VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/15/12)- Santacruz Silver Mining Ltd. ("Santacruz" or the "Company") (TSX-V: SCZ) Santacruz is pleased to report significant progress at its Rosario project, located in the historical mining district of Charcas, San Luis Potosi, Mexico. In August 2011 the Company signed an option agreement with Compania Minera Nukay, S.A. de C.V. a subsidiary of Goldcorp Inc. to purchase a mill with a capability of 500 tonnes per day. The mill, which is currently being disassembled will be moved to the property within the third quarter of 2012. The mill is scheduled to be commissioned within the first quarter of 2013. Utility permits for water and power are expected to be ready during the third quarter of 2012.
In addition, the company is continuing with its exploration program at the Rosario project which is budgeted to include 4,310 metre diamond drilling for 2012, focusing on the Rosario I and II veins with an objective to upgrade and increase current silver resources.
A 6,000 metre diamond drilling campaign will commence during the second quarter of 2012 at the Company's Gavilanes high grade silver project. The defined drill targets outlined in the Company's current NI 43-101 technical report are located on the stockwork area of El Hundido, as well as on the Guadalupe and Descubridora veins.
The Company has retained Gustavson Associates, LLC ("Gustavson") to prepare a NI 43-101 technical report on the San Felipe property which is expected to be concluded by the third quarter of 2012.
The Company is also pleased to announce that it has entered into an employment agreement dated May 7, 2012 (the "Agreement") with Neil MacRae, pursuant to which Mr. MacRae will provide investor relations services to the Company. Mr. MacRae will administer Santacruz's investor relations matters, including creating promotional and information materials for the Company, developing public relations programs for media awareness, and liaising between Santacruz and the brokerage community and investors.
Pursuant to the terms of the Agreement, Mr. MacRae's appointment commenced on May 7, 2012 and continues for an indefinite period. The Company has granted Mr. MacRae stock options to acquire 300,000 common shares of the Company at an exercise price of $0.90 per share for a period of three years.
Mr. MacRae brings with him a wealth of knowledge and experience in dealing with the investment community. He has worked for 18 years in the mining industry in investor relations. Most recently he has been involved with producing mining companies with a primary focus in operations in Mexico. His recent positions include Director, Investor Relations with NovaGold Resources Inc., Farallon Mining Ltd, and First Majestic Silver Corp.
All scientific or technical nature information herein was approved by Harald Hoegberg and Randy Henkle (both of whom are qualified persons as such term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. Hoegberg and Mr. Henkle are independent consultants for Santacruz.
Forward looking information
Certain statements contained in this news release, such as timing and anticipated results of proposed exploration programs, proposed use of proceeds 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 the financial condition and development plans do not change as a result of unforeseen events and that the Company obtains regulatory approval. 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, and delays in regulatory approval, 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 Filing Statement 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.
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.
Santacruz Silver Mining Ltd.
Arturo Prestamo Elizondo
President, Chief Executive Officer and Director
Santacruz Silver Mining Ltd.