports 2018 Annual Production Results
TSX.V: SCZ
FSE: 1SZ
February 14, 2019
Santacruz Silver Reports 2018 Annual Production Results
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports its
operating results from the Veta Grande Project in Zacatecas, Mexico and Rosario Project in Charcas, San Luis
Potosi, Mexico for the fourth quarter (“Q4”) and year ended December 31, 2018 and provides an operations
update.
The Company produced a total of 815,323 silver equivalent ounces in fiscal 2018 (2017 - 865,458) including
fourth quarter production of 237,542 silver equivalent ounces (2017 – 139,670).
Carlos Silva, Santacruz’s COO stated, “Production at Veta Grande is steadily improving as a result of increased
mine development during the year leading to additional stopes coming online and less reliance on previously
mined mineralized material (Chorros) as feed to t he mill. The ongoing mine development at the Armados,
Navidad and Garcia mines has positioned our Veta Grande operations for continued improvements in 2019.”
Mr. Silva continued, “At Rosario a mine plan has been developed and implemented to deal with the narrow vein
system. The focus is to transition to being a lower tonnage producer with less dilution which is expected to
translate into a more efficient operation. In conjunctio n with implementing the new mine plan an evaluation of
the future operations of Rosario is taking place.”
CONSOLIDATED PRODUCTION RESULTS – 2018 Q4 AND 2018 ANNUAL
2018 Q4 2017 Q4 2018 Yr 2017 Yr
Material Processed (tonnes milled) 53,395 30,975 211,465 181,077
Silver eqv. ounce production 237,542 139,670 815,323 865,458
Silver production (ounces) 42,017 44,316 262,683 313,946
Gold production (ounces) 170 239 746 1,431
Lead production (tonnes) 40 94 912 623
Zinc production (tonnes) 160 412 2,158 2,292
Average Head Grade (g/t Ag Eqv.) 210 194 193 161
VETA GRANDE PROJECT PRODUCTION RESULTS – 2018 Q4 AND 2018 ANNUAL
2018 Q4 2017 Q4 2018 Yr 2017 Yr
Material Processed (tonnes milled) 36,719 17,657 150,281 102,111
Silver eqv. ounce production 175,488 64,987 514,367 423,130
Silver production (ounces) 58,921 25,665 190,325 201,284
Silver head grade (g/t) 81 78 73 100
Silver recovery (%) 62 58 54 61
Gold production (ounces) 113 53 367 424
Lead production (tonnes) 295 70 784 466
Zinc production (tonnes) 398 163 1,112 803
Average Head Grade (g/t Ag Eqv.) 237 183 196 196
Development (metres) 1,113 471 4,118 2,400
ROSARIO PROJECT PRODUCTION RESULTS – 2018 Q4 AND 2018 ANNUAL
2018 Q4 2017 Q4 2018 Yr 2017 Yr
Material Processed (tonnes milled) 16,676 13,317 61,184 78,964
Silver eqv. ounce production 62,054 74,683 300,956 442,328
Silver production (ounces) 18,927 18,652 72,358 112,662
Silver head grade (g/t) 42 53 43 52
Silver recovery (%) 83 82 86 85
Gold production (ounces) 131 186 379 1,007
Lead production (tonnes) 40 23 128 157
Zinc production (tonnes) 160 249 1,047 1,489
Average Head Grade (g/t Ag Eqv.) 149 209 185 205
* In the above tables Ag Eq has been calculated as follows:
2018 Ag Eq was calculated using metal prices of: Ag $17.00/oz, Au $1,295/oz, Pb $1.00/lb and Zn $1.35/lb.
2017 Ag Eq was calculated using metal prices of: Ag $16.00/oz, Au $1,150/oz, Pb $1.00/lb and Zn $1.15/lb.
Project Review
Veta Grande Project
Silver equivalent production at the Veta Grande Project in the second half of 2018 more than doubled that from
the first half. In large part this incr eased production reflects access to more in situ mineralized material as a
consequence of increased development work comp leted (2018 – 4,118 m vs. 2017 – 2,400 m) and from
improving metal recoveries which reflects better unders tanding of the metallurgy of the different sources of
mineralized material.
A quarterly summary of production stat istics by source of mineralized material processed at the Veta Grande
mill during 2018 is as follows:
Mineralized Material Source Q1 Q2 Q3 Q4
In Situ Previously Unmined tonnes 5,182 5,115 15,936 16,315
Ag Eqv. Head Grade (g/t) 245 252 208 283
Previously Mined tonnes 29,746 31,507 26,075 20,404
(“Chorros”) Ag Eqv. Head Grade (g/t) 124 146 250 201
Total All Sources tonnes 34,928 36,622 42,011 36,719
Ag Eqv. Head Grade (g/t) 142 161 234 237
Silver recovery (%) 47 45 60 62
*2018 Ag Eq head grade was calculated using metal prices of: Ag $17.00/oz, Au $1,295/oz, Pb $1.00/lb and Zn $1.35/lb.
During November and December production averaged approximately 450 tpd with an upward trend in the silver
head grade which is expected to continue. During this pe riod the operations team refurbished two of the four
ball mills. A third ball mill is current ly being refurbished and is expected to be online in approximately 60 days
bringing the milling capacity to approximately 750 tpd.
Rosario Project
Production at the Rosario Project in the second half of the year decreased by 26% as compared to the first half
primarily as the result of processing mineralized material with a significantly lower zinc grade. Management is
implementing a new mine plan to improve the mining dilution currently being experienced.
Qualified Persons
The technical information included in this statement has been reviewed and approved by Van Phu Bui, P.Geo.
of ARC Geoscience Group who is independent of t he Company and is a qualified person, pursuant to the
meaning of such terms in NI 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with tw o producing silver projects (Rosario and Veta Grande)
and two exploration properties, the Minillas property and Zacatecas properties. 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. Forward-lookin g 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, assumptions as to the continuation of payments under
the Agreement, the expansion of the Vita Grande Proj ect, the Company's financial condition and development
plans do not change as a result of unforeseen events, third party mineralized material to be milled by the
Company will have properties consistent with management 's expectations, 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 result s to vary materially from those projected in such
forward-looking information. Factors that could cause t he 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 prove
not to be valid or reliable, which could result in lower revenue, higher cost, or lower production levels; delays
and/or cessation in planned work; changes in the Company's financial condition and development plans; delays
in regulatory approval; risks as sociated with the interpretation of data (i ncluding in respect of the third party
mineralized material) regarding the geology, grade and continuity of mineral deposits; 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 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 stat ements. Accordingly, the reader sh ould not place any undue reliance on
forward-looking information or statements. The Com pany 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 reserv es 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 Veta Grande Project was not bas ed on a feasibility study on mineral
reserves demonstrating econom ic and technical viability. Accordingly, there is increased uncertainty and
economic and technical risks of failure associated wi th 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.