VANCOUVER, Jan. 29, 2015 /PRNewswire/ - Santacruz Silver Mining Ltd. (SCZ.V) (the "Company" or "Santacruz") is pleased to announce fourth quarter 2014 production of 255,487 silver equivalent ounces from the Company's Rosario Mine in San Luis Potosi, Mexico. This production represents a 32.8% quarter over quarter increase as compared with Q3 2014 silver equivalent ounces. The full calendar year of production at the Rosario Mine for 2014 resulted in 776,787 silver equivalent ounces.
During the fourth quarter the Rosario Mine produced at an average rate of approximately 280 tonnes per day ("tpd"). By the end of the quarter the underground mining operations were producing at approximately 400 tpd and a surface stockpile inventory of +15,000 tonnes of ore had been generated. In December a third ball mill was installed at the milling facility and commissioning of this equipment was completed by month end. This increase in grinding capacity will contribute to a further reduction in operating costs.
"During the past year the Company has made significant strides in its development. Production results for our fourth quarter 2014 confirm a continuous production expansion at the Rosario Mine," stated Arturo Prestamo, President and CEO. "We are working hard to capitalize on our achievements from 2014 by bringing the Rosario Mine back into production as soon as possible. With some challenges behind us and based on the work completed in 2014, looking forward we are now focused on achieving positive milestones in 2015."
Fourth Quarter 2014 Operations Highlights (Compared to 3rd Quarter 2014)
- Ore processed grew 6.0% to 25,097 tonnes;
- Metal production increased 32.8% to 255,487 silver equivalent ounces ("Ag eq oz");
- Ore milled was sourced 52% from development and 48% from producing stopes.
2014 Fourth Quarter Operational Highlights
Ore processed (tonnes milled)
Metal Recovered to Concentrate:
Silver equivalent (ounces)1
Additional Third Party Precipitate Processed2:
Silver equivalent (ounces)1
Silver Equivalent Payable Ounces
Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)/(Pag/31.1035) (Pag)
Metal Prices: Ag $20, Au $1,250 Pb $0.96, Zn $0.92
Fourth Quarter 2014 Grade & Recovery Table
The 2015 guidance for the Rosario Mine production will be disseminated once the definitive date for Rosario Mine re-start is determined and a corresponding operating plan is finalized. Currently, the Rosario Mine is anticipated to re-start operations in mid-February.
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.