TSX.V: SCZ
FSE: 1SZ
VANCOUVER, May 24, 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 first quarter of 2018.
The Company produced a total of 154,175 silver equivalent ounces
in Q1 2018 (Q1 2017 – 223,968; Q4 2017 – 139,670). As
compared to Q1 2017, the decreased production reflects 30% less
tonnes milled at the Rosario Project and a 32% decrease in the
average silver equivalent head grade at the Veta Grande Project.
As compared to Q4 2017, the increased production reflects an
11% increase in the average silver equivalent head grade at the
Rosario Project and a 98% increase in tonnes milled at the Veta
Grande Project offset by 22% decrease in the average silver
equivalent head grade.
"During Q1 of 2018 management focussed activities on
aggressively developing the Veta
Grande main ramp in order to access in situ mineralized
material from Q3 onwards. This strategy has resulted in lower head
grades and reduced metal production for the short run but will pave
the way for achieving targeted production for Q3 and beyond."
stated Arturo Prestamo. He
continued, "At Rosario the millfeed continued to be a blend of
development muck and mineralized material from production
stopes. During Q2 the percentage of development muck will
decrease as more production stopes come online and by Q3 we expect
to be at targeted production and head grade levels."
2018 First Quarter Consolidated Production Results
|
Summary of
Production Results
|
2018
Q1
|
2017
Q4
|
2017
Q1
|
Material Processed
(tonnes milled)
|
48,068
|
30,975
|
45,474
|
Silver eqv. ounce
production(1)
|
154,175
|
139,670
|
223,968
|
Silver production
(ounces)
|
48,102
|
44,316
|
92,154
|
Gold production
(ounces)
|
135
|
239
|
326
|
Lead production
(tonnes)
|
134
|
94
|
144
|
Zinc production
(tonnes)
|
449
|
412
|
559
|
Average Head Grade
(g/t Ag Eqv.)
|
167
|
194
|
216
|
2018 First Quarter Veta Grande Project Production
Results
|
Summary of
Production Results
|
2018
Q1
|
2017
Q4
|
2017
Q1
|
Material Processed
(tonnes milled)
|
34,928
|
17,657
|
26,751
|
Silver eqv. ounce
production(1)
|
71,410
|
64,987
|
108,728
|
Silver production
(ounces)
|
32,413
|
25,665
|
57,598
|
Silver head grade
(g/t)
|
62
|
78
|
117
|
Silver recovery
(%)
|
47
|
58
|
57
|
Gold production
(ounces)
|
56
|
53
|
131
|
Lead production
(tonnes)
|
109
|
70
|
99
|
Zinc production
(tonnes)
|
118
|
163
|
177
|
Average Head Grade
(g/t Ag Eqv.)
|
142
|
183
|
209
|
2018 First Quarter Rosario Project Production Results
|
Summary of
Production Results
|
2018
Q1
|
2017
Q4
|
2017
Q1
|
Material Processed
(tonnes milled)
|
13,140
|
13,317
|
18,723
|
Silver eqv. ounce
production(1)
|
82,765
|
74,683
|
115,240
|
Silver production
(ounces)
|
15,689
|
18,652
|
34,556
|
Silver head grade
(g/t)
|
43
|
53
|
66
|
Silver recovery
(%)
|
85
|
82
|
86
|
Gold production
(ounces)
|
79
|
186
|
195
|
Lead production
(tonnes)
|
25
|
23
|
45
|
Zinc production
(tonnes)
|
331
|
249
|
382
|
Average Head Grade
(g/t Ag Eqv.)
|
232
|
209
|
226
|
|
|
(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
|
Update - Veta Grande Project
Two important initiatives are currently ongoing at the Veta
Grande Project. One is the ongoing first phase of a surface
drilling campaign consisting of 6,000 metres on the Veta Grande vein and a 3,000-metre underground
drill program on the Armados vein. The plan is to complete a
20,000-metre drill program during 2018 funded by Carrizal Mining,
S.A. de C.V. To this end, a second surface drill rig is
expected on property shortly. With respect to the current
program, the first two surface drill holes have been completed and
five underground drill holes been completed. Assays are
pending.
The other initiative is to drive a second production ramp to
access the Armados vein while concurrently continuing with
development work on the Veta
Grande vein. .
Update - Rosario Project
As disclosed previously, during Q4 2017 the Company took the
decision to consolidate all of its Rosario Project mining
operations to the Membrillo Prospect. Mine development has
now reached Level 3 and mine production is increasing.
Management anticipates that the targeted production rate (350 tpd)
and head grade will be achieved by the end of Q2.
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.