Santacruz Silver Mining Corporation. - CEO, Arturo Préstamo Elizondo
CEO, Arturo Préstamo Elizondo
Source: Mining Scout
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Santascruz Silver Mining (TSXV:SCZ) is suspending the processing facilities at the Veta Grande Mine in Mexico
  • The suspension is expected to last six months and will allow the company to upgrade the tailing facilities
  • The company has stated that increased production at two other mine sites will offset the suspension losses
  • The Veta Grande Mine produced 761,000 ounces of silver last year, more than doubling the mine’s production in 2018
  • Santacruz Silver Mining (SCZ) is down 5.66 per cent, with shares currently trading at C$0.085

Santascruz Silver Mining (TSXV:SCZ) is suspending its processing facilities at the Vet Grande Mine in Mexico to implement upgrades.

The suspension is expected to last six months. This will allow the company to upgrade its tailing storage facility and improve the existing crushing plant and flotation circuits.

Carlos Silva, COO of Santa Cruz Silver, stated that the shutdown will allow the improvements to be made in a safe environment.

“The mill and tailings improvements are expected to increase the tonnage milling capacity and improve the recovery efficiencies and re-usage of wastewater making it a more efficient plant.

“As the company keeps increasing its mill throughputs at Zimapan and Rosario mines, we expect to offset by 70 per cent the Veta Grande production by the end of May 2020,” he said.

The Veta Grande Mine produced 761,000 ounces of silver last year, more than doubling the mine’s production in 2018. The increased yield is attributable to high-grades intersected as the mine reached new depths.

The new area of mineralisation is around 100 grams of silver higher per tonne than those mined last year.

Santacruz’s overall production also jumped significantly last year, after the company purchased the remaining 50 per cent interest in Carrizel Mining.

Santacruz purchased the interest in a debt and cash deal valued at almost C$2 million.

The company now owns a one hundred per cent interest in all of Carrizal’s mining assets. Consequently, Carrizal’s Zimapan Project contributed more than 1.6 million extra ounces of silver to the company’s annual production.

However, the company was quick to point out that operations at Zimapan are not supported by a prefeasibility study and therefore the mine’s life remains unclear.

Santacruz Silver Mining (SCZ) is down 5.66 per cent, with shares trading for C$0.085 at 2.21pm EST.

More From The Market Herald

" CAVU (CSE:CAVU) closes oversubscribed $3.5M private placement

CAVU Mining Corp. (CAVU) has closed its previously announced oversubscribed private placement for gross proceeds of $3.5 million.
Newrange Gold - CEO, Robert Archer.

" Newrange Gold (TSXV:NRG) outlines winter drilling program for Red Lake projects

Newrange (NRG) has provided details on the upcoming drill programs on its 100 per cent owned North Birch and Argosy Gold Mine Projects.

" Element 29 (TSXV:ECU) receives DTC eligibility

Common shares of Element 29 Resources (ECU) are now eligible for electronic clearing and settlement through the Depository Trust Company.

" Ivanhoe Mines (TSX:IVN) announces construction updates for Kamoa Copper’s Phase 2 concentrator plant

Ivanhoe Mines (IVN) has released an update on the construction of a Phase 2 concentrator plant at Kamoa-Kakula.