Vancouver, B.C. — Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") is pleased to announce operating results from the Rosario Mine in San Luis Potosi, Mexico for the second quarter of 2015 ("Q2"). The Company produced 265,834 silver equivalent ounces during the second quarter, the first full quarter of production after the temporary shutdown in Q1 2015 due to a tailings pipe malfunction.
Q2 HIGHLIGHTS:
- Steady improvement in ore mined and milled on a month over month basis during Q2 2015.
- Shift to more cost effective cut and fill mining methods to better control dilution.
- Head grade increased 30% as compared with 2014 results.
- Silver equivalent produced ounces of 265,834.
- Silver equivalent payable ounces sold of 233,655.
During Q2 the mill produced at an average daily rate of approximately 325 tonnes per day ("tpd") with throughput increasing on a month over month basis since operations resumed. In addition, due to the increased use of cut and fill mining methods and decreased use of long hole mining methods, mining dilution has reduced and the average head grade has substantially increased to 392.93 g/t silver equivalent from the average of 302.62 g/t silver equivalent in our 2014 production results — a 30% improvement.
"Santacruz has delivered solid production performance at the Rosario Mine in Q2," stated Arturo Préstamo, CEO of Santacruz. "Since the resumption of operations we have delivered increases in throughput and better dilution control resulting in improved head grade on a month over month basis resulting in 60% more silver equivalent ounces being produced in June as compared with April. Our operational staff has performed admirably in the face of the challenging markets putting the Company solidly on a path of improved efficiency and reduced costs — both of which are critical in the face of soft commodity prices. In addition we continue to utlilize our minimum price protection program whereby we set a minimum floor price of US$17/oz silver on our production. The path forward looks stronger as we continue to increase production while keeping costs well under control."
2015 Second Quarter Operational Highlights
| Operations Summary | April 2015 | May 2015 | May vs Apr | June 2015 | Jun vs May | Q2 2015 |
|---|---|---|---|---|---|---|
| Ore processed (tonnes milled) | 8,109 | 8,983 | 11% | 9,401 | 5% | 26,493 |
| Silver eqv. ounce production 1 | 71,180 | 79,802 | 12% | 114,852 | 44% | 265,834 |
| Silver eqv. payable ounces sold 1 | 62,722 | 70,104 | 12% | 100,829 | 44% | 233,655 |
| Silver ounce production | 42,451 | 41,366 | -3% | 66,920 | 62% | 150,738 |
| Gold ounce production | 32 | 32 | 0% | 49 | 53% | 113 |
| Lead production (tonnes) | 52 | 65 | 25% | 115 | 77% | 233 |
| Zinc production (tonnes) | 156 | 217 | 39% | 241 | 11% | 615 |
| Average Head Grade (g/t Eqv.oz)1 | 282.31 | 285.73 | 1% | 392.93 | 38% | 322.73 |
Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)
(Pag)
Metal Prices: Ag $17.75, Au $1,250.00, Pb $0.83, Zn $1.09
Q2 Grade & Recovery Table
| Q2 2015 | Au | Ag | Pb | Zn |
|---|---|---|---|---|
| g/t | % | |||
| April | 0.16 | 170.00 | 0.79 | 2.34 |
| May | 0.15 | 152.72 | 0.89 | 2.69 |
| June | 0.20 | 237.15 | 1.36 | 2.90 |
| Average | 0.17 | 187.97 | 1.03 | 2.66 |
| Total Recoveries | ||||
| April | 76.27% | 95.78% | 81.13% | 82.19% |
| May | 76.37% | 93.79% | 81.39% | 89.83% |
| June | 80.97% | 93.36% | 89.87% | 88.47% |
| Average | 78.26% | 94.15% | 85.31% | 87.25% |
Operations Plan for 2015
The plans for the Rosario Mine for the remainder of the year include increasing to 450 tpd while maintaining the higher head grade. This will result in more ounces being produced than previously guided with a corresponding decrease in the cost of production during the remainder of 2015.
Qualified Person
All technical information which is included in this statement has been reviewed and approved by Donald E. Hulse P.E. of Gustavson Associates LLC. Mr. Hulse is independent of the Company and a qualified person, pursuant to the meaning of such terms in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with a producing mine (Rosario); two advanced-stage projects (San Felipe and Gavilanes) and an early-stage exploration project (El Gachi). 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
For further information please contact:
Neil MacRae
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (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.
Forward looking information
Certain statements contained in this news release, such as planned production and milling levels, costs, sales prices and efficiencies, 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, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that third party ore to be milled by the Company has properties consistent with management's expectations, that the Company obtains all required regulatory approvals, and that future metal prices and the demand and market outlook for metals remains stable or improves. 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, lower production levels, delays, and/or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data (including in respect of the third party ore), 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 Annual Information Form 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.
Financial outlook information contained herein about the Company's prospective costs of production and sales prices is based on assumptions about future events, as described above, based on management's assessment of the relevant information currently available. The purpose of such financial outlook is to provide information about management's current expectations as to the anticipated results of its proposed business activities for the coming quarters. Readers are cautioned that any such financial outlook information contained herein should not be used for purposes other than for which it is disclosed herein.
Rosario Mine
The decision to commence production at the Rosario Mine was 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.
Original Article: http://www.santacruzsilver.com/s/news_releases.asp?ReportID=716765
