Santacruz Silver Reports 2019 Annual Production of 2,829,459 Silver Equivalent Ounces
TSX.V: SCZ
FSE: 1SZ
January 28, 2020
Santacruz Silver Reports 2019 Annual Production of 2,829,459 Silver Equivalent Ounces
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports its
operating results from the Zimapan Project in Zimapan Hidalgo, the Veta Grande Project in Zacatecas, and
Rosario Project in Charcas, San Luis Potosi, all located in Mexico, for the fourth quarter (“Q4”) and year ended
December 31, 2019 and provides an operations update.
Production Highlights:
• Total production reached 2.8 million equivalent ounces of silver, representing a 346% increase over
2018
• Silver production reached 787,476 ounces, representing a 249% increase over 2018
• Ramp development advanced at Zimapan, Veta Grande and Rosario projects to support an increase
in milling tonnage for 2020 at all three mines.
The Company produced a total of 2,829,459 silver equivalent ounces in fiscal 2019 (2018 - 634,564) including
fourth quarter production of 1,324,303 silver equivalent ounces (2018 – 196,521). The significant increase in
production is a result of the Company’s two-phase acquisition of Carrizal Mining , S.A de C.V. (“Carrizal”) and
its rights to operate the Zimapan Mine. As noted in the Company’s news release dated July 2, 2019, on July
1, 2019 the Company acquired a 50% interest in Carrizal . As a result, the Company reported 50% of the
Zimapan Mine’s production in its Q3 operating results. In addition, as noted in the Company’s press release of
October 7, 2019 , on October 4 , 2019 Santacruz acquired the remaining 50% interest in Carrizal resulting in
100% of the Zimapan Mine production being incorporated into the Company’s Q4 2019 operating results.
Further, as noted in the Company’s press release of October 30, 2019 , Carrizal has the right to operate the
Zimapan Mine through December 31, 2020 allowing time for management to work towards finalizing a formal
acquisition agreement with Grupo Penoles, S.A.B de C.V. (“Peñoles”).
Carlos Silva, Santacruz’s COO , stated, “Santacruz had a record year in 2019 producing 2.8 million si lver
equivalent ounces following the successful acquisition and integration of Carrizal Mining . In addition to this
transformative event, the Veta Gran de and Rosario mines increased their annual production substantially ,
while at the same time maintaining significant development activities and advanc ing exploration plans as a
pathway to keep improving our production at all mines and expanding mine resources.” Mr. Silva continued “I
commend all our employees for their dedication and commitment to keep improving our operations at all
areas, and I am certain that our dedication to safe and reliable operations will be a cornerstone of further
improvements throughout 2020”.
CONSOLIDATED PRODUCTION RESULTS – 2019 Q4 AND 2019 ANNUAL
2019 Q4 2018 Q4 2019Yr 2018 Yr
Material Processed (tonnes milled) 220,154 53,396 469,290 211,465
Silver eqv. ounce production(1)(2) 1,324,303 196,521 2,829,459 634,564
Silver production (ounces) (2) 345,314 62,537 787,476 187,871
Gold production (ounces) (2) 280 248 965 677
Lead production (tonnes) (2) 1,060 279 2,527 697
Zinc production (tonnes) (2) 3,504 451 7,382 1534
Copper production (tonnes) 482 0 798 0
Average Head Grade (g/t Ag Eqv.)(1)(2) 278 226 274 193
ZIMAPAN PROJECT PRODUCTION RESULTS – 2019 Q4 AND 2019 ANNUAL
2019 Q4 2018 Q4 2019 Yr 2018 Yr
Material Processed (tonnes milled) 161,071 - 243,313 -
Silver eqv. ounce production(1) 996,032 - 1,602,621 -
Silver production (ounces) 248,593 - 400,057 -
Silver head grade (g/t) 72 - 73 -
Silver recovery (%) 66.4 - 69.9 -
Gold production (ounces) 0 - 0 -
Lead production (tonnes) 695 - 1,158 -
Zinc production (tonnes) 2,591 - 4,083 -
Copper production (tonnes) 482 - 798 -
Average Head Grade (g/t Ag Eqv.)(1) 282 - 284 -
Development (metres) 838 - 1,241 -
VETA GRANDE PROJECT PRODUCTION RESULTS – 2019 Q4 AND 2019 ANNUAL
2019 Q4 2018 Q4 2019 Yr 2018 Yr
Material Processed (tonnes milled) 36,111 36,720 149,890 150,281
Silver eqv. ounce production(1)(2) 193,748 128,985 761,262 317,725
Silver production (ounces) (2) 53,615 42,217 237,731 80,486
Silver head grade (g/t) 102 84 105 73
Silver recovery (%) 45.1 44.2 47.1 42.9
Gold production (ounces) (2) 116 84 457 298
Lead production (tonnes) (2) 277 237 1,082 542
Zinc production (tonnes) (2) 534 283 1,949 533
Copper production (tonnes) 0 0 0
Average Head Grade (g/t Ag Eqv.)(1) 297 255 286 196
Development (metres) 665 1,112 3,389 4,139
ROSARIO PROJECT PRODUCTION RESULTS – 2019 Q4 AND 2019 ANNUAL
2019 Q4 2018 Q4 2019 Yr 2018 Yr
Material Processed (tonnes milled) 22,972 16,676 76,088 61,184
Silver eqv. ounce production(1)(2) 134,523 67,536 465,576 316,839
Silver production (ounces)(2) 43,106 20,320 149,687 76,374
Silver head grade (g/t)(2) 64 42 65 42
Silver recovery (%))(2) 90.6 89.9 93.4 86.3
Gold production (ounces)(2) 163 164 508 3790
Lead production (tonnes)(2) 87 41 287 155
Zinc production (tonnes) )(2) 379 168 1,350 1,001
Copper production (tonnes) 0 0 0 0
Average Head Grade (g/t Ag Eqv.)(1)(2) 214 161 218 180
Development (metres) 796 693 3,224 2,207
(1) Ag Eq has been calculated as follows:
2019 Ag Eq was calculated using metal prices of: Ag $15.25/oz, Au $1,281/oz, Pb $0.94/lb, Zn $1.20/lb and Cu $2.92/lb.
2018 Ag Eq was calculated using metal prices of: Ag $17.00/oz, Au $1,295/oz, Pb $1.00/lb, Zn $1.35/lb and Cu $3.14/lb.
(2) The comparative figures for 2018 Q4 and the fiscal year 2018 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.
Project Review
Zimapan Project
Activities at the mine were focus ed on accelerating the developments at Mina Monte and Mina Carrizal,
moving towards the Concordia and Santa Elena areas respectively. Once accessed, these areas are expected
to allow for an increase in tonnage ( approximately 10,000 additional tonnes a month) at the mill and a further
increase at the Zimapan Mine´s production by the end of the second quarter of this year.
Veta Grande Project
Silver equiv alent p roduction during Q4 and for fiscal 2019 at the Veta Grande Project increased 50% and
140% respectively when compared to 2018 . In large part this increased production reflects access to
mineralized material with higher head grades as a consequence o f reaching the lower levels (level 6 and 5
respectively) at the Garcia and Armados mines where in situ mineralized material is now contributing to better
head grades.
During November and December product ion averaged approximately 420 tpd with an upward trend in the zinc
and lead concentrates which is expected to continue. During this period the operations team refurbished two
of the four ball mills. A third ball mill is currently being refurbished and is expected to be online by the end of
February bringing the milling capacity to approximately 650 tpd, while ma intaining the head grades being fed
to the mill. The Company is focused on improving the silver head grades and recoveries as it reaches more in
situ mineralized material.
Rosario Project
Production at the Rosario Project in the second half of the year decreased by 26% as compare d to the first
half primarily as the result of processing mineralized material with a significantly lower zinc grade , wh ile
passing through a lower grade area . A 3,000-meter diamond drilling camping is on its way to better
implementing the current mine plan aiming to improve the mining dilution currently being experienced.
Qualified Persons
The technical information i ncluded in this news release has been reviewed and approved by Van Phu Bui,
P.Geo. of ARC Geoscience Group who is independent of the Company and is a qualified person, pursuant to
the meaning of such terms in National Instrument 43-101 ("NI 43-101").
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver proj ects (Rosario and Veta Grande)
and two exploration properties, the Minillas property and Zacatecas properties. The Company also owns 100%
of Carrizal Mining S.A. de C.V. Carrizal Mining is a private Mexican mining company, the principal asset of
which is a 20% working interest in the Company’s Veta Grande Project. Carrizal Mining also 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 tra ck 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 t erm 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 finalization of an agreement
with Peñoles, the potential acquisition of the Zimapan Mine by the Company from Peñoles and expectations
for production increases at the Zimapan Mine . 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 new s release, the Company has
applied several material assumptions, including that the Company's financial condition and development plans
do not cha nge as a result of unforeseen events, and that future metal prices and the demand and market
outlook for metal s will remain stable or improve. Forward -looking information is subject to a variety of risks
and uncertainties and other factors that could caus e 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 entering into a binding purchase and sale agreement and thereafter completing the
acquisition of the Zimapan Mine (including obtaining the necessary funding for the purchase price thereof) ,
and therefore there is a risk that the allocation to the Company of production from the Zimapan Mine will
discontinue after December 31, 2020, which would result in a significant reduction to future production results
as compared to the results contained in this news release ; risk of delay and/or cessation in planned work or
changes in the Company's financial condition and development plans; risks associated with the i nterpretation
of data (including in respect of the third party mineralized material) regarding the geology, gr ade and 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 c onditions; risks related to gold, silver, base metal and other commodity price fluctuations;
risks relating to environmental regulation and liabil ity; 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. T here can be no assurance that any forward -looking
information will prove to be accurate, as actual results and future events could differ material ly from those
anticipated in such statements. Accordingly, the reader should not place any undue reliance on f orward-
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 Ro sario Mine, Cinco E strellas 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 considera bly, due to the absence of a complete and detailed site analysis in
accordance with NI 43-101.
Veta Grande Project
The decision to commence production at Veta Grande Project was not based on a feasibility study on mineral
reserves demonstrating economic a nd technical viability. Accordingly, there is increased uncertainty and
economic and technical risks of failur e associated with this production decision. Production and economic
variables may vary considerably due to the absence of a complete and detailed site analysis in accordance
with NI 43-101.
Zimapan Mine
Production at the Zimapan 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 in accordance with NI 43-101.
Any transaction involving the acquisition of the Zimapan assets by the Compan y will be subject to, among
other things, all necessary regulatory filings and approvals, including the approval of the TSX Venture
Exchange.