Santacruz Silver Announces First Quarter 2014 Production Results/ Ramp Up Program at Rosario Mine is on Schedule
17 April 2014 - 11:00PM
Marketwired
Santacruz Silver Announces First Quarter 2014 Production Results/
Ramp Up Program at Rosario Mine is on Schedule
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 17, 2014) -
Santacruz Silver Mining Ltd. (TSX-VENTURE:SCZ) (the "Company" or
"Santacruz") is pleased to announce first quarter 2014 production
of 159,729 silver equivalent ounces from the Company's Rosario Mine
in San Luis Potosi, Mexico. This production represents a 260%
quarter over quarter increase as compared with Q4 2013 and
demonstrates the Company is on schedule to meet its production
target of between 850,000 to 1,100,000 silver equivalent ounces by
the year-end 2014.
At the end of the first quarter, the mine was producing at about
240 tonnes per day ("tpd") driven largely by increased production
from the recently accessed Level II of the Rosario Mine. The main
ramp is now advancing towards Level III.
The installation of a third ball mill is proceeding on time and
on budget, with commissioning scheduled for May. Once the third
ball mill is commissioned the Rosario milling facility will have a
700 tpd-installed capacity, thereby providing opportunity for the
Company to custom mill up to 200 tpd of third party ore in addition
to milling ore feed from the Rosario Mine.
"With the Rosario Mine steadily increasing the ore delivered to
the mill, together with the imminent commissioning of the third
ball mill, we are well on our way to our annual production target
for 2014," stated Arturo Préstamo, CEO of Santacruz. "While the
first quarter production numbers represent an important milestone
for the Company, we are focused on continuing production growth as
we progress through 2014."
First Quarter 2014 Operations Highlights (Compared to 4th
Quarter 2013)
- Ore processed grew 238% to 20,447 tonnes;
- Metal production increased 261% to 159,729 silver equivalent
ounces ("Ag eq oz");
- Silver production totalled 94,312 silver ounces ("Ag oz");
- Underground development on target at 1,216 meters.
2014 First Quarter Operational Highlights
Operations Summary |
Q4 2013 |
Q1 2014 |
Change |
|
|
|
|
Ore processed (tonnes milled) |
8,586 |
20,447 |
238.2% |
Silver equivalent ounce production 1 |
61,153 |
159,729 |
261.2% |
Silver ounce production |
35,482 |
94,312 |
265.8% |
Gold ounce production |
66 |
166 |
250.3% |
Lead production (tonnes) |
61 |
186 |
305.1% |
Zinc production (tonnes) |
165 |
367 |
222.7% |
Total underground development (m) |
1,333 |
1,216 |
-8.8% |
|
Note
1 |
EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05) |
|
Metal
Prices: |
Ag
$20.49, Au $1,295.95, Pb $0.95, Zn $0.91 |
First Quarter 2014 Grade & Recovery Table
Au |
Ag |
Pb |
Zn |
g/t |
% |
0.33 |
167 |
1.02 |
2.34 |
Total Recoveries |
77.3% |
85.7% |
89.7% |
76.8% |
With mining having transitioned through the more oxidized
material into primarily sulphide ore mined from sub-Level I and
Level II, the grades and recoveries for the remainder of 2014
should increase. The Company expects that ore sourced from Level II
will carry a silver head grade of approximately 240 g/t and silver
recoveries in the mill will increase to approximately 90.0%.
Development Plan for 2014
Since Level II has been reached and development is in progress,
the stopes are more than 40 vertical meters of high-grade sulphide
mineralization. Compared to Level I where the average was 7 to 10
vertical meters.
Ramp development is continuing and is expected to reach Level
III within 60 days, which will open new production levels with more
than 40 vertical meters similar to Level II. The additional stopes
and working faces from Level III, together with the current stopes
and working faces at Level II will provide sufficient ore
availability to achieve Rosario's production targets.
In addition, with the commissioning of the third ball mill in
May 2014, the Company will potentially seek to maximize the full
mill capacity of 700 tpd by processing up to 200 tpd of third-party
private mine material.
Effective for the period commencing January 1, 2014 the Company
will be reporting its results of operations from the Rosario Mine
in its consolidated statement of operations.
Qualified Person
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
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.
'signed' |
|
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
beginning in April 2014. 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.
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.
Neil MacRaeSantacruz Silver Mining Ltd.Email:
info@santacruzsilver.comTelephone: (604) 569-1609
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