Santacruz Silver Reports First Quarter 2019 Production Results
TSX.V: SCZ
FSE: 1SZ
May 9, 2019
Santacruz Silver Reports First Quarter 2019 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 2019.
Highlights:
• Consolidated silver equivalent production increases by 67% as compared to Q1 2018 and 8% as
compared to Q4 2018
• Veta Grande silver equivalent production increases by 184% as compared to Q1 2018 and 16% as
compared to Q4 2018
• Veta Grande zinc recovery increases to 80% as compared to 36% in Q1 2018 and 57% in Q4 2018
Mr. Carlos Silva, Chief Operating Of ficer, stated “ The first quarter production r esults continue to reflect
operational improvements that were undertaken in 2018 including increased mine development at both mines
and a metallurgical review of the mill processing flowsheet at Veta Grande. In particular, we are very pleased
with the significant improvement in zinc recovery at Veta Grande .” He conti nued, “The preliminary A pril
production results from both mines show strong imp rovement over the Q1 numbers and are an indicati on of
improved operating results for the rest of 2019.”
During Q 1 2019 the Company’s consolidated si lver eq uivalent prod uction was 257,138 ounces, a 67%
increase over Q1 2018 production (154,175 ounces) and an 8% increase over Q4 2018 production (237,542
ounces). The Q1 2019 Veta Grande mill throughput tonnage was lower than in Q4 2018 because one of the
four ball mills in the plant was taken offline during Q4 2018 and was refurbished during Q1 and placed back in
service early in April. The last remaining ball mill to be re furbished was taken offlin e late in Q1 2019 and is
expected to be put back in service in Q3.
Work at the Rosario Project in Q1 2019 involved making final infra structure changes and completing stope
development to a llow for a system atic improvement in mill throughput tonnage and head grade of material
processed during Q2 and beyond.
Preliminary production esti mates for April in dicate tha t the consolidated production for the Compan y was
20,300 tonnes processed resulting in 125,600 silver equivalent ounces being produced, sourced as to 13,600
tonnes and 82,170 silver equivalent ounces from V eta Grande and 6,700 tonnes and 43,430 silver equivalent
ounces from Rosario.
2019 First Quarter Consolidated Production Results
Summary of Production Results 2019 Q1 2018 Q4 2018 Q1
Material Processed (tonnes milled) 42,904 53,396 48,068
Silver eqv. ounce production(1) 257,138 237,542 166,442
Silver production (ounces) 93,573 77,848 48,102
Gold production (ounces) 158 244 135
Lead production (tonnes) 245 335 134
Zinc production (tonnes) 674 558 449
Average Head Grade (g/t Ag Eqv.)(1) 252 180 210
Development (metres) 1,547 1,811 982
2019 First Quarter Veta Grande Project Production Results
Summary of Production Results 2019 Q1 2018 Q4 2018 Q1
Material Processed (tonnes milled) 32,625 36,719 34,928
Silver eqv. ounce production(1) 202,787 175,488 75,919
Silver production (ounces) 79,582 58,921 32,413
Silver head grade (g/t) 119 81 62
Gold head grade (g/t) 0.19 0.19 0.15
Lead had grade (%/t) 0.77 0.95 0.46
Zinc head grade (%/t) 1.89 1.90 0.94
Silver recovery (%) 64 62 47
Gold production (ounces) 97 113 56
Lead production (tonnes) 218 295 109
Zinc production (tonnes) 492 398 118
Average Head Grade (g/t Ag Eqv.)(1) 269 237 152
Development (metres) 1,025 1,113 531
2019 First Quarter Rosario Project Production Results
Summary of Production Results 2019 Q1 2018 Q4 2018 Q1
Material Processed (tonnes milled) 10,279 16,676 13,140
Silver eqv. ounce production(1) 54.351 62,084 90,523
Silver production (ounces) 13,991 18,927 15,689
Silver head grade (g/t) 47 42 43
Gold head grade (g/t) 0.29 0.36 0.28
Lead head grade (%/t) 0.29 0.26 0.22
Zinc head grade (%/t) 2.09 1.26 2.91
Silver recovery (%) 90 84 85
Gold production (ounces) 61 131 79
Lead production (tonnes) 27 40 25
Zinc production (tonnes) 182 160 331
Average Head Grade (g/t Ag Eqv.)(1) 196 149 254
Development (metres) 522 698 451
(1 AgEqvOz = (Au*Pau)+(Ag*Pag)+(Pb*Ppb*2205)+(Zn*Pzn*2205)
(Pag)
Metal Prices 2019: Ag $15.25, Au $1,281, Pb $0.94, Zn $1.20
Metal Prices 2018: Ag $17.00, Au $1,295, Pb $1.00, Zn $1.35
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects, Veta Grande and Rosario,
and two exploration propertie s, the Minillas property and Zacat ecas 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 containe d 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, expectations and
estimates of management at the date the inform ation 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 continua tion 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 mineralized material to be
milled by the Company will have p roperties 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 su bject 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 th is news release to ch ange 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 c essation in planned w ork; 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 the third party mineral ized material) regarding the geolo gy, grade and continu ity 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 developm ent activities and to the
Company as set forth in the C ompany'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 fu ture 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 unde rtakes no obligation to update for ward-looking informat ion 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 res erves 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 associa ted 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 a t Veta Grande Project was not base d 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.