2022-07-20 | TSXV:SCZ | press release
Vancouver, British Columbia–(Newsfile Corp. – July 20, 2022)- Santacruz Silver Mining Ltd. (TSX-V: SCZ) (“Santacruz” or “the Company”) reports production of 4,046,328 silver equivalent ounces from the Zimapan Mine in Mexico (“the Mexican Operations”) and its Sinchi Wayra, Illapa and San Lucas companies (“the Bolivian Operations”) , which consists of a 45% interest in the Bolivar and Porco mines, a 100% interest in the Tres Amigos, Reserva and Colquechaquita mines (collectively the Caballo Blanco mines), and a 100% interest in the San Lucas ore sourcing and trading company .
Highlights of the consolidated second quarter 2022:
- Silver Equivalent Produced of 4,046,328 ounces (+190.8% vs. Q1 2022 and +406.4% vs. Q2 2021);
- Silver production of 1,410,485 ounces (+200.2% vs. Q1 2022 and +328.2% vs. Q2 2021);
- Zinc production of 20,928 tons (+230.9% vs. Q1 2022 and +592.2% vs. Q2 2021);
- Lead production of 3,321 tons (+122.4% vs. Q1 2022 and +327.0% vs. Q2 2021);
- Copper production of 568 tons (+35.5% vs. Q1 2022 and +17.9% vs. Q2 2021);
- Average head grade (silver equivalent) 333 g/t (+41.6% vs. Q1 2022 and +73.6% vs. Q2 2021).
Santacruz CEO Carlos Silva explained; “The second quarter was the first full quarter of results from the recently acquired Bolivian operations. From our Mexican operations, we expect increased production from new adits and a reduction in mineralized material at lower grades from development beginning in Q3, which should benefit AISC at the Zimapan mine. In the second quarter, a new automation process in the primary crusher and grinding circuit was completed in addition to the installation and commissioning of a new zinc column flotation cell. As a result, we look forward to improved metallurgical recoveries.”
Mr. Silva continued; “Regarding our Bolivian operations, the transition process is proceeding smoothly and with a strong and dedicated management team. Our goal is to improve production and efficiency at all mines in addition to ensuring the strategic operation of ore sourcing and ore trading in the San Lucas business.”
CONSOLIDATED (Mexican and Bolivian operations*)
|Q2 2022||Q1 2022||Q2 2021|
|Silver Equivalent Produced (ounces) (1)||4,046,328||1,391,590||799,057|
|Silver Production (ounces)||1,410,485||469,829||329,398|
|Gold Production (ounces)||–||–||53|
|Lead production (tons)||3.321||1,493||778|
|Zinc Production (tons)||20,928||6,325||3,023|
|Copper production (tons)||568||419||481|
|Material Processed (Tons Milled)||435.119||227,570||172,324|
|Average Head Grade (g/t AgEq)||333||235||192|
* Bolivian operations were acquired on March 18, 2022, therefore only 13 days of production results in Q1 2022 are included. The net assets of the Rosario project were divested in December 2021.
Production table mine for mine Q2 2022
|mine||tons ground||top note||Restoration
|tons produced||AgEq Oz
|bolivar||49,333||193||7.41||0.60||n / A||90.3||276,518||3,503||272||n / A||661,879|
|Porko||44,744||128||7.31||0.66||n / A||91.1||167,465||3.143||256||n / A||514.146|
|Caballo Blanco*||75,748||170||6.27||1.65||n / A||89.7||371,662||4,440||1.125||n / A||923,508|
|San Luke||65,280||159||08/11||1.18||n / A||83.4||277,754||6,787||625||n / A||1,032,271|
* The Caballo Blanco mines consist of the Tres Amigos, Reserva and Colquechaquita mines.
(1) Silver equivalent (ounces) produced in 2022 was calculated using prices of $25.60/oz, $0.94/lb, $1.20/lb and $4.01/lb for silver, lead, zinc and copper applied to metal production, respectively, divided by the price of silver plus the respective concentrate produced by the Zimapan, Bolivar, Porco, Tres Amigos, Reserva and Colquechaquita mines multiplied by the respective silver grade. Silver equivalent (ounces) produced in 2021 was calculated using prices of $25.00/oz, $0.85/lb, $1.05/lb and $3.00/lb for silver, lead, zinc and copper calculated respectively applied to metal production divided by the silver price plus the respective concentrate produced by the Zimapan mine and the Rosario project multiplied by the respective silver grade.
About Santacruz Silver Mining Ltd.
The Company is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America with a primary focus on silver and zinc, but also lead and copper. The Company currently has six producing projects, the Zimapan mine, the Bolivar mine (45% interest), the Porco mine (45% interest), the Tres Amigos, the Reserva and the Colquechaquita mines, and owns two exploration properties in its mineral property portfolio, the La Pechuga property, Mexico, and the Santa Gorgonia prospect, Mexico, and one development project, the Soracaya project, Bolivia, in addition to the ore sourcing and trading business in San Lucas.
Arturo Prestamo Elizondo,
For more information please contact:
Mars Investor Relations
Telephone: (778) 999 4653
Arturo Prestamo Elizondo
Santacruz Silver Mining Ltd.
Email: [email protected]
Phone: (604) 569-1609
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.
Production at the Zimapan mine is not supported by a mineral reserve feasibility study demonstrating economic or technical feasibility, or any other independent NI 43-101 compliant economic study. Accordingly, there is increased uncertainty and a greater risk of economic and technical failure associated with production operations at the Zimapan Mine. Production and economic variables may vary significantly due to the lack of a complete and detailed site analysis under and in compliance with NI 43-101. Failure of the project can adversely affect the future profitability of the company.
Production relating to the Bolivian operations is not supported by a mineral reserve feasibility study demonstrating economic or technical viability or any other independent NI 43-101 economic study. Accordingly, there is increased uncertainty and a higher risk of economic and technical failure in connection with the production operation at the Bolivian companies. Production and economic variables may vary significantly due to the lack of a complete and detailed site analysis under and in compliance with NI 43-101. Project failures can affect the future profitability of the company.
Certain statements in this press release constitute “forward-looking information” as that term is used under applicable Canadian securities laws, including statements relating to production at the Zimapan Mine, the Bolivian operations and the Company’s plans with respect to these properties.
Forward-looking information is based on management’s plans, expectations and estimates at the time the information was made and is subject to certain factors and assumptions. In preparing the forward-looking statements contained in this press release, the Company has made several significant assumptions, including but not limited to that the Company’s financial condition and development plans will not change as a result of unforeseen events, but that the Company will change as necessary regulatory approvals and that future metal prices, metal demand and market prospects 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 differ materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this press release to change or be inaccurate include, among others: the risk that any of the above assumptions prove invalid or reliable; market conditions and volatility and global economic conditions, including increased volatility and potentially adverse capital raising conditions resulting from the continuation or escalation of the COVID-19 pandemic and risks related to the magnitude and duration of such pandemic and its impact on global markets; controls or regulations and political or economic developments in Mexico and Bolivia; risk of delay and/or cancellation of planned work or changes in the Company’s financial condition and development plans; risks related to the Company’s plan to undertake certain post-closing reorganization steps in relation to the Target Companies; the uncertainty of the geology, grade and continuity of mineral deposits and the risk of unexpected fluctuations in mineral resources, grade and/or recovery rates; risks related to gold, silver, base metal and other commodity price fluctuations; employee relations; relationships with and claims of local communities and indigenous peoples; availability and increasing costs associated with mining inputs and labor; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the existence of laws and regulations that may restrict mining; risks related to environmental regulations and liability; the possibility that results may not meet the Company’s expectations and the other risks and uncertainties inherent in the mineral exploration and development activities and the Company, as set out in the Company’s ongoing disclosure documents, which are available under the Company’s profile at www. sedar to be filed at .com.
There can be no assurance that 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 undue reliance on any forward-looking information or statements. The Company undertakes no obligation to update any forward-looking information or statements, except as required by applicable law.
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