To our Shareholders, Partners, and Communities we do business with.
High commodity prices have provided opportunities as well as challenges to the mining industry these last years. The level of exploration and mining activity around the world is higher than it has been for many years and there are no obvious signs of a slowdown ahead.
We all at Santacruz believe that in order to be successful in the long term, a company must have mineral deposits with geological and mineralogical characteristics that are economically feasible in both a positive and a negative cycle, in addition to experienced management with strong and proven technical and management skills.
Our efforts are focused on developing long-term and sustainable value for our shareholders, partners and communities that surround us.
We believe that our portfolio of properties, all three in established historical mining districts, comply with our criteria and have also significant scale potential to develop large resources.
With a 500-t/d plant mill ready to be installed and aiming to start production at our Rosario project by the first quarter of 2013, Rosario is privileged by its location, where it enjoys a talented and mining knowledgeable workforce in its neighboring communities.
At this same time, we plan to execute an exploration program aiming to increase substantially our resources at the Rosario project. We will be targeting our exploration efforts to the NW of the property and at depth where we have had encouraging results during our previous diamond drill program as well as on surface samples where veins are exposed.
Another exciting story is the Gavilanes property in Mexico's San Dimas historical mining district; where our recent exploration results have encouraged us to do a more aggressive exploration program including, new diamond drill targeted areas.
We have so far identified seven strong veins with total strike length of nearly 5,000 meters, and average widths of about 1.5 meters, containing high-grade silver and gold. We believe that a disciplined and well-oriented exploration program will allow us the potential to develop a great mine out of Gavilanes.
The Guadalupe-Soledad-Aranzazú, Descubridora veins and El Hundido stockwork area, will be our primary focus. Historical exploration works in the area, including diamond drill core, indicate this stockwork zone extends for over 37 meters in width with average silver grades of 320 g/t. Our exploration program will be aimed to understand the Gavilanes project better, with the intention to have a mine plan set for the next 3 years, and allocate resources for more than 100M ounces of silver during the next 2 to 3 years.
Finally, we have an option to acquire a 100% interest in the San Felipe project located in Hermosillo Sonora. San Felipe is an advanced stage developed property, which has been explored and developed by Hochschild Mining Mexico, a wholly owned subsidiary of Hochschild Mining PLC.
We are excited to have in our portfolio a mine such as San Felipe, with more than 4 million tons on resources, more than 180 meters of main ramp developed closed to the important mineralized area of La Ventana, as well as advance development on Las Lamas mine. Hochschild Mexico executed an excellent exploration program on 3 main mineralized areas, La Ventana, Las Lamas and San Felipe with outstanding results. We are also enthusiastic about San Felipe as there are different important mineralized areas, where surface recognition invites us to think on the possibility of additional minable areas, which had not yet being systematically explored.
We believe that the mining industry has an obligation to contribute to the local communities where we do our work, and are privileged to do so especially when success on our part can be translated into tangible opportunities in terms of jobs and economic growth, including the development of much needed infrastructure projects, in some of Mexico's most disenfranchised rural areas.
At Santacruz, we have built an operational team of seasoned industry engineers and managers led by Francisco Ramos, who understands the challenges of the industry in all areas, and has the ability to create solutions for each emergent situation. Proven track record, honorable reputation and best industry practices describe our group of professionals best, which I am honored to count-on as a team.
The Company is ready to take advantage of the opportunities of today's metal prices, and ready as well to face the challenges of the industry. We look forward to building a successful company together with all of our Investors, partners and communities, with whom we do business.
Respectfully,
Arturo Préstamo.
Information of a scientific or technical nature herein was prepared by or under the supervision of Harald Hoegberg and Randy Henkle (both of whom are qualified persons as such term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects), who have reviewed and approved the contents hereof. Mr. Hoegberg and Mr. Henkle are independent consultants for Santacruz Silver Silver Mining Ltd.
SantaCruz Silver Mining Ltd.
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