TSX.V: SCZ
FSE: 1SZ
VANCOUVER, May 9, 2019
/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
first quarter of 2019.
Highlights:
- Consolidated silver equivalent production increases by 67% as
compared to Q1 2018 and 8% as compared to Q4 2018
- Veta Grande silver equivalent
production increases by 184% as compared to Q1 2018 and 16% as
compared to Q4 2018
- Veta Grande zinc recovery
increases to 80% as compared to 36% in Q1 2018 and 57% in Q4
2018
Mr. Carlos Silva, Chief Operating
Officer, stated "The first quarter production results continue to
reflect operational improvements that were undertaken in 2018
including increased mine development at both mines and a
metallurgical review of the mill processing flowsheet at
Veta Grande. In particular, we are
very pleased with the significant improvement in zinc recovery at
Veta Grande." He continued,
"The preliminary April production results from both mines show
strong improvement over the Q1 numbers and are an indication of
improved operating results for the rest of 2019."
During Q1 2019 the Company's consolidated silver equivalent
production was 257,138 ounces, a 67% increase over Q1 2018
production (154,175 ounces) and an 8% increase over Q4 2018
production (237,542 ounces). The Q1 2019 Veta Grande mill
throughput tonnage was lower than in Q4 2018 because one of the
four ball mills in the plant was taken offline during Q4 2018 and
was refurbished during Q1 and placed back in service early in
April. The last remaining ball mill to be refurbished was
taken offline late in Q1 2019 and is expected to be put back in
service in Q3.
Work at the Rosario Project in Q1 2019 involved making final
infrastructure changes and completing stope development to allow
for a systematic improvement in mill throughput tonnage and head
grade of material processed during Q2 and beyond.
Preliminary production estimates for April indicate that the
consolidated production for the Company was 20,300 tonnes processed
resulting in 125,600 silver equivalent ounces being produced,
sourced as to 13,600 tonnes and 82,170 silver equivalent ounces
from Veta Grande and 6,700 tonnes
and 43,430 silver equivalent ounces from Rosario.
2019 First Quarter Consolidated Production Results
Summary of
Production Results
|
2019
Q1
|
2018
Q4
|
2018
Q1
|
Material Processed
(tonnes milled)
|
42,904
|
53,396
|
48,068
|
Silver eqv. ounce
production(1)
|
257,138
|
237,542
|
166,442
|
Silver production
(ounces)
|
93,573
|
77,848
|
48,102
|
Gold production
(ounces)
|
158
|
244
|
135
|
Lead production
(tonnes)
|
245
|
335
|
134
|
Zinc production
(tonnes)
|
674
|
558
|
449
|
Average Head Grade
(g/t Ag Eqv.)(1)
|
252
|
180
|
210
|
Development
(metres)
|
1,547
|
1,811
|
982
|
2019 First Quarter Veta Grande Project Production
Results
Summary of
Production Results
|
2019
Q1
|
2018
Q4
|
2018
Q1
|
Material Processed
(tonnes milled)
|
32,625
|
36,719
|
34,928
|
Silver eqv. ounce
production(1)
|
202,787
|
175,488
|
75,919
|
Silver production
(ounces)
|
79,582
|
58,921
|
32,413
|
Silver head grade
(g/t)
|
119
|
81
|
62
|
Gold head grade
(g/t)
|
0.19
|
0.19
|
0.15
|
Lead had grade
(%/t)
|
0.77
|
0.95
|
0.46
|
Zinc head grade
(%/t)
|
1.89
|
1.90
|
0.94
|
Silver recovery
(%)
|
64
|
62
|
47
|
Gold production
(ounces)
|
97
|
113
|
56
|
Lead production
(tonnes)
|
218
|
295
|
109
|
Zinc production
(tonnes)
|
492
|
398
|
118
|
Average Head Grade
(g/t Ag Eqv.)(1)
|
269
|
237
|
152
|
Development
(metres)
|
1,025
|
1,113
|
531
|
2019 First Quarter Rosario Project Production Results
Summary of
Production Results
|
2019
Q1
|
2018
Q4
|
2018
Q1
|
Material Processed
(tonnes milled)
|
10,279
|
16,676
|
13,140
|
Silver eqv. ounce
production(1)
|
54.351
|
62,084
|
90,523
|
Silver production
(ounces)
|
13,991
|
18,927
|
15,689
|
Silver head grade
(g/t)
|
47
|
42
|
43
|
Gold head grade
(g/t)
|
0.29
|
0.36
|
0.28
|
Lead head grade
(%/t)
|
0.29
|
0.26
|
0.22
|
Zinc head grade
(%/t)
|
2.09
|
1.26
|
2.91
|
Silver recovery
(%)
|
90
|
84
|
85
|
Gold production
(ounces)
|
61
|
131
|
79
|
Lead production
(tonnes)
|
27
|
40
|
25
|
Zinc production
(tonnes)
|
182
|
160
|
331
|
Average Head Grade
(g/t Ag Eqv.)(1)
|
196
|
149
|
254
|
Development
(metres)
|
522
|
698
|
451
|
|
(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, 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/santacruz-silver-reports-first-quarter-2019-production-results-300847063.html
SOURCE Santacruz Silver Mining Ltd.