Santacruz Silver Reports Third Quarter 2018 Production Results
TSX.V: SCZ
FSE: 1SZ
November 8th, 2018
Santacruz Silver Reports Third 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 third quarter of 2018.
During Q3 2018 the Company produced a total of 249,431 silver equivalent ounces, a 43% increase over Q2
2018 production ( 174,175 silver equivalent ounces) and an 8% increase over Q3 2017 production ( 231,162
silver equivalent ounces ). When compared to Q2 2018 t he increased production primarily reflects a 15%
increase in tonnes milled and a 45% increase in silver equivalent head grade at the Veta Grande Project offset
by a 26% decrease in silver equivalent head grade at the Rosario Project. When compar ed to Q3 2017 the
increased production reflects 24% increase in tonnes milled and a 34% increase in silver equi valent head
grade at the Veta Grande Project offset by a 16% decrease in tonnes milled and a 35% decrease in silver
equivalent head grade at the Rosario Project.
Mr. Carlos Silva, Chief Operating Officer, stated “ I am pleased to report that we are on trac k to reach our
objective of increasing production and efficiencies at Veta Grande as indicated by our quarter over quarter
results. At the same time our exploration activities are delineating a solid path forward for the development of
Veta Grande into a significant silver producer . As for the Rosario Project, development work at the Membr illo
Prospect is well on its way to reach the targeted mineralized area and preparation of production stopes is
underway with the aim of being in full production in Q4 2018 as originally planned.”
2018 Third Quarter Consolidated Production Results
Summary of Production Results 2018 Q3 2018 Q2 2017 Q3
Material Processed (tonnes milled) 57,976 52,025 46,940
Silver eqv. ounce production(1) 249,431 174,175 231,162
Silver production (ounces) 80,611 56,122 88,234
Gold production (ounces) 225 143 394
Lead production (tonnes) 301 142 148
Zinc production (tonnes) 644 507 595
Average Head Grade (g/t Ag Eqv.) 213 176 201
2018 Third Quarter Veta Grande Project Production Results
Summary of Production Results 2018 Q3 2018 Q2 2017 Q3
Material Processed (tonnes milled) 42,011 36,622 27,984
Silver eqv. ounce production(1) 183,198 84,271 103,473
Silver production (ounces) 62,250 36,741 61,960
Silver head grade (g/t) 77 70 107
Gold head grade (g/t) 0.26 0.17 0.17
Lead had grade (%/t) .80 .41 0.51
Zinc head grade (%/t) 1.94 1.14 0.77
Silver recovery (%) 60 45 65
Gold production (ounces) 140 59 66
Lead production (tonnes) 268 111 99
Zinc production (tonnes) 432 164 146
Average Head Grade (g/t Ag Eqv.) 234 161 174
2018 Third Quarter Rosario Project Production Results
Summary of Production Results 2018 Q3 2018 Q2 2017 Q3
Material Processed (tonnes milled) 15,965 15,403 18,956
Silver eqv. ounce production(1) 66,233 89,904 127,689
Silver production (ounces) 18,361 19,381 26,274
Silver head grade (g/t) 41 44 51
Gold head grade (g/t) 0.26 0.26 0.67
Lead head grade (%/t) 0.23 0.23 0.31
Zinc head grade (%/t) 1.58 2.54 2.61
Silver recovery (%) 87 89 85
Gold production (ounces) 85 84 328
Lead production (tonnes) 33 31 49
Zinc production (tonnes) 212 344 449
Average Head Grade (g/t Ag Eqv.) 156 212 241
(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
Share Issuance
Pursuant to a n amended financial advisory agreement between the Company and Haywood Securities Inc.
(“Haywood”), the Company intends to issue 250,000 of its common shar es (the “Advisory Fee Shares”) and
provide a cash payment of $1,063 to Haywood in satisfaction of general financial advisory services provided to
the Company by Haywood , including services relating to the Company's disposition of its interest in the
Gavilanes Project in August 2017. The Advisory Fee Shares will be issued at a deemed share price of $0.085
(gross value: $21,250). The Advisory Fee Shares will be subject to a four-month hold period. The issuance of
the Advisory Fee Shares is subject to TSX Venture Exchange acceptance.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects, Veta Grande and Rosario,
and two exploration properties, the Minillas property and Zacatecas properties. The C ompany 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,
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 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, 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 to the continuation 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 unforeseen 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 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 ch ange 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 reliable, which could result in lower revenue, higher cost, or
lower production levels; delays and/or cessation in planned w ork; changes in the Company's financial
condition and development plans; delays in regulatory approval; risks associated with the interpretation of data
(including in respect of the third party mineralized material) regarding the geology, grade and 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 uncertainties applicable to mineral exploration and development activities and to the
Company as set forth in the C ompany'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 fu ture events 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 informat ion or statements, other than as
required by applicable law.
Rosario Project
The decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect
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.
Veta Grande Project
The decision to commence production at Veta Grande Project was not based on a feasibility study on mineral
reserves demonstrating economic and technical viability. 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.