VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 11, 2013) - Santacruz Silver Mining Ltd. (TSX VENTURE:SCZ) is pleased to announce the first results from an ongoing 25,000 m diamond drill program at its San Felipe project in Sonora State, Mexico. Drilling is primarily focused on the La Ventana, Las Lamas and Transversales group of veins (see attached maps). Results from the first six holes are reported below.
Highlights (reported as true widths and assays uncut) include:
Las Lamas Vein:
- SCLL-05: 6.46 m @ 721 g/t Ag eq. (212 g/t Ag, 0.01 g/t Au, 15.83% Zn, 0.44% Cu and 0.55% Pb).
- SCLL-04: 2.41 m @ 823 g/t Ag eq. (324 g/t Ag, 0.01 g/t Au, 14.99% Zn, 0.45% Cu and 0.93% Pb).
La Ventana Vein:
- SCLV-01: 5.75 m @ 918 g/t Ag eq. (142 g/t Ag, 0.02 g/t Au, 13.01% Zn, 1.53% Cu and 8.04% Pb).
Results from the initial holes have generally returned higher silver and zinc grades over wider intervals than expected. To date, drilling has intersected the Las Lamas vein for 300 meters on strike. The Las Lamas vein is open for 700 metres along strike and is open at depth. In addition, drilling is proving the La Ventana vein to be a robust silver - polymetallic vein with high copper, zinc and lead grades.
The objective of this drill campaign is to further delineate higher grades in the south-west portion of the property. Veins believed to be the most prospective for expanding silver equivalent resources include Las Lamas, Cornucopia, Artemisia and Transversales in addition to the La Ventana vein which hosts the majority of the current 43-101 resource defined by Santacruz.
Arturo Préstamo, President and CEO states "The initial results from the 2013 campaign at San Felipe have exceeded our expectations. The Las Lamas vein which is to the south-west of the more defined La Ventana vein is generating great results. This drill campaign has the potential to expand upon San Felipe's current resource of over 50 million of silver equivalent ounces, further demonstrating San Felipe is a great asset with strong growth potential. Significant engineering work is underway with a goal of developing a strong understanding of the economic and production potential by year's end."
Mr. Préstamo further commented on the current state of the equity markets: "Santacruz's stated goal when the Company went public in April 2012 was to build a mid-tier silver producer with assets based in Mexico. With the April 1, 2013 announcement of commercial production at the Rosario mine, achieved on time and on budget, we have met our first milestone. Given the difficult market conditions, our top priority is to continue to ramp-up Rosario´s production thereby increasing cash flow while reassessing many expenditures. Several initiatives are being taken to ensure that our treasury remains strong. For example management currently believes there are sufficient holes completed at Gavilanes to potentially update the resource and accordingly Santacruz has temporarily suspended drilling activities. The Company has a strong treasury, no debt, and no significant property payments due until 4th quarter 2014."
Description of DIAMOND DRILL HOLES ASSAYS 2013:
| True |
Diamond Drill Holes Location
|UTM Collar Coordinates|
|DDH ID||North||East||Elevation||Strike||Dip||Total |
|SCLL-01||3,305,235.48||567,132.90||698.86||S 09.80 |
|- 44.55 |
|SCLL-02||3,305,255.14||567,101.39||700.49||S 09.07 |
|SCLL-03||3,305,261.53||567,064.77||706.87||S 08.27 |
|SCLL-04||3,305,251.89||567,017.69||731.86||S 20.15 |
|SCLL-05||3,305,252.39||567,017.47||731.84||S 16.43 |
|SCLV-01||3,306,236.84||567,575.03||825.74||N 03.92 |
|- 56.88 |
Drilling is ongoing and results will be reported as assays are received from the laboratory.
San Felipe Project
San Felipe is a late stage exploration project, located in the State of Sonora, approximately 130 kilometers north-west of Hermosillo City, the state capital of Sonora. Previously, Minera Hochschild Mexico SA de CV ("MHM") explored and developed the property from 2001 to 2008, with more than 18,500 meters of diamond drilling and significant development work completed on the project at the La Ventana, San Felipe and Las Lamas veins. The Company released a NI 43-101 compliant resource in 2012, containing a Mineral Resource of 3 million metric tons of measured and 900 thousand metric tons of indicated mineralization, containing 31 million and 8 million troy ounces of silver equivalent, respectively, above a cutoff grade of 75g AgEq/t. The report estimates that there is an additional 1.5 million metric tons of inferred mineral resource above the 75 g AgEq/t cutoff containing 11 million troy ounces of silver equivalent.
Sampling and Laboratory
HQ-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); 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.
Arturo Préstamo Elizondo, President, Chief Executive Officer and Director
Forward looking information
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.
To view a map of the LAS LAMAS DDH PROGRAM, please visit the following link: http://media3.marketwire.com/docs/885903_Map_1.pdf.
To view a map of the LA VENTANA DDH PROGRAM, please visit the following link: http://media3.marketwire.com/docs/885903_Map_2.pdf.