TSXV: SCZ FSE: 1SZ June 2017 - Santa Cruz Silver Mining Ltd.
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June 2017 TSXV:
TSXV: SCZ
SCZ FSE:
FSE: 1SZ
1SZ
1
Santacruz Silver Mining Ltd. All Rights Reserved
IMPORTANT CAUTIONARY NOTES
The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Santacruz Silver Mining Ltd. (the “Company”). It should be
read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or
regulatory authority has reviewed the accuracy or adequacy of the information presented.
FORWARD-LOOKING STATEMENTS
This presentation contains “forward-looking statements” within the meaning of Canadian securities legislation and the United States Securities Litigation Reform Act of 1995. Forward-looking
information includes, but is not limited to, statements with respect to the future price of silver, gold and other metals and the effects thereof on the Company's mineral resources; statements
relating to the potential mineralization and geological merits of the Company's Rosario mine (the "Rosario Mine"), Membrillo prospect (‘the Membrillo propsect”), Cinco Estrellas property (the
“Cinco Estrellas property”) (collectively the “Rosario Project”), as well as the Contracuña Properties, which include the Veta Grande property (the “Veta Grande Mine”) and the Minillas mineral
property (the “Minillas Property”) and the Zacatecas District Claims (collectively the “Veta Grande Project”); the Company's expected production and recoveries for its Rosario Project and the Veta
Grande Project; expectations regarding the continuity of mineral deposits; the Company's goals regarding raising capital and developing its projects; plans for drilling; expectations regarding
environmental issues that may affect the exploration progress; project capital cost estimates; and the Company's other plans for development of its projects. Often, but not always, forward-looking
information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives
thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
This forward-looking information is based on certain assumptions that the Company believes are reasonable, including that: the Company is able to obtain any required government or other
regulatory approvals and adequate financing to complete its current and future exploration and development programs; current gold, silver and base metal prices will not materially decrease; the
proposed development of the Company's mineral projects will be viable operationally and economically and proceed as expected; the Company will not experience any material accident, labour
dispute or failure of plant or equipment; any additional financing needed by the Company will be available on reasonable terms; that planned drilling at its mineral properties will be completed and
that the results of such drilling will be sufficient to expand the existing resources at the Veta Grande Project consistent with management's expectations; that general business, economic, and
political conditions will not change in a material adverse manner; that the Company's exploration of its properties is not adversely affected by unexpected adverse weather conditions; that the
estimates of the resources at the Rosario Mine, and the Veta Grande Project obtained by the Company are within reasonable bounds of accuracy (including with respect to size, grade and
recovery); that the Company's current exploration and development programs and objectives can be achieved, the assumptions set out in the technical reports described below and the other
assumptions set out in this presentation and the Company’s public disclosure, including the Annual Information Form filed under the Company's profile at www.sedar.com (“AIF”).
The 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, including, but 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 AIF and the Company’s other public disclosure. The Company undertakes no
obligation to update the forward-looking information, other than as required by applicable law.
Any financial outlook contained herein, as defined by applicable securities legislation, is provided for the purpose of providing information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
2
Santacruz Silver Mining Ltd. All Rights Reserved
TECHNICAL INFORMATION
Technical Report for the Rosario titled "NI 43-101 Technical Report on Resources, Rosario Project, San Luis Potosi, Mexico" with an effective date of December 1, 2012 and
filed on SEDAR on December 28, 2012 (the "Rosario Report") was prepared by Gustavson Associates, LLC in Lakewood Colorado, independent consultants to the Company.
The qualified persons who prepared these reports under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects, are Donald E. Hulse P.E., SME-RM, and,
Patrick F. Daniels, SME-PM.
The Veta Grande technical report, titled “Technical Report, Veta Grande Project, Zacatecas State, Mexico”, dated effective February 26, 2017 (the “Veta Grande Report”) was
prepared by Van Phu Bui, P. Geo. and Gary Giroux, P.Eng. of Giroux Consultants Ltd., who are all independent of the Company and each of whom is a qualified person,
pursuant to the meaning of such terms in NI 43-101.
All of the mentioned qualified persons who prepared these reports are approved QP’s under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects.
Under NI 43-101 the Qualified Person who reviewed and approved the scientific and technical information with respect to the Rosario Mine in this presentation is Mr. Donald
Hulse, who is an independent consultant for the Company. For the Veta Grande report the qualified persons are Van Phu Bui, P. Geo. of Arc Geoscience Group and Gary
Giroux, P.Eng. of Giroux Consultants Ltd..
.
3
Focus on Mexico
Rosario
Producing Asset Veta Mine
Grande
Zacatecas
4
Santacruz Silver Mining Ltd. All Rights Reserved
Company Overview
Company Overview
Project District / State Project Status
Growth-oriented Mexican silver producer, listed
on TSX.V Exchange, under “SCZ”.
Experienced management team with respect to
both operating mines and making exploration Charcas, San Luis
discoveries in Mexico. Rosario Project Potosí
In Production
Two polymetallic producing properties in Mexico,
with significant exploration potential:
Rosario Project
Veta Grande Project
Veta Grande Veta Grande,
In Production
Project Zacatecas
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Santacruz Silver Mining Ltd. All Rights Reserved
Board of Directors & Management
• Arturo Préstamo - President, CEO and Director
President and CEO of the Company since April 2012; Country Manager in Mexico for Starcore International Mines Ltd. from
September 2007 to October 2011; Director of Planning and Investor Relations for Grupo Famsa, SAB from March 2005 to
August 2007.
• Robert (Rob) McMorran - CFO
Mr. McMorran has worked in the mining industry for over 30 years. He is a Certified Professional Accountant, (CA).
• Roland Löhner - Director
Senior partner and Managing Director of The Boston Consulting Group for the last 20 years. During the last 5 years he has
held the position of Managing Director for Latin America.
• Federico Villasenor - Director
Graduated with a BSc in mining and metallurgy and an MS of mineral economics and has 40 years of experience in the
mining industry, including roles with Peñoles, Grupo Mexico, Goldcorp and as director of Starcore International Mines Ltd.
• Larry Okada - Director
35 years of accounting experience, and currently a director of Revett Mining Company Inc., Eurasian Minerals, Inc. and
Forum Uranium Corp.
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Santacruz Silver Mining Ltd. All Rights Reserved
Capital Structure
Share Capital
(June 23 2017 Share price $0.24)
Outstanding Shares 168,295,984
Warrants 22,715,000
Stock Options 5,201,667
Fully Diluted 196,212,651
Market Capitalization $40 million
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Santacruz Silver Mining Ltd. All Rights Reserved
Rosario Project
Project Review
8Property Location
100 km North of San Luis Potosí, State Capital of San
Luis Potosí on Highway 57.
N
Cinco Estrellas Charcas
Mine 5Km Town
Water Pipe
Charcas
IMMSA Mine
12Km Access Road
180Km.
Rosario & Membrillo
Mines
Membrillo
San Xavier Mine
17Km
Mine
Capital City of Rosario
Project
San Luis Potosí, S.L.P.
Rosario Project includes :
Cinco Estrellas Property (40 km from Rosario Mill)
Membrillo Property (4 km from Rosario Mill)
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Santacruz Silver Mining Ltd. All Rights ReservedCinco Estrellas (1)
New access ramp at the Cinco Estrellas Property from surface to Level 3 completed and only 40 meters to
access Level 5.
Improved ramp with larger dimensions for ore transportation.
Achieving steady pace; approximately 5,200 tonnes of mineralized material have been sent to Rosario mill
from May to June.
Budgeted tonnage +250 tpd.
Note 1
The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified
person" under National Instrument 43-101.”
10
Santacruz Silver Mining Ltd. All Rights ReservedMembrillo (San Rafael vein) (1)
Assays on chip samples returned results of trace-0.64 grams per tonne gold, trace-154.29 grams per
tonne silver, 0.03-0.94 percent lead, and 0.28-24.65 percent zinc over sampling widths of 0.5-4.20 meters.
35 meters of higher grade mineralization where 15 chip samples returned assay results of 0.28-1.44
grams per tonne gold, 55.26-770.54 grams per tonne silver, 0.12-15.92 percent lead and 4.23-20.09
percent zinc over sampling widths of 0.5-1.60 meters.
Feed from the San Rafael vein to Rosario mill has commenced.
Note 1
“Sampling and laboratory
Chips samples are collected across the back of the underground workings at 1.5 meter sample intervals and are oriented perpendicular to the vein structure. Blanks, standards and duplicate control samples were not utilized in the sampling
procedure.
Samples are analyzed at the Rosario laboratory, which is owned and operated by Santacruz. The Rosario laboratory is designed to serve the mining operations at the Rosario project. It is not independent of the Company and is not ISO
certified. Samples are prepared by drying, crushing, rifle splitting and pulverizing 80% to less than 75 microns passing 200 mesh, Samples are analyzed by three-acid digestion and atomic absorption spectrometry. Gold and silver are further
analyzed by fire assay with gravimetric finish.
*Qualified persons
The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified person" under National Instrument 43-101.”
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Santacruz Silver Mining Ltd. All Rights ReservedMembrillo (San Jose and Santa Ana) (1)
Recently intersected the high-grade zone of the Membrillo vein at the Membrillo Prospect
Eight preliminary rock samples of muck material removed from the first 10.60 metres of the production
drift along the Membrillo vein on Level 1.5 returned assay results that range from 0.10 - 0.59 grams per
tonne gold, 8.0 - 121.0 grams per tonne silver, 0.12 - 0.40 percent lead, and 0.62 - 7.07 percent zinc. The
true thickness of the Membrillo vein in the production drift is approximately 0.40 - 0.90 meters. Systematic
chip sampling is currently in progress and assay results are pending. The extent of mineralization of this
high-grade zone is currently unknown.
Discovered two previously unknown and unexplored veins, the Santa Ana and the San Jose veins, which
are located approximately 100 and 75 meters south east respectively of and running parallel to the San
Rafael vein. (At this time no representative assay results are available on these newly discovered veins and
it is not possible to determine if they are economically viable.)
Note 1
“Sampling and laboratory
Chips samples are collected across the back of the underground workings at 1.5 meter sample intervals and are oriented perpendicular to the vein structure. Blanks, standards and duplicate control samples were not utilized in the sampling
procedure.
Samples are analyzed at the Rosario laboratory, which is owned and operated by Santacruz. The Rosario laboratory is designed to serve the mining operations at the Rosario project. It is not independent of the Company and is not ISO
certified. Samples are prepared by drying, crushing, rifle splitting and pulverizing 80% to less than 75 microns passing 200 mesh, Samples are analyzed by three-acid digestion and atomic absorption spectrometry. Gold and silver are further
analyzed by fire assay with gravimetric finish.
*Qualified persons
The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified person" under National Instrument 43-101.”
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Santacruz Silver Mining Ltd. All Rights ReservedMembrillo Jaral- Vein System
275200 mE
275000 mE
N
LIMIT OF INFLUENCE MENBRILLO VEIN
2552000mN 2552000mN
LEGEND
MINERALIZED
STRUCTURES
MEMBRILLO SYSTEM
MINERALIZED
STRUCTURES JARAL
SYSTEM
POSTMINERAL
STRUCTURES
275200 mE
275000 mE
SURFACE SAMPLE
STREAM 12
Santacruz Silver Mining Ltd. All Rights ReservedQ1 2017 Rosario Project Results
Summary of Production Results 2017 Q1
Material Processed (tonnes milled) 18,723
Silver eqv. ounce production (1) 115,240
Silver production (ounces) 34,556
Silver head grade (g/t) 66
Silver recovery (%) 86%
Gold production (ounces) 195
Lead production (tonnes) 45
Zinc production (tonnes) 382
Average Head Grade (g/t Ag Eqv. 226
Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)/(Pag)
Metal Prices Q1 2017: Ag $16.00, Au $1,150, Pb $0.90, Zn $1.15
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Santacruz Silver Mining Ltd. All Rights ReservedVeta Grande Project
Project Review
14Mexican Silver Belt
Jarillas Vein
Fresnillo System
N
Juanicipio Vein San Carlos Vein
Saucito Vein
Gral. Enrique Estrada
Víctor Rosales
Veins
(Controlled by SCZ)
LEGEND Pánuco-Plomosa Vein
MINE
Guadalupe Vein
CITY La Flor Vein
CAPSTONE
Francisco I. Madero San Roberto Vetagrande
VEIN
La Parroquia Vein
San Juan Vein
Zacatecas Mala Noche Vein
La Cantera Vein
Veins Area
Santacruz Silver Mining Ltd. All Rights Reserved 15
El Oro-El OritoPredominant Control Over Zac. Mining District
7540
7620
7460
7500
7580
7420
00
00
00
00
00
00
2534000 2534000
PANUCO AREA
MULEROS AREA
N
2530000 2530000
EL CRISTO AREA
VETAGRANDE AREA
(GARCIA MINE)
L E G E N D
SAN MANUEL - SAN GIL AREA
2526000 2526000
ZACATECAS DISTRICT CLAIMS
ACTIVELY MINING AREA
VEINS
CAPSTONE MINE
TOTAL AREA 8,930.63 Has.
MALA NOCHE VEIN
2522000 2522000
LA CANTERA VEIN Graphic Scale
(GUADALUPANA AREA) 0 2,000 4,000
EL ORITO AREA
Meters
2518000 2518000
75400
76200
74600
75000
75800
74200
0
0
0
0
0
0
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Santacruz Silver Mining Ltd. All Rights ReservedEpithermal Vein Systems
Alunite, kaolin, pyrite; often extends downward along Opal, cristobalite, anatase,
vein as kaolin halo around and above ore HgS, rare pyrite
Temperatura, °C General water table
0
100
50 150
Illite celadonite
100
150
Mining at Current Levels Propylitized Near vein =
200
feldspar-
Sericite destructive
200
Depth below spring orifice,
250 VETAGRANDE SYSTEM
Quartz (amethyst), Bonanza and/or Stockwork Ores
m
300 adularia, poss. Minor
albite
Propylitized Precious-metal
350 Broad, diffuse outer limit horizon
against fresh andesite,
400 latite, rhyolite
Boiling level CAPSTONE COZAMIN
MINE
450 Near vein = feldspar-
(Higher epidote) stable “potassic” Base-metal
250
500
horizon
Adularia, minor to major albite
Silicification with adularia, minor albite
550
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Santacruz Silver Mining Ltd. All Rights ReservedVeta Grande – Low Cost Mining Method (Chorros)
Vein
Cross cut
StopeMate Development
Mining of Chorros material
results in reduced operating
costs
Chorros are defined as
stopes from previously mined
material
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Santacruz Silver Mining Ltd. All Rights ReservedZacatecas Mining District
Within the Zacatecas Mining district there are four important vein systems; Veta
Grande, Panuco, La Cantera and Mala Noche. Santacruz controls the first three of
these important vein systems, while the Mala Noche vein system is controlled by
Capstone Mining where it operates its Cozamin Mine.
In terms of concession size, Santacruz controls three to seven km of the strike
length of these vein systems.
The Pánuco vein is the structure located at the NE of the Veta Grande System and is
one of the most important vein systems because it carries good silver values
(ranging from 94 to 702 g/t) and is well defined on the surface.
In April 2016 Santacruz reached an agreement with Golden Minerals to option all of
their Zacatecas properties; all the technical information was verified and updated.
Currently we have finished a NI43-101 technical report.
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Santacruz Silver Mining Ltd. All Rights ReservedResources Panuco Project (1)
Classification Tons Ag (g/t) Au (g/t) Pb (%) Zn (%) EqAg (g/t) EqAg Oz
Inferred 2,642,000 181 0.17 0.02 0.04 192 16,342,456
Total 2,642,000 181 0.17 0.02 0.04 192 16,342, 456
Metal Price
Silver 17.00 us$/Oz
Gold 1100 us$/Oz
Pb 0.08 us$/Oz
Zn 0.08 us$/Oz
Note 1
All technical information included in this statement has been reviewed and approved by Van Phu Bui, P.Geo. of ARC Geoscience Group and Gary Giroux, P.Eng. of Giroux
Consultants ltd. who are both independent of the Company and each of which is a qualified person, pursuant to the meaning of such terms in NI 43-101.
Santacruz Silver Mining Ltd. All Rights Reserved 21Veta Grande Mill
Mill operating at 450 tpd.
Additional ball mill to be installed Q4 2017
800 tpd production by end of Q4 2017
Aim for 1,500 tpd during 2018
* The production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production
decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed analysis as would be included in a feasibility study. The risks associated with this decision are set forth in the "Risk Factors" section of
the Company's most recent Annual Information Form, filed on SEDAR.
Santacruz Silver Mining Ltd. All Rights Reserved 21Q1 2017 Veta Grande Mine Results
Summary of Production Results 2017 Q1
Material Processed (tonnes milled) 26,751
Silver eqv. ounce production (1) 108,728
Silver production (ounces) 57,598
Silver head grade (g/t) 117
Silver recovery (%) 57%
Gold production (ounces) 131
Lead production (tonnes) 99
Zinc production (tonnes) 177
Average Head Grade (g/t Ag Eqv. 209
Note 1 EqAgOz=(Au*Pau/31.1035)+(Ag*Pag/31.1035)(+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05)/(Pag)
Metal Prices Q1 2017: Ag $16.00, Au $1,150, Pb $0.90, Zn $1.15
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Santacruz Silver Mining Ltd. All Rights ReservedCorporate Goals
Corporate Goals
La Ventana
Vision 2.5 Km Outcrop
Project
Continue to reduce costs and find efficiencies. Send Cinco
Rosario Estrellas and Membrillo mineralized material to Rosario mill to
utilize the capacity.
Selected Drill Samples
Continue ramp-up to 800 tpd by end of Q4 2017, and
Veta Grande continue ramp-up to 1,500 tpd during 2018.
* The production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and
technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed analysis as would be
included in a feasibility study. The risks associated with this decision are set forth in the "Risk Factors" section of the Company's most recent Annual Information Form, filed on SEDAR.
25
Santacruz Silver Mining Ltd. All Rights ReservedSantacruz Silver Mining Ltd.
Suite 880 -580 Hornby Street
Vancouver, BC, Canada V6C-3B6
Symbol: TSX-V: SCZ
FSE: 1SZ
Website: www.santacruzsilver.com
Phone: 604 569 1609
Fax: 604 684 0642
Email: Info@santacruzsilver.com
Arturo Préstamo Elizondo: President & CEO
Neil MacRae: Director, Investor Relations
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