Santacruz Silver Reports Second Quarter 2018 Production Results
TSX.V: SCZ
FSE: 1SZ
August 21, 2018
Santacruz Silver Reports Second 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 second quarter of 2018.
During Q2 2018 the Company produced a total of 174, 175 silver equivalent ounces, a 13% increase when
compared to Q1 2018 (Q1 2018 – 154,175; Q2 2017 – 2 70,659) the increased production primarily reflects an
8% increase in tonnes milled and an 5% increase in silver equivalent head grade at the Veta Grande Pro ject
with a smaller contribution from increased tonnes m illed at the Rosario Project. When compared to Q2 2 017,
the decreased production reflects 45% less tonnes m illed at the Rosario Project and a 24% decrease in the
average silver equivalent head grade at the Veta Grande Project.
Mr. Carlos Silva, Chief Operating Officer, stated “ Development work in the Zacatecas Mining District a t the
Garcia, Armados and Navidad mines is on track and e xpected to reach targeted areas during Q3 2018 at
which time an increase in tonnage, grades and mill recoveries is expected. As for the Rosario Project,
development work at the Membrillo Prospect is now a t Level 3 in the targeted mineralized area and
preparation of production stopes is underway with t he aim of being in full production by Q4 2018.”
2018 Second Quarter Consolidated Production Results
Summary of Production Results 2018 Q2 2018 Q1 2017 Q2
Material Processed (tonnes milled) 52,025 48,068 57,684
Silver eqv. ounce production (1) 174,175 154,175 270,659
Silver production (ounces) 56,122 48,102 89,242
Gold production (ounces) 143 135 472
Lead production (tonnes) 142 134 238
Zinc production (tonnes) 507 449 725
Average Head Grade (g/t Ag Eqv.) 176 167 180
2018 Second Quarter Veta Grande Project Production Results
Summary of Production Results 2018 Q2 2018 Q1 2017 Q2
Material Processed (tonnes milled) 36,622 34,928 29,718
Silver eqv. ounce production (1) 84,271 71,410 145,942
Silver production (ounces) 36,741 32,413 56,062
Silver head grade (g/t) 70 62 91
Gold head grade (g/t) .17 .15 .23
Zinc head grade (%/t) 1.14 .94 1.49
Lead had grade (%/t) .41 .46 .77
Silver recovery (%) 45 47 64
Gold production (ounces) 59 56 174
Lead production (tonnes) 111 109 198
Zinc production (tonnes) 164 118 317
Average Head Grade (g/t Ag Eqv.) 161 142 211
2018 Second Quarter Rosario Project Production Resu lts
Summary of Production Results 2018 Q2 2018 Q1 2017 Q2
Material Processed (tonnes milled) 15,403 13,140 27,967
Silver eqv. ounce production (1) 89,904 82,765 124,717
Silver production (ounces) 19,381 15,689 33,181
Silver head grade (g/t) 44 43 42
Gold head grade (g/t) .26 .28 .43
Zinc head grade (%/t) 2.54 2.91 1.76
Lead head grade (%/t) .23 .22 .18
Silver recovery (%) 89 85 87
Gold production (ounces) 84 79 298
Lead production (tonnes) 31 25 40
Zinc production (tonnes) 344 331 408
Average Head Grade (g/t Ag Eqv.) 212 232 148
(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
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects, Veta Grande and Rosa rio,
and two exploration properties, the Minillas proper ty and Zacatecas properties. The Company is managed by
a technical team of professionals with proven track records in developing, operating and discovering s ilver
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 contained in this news release c onstitute "forward-looking information" as such ter m is
used in applicable Canadian securities laws. Forwar d-looking information is based on plans, expectatio ns and
estimates of management at the date the information is provided and is subject to certain factors and
assumptions. In making the forward-looking statemen ts included in this news release, the Company has
applied several material assumptions, including, bu t not limited to, assumptions as to the continuatio n of
payments under the Agreement, the expansion of the Vita Grande Project, the Company's financial condit ion
and development plans do not change as a result of unforeseen events, third party mineralized material to be
milled by the Company will have properties consiste nt with management's expectations, that the Company will
receive all required regulatory approvals, and that future metal prices and the demand and market outl ook for
metals will remain stable or improve. Forward-looki ng information is subject to a variety of risks and
uncertainties and other factors that could cause pl ans, estimates and actual results to vary materiall y from
those projected in such forward-looking information . Factors that could cause the forward-looking info rmation
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 re liable, which could result in lower revenue, higher cost, or
lower production levels; delays and/or cessation in planned work; changes in the Company's financial
condition and development plans; delays in regulato ry approval; risks associated with the interpretati on of data
(including in respect of the third party mineralize d material) regarding the geology, grade and contin uity 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 min eral exploration and development activities and to the
Company as set forth in the Company's continuous di sclosure filings filed under the Company's profile
at www.sedar.com . There can be no assurance that any forward-lookin g information will prove to be accurate,
as actual results and future events could differ ma terially 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 forw ard-looking information or statements, other than a s
required by applicable law.
Rosario Project
The decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo Prosp ect
were not based on a feasibility study of mineral re serves demonstrating economic and technical viabili ty, but
rather on a more preliminary estimate of inferred m ineral resources. Accordingly, there is increased
uncertainty and economic and technical risks of fai lure associated with this production decision. Prod uction
and economic variables may vary considerably, due t o the absence of a complete and detailed site analy sis
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 min eral
reserves demonstrating economic and technical viabi lity. Accordingly, there is increased uncertainty a nd
economic and technical risks of failure associated with this production decision. Production and econo mic
variables may vary considerably due to the absence of a complete and detailed site analysis according to and
in accordance with NI 43-101.