Vancouver, B.C. — Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") reports the financial and operating results for the first quarter of 2015 ("Q1"). The full version of the financial statements and accompanying management discussion and analysis can be viewed on the Company's website atwww.santacruzsilver.com or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in US dollars unless otherwise indicated.
During Q1 there was a temporary halt in operations from January 2 to March 25 following a malfunction in the tailings dam dewatering pipe. (See press release dated January 5, 2015.) After completing the remediation and cleanup of approximately 2,000 cubic metres of tailings pulp, at a cost of approximately $201,000, the Company received approval to re-start operations at the Rosario Mine. (See press release dated March 26, 2015.) As such the Company has recommenced operations at the Rosario Mine and the production / financial results in the second quarter of 2015 will reflect the fact that the Rosario Mine is fully operational again.
"The first quarter financials reflect the status of the Rosario Mine being shut-down during the quarter. During this first quarter, we took the opportunity to complete a major overhaul and refurbishment of key mill circuits. In addition, we restructured our underground mine contract in order to achieve improved mining costs and efficiencies, with fewer personnel. Further, the Company implemented and permitted an alternative solution for tailings disposal, secured the damaged discharge pipe, and upgraded the factor of safety at the tailings embankment. That being said we have subsequently resumed operations at Rosario in the second quarter." said Arturo Préstamo, President and CEO. "Our goal is to see continued operational improvements for the remainder of 2015."
First Quarter 2015 Financial Summary
| Highlights (US$000’s except per share amount) | Q1 2015 |
| Revenue | $402 |
| Mine Operating Income (Loss) | $(1,662) |
| Net Loss | $(2,551) |
| Basic Loss per Share | $(0.02) |
Frist Quarter 2015 Mine Operations Summary
| Highlights | Q1 2015 |
| Ore Processed (tonnes milled)(3) | 1,823 |
| Silver Equivalent Production (ounces)(1) | 20,011 |
| Silver Equivalent Sold (ounces)(2) | 30,931 |
| Cash Cost per Silver Equivalent Sold ($/oz.)(3) | * |
| Production Cost ($/tonne)(3) | * |
| All-in Sustaining Cost per Silver Equivalent Sold ($/oz.)(3) | * |
| Average Realized Silver Price ($/oz.)(3) | $17.41 |
* During Q1 2015 there was a temporary halt in operations from January 2 to March 25 following a malfunction in the tailings dam dewatering pipe. As such the Q1 2015 per unit cost calculations are not considered relevant and have not been included in this table.
(1) Silver equivalent ounces produced in 2015 are calculated using prices of US$17.75/oz., US$1,250/oz., US$0.83/lb and US$1.09/lb for silver, gold, lead and zinc respectively applied to the metal content of the lead and zinc concentrates produced by the Rosario Mine. Silver equivalent ounces produced in 2014 are calculated using prices of US$20.00/oz., US$1,250/oz., US$0.96/lb and US$0.90/lb for silver, gold, lead and zinc respectively applied to the metal content of the lead and zinc concentrates produced by the Rosario Mine.
(2) Silver equivalent sold ounces in the first quarter of 2015 was calculated using a realized silver price of US$17.41/oz applied to the payable metal content of the lead and zinc concentrates sold from the Rosario Mine. Silver equivalent sold ounces in the fourth, third, second and first quarters of 2014 were calculated using realized silver prices of US$16.15/oz., US$19.55/oz., US$19.76/oz. and US$20.55/oz., respectively, applied to the payable metal content of the lead and zinc concentrates sold from the Rosario Mine.
(3) The Company reports non-IFRS measures which include Production Cost per Tonne, Cash Cost per Silver Equivalent, All-in Sustaining Cost per Silver Equivalent and Average Realized Silver Price per Ounce. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. See "Non-IFRS Measures" section for definitions.
Operational Review
During the first quarter, most of the work focused on the remediation of the tailings spill. In addition to that remediation work, substantial activity was focused on improving operational efficiencies so that once production was resumed the benefits would be seen going forward. Some of those activities included; stope development in the mine, identifying cost savings programs in the mill, mine contract reorganization, and improving the overall site logistics.
Subsequent to the first quarter, the Rosario Mine has seen excellent progress and it is anticipated that production will continue to ramp-up together with higher efficiencies which will drive the Company towards being a positive cash flow producer.
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.
'signed'
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
For further information please contact:
Neil MacRae
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 planned production levels and costs, 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.
Rosario Mine
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.
Original Article: http://www.santacruzsilver.com/s/news_releases.asp?ReportID=710604
