VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/07/12 -- Santacruz Silver Mining Ltd. ("Santacruz" or the "Company") (TSX VENTURE:SCZ) is pleased to take this opportunity to announce the appointment of Mr. Francisco Ramos as the Chief Operating Officer of the Company and also update its shareholders and interested parties on the corporate activities that have taken place over the past couple months on the Rosario, Gavilanes and the San Felipe silver projects and the Company's plans for the remainder of 2012.
Mr. Ramos is a Mining and Metallurgical Engineer with more than 30 years of experience in the mining industry, holding a masters degree in Mining Engineering from the University of Guanajuato, Mexico. He was a co-founder of Great Panther Silver Limited (GPS), finding and developing its first two mines. Mr. Ramos has been instrumental in executing and overseeing the mining operations for GPS which are all located in Mexico and he's played a major role in building the company into its current status as a mid tier silver producer. Mr. Ramos has worked with a variety of senior mining companies such as Penoles, IMMSA (Grupo Mexico) and Minera Autlan. He has also consulted for a number of junior to mid-size companies from Canada, Mexico and the United States. In addition, Mr. Ramos was responsible for the design, supervision and construction of four milling operations, all of which were completed on time and on, or under budget.
Arturo Prestamo, President & CEO of Santacruz, stated; "Mr. Ramos has put together a highly qualified operational team to assist the Company in achieving its objectives going forward. His operational experience will be a key asset to Santacruz as we grow into a mid-tier silver producer with our advanced stage, near-term production assets in Mexico."
The operational activities of the company are moving along as planned with the following advances on each project:
Rosario Mine (San Luis Potosi, Charcas Mining District)
During the month of April the company completed the purchase of a 500 tpd flotation mill from Goldcorp's Mexico Subsidiary, Nukay. The purchase price was US$800,000. Disassembling of the mill has commenced and transportation of the mill components to the Rosario mine site is in progress. The company expects to receive at the site all crushing and milling equipment during the next seven weeks, as well as all of the flotation cells. Engineering activities are moving forward in preparation for receiving and installating the mill equipment, including all of the necessary ground leveling and excavation for the crushing and milling foundations. In addition, during the month of May, all environmental permits required for the operation of the mill, mine and tailings dam were received. Current timelines are on track to reach commercial production by first quarter 2013. Anticipated production levels at 500 tpd are projected to yield 2,200,000 ounces of silver equivalent(1) by the year 2014.
A four month exploration program concentrated on expanding four trenches that were dug to explore for the continuation of both Rosario I and II veins to the NW. Each trench measured over 30 meters in length and 5 meters in width and were located over 800 meters away from the current known resources. In the four trenches, continuation for Rosario I and II veins was confirmed. With the idea of confirming both veins at depth, a 4,310 meter diamond drill program has now commenced with one rig targeting the extensions of both Rosario I and II veins to the NW where the trenching took place. In preparation for the mine development, a 250 meter length area of overburden at Rosario I and II veins was removed, exposing both veins. The plan is to have a 3 month open-pit scenario before accessing the underground development. This will allow for the accumulation of stockpiled ore in a cost effective manner, while mill construction is underway.
(1) From 157,200 tons of mineable material containing Ag 298 g/t, Au 1.14 g/t, 4.10% Zn, 2.1% Pb.
Gavilanes Mine (Durango, San Dimas Mining District)
Preliminary surface mapping and exploration activities took place during April and May at Gavilanes in preparation of an aggressive 6,000 meter diamond drill campaign scheduled to commence in June. The defined drill targets which are outlined in the Company's current NI 43-101 report (viewable at www.santacruzsilver.com) are located within the stock work area of El Hundido structure as well as to Guadalupe and Descubridora veins. These areas are the primary focus of this program. The Companys's goal is to increase resources on the Gavilanes project and update the NI 43-101 report by the first quarter of 2013.
San Felipe Mine (Hermosillo Sonora, San Felipe Mining District)
Since February 2012, geologists have been mapping and collecting rock samples from underground at the Las Lamas, Artemisa, Curnocopia, Santa Rosa, La Ventana and San Felipe mines as well as within other previously devoloped underground areas within the San Felipe property. Ten kilometers of grid lines have been established where a systematic soil geochemical sampling program was completed, including the Transversales area. In addition, a detailed geophysics survey to follow-up anomalous indications from the geochemical sampling and mapping has took place in January with encouraging results. The Company has retained Gustavson Associates, LLC ("Gustavson") to prepare a NI 43-101 Techinal Report including an updated resource estimate. This Report is expected to be published during the third quarter of 2012.
Arturo Prestamo, President & CEO of Santacruz stated; "I am pleased to see the Company's progress on the construction of the Rosario mill coupled with our exploration activities. Also achieving our listing on the TSX Venture Exchange was an exciting milestone for the Company. I would like to encourage shareholders and interested parties to contact us at any time for more detailed information. I would also like to take this opportunity to welcome Santacruz's Chief Operating Officer Francisco Ramos. Having an operational manager of his caliber on our team will ensure that the operations run efficiently. This is an exciting time for us as we build our team and start to deliver on our corporate objectives to become a mid-tier silver producer."
About Santacruz Silver Mining Ltd.
Santacruz Silver is focused on three advanced stage silver deposits in Mexico with a corporate objective to reach production by first quarter 2013. The Company aims to become a mid-tier silver producer in Mexico.
Arturo Prestamo Elizondo, President, Chief Executive Officer and Director
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 Silver Mining Ltd.
Forward looking information
Certain statements contained in this news release, such as 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.