Santacruz Silver Reports Second Quarter 2019 Production Results
TSX.V: SCZ
FSE: 1SZ
July 29, 2019
Santacruz Silver Reports Second 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 second quarter of 2019.
Highlights:
• Consolidated silver equivalent production increases by 114% as compared to Q2 2018 and 45% as
compared to Q1 2019
• Veta Grande silver equivalent production increases by 185% as compared to Q2 2018 and 18% as
compared to Q1 2019
• Rosario silver equivalent production increases by 48% as compared to Q2 2018 and 145% as
compared to Q1 2019
Mr. Carlos Silva , Chief Operating O fficer, stated “ The second quarter production r esults again reflect
operational improvements at both mine s.” He conti nued, “We expect a further production increase at Veta
Grande in the third quarter as second quarter production was impacted by an unforeseen mechanical problem
with the largest ball mill that required a major repair over the last half of the quarter. This work was completed
in early July.”
During Q 2 2019 the Company’s consolidated si lver eq uivalent prod uction was 373,318 ounces, a 114%
increase over Q2 2018 production (174,175 ounces) and a 45% increase over Q1 2019 production (257,138
ounces).
At Veta Gr ande an unexpected mechanical issue with the la rgest ball mill resulted in an estimated 25%
decrease to production for the second quarter. The ball mill was b ack online in early July. As a result of t his
matter the refurbishment and recommissioning of a fourth and smaller ball mill was delayed until Q4.
At Rosario production in the second quarter was in line with the operations plan and is expected to continue to
increase throughout the rest of 2019.
2019 Second Quarter Consolidated Production Results
Summary of Production Results 2019 Q2 2019 Q1 2018 Q2
Material Processed (tonnes milled) 47,435 42,904 52,025
Silver eqv. ounce production(1) 373,318 257,138 174,175
Silver production (ounces) 119,131 93,573 56,122
Gold production (ounces) 254 158 143
Lead production (tonnes) 456 245 142
Zinc production (tonnes) 985 674 507
Average Head Grade (g/t Ag Eqv.)(1) 270 252 176
Development (metres) 1,687 1,547 1,581
2019 Second Quarter Veta Grande Project Production Results
Summary of Production Results 2019 Q2 2019 Q1 2018 Q2
Material Processed (tonnes milled) 37,156 32,625 36,622
Silver eqv. ounce production(1) 240,208 202,787 84,271
Silver production (ounces) 73,004 79,582 36,741
Silver head grade (g/t) 101 119 70
Gold head grade (g/t) 0.21 0.19 .17
Lead had grade (%/t) 1.11 0.77 1.14
Zinc head grade (%/t) 2.12 1.89 .41
Silver recovery (%) 60 64 45
Gold production (ounces) 138 97 59
Lead production (tonnes) 369 218 111
Zinc production (tonnes) 608 492 164
Average Head Grade (g/t Ag Eqv.)(1) 280 269 161
Development (metres) 830 1,025 1,070
2019 Second Quarter Rosario Project Production Results
Summary of Production Results 2019 Q2 2019 Q1 2018 Q2
Material Processed (tonnes milled) 20,789 10,279 15,403
Silver eqv. ounce production(1) 133,111 54.351 89,904
Silver production (ounces) 46,126 13,991 19,381
Silver head grade (g/t) 74 47 44
Gold head grade (g/t) 0.28 0.29 0.26
Lead head grade (%/t) 0.44 0.29 0.23
Zinc head grade (%/t) 2.13 2.09 2.54
Silver recovery (%) 93 90 89
Gold production (ounces) 116 61 84
Lead production (tonnes) 87 27 31
Zinc production (tonnes) 377 182 344
Average Head Grade (g/t Ag Eqv.)(1) 231 196 212
Development (metres) 857 522 511
(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, Vet a Grande and Rosario,
and two exploration properties, the Minillas property and Zacat ecas properties. The Company is mana ged 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 statement s 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, exp ectations and
estimates of management at the date the inform ation is pr ovided and is subject to certain factors and
assumptions. In making the forward -looking statements included in this news release, the Company has
applied severa l material assumptions, i ncluding, 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 unfore seen events, third party mineralized material to be
milled by the Company will have properties consistent with management's expectations, that the Company will
receive all required regulatory approvals, and that future metal prices and the demand and marke t outlook for
metals will remain stabl e 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 forwar d-looking information. Fa ctors that co uld cause the forward-looking information
in th is news rel ease to ch ange or to be i naccurate include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, which co uld result in lower reven ue, higher co st, or
lower production leve ls; 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 da ta
(including in respect of the third party mineral ized material) regarding the geolo gy, grade a nd 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 uncertain ties applicable to minera l exploration and developm ent activities and to the
Company as set fort h in the C ompany's contin uous disclosure filings filed under the Company's profile
at www.sedar.com. There can be no assurance that an y forward-looking information will prove to be accurate,
as actual resu lts and fu ture events cou ld differ materially from those anticipated in such statements.
Accordingly, the reader should not place any undue reliance on forward -looking information or st atements.
The Company unde rtakes no oblig ation to update for ward-looking informat ion or statemen ts, other than as
required by applicable law.
Rosario Project
The decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo P rospect
were not based on a feasibility study of mineral res erves demonstrating economic and tec hnical viability, but
rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased
uncertainty and economic and technica l risks of fa ilure associa ted with this p roduction 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 at 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 o f failure associated with this product ion 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.