TSX.V: SCZ
FSE:
1SZ
VANCOUVER, Feb. 14, 2019 /CNW/ - Santacruz Silver
Mining Ltd. (TSX.V:SCZ) (the "Company" or
"Santacruz") reports its operating results from the Veta
Grande Project in Zacatecas,
Mexico and Rosario Project in Charcas, San Luis Potosi, Mexico for the
fourth quarter ("Q4") and year ended December 31, 2018 and provides an operations
update.
The Company produced a total of 815,323 silver equivalent ounces
in fiscal 2018 (2017 - 865,458) including fourth quarter production
of 237,542 silver equivalent ounces (2017 – 139,670).
Carlos Silva, Santacruz's COO
stated, "Production at Veta Grande
is steadily improving as a result of increased mine development
during the year leading to additional stopes coming online and less
reliance on previously mined mineralized material (Chorros) as feed
to the mill. The ongoing mine development at the Armados, Navidad
and Garcia mines has positioned our Veta
Grande operations for continued improvements in
2019." Mr. Silva continued, "At Rosario a mine plan has been
developed and implemented to deal with the narrow vein
system. The focus is to transition to being a lower tonnage
producer with less dilution which is expected to translate into a
more efficient operation. In conjunction with implementing the new
mine plan an evaluation of the future operations of Rosario is taking place."
CONSOLIDATED PRODUCTION RESULTS – 2018 Q4 AND 2018
ANNUAL
|
2018
Q4
|
2017
Q4
|
2018
Yr
|
2017
Yr
|
Material Processed
(tonnes milled)
|
53,395
|
30,975
|
211,465
|
181,077
|
Silver eqv. ounce
production
|
237,542
|
139,670
|
815,323
|
865,458
|
Silver production
(ounces)
|
42,017
|
44,316
|
262,683
|
313,946
|
Gold production
(ounces)
|
170
|
239
|
746
|
1,431
|
Lead production
(tonnes)
|
40
|
94
|
912
|
623
|
Zinc production
(tonnes)
|
160
|
412
|
2,158
|
2,292
|
Average Head Grade
(g/t Ag Eqv.)
|
210
|
194
|
193
|
161
|
VETA GRANDE PROJECT
PRODUCTION RESULTS – 2018 Q4 AND 2018 ANNUAL
|
2018
Q4
|
2017
Q4
|
2018
Yr
|
2017
Yr
|
Material Processed
(tonnes milled)
|
36,719
|
17,657
|
150,281
|
102,111
|
Silver eqv. ounce
production
|
175,488
|
64,987
|
514,367
|
423,130
|
Silver production
(ounces)
|
58,921
|
25,665
|
190,325
|
201,284
|
Silver head grade
(g/t)
|
81
|
78
|
73
|
100
|
Silver recovery
(%)
|
62
|
58
|
54
|
61
|
Gold production
(ounces)
|
113
|
53
|
367
|
424
|
Lead production
(tonnes)
|
295
|
70
|
784
|
466
|
Zinc production
(tonnes)
|
398
|
163
|
1,112
|
803
|
Average Head Grade
(g/t Ag Eqv.)
|
237
|
183
|
196
|
196
|
Development
(metres)
|
1,113
|
471
|
4,118
|
2,400
|
ROSARIO PROJECT PRODUCTION
RESULTS – 2018 Q4 AND 2018 ANNUAL
|
2018
Q4
|
2017
Q4
|
2018
Yr
|
2017
Yr
|
Material Processed
(tonnes milled)
|
16,676
|
13,317
|
61,184
|
78,964
|
Silver eqv. ounce
production
|
62,054
|
74,683
|
300,956
|
442,328
|
Silver production
(ounces)
|
18,927
|
18,652
|
72,358
|
112,662
|
Silver head grade
(g/t)
|
42
|
53
|
43
|
52
|
Silver recovery
(%)
|
83
|
82
|
86
|
85
|
Gold production
(ounces)
|
131
|
186
|
379
|
1,007
|
Lead production
(tonnes)
|
40
|
23
|
128
|
157
|
Zinc production
(tonnes)
|
160
|
249
|
1,047
|
1,489
|
Average Head Grade
(g/t Ag Eqv.)
|
149
|
209
|
185
|
205
|
|
* In the above tables Ag Eq
has been calculated as follows:
|
|
2018 Ag Eq was
calculated using metal prices of: Ag $17.00/oz, Au $1,295/oz, Pb
$1.00/lb and Zn $1.35/lb
|
|
2017 Ag Eq was
calculated using metal prices of: Ag $16.00/oz, Au $1,150/oz, Pb
$1.00/lb and Zn $1.15/lb
|
Project Review
Veta Grande Project
Silver equivalent production at the Veta Grande Project in the
second half of 2018 more than doubled that from the first
half. In large part this increased production reflects access
to more in situ mineralized material as a consequence of
increased development work completed (2018 – 4,118 m vs. 2017 – 2,400
m) and from improving metal recoveries which reflects better
understanding of the metallurgy of the different sources of
mineralized material.
A quarterly summary of production statistics by source of
mineralized material processed at the Veta Grande mill during 2018 is as
follows:
Mineralized
Material Source
|
|
Q1
|
Q2
|
Q3
|
Q4
|
In Situ Previously
Unmined
|
tonnes
|
5,182
|
5,115
|
15,936
|
16,315
|
|
Ag Eqv. Head Grade
(g/t)
|
245
|
252
|
208
|
283
|
|
|
|
|
|
|
Previously
Mined
|
tonnes
|
29,746
|
31,507
|
26,075
|
20,404
|
("Chorros")
|
Ag Eqv. Head Grade
(g/t)
|
124
|
146
|
250
|
201
|
|
|
|
|
|
|
Total All
Sources
|
tonnes
|
34,928
|
36,622
|
42,011
|
36,719
|
|
Ag Eqv. Head Grade
(g/t)
|
142
|
161
|
234
|
237
|
|
Silver recovery
(%)
|
47
|
45
|
60
|
62
|
|
*2018 Ag Eq
head grade was calculated using metal prices of: Ag $17.00/oz, Au
$1,295/oz, Pb $1.00/lb and Zn $1.35/lb
|
During November and December production averaged approximately
450 tpd with an upward trend in the silver head grade which is
expected to continue. During this period the operations team
refurbished two of the four ball mills. A third ball mill is
currently being refurbished and is expected to be online in
approximately 60 days bringing the milling capacity to
approximately 750 tpd.
Rosario Project
Production at the Rosario Project in the second half of the year
decreased by 26% as compared to the first half primarily as the
result of processing mineralized material with a significantly
lower zinc grade. Management is implementing a new mine plan
to improve the mining dilution currently being
experienced.
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 and
Veta Grande) 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.