Vancouver, British Columbia – (Newsfile Corp. – October 5, 2021) – Santacruz Silver Mining Ltd. (TSXV: SCZ) (the âCompanyâ or âSantacruzâ) indicates that it is suspending operations of the Rosario project and placing it in upkeep and maintenance. This decision was made following a thorough review by management of the operations of the Rosario Project and available strategic options, including the potential sale of the operation.
Management believes that reallocating capital and resources to the Zimapan mine and related satellite properties which have a stronger economy is the most prudent course of action at this time. The Company will continue to authorize remediation activities and programs so that the Rosario Project is positioned for a timely restart if the economics of the project warrant.
Carlos Silva, Managing Director, commented; “We have diligently tried to make the Rosario mine profitable, but due to its narrow vein system and the variability of its grade, this is a difficult project.” Mr. Silva continued; âPutting the project in a state of maintenance will allow us to better assess the alternatives to maximize the return on this asset. “
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican silver company that owns one producing property, the Zimapan mine, and two exploration properties, the La Pechuga property and the Santa Gorgonia prospect. The Company is managed by a technical team of professionals with a proven track record in the development, operation and discovery of silver mines in Mexico. Our business goal is to become a mid-level silver producer.
Arturo Prestamo Elizondo,
For more information, please contact:
Mars Investor Relations
Telephone: (778) 999 4653
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (528) 183 785707
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.
Certain statements in this press release constitute “forward-looking information” as that term is used in applicable Canadian securities laws, including statements relating to the future production of Project Rosario and the plans of the Company to. this asset. Forward-looking information is based on management’s plans, expectations and estimates at the date the information is provided and is subject to certain factors and assumptions. In making the forward-looking statements included in this press release, the Company has applied several important assumptions, including that the financial position and development plans of the Company do not change due to unforeseen events and that future prices of metals and the demand and market outlook for metals will remain stable or improve. Forward-looking information is subject to various risks and uncertainties and other factors that could cause actual plans, estimates and results to differ materially from those projected in such forward-looking information. Factors that could cause the forward-looking information contained in this press release to change or be inaccurate include, without limitation, the risk that any of the above-mentioned assumptions may not prove to be valid or reliable; market conditions and volatility and global economic conditions, including increased volatility and potentially negative capital raising conditions resulting from the continuing COVID-19 pandemic and risks related to the extent and duration this pandemic and its impact on global markets; the risk of delay and / or stoppage of planned work or of modification of the financial situation and of the Company’s development plans; risks associated with the interpretation of data (including with respect to third party mineralized material) regarding the geology, grade and continuity of mineral deposits; the uncertainty of the geology, grade and continuity of mineral deposits and the risk of unexpected variations in mineral resources, grade and / or recovery rates; risks associated with fluctuations in the prices of gold, silver, base metals and other commodities; risks related to environmental regulations and liability; the possibility that the results will not be in line with the Company’s expectations, as well as other risks and uncertainties applicable to mining exploration and development activities and to the Company, as indicated in the continuous disclosure documents of the Company filed under the Company profile at www.sedar.com. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, the reader should not place undue reliance on forward-looking information or statements. The Company assumes no obligation to update any forward-looking information or statements, except as required by applicable law.
Decisions to begin production at the Rosario mine, Cinco Estrellas property and the Membrillo prospect were not based on a mineral reserve feasibility study demonstrating economic and technical viability, but rather on a more preliminary estimate of mineral resources. presumed. As a result, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables can vary widely, due to the lack of a complete and detailed site survey in accordance with NI 43-101.
Production at the Zimapan mine is not supported by a Mineral Reserve Feasibility Study demonstrating economic and technical viability or any other independent economic study under NI 43-101. As a result, there is increased uncertainty and economic and technical risks of failure associated with production operations at the Zimapan mine. Production and economic variables can vary considerably due to the lack of a complete and detailed site analysis in accordance with NI 43-101.
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