TSX.V: SCZ
FSE: 1SZ
VANCOUVER, March 24, 2017 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") reports
its operating results from the Rosario project in Charcas, San Luis Potosi, Mexico and the
Veta Grande project in
Zacatecas, Mexico for the fourth
quarter ("Q4") and year ended December 31,
2016 and provides an update on the respective projects.
The Company produced a total of 970,332 silver equivalent
ounces(1) in fiscal 2016, including fourth quarter
production of 242,048 silver equivalent ounces(1) from
its two operating projects. Production levels for the fourth
quarter of 2016 were impacted by ongoing development and
optimization activities at both the Rosario and Veta
Grande projects which may allow for increased production
levels in 2017.
"We are excited to see the results of our efforts over these
past months coming to fruition with an anticipated production
increase in fiscal 2017," stated Arturo Préstamo, Santacruz's
President and CEO. "This expected increase in production will
be the result of significant development work completed at the
Veta Grande and Rosario projects in the fourth quarter of
2016, which has set the stage for more robust 2017 operations.
Although our focus on these development activities had the effect
of reducing our fourth quarter 2016 production total, I am pleased
to advise that the Company is now well positioned to steadily
advance our production levels throughout the year."
Project Updates
Rosario
project
At the Cinco Estrellas property, the Company has completed
development work on Levels 1, 2 and 3. Approximately 2855 tonnes of
mineralized material was mined and processed from the property in
the fourth quarter of 2016 with an estimated head grade of 3.3 g/t
Au and 88 g/t Ag. To date in 2017 approximately 4950 tonnes of
mineralized material has been mined and processed from the
property. The mineralized material mined in the fourth quarter and
to date in 2017 has been sourced from mine development
workings. Importantly, development of the first production
stope has just been completed. The stope is approximately 18
metres high, with vein widths ranging from 1.5 to 3.0 metres for
approximately 150 metres. Chip samples collected from the top of
the stope range up to 6.0 g/t Au and 120 g/t Ag as compared to the
bottom of the stope that range up to 19 g/t Au and 220 g/t
Ag. Management expects to mine this stope at approximately
250 tpd.
In addition to the Cinco Estrellas property, the Company is
evaluating other nearby properties which could be integrated into
the Rosario project in order to
leverage on Rosario´s milling capacity (approximately 600 tpd). The
Companys objective is to use the Rosario mill as a central processing facility
for numerous mining projects in the nearby area.
Veta Grande
project
During the fourth quarter of 2016, significant mine development
occurred at the Veta Grande
project,
including approximately 1,400 metres of level development and 480
metres of main access ramp development completed at the Guadalupana
mine, and approximately 350 metres of level development in addition
to 120 metres of main haulage ramp development completed at the
Garcia mine. Importantly, during the fourth quarter
mineralized material from previously mined stopes within the
Veta Grande vein was identified
and accessed from old workings below Level 3 at the Garcia mine.
This preparation work took place at these areas and during the
months of January and February approximately 17,170 tonnes of
material was extracted and processed from these previously mined
stopes with an estimated head grade of 166 g/t Ag, 1.67% Zn, 1.33%
Pb and 0.42 g/t Au.
Mineralized material from the previously mined stopes at the
Garcia mine will be a primary source of millfeed to the
Veta Grande milling facility in
2017, combined with mineralized material from other mine working
faces recently developed at the Garcia mine. In connection with
this matter during the first half of 2017 the Company plans to
drive an access ramp for a vertical depth of 120 metres from the
current workings at the Veta
Grande vein, the largest of the vein systems contained
within the Garcia mine.
In concert with the current optimized mine plan, the Company is
deferring the installation of the 1,250 tonne-per-day ball mill and
4,000 tonne-per-day crushing circuit until the second half of
2017.
CONSOLIDATED OPERATIONAL RESULTS
Summary of
Production Results
|
2016
Q4
|
2015
Q4
|
2016
Yr
|
2015
Yr
|
Material Processed
(tonnes milled)
|
46,587
|
25,927
|
121,804
|
79,249
|
Silver eqv. ounce
production
|
242,048
|
268,319
|
970,332
|
832,284
|
Silver production
(ounces)
|
100,199
|
143,937
|
486,136
|
471,893
|
Gold production
(ounces)
|
251
|
103
|
569
|
336
|
Lead production
(tonnes)
|
348
|
254
|
991
|
780
|
Zinc production
(tonnes)
|
768
|
673
|
3,039
|
1,895
|
Average Head Grade
(g/t Ag Eqv.)
|
206
|
341
|
288
|
352
|
|
Note 1
2015 production includes only nine months of the year, since during
Q1 operations were suspended at the Rosario project due to a
tailings pipe malfunction. 2015 silver equivalent
ounces produced have been calculated as follows:
|
|
AgEqvOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)
|
|
(Pag)
|
Metal Prices: Ag
$17.75, Au $1,250, Pb $0.83, Zn $1.09
|
|
Note 2
2016 silver equivalent ounces produced have been
calculated as follows:
|
|
AgEqvOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)
|
|
(Pag)
|
|
Metal Prices: Ag
$14.50, Au $1,100 Pb $0.76, Zn $0.71
|
ROSARIO PROJECT OPERATIONAL
RESULTS
Summary of
Production Results
|
2016
Q4
|
2015
Q4
|
2016
Yr
|
2015
Yr
|
Material Processed
(tonnes milled)
|
18,025
|
25,927
|
93,242
|
79,249
|
Silver eqv. ounce
production
|
135,529
|
268,319
|
863,873
|
832,284
|
Silver production
(ounces)
|
70,356
|
143,937
|
456,293
|
471,893
|
Silver head grade
(g/t)
|
126
|
178
|
163
|
194
|
Silver recovery
(%)
|
96
|
97
|
94
|
96
|
Gold production
(ounces)
|
136
|
103
|
454
|
336
|
Lead production
(tonnes)
|
116
|
254
|
759
|
780
|
Zinc production
(tonnes)
|
386
|
673
|
2,657
|
1,895
|
Average Head Grade
(g/t Ag Eqv.)
|
263
|
341
|
324
|
352
|
VETA GRANDE PROJECT
OPERATIONAL RESULTS
Summary of
Production Results
|
2016
Q4
|
2015
Q4
|
2016
Yr
|
2015
Yr
|
Material Processed
(tonnes milled)
|
28,562
|
-
|
28,562
|
-
|
Silver eqv. ounce
production
|
106,519
|
-
|
106,519
|
-
|
Silver production
(ounces)
|
29,843
|
-
|
29,843
|
-
|
Silver head grade
(g/t)
|
56
|
-
|
56
|
-
|
Silver recovery
(%)
|
58
|
-
|
58
|
-
|
Gold production
(ounces)
|
115
|
-
|
115
|
-
|
Lead production
(tonnes)
|
232
|
-
|
232
|
-
|
Zinc production
(tonnes)
|
382
|
-
|
382
|
-
|
Average Head Grade
(g/t Ag Eqv.)
|
170
|
-
|
170
|
-
|
Management Change
The Company advises that it has appointed Dante Rodriguez as Interim Chief Operating
Officer, replacing Cesar Maldonado
as COO. Mr. Maldonado has agreed to remain as a consultant to
the Company. The Company wishes to thank Mr. Maldonado for
his valuable contribution to the Company during his tenure as
COO.
Mr. Rodriguez has most recently held the position of
Vice-President, Exploration for the Company's wholly-owned
subsidiary, Impulsora Minera Santacruz, S.A. de C.V.
Sampling and Laboratory
The reported head grades have been estimated from assay results
of samples collected from stockpiles of mined mineralized material.
The reported stope grades are of assay results of underground chip
samples collected across the vein and at an average interval of
three meters along the strike length of the vein. Blanks, standards
and duplicate control samples are not utilized in the sampling
procedure.
Samples collected from the Rosario and Veta
Grande projects are assayed at the Rosario and Veta
Grande laboratories, respectively. Both laboratories are
owned and operated by Santacruz and the facilities are meant to
serve the mining operations at the projects. The Rosario and Veta
Grande laboratories are not independent of the Company and
do not hold ISO certification. Samples are prepared by drying,
crushing, rifle splitting and pulverizing to <75 microns passing
200-mesh. Samples are analyzed by 3-acid digestion and Atomic
Absorption Spectrometry. Gold and silver are further analyzed by
fire assay with gravametric finish.
Qualified Persons
The technical information included in this statement has been
reviewed and approved by Van Phu
Bui, P.Geo. of ARC Geoscience Group who is independent of
the Company and is a qualified person, pursuant to the meaning of
such terms in NI 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver projects (Rosario,
including the Cinco Estrellas property, and the right to operate
the Veta Grande silver project and
milling facility); and three exploration properties including the
Gavilanes property, 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, that the Company's financial condition and
development plans do not change as a result of unforeseen events,
that third party mineralized material to be milled by the Company
has properties consistent with management's expectations, that the
Company obtains all required regulatory approvals, and that future
metal prices and the demand and market outlook for metals remains
stable or improves. 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, lower production levels, delays, and/or cessation in planned
work, that the Company's financial condition and development plans
change, delays in regulatory approval, risks associated with the
interpretation of data (including in respect of the third party
ore), 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 Mine
The decision to commence production at the Rosario Mine was
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.
Cinco Estrellas Property
The decision to commence production at the Cinco Estrellas
Property 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.
SOURCE SantaCruz Silver Mining Ltd.