Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) is pleased to announce the results of the maiden NI 43-101 Resource Estimate for its Gavilanes silver project located in San Dimas, Durango, Mexico. Based upon a 75 gram per tonne (“g/t”) silver equivalent (“AgEq”) cut-off, the resources on three of seven known veins, Guadalupe, Descubridora and San Nicolas, as well as the El Hundido stockwork are as follows:
Highlights of the mineral resource estimate are as follows:
Arturo Préstamo, President and CEO, remarked, “Given that drilling to date has only focused on a small portion of our +7,000 hectares of Gavilanes property we are very pleased with the results of the maiden resource estimation. The resource, which is open, together with the significant untapped exploration potential, makes Gavilanes a very strong property within our portfolio of assets in Mexico. Further work aimed at expanding the resource will occur in conjunction with cash flow generation from our currently producing Rosario Mine. In spite of difficult market conditions we are moving ahead on all of our assets while making prudent decisions on behalf of shareholders. We are committed to building a strong mid-tier silver producer with assets in Mexico and Gavilanes is further proof that we are on-track to meet our longer term objectives.”
Mineral Resources:
The tables below summarize results of the estimates and provide a range over various cut-off grades:
Resource classed as Indicated within Mineralized Solids:
Resource classed as Inferred within Mineralized Solids:
100% recovery has been assumed for all metals in this silver equivalent estimate. At this stage of the project no metallurgy has been completed and the reader is cautioned that 100% recoveries are never achieved.
The resource estimate was calculated based on 12,583 metres of HQ diamond drilling in 60 drill holes over approximately 750 meters of strike length and a total of 3,362 assays. The resources were defined to a maximum depth of approximately 300 metres below surface with a total of 198 down hole surveys utilized for control.
The resource estimation was completed by Gary Giroux, P.Eng. of Giroux Consultants and utilized a geological model completed by Hans Smit, P.Geo and Fletcher Bourke, P.Geo. The geological model has six domains; Guadalupe vein (GP), GP envelope, Descubridora vein (DS), DS envelope, San Nicloas (SN) envelope and Stockwork Zone. Assays for each vein, envelope and stockwork zone were examined and a top cap was applied to each variable within each domain. Uniform 2.5 m composites were formed for the vein envelopes and stockwork zone while 0.5 m composites were formed for the two vein domains. Variography was completed for the GP vein, GP envelope and the Stockwork zone. Grades for all variables were interpolated into blocks 2.5 x 5 x 5 m using Ordinary Kriging. For blocks with multiple domains present, a weighted average was determined for the mineralized portion. A specific gravity was established for each domain based on 216 measurements of drill core. Estimated blocks were classified as Indicated or Inferred based on geologic and grade continuity.
Drilling is scheduled to resume at Gavilanes in the second quarter 2014 with the objective of upgrading and increasing resources to develop a mine plan and ultimately mill requirements in line with the Company’s technical consultant’s suggestions.
Arturo Préstamo, President and CEO, continued “With this foundation to build from, we will continue to advance the Gavilanes property in order to better understand the full potential of this promising asset.”
Sampling and Laboratory
The resource is based on holes drilled with HQ-sized core. Core was sawn in half at site and one half sent to ALS Chemex, a fully accredited and certified laboratory service. Samples were prepared at the ALS Chemex facility in Zacatecas, Mexico, and were assayed at ALS Chemex in Vancouver, Canada. All samples were analysed using a one assay ton fire assay with an AA finish for Au (Au-AA23) and a 48 element ICP method for other elements (ME-MS61). Samples with silver results above 100 g/t by (ME-MS61) were rerun using an aqua regia digestion and ICP-AES or AAS finish (Ag-OG62). A comprehensive QA/QC procedure is followed using standards, blanks and duplicates.
Qualified Persons
All technical information included in this statement has been reviewed and approved by Gary Giroux, P.Eng., Fletcher Bourke, P.Geo., and Hans Smit, P.Geo who are all independent of the Company and each of which is 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 project (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 levels and the Company’s future cash flow position, 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 the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. 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, that occurrences such as those referred to above are realized and result in delays, 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, 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 cash flows and financial position 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.
| | (tonnes) | Ag EQ (g/t) | Ag (g/t) | Au (g/t) | Cu (%) | Pb (%) | Zn (%) |
|---|---|---|---|---|---|---|---|
| Indicated | 953,000 | 200.5 | 164.6 | 0.09 | 0.06 | 0.42 | 0.41 |
| Inferred | 5,399,000 | 163.0 | 124.6 | 0.12 | 0.09 | 0.40 | 0.34 |
Highlights of the mineral resource estimate are as follows:
- Indicated mineral resources of 6,143,000 AgEq ounces grading 200 g/t AgEq
- Inferred mineral resource of 28,294,000 AgEq ounces grading 163 g/t AgEq;
- Veins remain open along strike and to depth with intermittent surface exposures indicating an untested strike length;
- The El Hundido stockwork is open down-dip and to the south;
- Four unexplored veins offer additional potential;
- Continued drilling in 2014 planned with a target to increase resources.
Arturo Préstamo, President and CEO, remarked, “Given that drilling to date has only focused on a small portion of our +7,000 hectares of Gavilanes property we are very pleased with the results of the maiden resource estimation. The resource, which is open, together with the significant untapped exploration potential, makes Gavilanes a very strong property within our portfolio of assets in Mexico. Further work aimed at expanding the resource will occur in conjunction with cash flow generation from our currently producing Rosario Mine. In spite of difficult market conditions we are moving ahead on all of our assets while making prudent decisions on behalf of shareholders. We are committed to building a strong mid-tier silver producer with assets in Mexico and Gavilanes is further proof that we are on-track to meet our longer term objectives.”
Mineral Resources:
The tables below summarize results of the estimates and provide a range over various cut-off grades:
Resource classed as Indicated within Mineralized Solids:
| Cut-off | Tonnes > Cut-off | Grade > Cut-off | ||||||
|---|---|---|---|---|---|---|---|---|
| AgEq (g/t) | (tonnes) | Ag (g/t) | Au (g/t) | Cu (%) | Pb (%) | Zn (%) | AgEQ (g/t) | AgEq Oz |
| 50 | 1,294,000 | 132.4 | 0.08 | 0.05 | 0.38 | 0.36 | 163.7 | 6,810,000 |
| 75 | 953,000 | 164.6 | 0.09 | 0.06 | 0.42 | 0.41 | 200.5 | 6,143,000 |
| 100 | 735,000 | 194.6 | 0.1 | 0.06 | 0.46 | 0.46 | 234.2 | 5,534,000 |
| 140 | 524,000 | 238 | 0.11 | 0.07 | 0.48 | 0.5 | 280.9 | 4,732,000 |
Resource classed as Inferred within Mineralized Solids:
| Cut-off | Tonnes > Cut-off | Grade > Cut-off | ||||||
|---|---|---|---|---|---|---|---|---|
| AgEq (g/t) | (tonnes) | Ag (g/t) | Au (g/t) | Cu (%) | Pb (%) | Zn (%) | AgEQ (g/t) | AgEq Oz |
| 50 | 8,336,000 | 94.2 | 0.10 | 0.08 | 0.34 | 0.29 | 127.0 | 34,038,000 |
| 75 | 5,399,000 | 124.6 | 0.12 | 0.09 | 0.40 | 0.34 | 163.0 | 28,294,000 |
| 100 | 3,978,000 | 149.1 | 0.12 | 0.10 | 0.44 | 0.38 | 190.4 | 24,352,000 |
| 140 | 2,548,000 | 183.6 | 0.12 | 0.10 | 0.52 | 0.47 | 230.9 | 18,916,000 |
| The metal prices used in the silver equivalent estimate are listed below. | ||
| Factor | ||
| Ag – | US$ 21.55 per ounce | 0.69 $/gm |
| Au – | US$ 1318.00 per ounce | 42.37 $/gm |
| Cu – | US$ 3.25 per pound | 71.65 $/% |
| Pb – | US$ 0.97 per pound | 21.38 $/% |
| Zn – | US$ 0.87 per pound | 19.18 $/% |
| The equation to establish Ag Equivalent is then: | ||
| AgEq = | (Cu% * 71.65) + (Pb% * 21.38) + (Au g/t * 42.37) + (Ag g/t * 0.69)+(Zn% * 19.18) | |
| (0.69) | ||
100% recovery has been assumed for all metals in this silver equivalent estimate. At this stage of the project no metallurgy has been completed and the reader is cautioned that 100% recoveries are never achieved.
The resource estimate was calculated based on 12,583 metres of HQ diamond drilling in 60 drill holes over approximately 750 meters of strike length and a total of 3,362 assays. The resources were defined to a maximum depth of approximately 300 metres below surface with a total of 198 down hole surveys utilized for control.
The resource estimation was completed by Gary Giroux, P.Eng. of Giroux Consultants and utilized a geological model completed by Hans Smit, P.Geo and Fletcher Bourke, P.Geo. The geological model has six domains; Guadalupe vein (GP), GP envelope, Descubridora vein (DS), DS envelope, San Nicloas (SN) envelope and Stockwork Zone. Assays for each vein, envelope and stockwork zone were examined and a top cap was applied to each variable within each domain. Uniform 2.5 m composites were formed for the vein envelopes and stockwork zone while 0.5 m composites were formed for the two vein domains. Variography was completed for the GP vein, GP envelope and the Stockwork zone. Grades for all variables were interpolated into blocks 2.5 x 5 x 5 m using Ordinary Kriging. For blocks with multiple domains present, a weighted average was determined for the mineralized portion. A specific gravity was established for each domain based on 216 measurements of drill core. Estimated blocks were classified as Indicated or Inferred based on geologic and grade continuity.
Drilling is scheduled to resume at Gavilanes in the second quarter 2014 with the objective of upgrading and increasing resources to develop a mine plan and ultimately mill requirements in line with the Company’s technical consultant’s suggestions.
Arturo Préstamo, President and CEO, continued “With this foundation to build from, we will continue to advance the Gavilanes property in order to better understand the full potential of this promising asset.”
Sampling and Laboratory
The resource is based on holes drilled with HQ-sized core. Core was sawn in half at site and one half sent to ALS Chemex, a fully accredited and certified laboratory service. Samples were prepared at the ALS Chemex facility in Zacatecas, Mexico, and were assayed at ALS Chemex in Vancouver, Canada. All samples were analysed using a one assay ton fire assay with an AA finish for Au (Au-AA23) and a 48 element ICP method for other elements (ME-MS61). Samples with silver results above 100 g/t by (ME-MS61) were rerun using an aqua regia digestion and ICP-AES or AAS finish (Ag-OG62). A comprehensive QA/QC procedure is followed using standards, blanks and duplicates.
Qualified Persons
All technical information included in this statement has been reviewed and approved by Gary Giroux, P.Eng., Fletcher Bourke, P.Geo., and Hans Smit, P.Geo who are all independent of the Company and each of which is 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 project (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 levels and the Company’s future cash flow position, 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 the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. 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, that occurrences such as those referred to above are realized and result in delays, 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, 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 cash flows and financial position 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.
Generalized Cross Section looking NW showing Mineralized Structures
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