VANCOUVER, BC, Aug. 9, 2023
/CNW/ - Santacruz Silver Mining Ltd. (TSXV: SCZ)
("Santacruz" or "the Company") reports its Q2 2023 production
results from its Bolivar mine , Porco mine, Caballo Blanco Group of
mines ("Caballo Blanco") and the San
Lucas ore sourcing and trading business ("San Lucas"), all
located in Bolivia, and the
Zimapan mine located in
Mexico.
Highlights:
- Produced 5,569,535 silver equivalent ounces including;
-
- 1,786,461 ounces of silver;
- 2,824 tonnes of lead;
- 22,281 tonnes of zinc and;
- 297 tonnes of copper.
- Water handling infrastructure upgrade completed at the Bolivar
mine in the Central zone.
- Integration ramp connecting the Tres Amigos and Colquechaquita
mines at Caballo Blanco progressing well and on track to be
completed in Q1 2024.
Arturo Préstamo, Executive Chairman of Santacruz, commented,
"During the quarter the Company maintained steady production
levels, despite a temporary interruption in plant feed haulage at
the Mexican operation. This was offset by higher grade ore sourced
by San Lucas. In the first half of
the year, Santacruz has produced just over 11 million silver
equivalent ounces. We have also been making progress on capital
projects aimed at streamlining our operations, such as the
integration ramp at Caballo Blanco, and our team is focused on
finding additional opportunities to further improve operations at
each mine."
Santacruz processed 443,969 tonnes of material in Q2 2023, a
slight decrease from the previous quarter. Silver equivalent ounces
produced of 5,569,535 included 1,786,461 ounces of silver, 2,824
tonnes of lead, 22,281 tonnes of zinc and 297 tonnes of copper. The
slight decrease in material processed was offset by an increase in
silver production from San Lucas,
which resulted in silver equivalent ounce production being in line
with the previous quarter.
During the same period last year, 435,119 tonnes of material was
processed, and 4,922,055 silver equivalent ounces was produced.
While total material processed was relatively consistent when
comparing Q2 2023 to Q2 2022, increased production from the
higher-grade Bolivian operations offset reduced production from the
lower grade Mexican operation, resulting in an increase in silver
equivalent ounces.
The Company also made progress on operational efficiency
projects at its various mines. At Bolivar, water handling
infrastructure servicing the Central Zone was upgraded, which
should alleviate production interruptions experienced from this
area in Q2 and allow for more consistent production going forward.
In addition, the integration ramp connecting the Tres Amigos and
Colquechaquita mines at the Caballo Blanco remains on track for
completion in Q1 2024. The integration ramp consists of
approximately 1,177 meters of development, including primary ramp
and auxiliary drives, and is more than 60% complete. This is
expected to facilitate increased productivity from Colquechaquita
and total production from the Caballo Blanco Group of mines by
providing trackless access to Colquechaquita and eliminating the
bottleneck created by the current shaft.
Second Quarter 2023 Production Summary – Consolidated
|
2023-Q2
|
2023-Q1
|
Change
Q2 vs Q1
(%)
|
2022-Q2
|
Change
Q2 vs
Q2
(%)
|
2023
YTD
|
2022
YTD(1)(2)
|
Change
'23 vs
'22
(%)
|
Material Processed
(tonnes milled)
|
443,969
|
482,497
|
(8 %)
|
435,119
|
2 %
|
926,466
|
662,689
|
40 %
|
Silver Equivalent
Produced (AgEq ounces) (3)
|
5,569,535
|
5,644,383
|
(1 %)
|
4,922,055
|
13 %
|
11,213,918
|
6,535,775
|
72 %
|
Silver Ounces
Produced
|
1,786,461
|
1,769,520
|
1 %
|
1,410,485
|
27 %
|
3,555,981
|
1,880,314
|
89 %
|
Lead Tonnes
Produced
|
2,824
|
3,043
|
(7 %)
|
2,825
|
- %
|
5,867
|
4,169
|
41 %
|
Zinc Tonnes
Produced
|
22,281
|
22,463
|
(1 %)
|
20,433
|
9 %
|
44,744
|
26,591
|
68 %
|
Copper Tonnes
Produced
|
297
|
415
|
(28 %)
|
329
|
(10 %)
|
712
|
537
|
33 %
|
Development
Metres
|
10,922
|
10,573
|
3 %
|
9,807
|
11 %
|
21,495
|
13,379
|
61 %
|
Second Quarter 2023 Production Summary – By Mine
|
Bolivar
(4)
|
Porco
(4)
|
Caballo
Blanco
Group(5)
|
San
Lucas
|
Zimapan
|
Material Processed
(tonnes milled)
|
66,689
|
46,085
|
74,268
|
85,258
|
171,668
|
Silver Equivalent
Produced (AgEq ounces) (3)
|
961,580
|
689,902
|
1,211,475
|
1,827,724
|
878,854
|
Silver Ounces
Produced
|
424,664
|
195,509
|
399,811
|
495,344
|
271,133
|
Lead Tonnes
Produced
|
302
|
214
|
825
|
635
|
849
|
Zinc Tonnes
Produced
|
3,323
|
3,098
|
4,804
|
8,315
|
2,741
|
Copper Tonnes
Produced
|
N/A
|
N/A
|
N/A
|
N/A
|
297
|
Average head grades per
mine:
|
|
|
|
|
|
Silver (g/t)
|
217
|
154
|
182
|
216
|
69
|
Lead
(%)
|
0.62
|
0.58
|
1.44
|
1.21
|
0.67
|
Zinc
(%)
|
5.57
|
7.15
|
6.98
|
10.69
|
2.25
|
Copper (%)
|
N/A
|
N/A
|
N/A
|
N/A
|
0.33
|
Metal recovery per
mine:
|
|
|
|
|
|
Silver (%)
|
91
|
86
|
92
|
84
|
71
|
Lead
(%)
|
74
|
80
|
77
|
62
|
74
|
Zinc
(%)
|
90
|
94
|
93
|
91
|
71
|
Copper (%)
|
N/A
|
N/A
|
N/A
|
N/A
|
53
|
Development
Metres
|
2,508
|
1,915
|
3,867
|
N/A
|
2,631
|
(1)
|
On March 18, 2022 the
Company closed the acquisition of all Bolivian assets from Glencore
and the results of the Bolivian Operations are included in the
consolidated results of the Company from that date.
|
(2)
|
Production from March
18, 2022 to June 30, 2022.
|
(3)
|
Silver Equivalent
Produced (ounces) have been calculated using prices of $21.86/oz,
$0.91/lb, $1.52/lb and $3.67/lb for silver, lead, zinc and copper
respectively applied to the metal production divided by the silver
price.
|
(4)
|
Bolivar and Porco are
presented at 100% production, whereas the Company records 45% of
revenues and expenses in its consolidated financial
statements.
|
(5)
|
The Caballo Blanco
Group consists of the Colquechaquita, Tres Amigos and Reserva
mines.
|
|
|
Qualified Person
Wayne
Corso, Chief Operating Officer of the Company is a qualified
person under NI 43-101 and has approved the scientific and
technical information related to operational matters contained in
this news release.
About Santacruz Silver Mining Ltd.
Santacruz Silver is engaged in the operation,
acquisition, exploration, and development of mineral properties in
Latin America. The Bolivian
operations are comprised of the Bolivar, Porco and the Caballo
Blanco Group, which consists of the Tres Amigos, Reserva and
Colquechaquita mines. The Soracaya exploration project and
San Lucas ore sourcing and trading
business are also in Bolivia. The
Zimapan mine is in Mexico.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman
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
This news
release includes certain statements and information that may
constitute forward-looking information within the meaning of
applicable Canadian securities laws. Forward-looking statements
relate to future events or future performance and reflect the
expectations or beliefs of management of the Company regarding
future events. Generally, forward-looking statements and
information can be identified by the use of forward-looking
terminology such as "intends", "expects" or "anticipates", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "should", "would" or
will "potentially" or "likely" occur. This information and these
statements, referred to herein as "forward‐looking statements", are
not historical facts, are made as of the date of this news release
and include without limitation, statements regarding the expected
completion of the integration ramp at Caballo Blanco, and
the benefits derived therefrom, the Company's current focus on
certain business objectives, and the impact of the water handling
infrastructure upgrade completed at the Bolivar mine.
These forward‐looking statements involve numerous risks and
uncertainties and actual results might differ materially from
results suggested in any forward-looking statements. These risks
and uncertainties include, among other things, risks that the
integration ramp at Caballo Blanco will not be completed on the
expected timeline, or at all, that the integration ramp will not
provide the benefits currently expected by management, that the
Company's focus will not remain on finding additional opportunities
to further improve operations at each mine, that the upgraded water
handling infrastructure at the Bolivar mine will not have the
anticipated effects on production, risks related
to changes in general economic, business and political
conditions, including changes in the financial markets, changes in
applicable laws, and compliance with extensive government
regulation, as well as those risk factors discussed or
referred to in the Company's disclosure documents filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedarplus.ca.
In making the forward-looking statements in this news
release, the Company has applied several material assumptions,
including without limitation, the assumption that the integration
ramp at Caballo Blanco will be completed on the expected timeline,
that the Company will derive the expected benefits from the
integration ramp, that the Company's focus will remain on finding
additional opportunities to further improve operations at each
mine, and that the completion of the water handling infrastructure
upgrade at the Bolivar mine will help alleviate production
interruptions and lead to more consistent production.
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.
SOURCE Santacruz Silver Mining Ltd.