Main Ramp (Level One)
On August 25th the main access ramp (Level One) (“Main Ramp”) intersected the Rosario I vein with two new working faces subsequently being opened. Additionally, four high-grade producing stopes (two to the southeast and two to the northwest) are currently being developed at the vein. The initial development work on this section of the Rosario I vein has revealed vein widths of approximately 2 meters, this being greater than the 1.4-meter width previously utilized in the resource calculation. These initial assays taken across the two-meter width show higher grades than those used in the resource calculation:
1,055 g/t Ag, 0.13 g/t Au, 7.8% Zn, and 6.1% Pb over a 2 meter true width.
Development of the Main Ramp is on target to extend from Rosario I to the Rosario II vein by mid-October 2013. At this time, two additional working faces will be added to the mine production with two new production stopes immediately being developed. Production stopes will continue to be added along the 500-meter strike of the currently defined resources.
Northwest Ramp (Level One)
As noted in the Company’s press release of April 18th, 2013 Santacruz developed the Northwest Ramp in order to expedite access to the Rosario I and II veins. Previously the Northwest Ramp reached Rosario I sulphide mineralization at Level One. Development work at the Rosario I vein is continuing with one producing stope currently feeding the mill. A crosscut from the Northwest Ramp at level One reached the Rosario II vein on September 5th, this has increased the working faces to five. The initial assay results received back from the Northwest Ramp also show higher grades than those in the resource calculation:
509 g/t Ag, 0.22 g/t Au, 3.4% Zn and 0.5% Pb, over 2.0 meters true width
Two additional producing stopes from the Rosario II vein are expected to contribute to our production in the short term, 4Q13.
Production Summary / Outlook
Current production is derived from five working faces and one producing stope. Production levels are currently increasing with the objective to reach 500 tonnes per day by the end of 1Q14. Head Grades at the Rosario mill currently are: 255 g/t Ag, 0.25 g/t Au, 2.1% zn, and 1.03% Pb. Mill recoveries are within the forecast range averaging (as shown in the table below).
Mr. Arturo Préstamo Elizondo, President and CEO of Santacruz Silver states:
“Reaching the Rosario I and Rosario II veins is a significant milestone for the Company. We are very excited that the grade and width of the initial intersections at both Rosario I and II exceeded forecasted levels. This, together with new working faces and stopes being developed at both Rosario I and II will allow the company to meet and maintain its primary production objective of 500 tonnes per day by the end of 1Q14. The staff at Rosario Mine, led by Francisco Ramos, will continue to move forward diligently to meet and maintain the growth of our Rosario Mine”.
Method of Analysis
Mine samples were prepared at the Company’s lab facility at its Rosario lab and analyzed by atomic absorption for Cu, Zn, Pb, Bi, Co, Mn, Sb, Cd and Fe. Gold and silver are analyzed by fire assay method. The Rosario laboratory follows the quality control methodology recommended by CANMET of Canada, such as assaying of blanks, duplicate samples, and check assays by commercial laboratories such as ALS Chemex. The Rosario lab is not yet officially certified to all the standards.
The quality assurance-quality control (QA-QC) of Santacruz at the Rosario mine has been described in detail in Gustavson Associates’ NI 43-101 report of December 19, 2012.
Donald E. Hulse P.E., SME-RM of Gustavson Associates LLC, is a qualified person under NI 43-101 and is independent of the Company, and has reviewed and approved the technical information contained in this press release.
Verification included a review and validation of the applicable assay databases and reviews of assay certificates.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with one producing mine (Rosario); one advanced-stage project (San Felipe) and another advance-stage exploration project (Gavilanes). As well, an early-stage exploration project (El Gachi). Santacruz is managed by a technical team of professionals with proven track records in discovering, developing, and operating silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
For further information please contact:
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 potential mineralization on the Company’s properties, the Company’s exploration and development plans and anticipated production dates on the Company’s mineral properties, 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 The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.