VANCOUVER, July 17, 2014 /PRNewswire/ - Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") is pleased to announce second quarter 2014 production of 169,800 payable silver equivalent ounces from the Company's Rosario Mine in San Luis Potosi, Mexico. This production represents a 40% quarter over quarter increase as compared with Q1 2014 payable silver equivalent ounces and the Company remains on schedule to meet its production target of between 850,000 to 1,100,000 silver equivalent ounces by the year-end 2014.
During the second quarter, the mine produced at an average daily rate of approximately 260 tonnes per day ("tpd"). By the end of the quarter, the mine was producing above 340 tpd as a daily average, while continuing to ramp up as more working faces are added into our production schedule. A chart summarizing the Rosario Minel total tonnes milled for January to June 2014 is available at the following link:
"Consistent with our planning, the Rosario Mine continues to see rapid improvements on many fronts including tonnes mined and milled. As our ratio of ore from stopes to development ore continues to increase, our mining cost will be reduced significantly" stated Arturo Préstamo, CEO of Santacruz. "In addition, our cost savings initiatives have started to produce results in the overall Rosario Mine operations. Cost savings is and will always be a very important part of our day-to-day operations and with that in mind, good consistent processes and practices are being established."
Second Quarter 2014 Operations Highlights (Compared to 1st Quarter 2014)
- Ore processed grew 10.5% to 22,612 tonnes (all ore milled is now from the Rosario Mine);
- Metal production increased 39.4% to 169,800 payable silver equivalent ounces ("Ag eq oz");
- Silver production totalled 100,200 silver ounces ("Ag oz");
- Underground development of 1,494 meters;
- Recoveries for silver increased to 89.9% from 85.7% in the first quarter.
2014 Second Quarter Operational Highlights
|Operations Summary||Q2 2014||Q1 2014||Change|
|Ore processed (tonnes milled)||22,612||20,447||10.6%|
|Silver equivalent ounce production 1||169,805||121,800||39.4%|
|Silver ounce production||100,200||94,325||5.9%|
|Gold ounce production||106.8||162.9||-34.9%|
|Lead production (tonnes)||171.7||186.1||-8.4%|
|Zinc production (tonnes)||436.8||367.6||15.9%|
|Total underground development (m)||1,494||1,216||22.83%|
|Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)|
|Metal Prices: Ag $20, Au $1,250 Pb $0.96, Zn $0.88|
Second Quarter 2014 Grade & Recovery Table
Development Plan for 2014
Development at the Rosario Mine was steady with 1,494 metres of development completed in the quarter which is up 22.83% from Q1 2014. The focus was on developing the stopes on Level 2 and increasing the number of mining faces to have flexibility in the mine plan. In addition, the Company completed a sub-level between Level 2 and Level 3 which will provide additional mining faces and production as the main ramp continues to Level 3 by the end of this month. The competency of the rock has improved at depth and this will allow for more cost-effective and efficient development work to be completed.
For the balance of 2014, the Company will continue to focus on new stope production on the various levels that are being worked.
All technical information 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.
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, such as planned production levels, grades, mine and mill development, mill recovery rates and the acquisition of mineralized material from third parties, 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, that the Company is able to obtain material from third parties on reasonable terms, future metal prices and the demand and market outlook for metals. Based on the Company's geological model and currently known mining blocks, the Company anticipates improved silver head grades and silver recoveries. 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.
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.
SOURCE SantaCruz Silver Mining Ltd.