VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 4, 2013) - A Correction from Source is issued with respect to the release issued earlier today at 9 AM ET. The silver equivalent calculations have been revised. The corrected version follows.
Santacruz Silver Mining Ltd. (TSX VENTURE:SCZ) ("Santacruz" or the "Company") announces that further to its press releases of November 20, 2012 and January 15, 2013 the Company has received the results from the final five diamond drill holes of its 6,000 meter Phase one diamond drill program at its 100% owned Gavilanes Silver project in Durango, Mexico. The 7,347 hectare Gavilanes property hosts a low sulphidation epithermal system, where seven high silver grade veins and stockwork mineralized structures have been identified to date. The Phase one drill program was designed to test three of seven known silver-bearing veins and a stockwork area. The drill results reported herein are from the Guadelupe-Soledad-Aranzazú (GSA) vein.
Highlights (reported as true widths and assays uncut) include:
- SCGP-09: 7.40 m @ 366 g/t Ag eq. (256 g/t Ag, 1.92% Zn, 1.50% Pb and 0.34 g/t Au).
- SCGP-04: 3.78 m @ 215 g/t Ag eq. (156 g/t Ag, 0.50% Zn, 1.01% Pb and 0.16 g/t Au).
- SCGP-03: 3.02 m @ 143 g/t Ag eq. (137 g/t Ag, 0.08% Zn, 0.16% Pb).
Based upon the success of this Phase one drill program, Santacruz has commenced the 16,000 meter Phase two drill program. The objective of the Phase two program is to confirm the continuation of the GSA, Descubridora and San Nicolas veins in addition to the stockwork area of El Hundido. Results of the Phase two program together with the 22 holes completed in Phase one and drilling by historic operators will be compiled into the initial NI 43-101 compliant resource estimate report on the Gavilanes property. Management expects the NI 43-101 resource estimate to be completed late in the third quarter or early in the fourth quarter of 2013. Complete results from the Gavilanes drill program are available on the corporate website at www.santacruzsilver.com.
Arturo Préstamo, President and CEO stated, "We are very excited with the results from the 6,000 metre Phase one drill program. This initial drill program produced positive results as to the grades and widths of mineralization on four of eight known zones on the Gavilanes property. We believe the combination of continued high grade drill results from Gavilanes will be incorporated into a resource estimate before year end together with our achievement of production at Rosario puts Sanatcruz well on track to deliver shareholder value from its strong mineral property portfolio."
Complete results from the first 7 holes announced on November 20, 2012, the subsequent 18 holes announced on January 15, 2013, and the 5 drill holes announced in this press release are as follows: (Note that the first 7 holes announced on November 20, 2012 were not in numeric sequence. Due to hole numbers being assigned using the proposed drill hole number instead of numbering them in the actual order they were drilled in. Since holes are not being drilled in the same sequence as the drill plan, the hole numbers were not in sequence. For example, hole 22 was actually the fourth hole completed. This has been rectified but will continue to appear in the reporting until the 22nd hole has actually been completed).
Diamond Drill Holes Location:
|DDH ID||UTM Collar Coordinates||Strike||Dip||Total|
|Note: Metal prices as of April 1st 2013. Recoveries are considered at 100%|
Drilling is ongoing and results will be reported as assays are received from the laboratory. Gavilanes is a volcanic hosted, epithermal precious metal vein system. Drilling by previous operators totaled only 3200 m. A historical resource estimated in 1990, which was not prepared in accordance with NI43-101 contains an inferred resource of 1.2 million tonnes at 420 g/t Ag at the Guadalupe-Soledad-Aranzazú (GSA) vein on 500 meters of the known strike of 1000 meters. (This estimate was performed by Minas de San Luis in 1990. The Company believes that the grade assays are representative of the structures and the resource has been called inferred, however the assumptions of continuity are unclear. Santacruz is unaware of more recent data on the property, and the same results have been repeated by Hochschild Mexico in 2008. Confirmation drilling needs to be completed with documented sampling and preparation procedures and a new model developed to determine whether there is a resource at Gavilanes that is compliant with NI 43-101. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. Santacruz is not treating this historical estimate as current mineral resources).
Sampling and Laboratory
NQ-sized drill core was sawn in half at site and sent to ALS Chemex, a fully accredited and certified laboratory service. Samples were prepared at the ALS Chemex facility in Zacatecas, Mexico, and were assayed at ALS Chemex in Vancouver, Canada. All samples were analysed using a one assay ton fire assay with an AA finish Au and Ag (Au-AA23) and a 48 element ICP method for Pb, Zn and other elements (ME-MS61). A comprehensive QA/QC procedure is followed using standards, blanks and duplicates, all samples are randomly placed.
Donald E. Hulse P.E., SME-RM of Gustavson Associates LLC, is a qualified person under NI 43-101 and is independent of the Company, and has reviewed and approved the technical information contained in this press release.
Mr. Hulse verified the data disclosed in this release, including the sampling, analytical and test data underlying the information contained in this release. Verification included a review and validation of the applicable assay databases and reviews of assay certificates.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with a producing project (Rosario) and two advanced-stage exploration projects (San Felipe and Gavilanes). 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.
Arturo Prestamo Elizondo, President, Chief Executive Officer and Director
Certain statements contained in this news release, such as potential mineralization on the Company's properties, the Company's exploration and development plans and anticipated production dates on the Company's mineral properties, 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 The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable securities laws or an exemption from such registration is available.
To view the Gavilanes 2012 drill hole location map, please visit the following link: http://media3.marketwire.com/docs/scz404-Map.pdf.