Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") provides an update from the Phase 1 drill program on the Veta Grande, Armados and Navidad veins that form part of the Company's Veta Grande project located in the Zacatecas mining district, Zacatecas, Mexico (see press release dated July 9, 2018). To date, the Company has completed 43 diamond drill holes totalling 13,665 metres on the property. This update references 24 of the 43 drill holes, representing 7,500 metres of surface exploration drilling at the Garcia and Navidad mines since October 2018 (see news release dated October 22, 2018). Drilling is ongoing.
Fourteen drill holes totalling 2,473 metres completed at the Navidad mine (Navidad vein) continues to intersect mineralized quartz veins approximately 20-40 metres below the existing mine workings. In addition, a fan of five drill holes located 130 metres south of the historically mined stopes have confirmed the continuation of mineralization along strike. Drill hole intercept highlights stated as approximate true width include:
Ten drill holes totalling 5,027 metres completed at the Garcia mine (Veta Grande and Esperanza veins) continues to intersect the Veta Grande and Esperanza veins approximately 10-100 metres below the existing mine workings on the northwest area of the mine. Drill hole intercept highlights stated as approximate true width include:
Quartz veins described in this release generally consist of banded, cockade and brecciated quartz vein textures typical of the low-sulfidation epithermal style veining present at the Veta Grande project. In drill core, visible mineralization consists of argentite, galena and sphalerite.
Carlos Silva, Chief Operating Officer of Santacruz, commented, "We are pleased with the progress of Phase 1 of the diamond drilling campaign. These drill results, in addition to those previously announced, confirm the continuation of the targeted mineralized veins along strike and at depth." Mr. Silva continued, "We have just started to realize the potential of this Zacatecas historical mining district where we control over 9,000 hectares covering a significant number of known veins and mineralized areas. Our plan is to build in Zacatecas a solid silver producing asset."
Veta Grande Project Assay Results
|Veta Grande Upper||VG19-012||329.60||331.60||2.00||1.78||2.41||64.68||2.65||7.64||0.16||810.21|
|Veta Grande Upper||And||332.65||334.50||1.85||1.65||0.67||17.31||0.05||2.10||0.03||193.62|
|Veta Grande Upper||And||335.05||336.90||1.85||1.65||1.27||31.76||0.08||3.49||0.12||344.85|
No significant intersections were encountered in drill holes NA18-012 to NA18-17, NA18-19, VG18-007, VG18-011, and VG18-014. Drill hole VG18-014 was abandoned due to poor ground conditions and drill hole VG18-014A was completed in its place. Mineralized intersections were selected based on a 100g/t AgEq cut-off grade.
AgEq in the drill results assumes $1,281 per ounce Au (Pau), $15.25 per ounce Ag (Pag), $0.94 per pound Pb (Ppb), $1.20 per pound Zn (Pzn) and $2.70 per pound Cu (Pcu) with 100-per-cent metallurgical recovery (US Dollars).
The formula used in the calculation is as follows:
AgEq (g/t) equals (Au multiplied by Pau divided by 31.1035) plus (Ag multiplied by Pag/31.1035) (plus Pb multiplied by Ppb multiplied by 22.05) plus by (Zn multiplied by Pzn multiplied by 22.05) plus (Cu multiplied by Pcu multiplied by 22.05) (Pag).
Quality Control/Quality Assurance Program
All drill core was logged, photographed and cut in half with a diamond saw. Half-core samples were sent to SGS Minerals Services in Durango, Mexico (17025 accredited), for preparation and analysis. Drill core samples were analyzed for 33 elements by four-acid digestion of a 0.5-gram sample followed by an ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish. Over-limits for lead, zinc and copper were further analyzed by sodium peroxide fusion of a 0.5-gram sample followed by ICP-AES finish. Au and Ag was also analyzed by fire assay of a 30-gram sample followed by AAS (atomic absorption spectroscopy) finish for Au and gravimetric finish for Ag.
As part of the company's quality assurance/quality control (QA/QC) program, independently certified control samples (standard and blank pulp samples) were inserted in each analytical batch. The control sample results were then checked to ensure proper QA/QC.
The technical information contained in this news release has been reviewed and approved by Van Phu Bui, BSc, PGeo, who is independent of the company and a qualified person under National Instrument 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican-focused silver company with two producing silver projects (Veta Grande project and Rosario project). The Veta Grande project includes the producing Veta Grande property and two exploration properties -- the Minillas and Zacatecas properties. The Rosario project includes the producing Membrillo prospect. The company is managed by a technical team of professionals with proven records in developing, operating and discovering silver mines in Mexico. The company's corporate objective is to become a mid-tier silver producer.
For further information please contact:
Santacruz Silver Mining Ltd.
Telephone: (011) (52) 81 8378 5707
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 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. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, that the Company's financial condition and development plans do not change as a result of unforeseen events, that third party mineralized material to be milled by the Company will have properties consistent with management's expectations, that the Company will receive all required regulatory approvals, and that future metal prices and the demand and market outlook for metals will remain stable or improve. 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, which could result in lower revenue, higher cost, or lower production levels; delays and/or cessation in planned work; changes in the Company's financial condition and development plans; delays in regulatory approval; risks associated with the interpretation of data (including in respect of the third party mineralized material) regarding 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 continuous disclosure filings 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 decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect were 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.
Veta Grande Project
The decision to commence production at Veta Grande Project was not based on a feasibility study on mineral reserves demonstrating economic and technical viability. 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.