Santacruz Silver Reports Q1 2021 Production of 706,978 Silver Equivalent Ounces
TSX.V: SCZ
FSE: 1SZ
May 13, 2021
Santacruz Silver Reports Q1 2021 Production of 706,978 Silver Equivalent Ounces
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”)
reports its operating results from the Zimapan Mine located in Zimapan, Hidalgo, Mexico and the
Rosario Project located in Charcas, San Luis Potosi , Mexico, for the first quarter 2021 (“Q1”). The
Company is not including production from the Veta Grande Project in this report as operations at
Veta Grande were suspended during Q1 2020.
Production Highlights:
• Silver equivalent ounces produced 706,978
• Silver head grades increase 9.4 % at Zimapan Mine as compared to Q1 and Q4 2020
• Increased tonnage throughput from Lomo del Toro zone of the Zimapan Mine from 4,000 during
January and February to 6,000 tonnes for the month of March
• New mining method introduced in late March at Rosario that is expected to significantly reduce
costs by less handling of waste material.
Carlos Silva, Santacruz’s COO stated, “ As we keep advancing our workings deeper into the higher -
grade Lomo del Toro manto and increase the tonnage mined from this zone, we are seeing a
corresponding increase in head grades at our Zimapan Mine. We are progressing well towards our
objective of reaching 15,000 tonnes per month of mill feed from this higher-grade area by the end of
the second quarter ”. Mr Silva continued; “We expect further efficiencies at our Rosario Project
during Q2 as a result of a revised mining plan which results in less waste material being handled.
These very encouraging improvements were unfortunately partially offset by an unstable power
supply from Mexico´s Comision Federal de Electricidad (Mexico´s power supply Company). The
unstable power supply impacted the mill throughput at both mines in February as motors for the ball
mills w ere damaged. The matter was resolved in early March but mill throughput was materially
reduced for eight days”.
COVID-19 Update
The Company continues to take all appropriate measures to prevent COVID -19 among the work
force and local communities and to monitor the effectiveness of these measures in mitigating any
potential impact on business activities. The Company's actions have been successful to date and
the pandemic has not had any material impact on the business.
CONSOLIDATED PRODUCTION RESULTS
2021 Q1 2020 Q4 2020 Q1
Material Processed (tonnes milled) 176,239 191,043 157,400
Silver eqv. ounce production 706,978 943,103 902,765
Silver production (ounces) 325,376 318,764 274,678
Gold production (ounces) 72 71 83
Lead production (tonnes) 945 970 965
Zinc production (tonnes) 2,285 2,838 2,674
Copper production (tonnes) 354 365 438
Average Head Grade (g/t Ag Eqv.) 176 221 241
Development (metres) 2,212 2,891 2,170
ZIMAPAN MINE PRODUCTION RESULTS
2021 Q1 2020 Q4 2020 Q1
Material Processed (tonnes milled) 156,433 171,313 139,903
Silver eqv. ounce production 646,085 858,362 829,514
Silver production (ounces) 294,099 277,154 245,344
Silver head grade (g/t) 85 77 77
Gold head grade (g/t) - - -
Lead head grade (%/t) 0.63 0.63 0.73
Zinc head grade (%/t) 1.99 2.25 2.41
Copper head grade (%/t) 0.31 0.32 0.43
Silver recovery (%) 69.0 65.5 71.2
Gold production (ounces) - - -
Lead production (tonnes) 892 900 913
Zinc production (tonnes) 2,067 2,620 2,443
Copper production (tonnes) 354 365 438
Average Head Grade (g/t Ag Eqv.) 182 228 250
Development (metres) 1,724 2,095 1,418
ROSARIO MINE PRODUCTION RESULTS
2021 Q1 2020 Q4 2020 Q1
Material Processed (tonnes milled) 19,806 19,730 17,497
Silver eqv. ounce production 60,893 84,741 73,251
Silver production (ounces) 31,277 41,610 29,334
Silver head grade (g/t) 61 74 63
Gold head grade (g/t) 0.19 0.18 0.22
Lead head grade (%/t) 0.34 0.40 0.36
Zinc head grade (%/t) 1.51 1.38 1.78
Copper head grade (%/t) - - -
Silver recovery (%) 80.3 88.3 82.4
Gold production (ounces) 59.4 61.6 68.7
Lead production (tonnes) 78.0 89.6 82.0
Zinc production (tonnes) 73.0 79.8 73.9
Copper production (tonnes) - - -
Average Head Grade (g/t Ag Eqv.) 72 71 84
Development (metres) 488 70 52
* In the above tables Ag Eq has been calculated as follows:
2021 Ag Eq was calculated using metal prices of: Ag $25.00/oz, Au $1,925/oz, Pb $0.85/lb, Zn $1.05/lb and Cu $3.00/lb.
2020 Ag Eq was calculated using metal prices of: Ag $17.85/oz, Au $1,480/oz, Pb $0.92/lb, Zn $1.09/lb and Cu $2.80/lb.
Silver Equivalent Comparative Production
As noted in the tables above, there is a significant reduction in silver equivalent ounces produced in
Q1 2021 as compare d to that produced in Q1 and Q4 2020. This negative change in production is
due in large part to th e metal prices used for this calculation in 2021 as compared to 2020. For
example, had the Company used the 2020 metal price deck for its silver equivalent production
calculation at the Zim apan Mine in Q1 2021, the reported silver equivalent ounces produc ed would
have been 868,750, an increase of 9.1% over the current reported balance. On a comparative basis
within any particular fiscal year or between periods in different fiscal years where the metal price
decks are relatively equivalent, this computatio n is useful for comparing production from one period
to another. When the price decks are not relatively equivalent, the usefulness of this production
indicator is diminished.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects ( Zimapan and
Rosario) and two exploration properties, the La Pechuga property and Santa Gorgonia prospect.
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,
Executive Chairman
For further information please contact:
Mars Investor Relations
Telephone: (778) 999 4653
Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (528) 183 785707
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 , including statements relating to production at the Zimapan Mine
and Rosario Project and the Company's plans to grow it. 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 news release, the
Company has applied several material assumptions ., including, but not limited to, assumptions as the
Company's financial condition and development plans do not change as a result of unforeseen events, that the
Company will receive all required regulatory app rovals, 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 information. Factors that could cause the forward -looking
information in this news release to change or to be inaccurate i nclude, but are not limited to, the risk that any
of the assump tions referred to above pro ve not to be valid or reliable; market conditions and volatility and
global economic conditions , including increased volatility and potentially negative capital raising conditions
resulting from the continued COVID -19 pandemic an d 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 financial condition and development plans; risks associated with the interpretation of data
(including in respect of 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 environm ental regulation and liability; 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 i n 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 e vents 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 undertakes no obligation to update
forward-looking information or statements, other than as required by applicable law.