Santacruz Silver Reports Filing of Zimapan NI 43-101 Report and IRMA Certificate
TSX.V: SCZ
FSE: 1SZ
August 25, 2020
Santacruz Silver Reports Filing of Zimapan NI 43-101 Report and IRMA Certificate
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacru z”) announces
that it is filing on SEDAR today an independent NI 43 -101 Technical Report titled “ Technical Report Zimapan
Property Hidalgo Mexico” (the “Report”).
The Report, which was prepared as part of the filings required by the TSX Venture Exch ange (the "TSXV") in
connection with the planned acquisition by the Company of the Zimapan property (see news release dated
July 28, 2020) , provides a project description of the Zimapan property located in Hidalgo State, Mexico . The
Report w as prepared in accor dance with Form 43 -101F1 of National Instrument 43 -101 Standards of
Disclosure for Mineral Projects ("NI 43-101"). The effective date of the Report is August 5, 2020. The Report
was prepared by Van Phu Bui, P.Geo. and Stephen de Wit , P.Geo. whom are independent of the Company,
the vendor and the property in accordance with TSXV requirements.
• The Zimapan property is located in the municipality of Zimapan, Hidalgo state, M exico. The property is
situated 241 road-km north of Mexico City and seven km northwest from the town of Zimapan.
• The property has had an extensive mining history dating back to the 1600’s.
• The property consists of 34 mining concessions covering an area of 5,138.76 ha.
• The mining infrastructure is comprised of the Carrizal mine, El M onte mine and the El Monte mineral
processing plant – a conventional sulfide flotation facility capable of operating at 75,000 tonnes per
month.
• There are fourteen known mineral zones that are hosted in Lower Cretaceous limestone and
calcareous shales. T he zones contain targets that range from 3 -10 m in width that have been traced
40-1000 m along strike and 40-590 m down dip.
• The mineral zones are characterized as high temperature carbonate replacement deposits that consist
of silver, lead, zinc and cop per rich semi -massive and massive sulfide bodies that occur in proximity
to quartz-monzonitic to monzonitic intrusions.
• The property has be en in production since Januar y 1, 2010 and as of December 31, 2019 Carrizal
Mining mined approximately 5.88 million tonnes (MT) of mineralized material, including:
o 3.43 MT at head grades ranging from 72. 83 to 100.78 g/t Ag, 0.41 to 0.54 % Pb, 1.85 to 2.79
% Zn, and 0.49 to 0.67 % Cu from the Monte mine; and
o 2.45 MT at head grades ranging from 82.45 to 123.52 g/t Ag, 0. 60 to 1.18 % Pb, 2.02 to 4.44
% Zn, and 0.28 to 0.48 % Cu from the Carrizal mine.
• Between January 1, 2011 and February 28, 2020 Carrizal Mining completed approximately 30,005 m
of underground production drilling – including 16,539 m completed at the El M onte mine and 13,466 m
completed at the Carrizal mine. The focus of the drilling has been to replace near mine mineral
sources.
The Company is also pleased to announce that its efforts that have been ongoing for a number of years to
further strengthen the Company´s Social Responsibility (CSR) initiatives led to the Company undertaking the
Initiative for Responsible Mining Assurance (“IRMA”) Standard for responsible mining . In recognition of these
efforts, in Februar y 2020 it received the corresponding IRMA certification and recognition, and is now
preparing its procedures to be audited and reviewed during September 2020.
Carlos Silva, CEO of Santacruz, stated, "In light of the global demand for a more socially and environmentally
responsible mining and as a result of our continuous works on these important matters, we have adopted the
IRMA Standard Certification as it is a perfect fit for us as a public Company”. Mr. Silva continued; “The IRMA
Standard is based on four principles; Business Integrity, Social Responsibility, Environmental Responsibility
and Planning for Positive Legacies, while offering a true independent third-party verification and certification
against a comprehensive standard for our industry.”
Qualified Person
The scientific or technic al information included in this news release h as been reviewed and approved by Van
Phu Bui, P.Geo. , consulting geologi st, who is an independent consultant geologist of the Company and is a
qualified person within the meaning of NI 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican fo cused silver company that currently owns and operates the Rosario Project. The
Company also owns 100% of Carrizal Mining S.A. de C.V. Carrizal Mining is a private Me xican mining
company that holds a 20% worki ng interest in the Company’s Zacatecas Project and has the right to operate
the Zimapan Mine until December 31, 2020 under a mining lease agreement. On July 28, 2020 the Company
announced that it had reached agre ement with Minera Cedros, S.A. de C.V. (“Minera Cedros”) , a wholly
owned subsidiary of In dustrias Peñoles, S.A.B. de C.V., to acquire outright the Zimapan Mine for US$20 .0
million (plus applicable IVA of US$3.2 million ), subject to a number of conditions, i ncluding receipt of all
necessary regulato ry approvals including approval of the TSXV to the transaction which will constitute a
"Fundamental Acquisition" pursuant to TSXV Policy 5.3.
The Company is managed by a technical team o f professionals with proven track records in developing,
operating and discovering silver mines in Mexico. Our cor porate objective is to b ecome a mid -tier si lver
producer.
Forward looking information
Certain statements contained in this news release const itute "forward -looking information" as such term is
used in applica ble Canadian securities laws, including stateme nts relating to the Zimapan property the
agreement with Minera Cedros and the acquisition of the Zimapan Mine by the Company. Forward -looking
information is based on plans, expectations and estimates of manage ment 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 ch ange 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 informati on. Factors that
could cause the forward-looking information in this news release to change or t o 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 assu rance that the Company will be successful in completing the acquisition of the Zimapan Mine
(including obtaining the necessary funding); risk of delays or inability to obtain the approval of the TSXV to the
acquisition of the Zimapan Mine; market condition s and volatility and global economic conditions, including
increased volatility and potentially n egative capital raising conditions resulting fr om the continued COVID -19
pandemic and risks relating to the extent and duration of such pandemic and its impact on global markets; risk
of delay and/or cessation in planned work or changes in the Company's fi nancial condition and development
plans; risks associated with the interpretation of data (including in respect of the third party mineralized
material) regarding the geology, grade 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; risks related to gold, silver, base metal and other commodity price fluctuations; risks relating to
environmental regulation and lia bility; the possibility that results will not b e 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 continuo us 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 mater ially 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.
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 tec hnical risks of failure associated with production operations at
the Zimapan Mine. Production and economic varia bles may vary considerably due to the absence of a
complete and detailed site analysis in accordance with NI 43-101.
‘signed’
Arturo Préstamo Elizondo,
Executive Chairman
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 th at term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.