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News
Releases
August 30, 2013
Santacruz Silver
Provides Update on
Second Quarter 2013
Operations
View PDF
Vancouver,
B.C. --
Santacruz Silver
Mining Ltd. (TSX.V:SCZ)
(the "Company"
or "Santacruz")
reports on its
operations for
the second
quarter ending
June 30, 2013.
The Company's
financial
statements and
accompanying
management
discussion and
analysis can be
viewed on the
Company's web
site at
www.santacruzsilver.com
or on SEDAR at
www.sedar.com.
On April 18,
2013, based upon
the operating
staff's
assessment that
the mill had
demonstrated its
ability to
operate
continually at
rated capacity
while
maintaining
forecast
recoveries, the
Company
announced that
the Rosario Mine
had achieved
commercial
production. Such
consistent mill
performance,
however, does
not in and of
itself satisfy
the definition
of "commercial
production" for
accounting
purposes. As
such, the
Company has not
reported the
Rosario Mine's
results of
operations in
its consolidated
statement of
loss for the
second quarter
but instead
capitalized the
operating costs
less proceeds
from the sale of
concentrates as
mine development
costs.
A number of
initiatives
related to mine
development were
implemented
during this
quarter and will
be reflected in
the production
levels of the
fourth quarter
of 2013. The
initiatives were
undertaken to
maintain the
Company's
operational goal
of producing 500
tons per day by
the end of the
first quarter
2014. Full
details are
available in the
Company's MD&A
document filed
on www.sedar.com.
Arturo Préstamo,
President and
CEO, remarked
"During our
first quarter of
production at
the Rosario
Mine, we have
taken a
definitive step
towards our goal
of achieving
full operating
capacity of 500
tons per day by
the end of Q1
2014.
Nonetheless, we
encountered a
number of
temporary
short-term
production
challenges. Our
operational team
has met these
start-up
challenges head
on and continues
to work
pro-actively
towards our
production goal.
We fully expect
these
initiatives to
become more
apparent in
subsequent
quarterly
results while at
the same time
maintaining a
strong
treasury."
Mr. Préstamo
continued "For
the duration of
2013, the
Rosario Mine
will be in a
ramp-up mode. I
want to commend
our operations
team, led by our
COO, Francisco
Ramos, for
constructing the
Rosario milling
facility on time
and on budget,
and for the
team's continued
effort to
achieve our
production
target. We
anticipate that
the Rosario Mine
will be cash
flow positive by
Q4 2013."
2013 Second
Quarter
Highlights Table
Production Data
| |
Three
Months
Ended |
Month of |
|
June 30,
2013 |
July
2013 |
|
Tons
Milled
--
Rosario
Ore* |
288 |
623 |
|
--
Purchased
Ore |
4,787 |
- |
|
Head
Grade --
Rosario
Ore --
Ag
(g/ton) |
49.46 |
78.64 |
|
-- Au
(g/ton) |
0.06 |
0.13 |
|
-- Pb
(%)
|
0.279 |
0.109 |
|
-- Zn
(%) |
1.386 |
1.384 |
|
Head
Grade --
Purchased
Ore --
Ag
(g/ton) |
131.19 |
- |
|
-- Au
(g/ton) |
2.62 |
- |
|
-- Pb
(%) |
0.3881 |
- |
|
-- Zn
(%) |
0.0618 |
-
|
|
Recovery**
-- Ag
(%) |
67.1 |
69.5 |
|
-- Au
(%) |
83.5 |
95.8 |
|
-- Pb
(%) |
72.0 |
73.2 |
|
-- Zn
(%) |
58.7 |
56.5 |
|
* Approximately
2,000 tons of
oxide material
mined during
this period has
been stockpiled
on surface until
mine site staff
determine if and
how it can be
run through the
mill in a cost
effective
manner.
** The reported
recoveries
reflect the fact
that oxide
material was
included in the
mill feed.
Qualified
Person
All technical
information
which is
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
For further
information
please contact:
Neil MacRae
Santacruz Silver
Mining Ltd.
Email:
info@santacruzsilver.com
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 the
Company's future
cash flow
position,
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.
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