TSX.V: SCZ
FSE: 1SZ
VANCOUVER, Nov. 8, 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 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 the 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 compared
to Q3 2017 the increased production reflects 24% increase in tonnes
milled and a 34% increase in silver equivalent 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 track 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 Membrillo 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 an amended financial advisory agreement between the
Company and Haywood Securities Inc. ("Haywood"), the Company
intends to issue 250,000 of its common shares (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
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.