Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports its operating results from the Zimapan Mine located in Zimapan, Hidalgo, Mexico and the Rosario Project located in Charcas, San Luis Potosi, Mexico, for the first quarter 2021 (“Q1”). The Company is not including production from the Veta Grande Project in this report as operations at Veta Grande were suspended during Q1 2020.
Production Highlights:
Silver equivalent ounces produced 706,978
Silver head grades increase 9.4 % at Zimapan Mine as compared to Q1 and Q4 2020
Increased tonnage throughput from Lomo del Toro zone of the Zimapan Mine from 4,000 during January and February to 6,000 tonnes for the month of March
New mining method introduced in late March at Rosario that is expected to significantly reduce costs by less handling of waste material.
Carlos Silva, Santacruz’s COO stated, “As we keep advancing our workings deeper into the higher-grade Lomo del Toro manto and increase the tonnage mined from this zone, we are seeing a corresponding increase in head grades at our Zimapan Mine. We are progressing well towards our objective of reaching 15,000 tonnes per month of mill feed from this higher-grade area by the end of the second quarter”. Mr Silva continued; “We expect further efficiencies at our Rosario Project during Q2 as a result of a revised mining plan which results in less waste material being handled. These very encouraging improvements were unfortunately partially offset by an unstable power supply from Mexico´s Comision Federal de Electricidad (Mexico´s power supply Company). The unstable power supply impacted the mill throughput at both mines in February as motors for the ball mills were damaged. The matter was resolved in early March but mill throughput was materially reduced for eight days”.
COVID-19 Update
The Company continues to take all appropriate measures to prevent COVID-19 among the work force and local communities and to monitor the effectiveness of these measures in mitigating any potential impact on business activities. The Company's actions have been successful to date and the pandemic has not had any material impact on the business.
CONSOLIDATED PRODUCTION RESULTS
go for figures to
https://santacruzsilver.com/news/santacruz-silver-reports-q1-2021-production-of-706-978-silver-equivalent-ounces/
In the above tables Ag Eq has been calculated as follows:
2021 Ag Eq was calculated using metal prices of: Ag $25.00/oz, Au $1,925/oz, Pb $0.85/lb, Zn $1.05/lb and Cu $3.00/lb.
2020 Ag Eq was calculated using metal prices of: Ag $17.85/oz, Au $1,480/oz, Pb $0.92/lb, Zn $1.09/lb and Cu $2.80/lb.
Silver Equivalent Comparative Production
As noted in the tables above, there is a significant reduction in silver equivalent ounces produced in Q1 2021 as compared to that produced in Q1 and Q4 2020. This negative change in production is due in large part to the metal prices used for this calculation in 2021 as compared to 2020. For example, had the Company used the 2020 metal price deck for its silver equivalent production calculation at the Zimapan Mine in Q1 2021, the reported silver equivalent ounces produced would have been 868,750, an increase of 9.1% over the current reported balance. On a comparative basis within any particular fiscal year or between periods in different fiscal years where the metal price decks are relatively equivalent, this computation is useful for comparing production from one period to another. When the price decks are not relatively equivalent, the usefulness of this production indicator is diminished.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Zimapan and Rosario) and two exploration properties, the La Pechuga property and Santa Gorgonia prospect. 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,
Executive Chairman |
