Santacruz Silver Reports First Quarter 2018 Production Results
TSX.V: SCZ
FSE: 1SZ
May 24, 2018
Santacruz Silver Reports First Quarter 2018 Production Results
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports on
the operating results from the Veta Grande Project in Zacatecas, Mexico and the Rosario Project in San Luis
Potosi, Mexico for the first quarter of 2018.
The Company produced a total of 154,175 silver equivalent ounces in Q1 2018 (Q1 2017 – 223,968; Q4 2017
– 139,670). As compared to Q1 2017, the decreased production reflects 30% less tonnes milled at the
Rosario Project and a 32% decrease in the average silver equivalent head grade at the Veta
Grande Project. As compared to Q4 2017, the increased produc tion reflects an 11% increase in the average
silver equivalent head grade at the Rosario Project and a 98% increase in tonnes milled at the Veta Grande
Project offset by 22% decrease in the average silver equivalent head grade.
“During Q1 of 2018 managem ent focussed activities on aggressively developing the Veta Grande main ramp
in order to access in situ mineralized material from Q3 onwards. This strategy has resulted in lower head
grades and reduced metal production for the short run but will pave the way for achieving targeted production
for Q3 and beyond.” stated Arturo Prestamo . He continued, “At Rosario the millfeed continued to be a blend
of development muck and mineralized material from production stopes. During Q2 the percentage of
development m uck will decrease as more production stopes come online and by Q3 we expect to be at
targeted production and head grade levels.”
2018 First Quarter Consolidated Production Results
Summary of Production Results 2018 Q1 2017 Q4 2017 Q1
Material Processed (tonnes milled) 48,068 30,975 45,474
Silver eqv. ounce production(1) 154,175 139,670 223,968
Silver production (ounces) 48,102 44,316 92,154
Gold production (ounces) 135 239 326
Lead production (tonnes) 134 94 144
Zinc production (tonnes) 449 412 559
Average Head Grade (g/t Ag Eqv.) 167 194 216
2018 First Quarter Veta Grande Project Production Results
Summary of Production Results 2018 Q1 2017 Q4 2017 Q1
Material Processed (tonnes milled) 34,928 17,657 26,751
Silver eqv. ounce production(1) 71,410 64,987 108,728
Silver production (ounces) 32,413 25,665 57,598
Silver head grade (g/t) 62 78 117
Silver recovery (%) 47 58 57
Gold production (ounces) 56 53 131
Lead production (tonnes) 109 70 99
Zinc production (tonnes) 118 163 177
Average Head Grade (g/t Ag Eqv.) 142 183 209
2018 First Quarter Rosario Project Production Results
Summary of Production Results 2018 Q1 2017 Q4 2017 Q1
Material Processed (tonnes milled) 13,140 13,317 18,723
Silver eqv. ounce production(1) 82,765 74,683 115,240
Silver production (ounces) 15,689 18,652 34,556
Silver head grade (g/t) 43 53 66
Silver recovery (%) 85 82 86
Gold production (ounces) 79 186 195
Lead production (tonnes) 25 23 45
Zinc production (tonnes) 331 249 382
Average Head Grade (g/t Ag Eqv.) 232 209 226
(1 AgEqvOz = (Au*Pau)+(Ag*Pag)+(Pb*Ppb*2205)+(Zn*Pzn*2205)
(Pag)
Metal Prices 2018: Ag $17.00, Au $1,295, Pb $1.00, Zn $1.35
Metal Prices 2017: Ag $16.00, Au $1,150, Pb $1.00, Zn $1.15
Update - Veta Grande Project
Two important initiatives are currently ongoing at the Veta Grande Project. One is the ongoing first phase of a
surface drilling campaign consisting of 6,000 metres on the Veta Grande vein and a 3,000 -metre underground
drill program on the Armados vein . The plan is to com plete a 20,000-metre drill program during 2018 funded
by Carrizal Mining, S.A. de C.V. To this end, a second surface drill rig is expected on property shortly. With
respect to the current program, the first two surface drill holes have been completed and five underground drill
holes been completed. Assays are pending.
The other initiative is to drive a second production ramp to access the Armados vein while concurrently
continuing with development work on the Veta Grande vein. .
Update - Rosario Project
As disclosed previously, during Q4 2017 t he Company took the decision to consolidate all of its Rosario
Project mining operations to the Membrillo Prospect. Mine development has now reached Level 3 and mine
production is increasing. Management anticipates that the targeted production rate (350 tpd) and head grade
will be achieved by the end of Q2.
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 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 accura cy 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 -looking information is based on plans, expectat ions 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, includ ing, but not limited to, assumptions as to the continuation of
payments under the Agreement, the expansion of the Vita Grande Project, the Company's financial condition
and development plans do not change as a result of unforeseen events, third party miner alized 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 rema in 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 prove not to be valid or reliable, which could result in lower revenue, h igher 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 associated with the interpretation of data
(including in respect of th e 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 exp loration 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 forw ard-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 statemen ts.
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 Prospe ct
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 ris ks 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 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 thi s 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.