VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 2, 2013) - Santacruz Silver Mining Ltd. (TSX VENTURE:SCZ) (the "Company" or "Santacruz") reports on its operations for the third quarter ending September 30, 2013. The Company's financial statements and accompanying management discussion and analysis can be viewed on the Company's web site at
www.santacruzsilver.com or on SEDAR at
www.sedar.com.Many of the initiatives related to the Rosario Mine development that were implemented during the second quarter of 2013 continued throughout the third quarter of 2013 and have begun to show the merits of the decisions. These initiatives were undertaken to maintain the Company's operational goal of producing 500 tpd by the end of the first quarter 2014.
The ramp up of production at the Rosario Mine is on target to become cash flow positive by year-end 2013. Several developments contribute to our confidence in achieving this milestone. All mine working faces have now transitioned through the oxidized mineralization and are producing sulphide ore which carries higher grades and yields better mill recoveries. Second, underground development work has identified a previously unknown high-grade mineralized system averaging 1.5 meters width that lies parallel to the Rosario I vein on Level One of the mine. Production is now commencing from this new zone. Full production details are available in the Company's MD&A document filed on
www.sedar.com.Highlights:
Currently 4 high-grade producing stopes at Rosario I vein and 3 stopes at Rosario II vein are feeding the mill, in addition to 3 working faces. As well, 2 new producing stopes are about to be sequenced into our current production. The Rosario Mine is currently producing 135 tpd and is steadily increasing.
Main access ramp intersected the Rosario II vein in mid-November which will result in increased mine production over the coming weeks.
Development of the main access ramp to Level Two has commenced and it is expected to reach its target by mid January.
Mine plan on target to achieve 500 tpd by end of first quarter 2014.
Installation of a third ball mill expected to complete in January 2014 increasing milling capacity from the current 300 tpd to 700 tpd.
Arturo Préstamo, President and CEO, remarked "We have overcome many of the early stage challenges of a new mine and have made significant strides towards our goal of operating at 500 tpd by the end of Q1 2014. Notwithstanding these positive strides we expect to continue making improvements in order to develop the mine properly aiming to have a cost-effective mine for many years to come."
Qualified Person
All technical information which is included in this statement has been reviewed and approved by Donald E. Hulse P.E. of Gustavson Associates LLC. Mr. Hulse is independent of the Company and a qualified person, pursuant to the meaning of such terms in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
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