Santacruz Silver Reports First Quarter 2018 Production Results
May 24, 2018, 16:00 ET
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) |
| 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.
SOURCE Santacruz Silver Mining Ltd.
For further information: Arturo Prestamo, Santacruz Silver Mining Ltd., Email: [email protected], Telephone: (604) 569-1609
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