VANCOUVER, BRITISH COLUMBIA--(Marketwire - Mar 7, 2013) - Santacruz Silver Mining Ltd. (TSX VENTURE:SCZ) ("Santacruz Silver" or the "Company") is pleased to announce that pursuant to the San Felipe Agreement with Hochschild Mining, dated August 18, 2011, it has exercised its option to acquire the 48,057.33 hectare El Gachi project located 30 kilometers from the San Felipe project in Sonora state.
The project includes a historical producing mine operated by Anaconda Mining Company and Peñoles, in the 1960''s and 1970''s respectively. During the 1980''s Minera Serrana shipped high grade ore from El Gachi to its nearby San Felipe mill. El Gachi is a high-grade manto and vein mineralized system located 30 kilometers by paved road from San Felipe project in the state of Sonora México.
President Arturo Préstamo states "We are very pleased to add El Gachi to our portfolio of silver projects. This is a large land position in a known silver belt with excellent exploration potential and infrastructure."
Under the terms of the agreement, Santacruz has the option to retain the property by making a US$3million payment before or by October 2014. This will give Santacruz 100% ownership of the El Gachi property.
About Santacruz Silver Mining Ltd.
Santacruz Silver is focused on three advanced stage silver projects in Mexico with a corporate objective to reach production at the Rosario project in the first quarter 2013. The Company aims to become a mid-tier silver producer in Mexico. The Company currently has outstanding 89,808,002 common shares (98,790,852 common shares fully diluted).
Arturo Préstamo Elizondo, President, Chief Executive Officer and Director
Forward looking information
Certain statements contained in this news release, such as statements regarding the anticipated use of proceeds from the Offering and corporate objectives and aims of the Company, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. The forward-looking information herein is based on plans, expectations and estimates of management as at the date hereof and is subject to certain factors and assumptions, including, that the Company''s financial condition and development plans will not change as a result of unforeseen events, the Company will receive the required regulatory approvals in a timely manner, future metal prices and the demand and market outlook for metals will be consistent with management''s forecasts and expectations. 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. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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 outlined above 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, that there are 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 Filing Statement and other continuous disclosure filings 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.