Santacruz Silver Reports Q3 2021 Production of 872,913 Silver Equivalent Ounces
TSX.V: SCZ
FSE: 1SZ
October 20, 2021
Santacruz Silver Reports Q3 2021 Production of 872,913 Silver Equivalent Ounces
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “San tacruz”)
reports its operating results for the third quarter 2021 (“Q 3”) from the Zimapan Mine located in
Zimapan, Hidalgo, Mexico and the Rosario Project located in Charcas, San Luis Potosi, Mexico.
Production Highlights:
• Consolidated silver equivalent production for Q3 2021 was 872,913 AgEq ounces; an increase of
over 9% compared to Q2 2021
• Zimapan silver equivalent production for Q3 2021 was 867,215 AgEq ounces; an increase of
over 14% compared to Q2 2021 that arose primarily as the result of a 20% increase in tonnes
milled during the respective periods
Carlos Silva, Santacruz’s C EO stated, “The production increase during Q3 arose mainly from the
Carrizal and Monte mines as a result of development of new stopes at Lomo del Toro setting the
stage for a strong year end.” Mr. Silva added; “All underground equipment from the Rosario project
is now working at Lomo de Toro and it is expected that with this additional equipment production will
further increase during Q4.”
COVID-19 Update
The Company cont inues to take all appropriate measures to prevent COVID -19 among the work
force and local communities and to monitor the eff ectiveness of these measures in mitigating any
potential impact on business activities. The Company's actions have been successful t o date and
the pandemic has not had any material impact on the business.
CONSOLIDATED PRODUCTION RESULTS
2021 Q3 2021 Q2 2020 Q3
Material Processed (tonnes milled) 188,947 172,324 176,640
Silver equivalent ounce production 872,913 799,057 977,678
Silver production (ounces) 316,024 329,398 304,123
Gold production (ounces) 8 53 59
Lead production (tonnes) 1,012 778 1,080
Zinc production (tonnes) 3,767 3,023 3,041
Copper production (tonnes) 497 481 395
Average Head Grade (g/t Ag equivalent) 188 192 231
Development (metres) 2,394 2,480 2,103
ZIMAPAN MINE PRODUCTION RESULTS
2021 Q3 2021 Q2 2020 Q3
Material Processed (tonnes milled) 186,642 155,407 164,846
Silver equivalent ounce production 867,215 757,937 920,985
Silver production (ounces) 313,476 310,910 282,760
Silver head grade (g/t) 73 84 73
Gold head grade (g/t) - - -
Lead head grade (%/t) 0.61 0.56 0.72
Zinc head grade (%/t) 2.53 2.54 2.40
Copper head grade (%/t) 0.35 0.38 0.33
Silver recovery (%) 71.5 74.2 72.3
Gold production (ounces) - - -
Lead production (tonnes) 1,008 747 1,048
Zinc production (tonnes) 3,744 2,848 2,841
Copper production (tonnes) 497 481 395
Average Head Grade (g/t Ag equivalent) 189 202 234
Development (metres) 2,298 1,969 1,701
ROSARIO MINE PRODUCTION RESULTS**
2021 Q3 2021 Q2 2020 Q3
Material Processed (tonnes milled) 2,306 16,917 11,794
Silver equivalent ounce production 5,698 41,120 56,693
Silver production (ounces) 2,548 18,488 21,363
Silver head grade (g/t) 41 45 66
Gold head grade (g/t) 0.15 0.16 0.24
Lead head grade (%/t) 0.24 0.25 0.31
Zinc head grade (%/t) 1.19 1.44 2.06
Copper head grade (%/t) - - -
Silver recovery (%) 84.2 76.2 85.9
Gold production (ounces) 8 53 59
Lead production (tonnes) 4 31 32
Zinc production (tonnes) 24 176 200
Copper production (tonnes) - - -
Average Head Grade (g/t Ag equivalent) 92 104 183
Development (metres) 96 511 402
* 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.
* * Rosario Mine was placed on care and maintenance during Q3 2021
Silver Equivalent Comparative Production
As noted in the tables above, there is a significant increase in silver equivalent ounces produced in
Q3 2021 as compared to that produced in Q 2 2021. This positive change in production is due to
increased silver equivalent production from the Zimapan Mine. The increase in silver equivalent
ounces produced was primarily due to a 20% increase in tonnes processed at the Zimapan mine
over the prior quarter offset by a slight reduction in silver head grade and silver recovery of 13% and
3% respectively. It should also be noted that if the Q 3 2021 silver equivalent production had been
calculated using the 2020 metal price deck the reported silver equivalent ounces produced from
Zimapan would have been 1,103,943 Ag Eq, an increase of 27% over the current reported balance
and a 20% increase as compared to Q3 2020. On a comparative b asis within any particular fiscal
year or between periods in different fiscal years where the metal price decks are relatively
equivalent, the computation of silver equivalent is useful for comparing production from one period
to another. When the price de cks 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 explorati on properties, the La Pechuga property and Santa Gorgonia prospect.
The Company is managed by a technical team of professionals wit h 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 Re gulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adeq uacy 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 producti on at the Zimapan Mine
and Rosario Project and the Company's plans to grow it. Forward-looking information is based on plan s,
expectations and estimates of management at the date the information is provided and is subject to certain
factors and assumption s. I n making the forward -looking statements included in this news release, the
Company has applied several material assumpti ons., including, but not limited to, assumptions as the
Company's financial condition and development plans do not change as a resul t of unforeseen events, that the
Company will receive all required regulatory approvals, and that future metal prices and th e 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 projec ted 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 above pro ve not to be val id or reliable; market conditions and volatility and
global economic conditions , including increased volatility and potentially nega tive capital raising conditions
resulting from 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 finan cial 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 con tinuity of mineral deposits and the risk of unexpected
variations in mineral resources, grade and/or recovery rates; risks r elated 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 expectations, as well as the other risks and uncerta inties 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 ass urance
that any forward -looking information will prove to be accurate, as actual results and future events could differ
materially f rom those anticipated in such statements. Accordingly, the reader should not place any undue
reliance on forward -looking inf ormation 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 reser ves demonstrating
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. P roduction 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.
Rosario Project
The decisions to commence production at the Rosario Mine 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 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.