Santacruz Silver Provides Update on Third Quarter 2013 Operations
Vancouver, B.C. — Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports on its operations for the third quarter ending September 30, 2013. The Company’s financial statements and accompanying management discussion and analysis can be viewed on the Company’s web site at www.santacruzsilver.com or on SEDAR at www.sedar.com.
Many of the initiatives related to the Rosario Mine development that were implemented during the second quarter of 2013 continued throughout the third quarter of 2013 and have begun to show the merits of the decisions. These initiatives were undertaken to maintain the Company’s operational goal of producing 500 tpd by the end of the first quarter 2014.
The ramp up of production at the Rosario Mine is on target to become cash flow positive by year-end 2013. Several developments contribute to our confidence in achieving this milestone. All mine working faces have now transitioned through the oxidized mineralization and are producing sulphide ore which carries higher grades and yields better mill recoveries. Second, underground development work has identified a previously unknown high-grade mineralized system averaging 1.5 meters width that lies parallel to the Rosario I vein on Level One of the mine. Production is now commencing from this new zone. Full production details are available in the Company’s MD&A document filed on www.sedar.com.
- Currently 4 high-grade producing stopes at Rosario I vein and 3 stopes at Rosario II vein are feeding the mill, in addition to 3 working faces. As well, 2 new producing stopes are about to be sequenced into our current production. The Rosario Mine is currently producing 135 tpd and is steadily increasing.
- Main access ramp intersected the Rosario II vein in mid-November which will result in increased mine production over the coming weeks.
- Development of the main access ramp to Level Two has commenced and it is expected to reach its target by mid January.
- Mine plan on target to achieve 500 tpd by end of first quarter 2014.
- Installation of a third ball mill expected to complete in January 2014 increasing milling capacity from the current 300 tpd to 700 tpd.
Arturo Préstamo, President and CEO, remarked “We have overcome many of the early stage challenges of a new mine and have made significant strides towards our goal of operating at 500 tpd by the end of Q1 2014. Notwithstanding these positive strides we expect to continue making improvements in order to develop the mine properly aiming to have a cost-effective mine for many years to come.”
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 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.
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
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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.
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.