Santacruz Silver Reports Q2 2021 Production of 799,057 Silver Equivalent Ounces
TSX.V: SCZ
FSE: 1SZ
Jul 29, 2021
Santacruz Silver Reports Q2 2021 Production of 799,057 Silver Equivalent Ounces
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”)
reports its operating results for the second quarter 2021 (“Q2 ”) from the Zimapan Mine located in
Zimapan, Hidalgo, Mexico and the Rosario Project located in Charcas, San Luis Potosi, Mexico.
Production Highlights:
• 13.0% increase in silver equivalent production to 799,057 AgEq ounces as compared to Q1 2021
• Zimapan tonnage through-put from Lomo del Toro increase to 12,000/month from 6,000/month
when compared to Q1 2021
• Zimapan average head grades increased from 182 g/t Ag Eq in Q1 2021 to 202 g/t Ag Eq in Q2
2021
Carlos Silv a, Santacruz’s C EO stated, “At Zimapan we co ntinue to execute on our strategy of
increasing the tonnage mined from the Lomo del Toro mineralized zone and we are now starting to
see the benefits of blending this mineralized material with that from the Carrizal and Monte mines.
We have also completed adjustments to the milling facility which have improved the operation of the
crushing and filtration circuits”. Mr. Silva added; “While Zimapan is making very positive progress,
Rosario continues to present challenges due to the combination of poor rock conditions and a
narrow vein system. As a result, we are actively reviewing our strategy for Rosario.”
COVID-19 Update
The Company continues to take all appropriate measures to prevent C OVID-19 am ong 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 Q2 2021 Q1 2020 Q2
Material Processed (tonnes milled) 172,324 176,239 116,799
Silver eqv. ounce production 799,057 706,978 709,765
Silver production (ounces) 329,398 325,376 216,034
Gold production (ounces) 53 72 57
Lead production (tonnes) 778 945 761
Zinc production (tonnes) 3,023 2,285 2,199
Copper production (tonnes) 481 354 308
Average Head Grade (g/t Ag Eqv.) 192 176 248
Development (metres) 2,480 2,212 1,091
ZIMAPAN MINE PRODUCTION RESULTS
2021 Q2 2021 Q1 2020 Q2
Material Processed (tonnes milled) 155,407 156,433 106,725
Silver eqv. ounce production 757,937 646,085 639,021
Silver production (ounces) 310,910 294,099 181,836
Silver head grade (g/t) 84 85 75
Gold head grade (g/t) - - -
Lead head grade (%/t) 0.56 0.63 0.72
Zinc head grade (%/t) 2.54 1.99 2.55
Copper head grade (%/t) 0.38 0.31 0.42
Silver recovery (%) 74.2 69.0 70.4
Gold production (ounces) - - -
Lead production (tonnes) 747 892 692
Zinc production (tonnes) 2,848 2,067 2,021
Copper production (tonnes) 481 354 308
Average Head Grade (g/t Ag Eqv.) 202 182 249
Development (metres) 1,969 1,724 657
ROSARIO MINE PRODUCTION RESULTS
2021 Q2 2021 Q1 2020 Q2
Material Processed (tonnes milled) 16,917 19,806 10,074
Silver eqv. ounce production 41,120 60,893 70,744
Silver production (ounces) 18,488 31,277 34,198
Silver head grade (g/t) 45 61 113
Gold head grade (g/t) 0.16 0.19 0.25
Lead head grade (%/t) 0.25 0.34 0.77
Zinc head grade (%/t) 1.44 1.51 2.04
Copper head grade (%/t) - - -
Silver recovery (%) 76.2 80.3 93.2
Gold production (ounces) 53 72 57
Lead production (tonnes) 31 53 70
Zinc production (tonnes) 176 218 178
Copper production (tonnes) - - -
Average Head Grade (g/t Ag Eqv.) 104 127 247
Development (metres) 511 488 434
* 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 increase in silver equivalent ounces produced in
Q2 2021 as compared to th at produced in Q 2 2020 and Q 1 2021. Substantially all this positive
change in pro duction is due to increased silver equivalent production from the Zimapa n Mine. In
particular, as compared to Q2 2020, Zimapan tonnes processed increased by 46% while silver head
grade and silver rec overy increased by 12% and 5% respe ctively. As compared to Q 1 2021, the
Zimapan Mine production increase ref lects increased zinc head grade and recovery. It should also
be noted that if the Q2 2021 silver equivalent production had been calc ulated using the 2020 metal
price deck the reported silver equivalent ounces produced from Zimapan would have been 945,533,
an increase of 25% over the current reported balance. On a comparative basis within any particular
fiscal y ear or between periods in di fferent fiscal years where the metal price de cks are relatively
equivalent, the computation of silver equivalent is useful for compa ring production from one period
to anothe r. When the price de cks ar e not relatively equ ivalent, the useful ness of this production
indicator is diminished.
The improved metal head grades in Q2 2021 re flect increased production from the Lomo del Tor o
zone (12,000 tonnes per month in Q2 2021 as com pared to 6,000 tonnes per month in Q1 2021) .
Management expects production to continue to increase from Lomo del To ro over the coming
months.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects ( Zimapan and
Rosario) and two exploratio n pro perties, the La Pechuga property and Santa Gorgonia prospect.
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,
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 Reg ulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequ acy or acc uracy of
this release.
Forward looking information
Certain state ments contained in this news release constitute " forward-looking information" as such term is
used in applicable Canadian securities laws , including statements relating to productio n at the Z imapan Mine
and Rosario Project and the Company's plans to grow i t. 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 makin g the forward -looking statements included in this news release, t he
Company has applied several material assumptio ns., 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 regulator y approvals, 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 act ual results to vary materially
from those project ed in such forward -looking information. 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 a ssumptions referred to above pro ve not to be vali d or reliable; market conditions and volatility and
global economic conditions , including increased volatility and potentially negat ive capita l raising conditions
resulting from the continued COVID -19 pandem ic and risks relating to the extent and duration of su ch
pandemic and its impact on global markets ; risk of delay and/or cessation in planned work or changes in the
Company's financ ial condit ion and development plans; risks associated with the interpretati on of data
(including in respect of third party m ineralized material) regarding the geology, grade and continuity of mineral
deposits; the uncertainty of the geology, grade and cont inuity of mineral deposits and the risk of unexpected
variations in mineral resources, grade and/or recovery rates; risks re lated to gold, silver, base metal and other
commodity price fluctuations; risks relating to environmental regulation and liability; the possibility that results
will not be consistent with the Company's expe ctations, as well as the other risks and uncertai nties 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. There can be no assurance
that any forward -looking information will prove to be accurate, as actual results and future events could differ
materially fr om those a nticipated in such statements. Accordingly, the reader should not place any undue
reliance on forward -looking info rmation 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 de monstrating
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 . Product ion and eco nomic variables may vary cons iderably due to the absence of a
complete and detailed site analysis according to and in accordance with NI 43-101.
Rosario Project
The decisions to commenc e prod uction at the Ro sario Mine and Membrillo Prospect wer e not based on a
feasibility study of minera l reserves demonstrating economic and technical viability, b ut rather on a more
preliminary estimate of in ferred mineral resour ces. Accordingly, there is incre ased uncertainty and economic
and technical risks of failure associated with this production deci sion. Production and economic variables may
vary considerably, due to the absence of a complete and detail ed site analysis according to and in accordance
with NI 43-101.