VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/11/13 -- Santacruz Silver Mining Ltd. (TSX VENTURE: SCZ) is pleased to announce the first results from an ongoing 25,000 m diamond drill program at its San Felipe project in Sonora State, Mexico. Drilling is primarily focused on the La Ventana, Las Lamas and Transversales group of veins (see attached maps). Results from the first six holes are reported below.
Highlights (reported as true widths and assays uncut) include:
Las Lamas Vein:
-- SCLL-05: 6.46 m @ 721 g/t Ag eq. (212 g/t Ag, 0.01 g/t Au, 15.83% Zn, 0.44% Cu and 0.55% Pb).-- SCLL-04: 2.41 m @ 823 g/t Ag eq. (324 g/t Ag, 0.01 g/t Au, 14.99% Zn, 0.45% Cu and 0.93% Pb).
La Ventana Vein:
-- SCLV-01: 5.75 m @ 918 g/t Ag eq. (142 g/t Ag, 0.02 g/t Au, 13.01% Zn, 1.53% Cu and 8.04% Pb).
Results from the initial holes have generally returned higher silver and zinc grades over wider intervals than expected. To date, drilling has intersected the Las Lamas vein for 300 meters on strike. The Las Lamas vein is open for 700 metres along strike and is open at depth. In addition, drilling is proving the La Ventana vein to be a robust silver - polymetallic vein with high copper, zinc and lead grades.
The objective of this drill campaign is to further delineate higher grades in the south-west portion of the property. Veins believed to be the most prospective for expanding silver equivalent resources include Las Lamas, Cornucopia, Artemisia and Transversales in addition to the La Ventana vein which hosts the majority of the current 43-101 resource defined by Santacruz.
Arturo Prestamo, President and CEO states "The initial results from the 2013 campaign at San Felipe have exceeded our expectations. The Las Lamas vein which is to the south-west of the more defined La Ventana vein is generating great results. This drill campaign has the potential to expand upon San Felipe's current resource of over 50 million of silver equivalent ounces, further demonstrating San Felipe is a great asset with strong growth potential. Significant engineering work is underway with a goal of developing a strong understanding of the economic and production potential by year's end."
Mr. Prestamo further commented on the current state of the equity markets: "Santacruz's stated goal when the Company went public in April 2012 was to build a mid-tier silver producer with assets based in Mexico. With the April 1, 2013 announcement of commercial production at the Rosario mine, achieved on time and on budget, we have met our first milestone. Given the difficult market conditions, our top priority is to continue to ramp-up Rosario's production thereby increasing cash flow while reassessing many expenditures. Several initiatives are being taken to ensure that our treasury remains strong. For example management currently believes there are sufficient holes completed at Gavilanes to potentially update the resource and accordingly Santacruz has temporarily suspended drilling activities. The Company has a strong treasury, no debt, and no significant property payments due until 4th quarter 2014."