VANCOUVER, July 9, 2018 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") reports
initial Phase I drill results from ongoing drill program at the
Garcia and Armados mines that form part of the Company's Veta
Grande Project located in the Zacatecas mining district, Zacatecas, Mexico. The objective of the drill
program is to better define the down dip extension of the
Veta Grande and Armados veins
through surface and underground core drilling. To date ten drill
holes totaling 3,323 meters of core drilling has been competed on
the property and the Company has received results for the first six
drill holes.
![Santacruz Silver Mining Ltd. (CNW Group/Santacruz Silver Mining Ltd.) Santacruz Silver Mining Ltd. (CNW Group/Santacruz Silver Mining Ltd.)](https://mma.prnewswire.com/media/716071/Santacruz_Silver_Mining_Ltd__Santacruz_Silver_Discovers_Three_Hi.jpg)
Seven drill holes (AR18-001 to AR18-007) were collared from
underground drill stations at the Armados mine where core drilling
has led to the discovery of three on echelon high grade veins
(named San Abraham, San Patricio and Sistema Santacruz) that are
located in the footwall of the Armados vein. The mineral tenure of
the three new veins demonstrates much higher lead (up to 11.5%),
zinc (up to 19.6%), copper (up to 0.43%), and gold (up to 1.91 g/t)
than is seen in the Armados vein where lead and zinc grades are
typically less than 0.5% and where gold is typically absent.
Additional core drilling is required to adequately characterize
these new veins. With the present information, management believes
the new veins may represent a separate mineralizing event than that
associated with the Armados vein. With the discovery of the new
veins, together with the Armados and Veta
Grande veins, eight epithermal veins have so far been
explored by core drilling on the Veta Grande Project by the Company
(Veta Grande, Armados, San Jose,
La Flor, Esperanza, San Abraham, San Patricio and Sistema
Santacruz).
At the Garcia mine, three drill holes (VG18-001, VG18-002 and
VG18-003) were collared from surface and intersected the
mineralized down dip extension of the Veta Grande, La Esperanza and La Flor veins.
The Company elected to initially target the Veta Grande vein near the southern border of
the property based upon its proximity to historic underground
workings and published drill results from the adjoining property
that indicated potential for high grade material. The three
holes completed in this area intersected the targeted structures
including wide intervals of quartz vein material. Unfortunately the
assay results associated with these wide quartz vein intercepts did
not carry high grade mineralization.
All exploration work to date at both the Garcia and Armados
mines has been focused on the southernmost 500 metres strike length
of the Veta Grande vein system
with no systematic exploration having been undertaken on the
northern extension of the vein systems.
Carlos Silva, COO of Santacruz,
commented; "The Company is excited about the discovery of the three
high grade veins at the Armados mine which appear to be within
about 20 meters of each other and approximately parallel to the
Armados vein. This discovery supports our view of the strong
mineral potential of this historical mining district of
Zacatecas." Mr. Silva continued;
"Our exploration thesis is that higher grade mineralization occurs
at depth. In addition, the Company intends to begin exploration on
the northern portions of the Veta
Grande property which has seen limited historic work.
Drilling to the north will begin in proximity to a 1940's era shaft
in the general area where initial surface chip sampling has
encountered higher silver grades over greater true widths than
results from the southern portions of the Veta Grande vein system. Drilling will
test the Veta Grande vein
structure to depths of up to 600 metres."
VETA GRANDE
PROJECT ASSAY RESULTS
VEIN
|
DDH
|
From
|
To
|
Length
|
True
Width
|
Au
|
Ag
|
Pb
|
Zn
|
Cu
|
AgEq
|
|
|
m
|
m
|
m
|
m
|
g/t
|
g/t
|
%
|
%
|
%
|
g/t
|
ARMADOS
|
AR18-001
|
30.8
|
31.9
|
1.1
|
1
|
0.05
|
209
|
0.08
|
0.34
|
0.01
|
239.06
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN
ABRAHAM
|
AR18-001
|
169.5
|
169.85
|
0.35
|
0.32
|
0.37
|
312
|
0
|
0.61
|
0.03
|
383.48
|
|
|
|
|
|
|
|
|
|
|
|
|
ARMADOS
|
AR18-002
|
34.3
|
36
|
1.7
|
1.4
|
0.06
|
168
|
0.06
|
0.17
|
0
|
185.65
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN
ABRAHAM
|
AR18-002
|
196.85
|
198
|
1.15
|
0.95
|
1.36
|
235
|
7.52
|
8.75
|
0.19
|
1261.59
|
|
including
|
197.25
|
198
|
0.75
|
0.62
|
1.91
|
307
|
11.5
|
13.3
|
0.28
|
1857.72
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN
PATRICIO
|
AR18-002
|
204.4
|
205.1
|
0.7
|
0.58
|
0.22
|
84
|
6.06
|
10.6
|
0.34
|
1088.09
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN JOSE
|
AR18-003
|
79.35
|
79.5
|
0.15
|
0.1
|
0.52
|
843
|
0.06
|
0.07
|
0.09
|
903.13
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN
ABRAHAM
|
AR18-003
|
150.8
|
151.6
|
0.8
|
0.65
|
0
|
292
|
0.04
|
0.05
|
0.01
|
298.26
|
|
|
|
|
|
|
|
|
|
|
|
|
ARMADOS
|
AR18-004
|
52.2
|
52.55
|
0.35
|
0.25
|
0
|
292
|
0.04
|
0.05
|
0.01
|
298.26
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN JOSE
|
AR18-005
|
123.1
|
123.65
|
0.55
|
0.4
|
0.01
|
8
|
0.07
|
0.18
|
0.01
|
24.43
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN
ABRAHAM
|
AR18-005
|
178.95
|
179.65
|
0.7
|
0.5
|
0.02
|
5
|
0
|
0
|
0.01
|
7.98
|
|
|
|
|
|
|
|
|
|
|
|
|
SAN
PATRICIO
|
AR18-005
|
191.4
|
192.3
|
0.9
|
0.65
|
0.01
|
4
|
0
|
0
|
0.01
|
6.41
|
|
|
|
|
|
|
|
|
|
|
|
|
SISTEMA
SANTACRUZ
|
AR18-005
|
217.75
|
218.35
|
0.6
|
0.43
|
0.65
|
124
|
6.33
|
19.6
|
0.43
|
1748.77
|
|
|
|
|
|
|
|
|
|
|
|
|
SISTEMA
SANTACRUZ
|
AR18-005
|
226.8
|
227.3
|
0.5
|
0.36
|
0.71
|
80
|
1.81
|
9.19
|
0.18
|
818.13
|
|
|
|
|
|
|
|
|
|
|
|
|
LA
ESPERANZA
|
VG18-001
|
409
|
410.5
|
1.5
|
1.1
|
0.78
|
27
|
0.36
|
0.38
|
0.09
|
141.1
|
|
|
|
|
|
|
|
|
|
|
|
|
VETAGRANDE
|
VG18-001
|
490.8
|
492
|
1.2
|
0.88
|
1.73
|
34
|
0.15
|
0.33
|
0.01
|
200.63
|
No significant results are reported for VG18-002 and VG18-003.
Assay results for AR18-006 and AR18-007 are pending.
Silver Equivalent (AgEq) in the drill results assumes
$1,331per ounce Au (Pau),
$16.73 per ounce Ag (Pag), $1.13
per pound Pb (Ppb), $1.53 per pound
Zn (Pzn), and $3.14 per pound Cu
(Pcu) with 100-per-cent metallurgical recovery. The formula used in
the calculation is as
follows:
EqAg (g/t)
=
|
(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)+(Cu*Pcu*22.05)
|
|
|
(Pag)
|
|
|
|
Quality control/quality assurance program
All drill core was logged, photographed and cut in half with a
diamond saw. Half-core samples were sent to SGS Minerals Services
in Durango, Mexico (17025
accredited), for preparation and analyses. Drill core samples were
analysed for 33-elements by four-acid digestion of a 0.5-gram
sample followed by an ICP-AES (inductively coupled plasma atomic
emission spectroscopy) finish. Over limit for Pb, Zn and Cu were
further analysed by sodium peroxide fusion of a 0.5-gram sample
followed by ICP-AES finish. Au and Ag was also analysed by fire
assay of a 30 g sample followed by AAS (atomic absorption
spectroscopy) finish for Au and gravimetric finish for
Ag.
As part of the Company's quality assurance quality control
(QA/QC) program, independently certified control samples (standard
and blank pulp samples) were inserted in each analytical batch. The
control sample results were then checked to ensure proper
QA/QC.
Qualified persons
The technical information contained in this news release has
been reviewed and approved by Van Phu
Bui, B.Sc., P. Geo., who is independent of the Company and a
"qualified person" under National Instrument 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver projects (Veta Grande Project and Rosario Project) and two
exploration properties (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
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 with
multimedia:http://www.prnewswire.com/news-releases/santacruz-silver-discovers-three-high-grade-veins-during-initial-holes-of-phase-1-drilling-of-veta-grande-property--zacatecas-300677848.html
SOURCE Santacruz Silver Mining Ltd.