TSX.V: SCZ
FSE:
1SZ
VANCOUVER, Aug. 21, 2018 /CNW/ - 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 – 270,659) the increased production primarily
reflects an 8% increase in tonnes milled and an 5% increase in
silver equivalent head grade at the Veta Grande Project with a
smaller contribution from increased tonnes milled at the Rosario
Project. When compared to Q2 2017, the decreased production
reflects 45% less tonnes milled 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
at the Garcia, Armados and Navidad mines is on track and expected
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 at Level
3 in the targeted mineralized area and preparation of production
stopes is underway with the 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
Results
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
Rosario, and two exploration
properties, the Minillas property
and Zacatecas properties. The
Company 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
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 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 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 reliable, 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
regulatory approval; risks associated with the interpretation of
data (including in respect of the third party mineralized material)
regarding the geology, grade and continuity 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 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 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 information 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.
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SOURCE Santacruz Silver Mining Ltd.