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Press release from Marketwire

Santacruz Silver Drilling Intersects a New High-Grade Silver Vein at San Felipe

Wednesday, October 09, 2013

Santacruz Silver Drilling Intersects a New High-Grade Silver Vein at San Felipe

09:00 EDT Wednesday, October 09, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 9, 2013) - Santacruz Silver Mining Ltd. (the "Company") (TSX VENTURE:SCZ) reports that diamond drilling on the Transversales vein, at its San Felipe Project in Sonora State, Mexico has confirmed continuity of a new vein both along strike and to depth. The Transversales vein was originally discovered during a surface mapping program in 2011 and had never been drill tested until this current drill program. To date, 21 holes have been completed on the Transversales vein with assays received for eleven of these holes. Core logging of the remaining holes has confirmed that the vein has been intersected in the remaining holes but assays are pending. Based upon the drilling completed to date, the Transversales vein can be traced over a strike length of 200 meters and to a depth of 240 meters. It remains open along strike in both directions and to depth.

Additionally, three parallel veins have been identified at surface in the footwall over the currently defined strike length of the main Transversales vein, but have not been drill tested. These veins average 5 metres width each. (See attached map at the end of the release)

Highlights of drilling results (reported as true widths and assays uncut) include:

Transversales vein

  • SCVT-02: 11.80 m @ 116 g/t Ag eq. (84 g/t Ag, 0.02 g/t Au, 0.41% Zn, 0.04% Cu and 0.45% Pb) including; 3.35 m @ 283 g/t Ag eq. (209 g/t Ag, 0.04 g/t Au, 1.05% Zn, 0.05% Cu and 1.17% Pb).

  • SCVT-07: 3.35 m @ 324 g/t Ag eq. (81 g/t Ag, 0.03 g/t Au, 5.03% Zn, 0.35% Cu and 1.90% Pb).

  • SCVT-16: 2.60 m @ 409 g/t Ag eq. (122 g/t Ag, 0.04 g/t Au, 8.77% Zn, 0.23% Cu and 0.28% Pb).

Arturo Préstamo Elizondo, President and CEO stated, "The confirmation that the surface outcroppings of the Transversales vein appear well mineralized along strike and to depth indicate a highly mineralized system. This, together with parallel-mineralized systems and an untested structural corridor of at least one kilometer significantly increases the potential of the San Felipe Project."

Mr. Préstamo added, "I commend our ground team, consisting of COO, Francisco Ramos Sanchez, and our VP of Exploration, Dante Rodriguez Montes, for advancing this discovery. Their continued efforts at San Felipe while overseeing the ramp up of production at the Rosario Mine to our production target of 500 tpd by end of first quarter 2014, have the Company on target to meet its goals on both properties."

Given the consistency of the mineralized system encountered in the Phase 1 drilling to date, Santacruz will continue, for the balance of 2013, to drill test the strike extension of the Transversales vein, its parallel-mineralized systems as well as testing the system to depth. The results of this work, together with the results from earlier drilling on the La Ventana, San Felipe and Las Lamas veins will be incorporated into an updated technical report, with a focus of advancing the project to production. It is anticipated that the report will expand upon the initial San Felipe Project resource estimate that included a measured resource of 3,133,000 tonnes grading 72.60 gpt silver, 5.11% zinc, 2.83% lead and 0.29% copper and an indicated resource of 936,000 tonnes grading 62.33 gpt silver, 4.63% zinc, 2.56% lead and 0.24% copper. In addition there is an inferred resource of 1,495,000 tonnes grading 44.70 gpt silver, 3.92% zinc, 2.68% lead and 0.20% copper.

DESCRIPTION OF THE TRANSVERSALES VEIN DIAMOND DRILL HOLE ASSAYS:
True
Length Width Ag Pb AgEq
VEIN DDH From To mts. mts. Au ppm Cu % Zn g/t
TRANSVERSAL SCVT-01 34.95 35.65 0.70 0.60 0.03 29 1.36 1.98 0.97 271.58
SCVT-01 35.65 36.35 0.70 0.60 0.00 3 2.02 1.12 0.26 272.45
Total 1.40 1.20 0.01 16 1.69 1.55 0.62 272.02
TRANSVERSAL SCVT-02 36.70 38.85 2.15 1.60 0.02 42 0.09 0.21 0.08 61.62
SCVT-02 38.85 40.55 1.70 1.27 0.03 79 0.08 0.35 0.30 107.96
SCVT-02 40.55 42.00 1.45 1.08 0.03 17 0.06 0.07 0.10 29.85
SCVT-02 42.00 42.45 0.45 0.34 0.05 293 0.03 1.10 0.22 338.77
SCVT-02 42.45 43.55 1.10 0.82 0.05 297 0.01 0.78 0.27 333.05
SCVT-02 43.55 44.35 0.80 0.60 0.08 485 0.07 2.08 0.77 584.33
SCVT-02 44.35 45.25 0.90 0.67 0.03 39 0.13 0.36 0.25 73.13
SCVT-02 45.25 45.85 0.60 0.45 0.02 38 0.03 2.74 4.57 256.45
SCVT-02 45.85 46.50 0.65 0.48 0.03 52 0.03 0.42 1.15 102.66
SCVT-02 46.50 48.05 1.55 1.15 0.00 2 0.01 0.01 0.13 7.36
SCVT-02 48.05 49.55 1.50 1.12 0.01 36 0.01 0.16 0.11 45.62
SCVT-02 49.55 51.10 1.55 1.15 0.00 11 0.01 0.05 0.15 17.92
SCVT-02 51.10 52.55 1.45 1.08 0.02 53 0.01 0.30 0.25 72.10
Total 15.85 11.80 0.02 84 0.04 0.45 0.41 116.35
TRANSVERSAL SCVT-02 42.00 42.45 0.45 0.34 0.05 293 0.03 1.10 0.22 338.77
SCVT-02 42.45 43.55 1.10 0.82 0.05 297 0.01 0.78 0.27 333.05
SCVT-02 43.55 44.35 0.80 0.60 0.08 485 0.07 2.08 0.77 584.33
SCVT-02 44.35 45.25 0.90 0.67 0.03 39 0.13 0.36 0.25 73.13
SCVT-02 45.25 45.85 0.60 0.45 0.02 38 0.03 2.74 4.57 256.45
SCVT-02 45.85 46.50 0.65 0.48 0.03 52 0.03 0.42 1.15 102.66
Total 4.50 3.35 0.04 209 0.05 1.17 1.05 282.82
TRANSVERSAL SCVT-04 66.00 66.9 0.90 0.71 0.03 16 0.02 0.69 2.85 122.33
SCVT-04 66.90 67.80 0.90 0.71 0.03 29 0.03 0.99 1.43 104.66
SCVT-04 67.80 68.50 0.70 0.55 0.01 25 0.07 1.96 2.14 155.02
Total 2.50 1.97 0.02 23 0.04 1.15 2.14 125.12
TRANSVERSAL SCVT-05 91.40 92.00 0.60 0.38 0.03 99 0.07 1.94 0.33 176.76
SCVT-05 92.00 92.65 0.65 0.41 0.07 52 0.05 1.64 1.34 150.59
SCVT-05 92.65 94.10 1.45 0.92 0.04 43 0.02 0.86 1.41 114.43
SCVT-05 94.10 95.10 1.00 0.64 0.05 135 0.51 1.52 5.06 385.52
Total 3.70 2.35 0.05 78 0.17 1.35 2.21 204.16
TRANSVERSAL SCVT-06 135.25 136.20 0.95 0.50 0.09 23 0.01 2.00 1.59 137.02
SCVT-06 136.20 136.70 0.50 0.26 0.01 3 0.01 0.19 0.21 16.10
SCVT-06 136.70 138.00 1.30 0.68 0.10 30 0.03 1.97 1.09 130.97
SCVT-06 138.00 138.60 0.60 0.31 0.03 9 0.01 0.43 1.38 64.12
Total 3.35 1.75 0.07 20 0.02 1.44 1.15 103.57
TRANSVERSAL SCVT-07 121.05 121.65 0.60 0.43 0.03 244 0.27 1.66 17.65 829.06
SCVT-07 121.65 122.95 1.30 0.93 0.03 42 0.01 0.38 1.47 98.20
SCVT-07 122.95 124.65 1.70 1.21 0.05 29 0.06 0.37 1.38 88.72
SCVT-07 124.65 125.75 1.10 0.78 0.02 118 1.25 6.21 8.00 678.51
Total 4.70 3.35 0.03 81 0.35 1.90 5.03 323.89
TRANSVERSAL SCVT-11 47.60 48.80 1.20 1.00 0.03 61 0.37 2.84 3.27 285.33
SCVT-11 48.80 50.05 1.25 1.05 0.02 14 0.02 0.92 2.08 104.02
Total 2.45 2.05 0.02 37 0.19 1.86 2.66 192.83
TRANSVERSAL SCVT-12 113.20 113.8 0.60 0.49 0.00 9 0.04 0.65 0.44 45.92
SCVT-12 113.80 114.10 0.30 0.24 0.03 107 0.07 5.02 6.06 443.59
SCVT-12 114.10 114.80 0.70 0.57 0.01 7 0.03 0.29 1.12 52.10
Total 1.60 1.30 0.01 26 0.04 1.31 1.79 123.19
TRANSVERSAL SCVT-14 172.00 172.90 0.90 0.68 0.13 34 0.02 1.74 3.89 208.11
Total 0.90 0.68 0.13 34 0.02 1.74 3.89 208.11
TRANSVERSAL SCVT-16 174.85 175.95 1.10 0.94 0.02 24 0.16 0.05 0.26 51.97
SCVT-16 175.95 176.90 0.95 0.81 0.09 331 0.49 0.53 27.20 1180.45
SCVT-16 176.90 177.90 1.00 0.85 0.04 33 0.05 0.31 0.62 67.59
Total 3.05 2.60 0.04 122 0.23 0.28 8.77 408.59
TRANSVERSAL SCVT-17 142.65 143.20 0.55 0.37 0.06 74 0.13 0.23 10.40 394.66
SCVT-17 143.20 144.35 1.15 0.78 0.07 93 0.16 0.36 12.40 478.28
Total 1.70 1.15 0.06 87 0.15 0.31 11.75 451.23
TRANSVERSAL SCVT-17 150.45 151.25 0.80 0.53 0.01 34 0.03 0.24 2.95 129.22
SCVT-17 151.25 151.95 0.70 0.46 0.07 104 0.11 3.64 7.49 445.31
SCVT-17 151.95 152.50 0.55 0.36 0.03 17 0.07 0.82 1.19 86.00
Total 2.05 1.35 0.03 53 0.07 1.56 4.03 225.56

EqAgOz=((Au*Pau/31.1035)+(Ag*Pag/31.1035)+(Cu*Pcu*22.05)+(Pb*Ppb*22.05)+(Zn*Pzn*22.05))/Pag


Metal

Symbol
Grade
Units
Price
US$
Price
Units
Price
Symbol
Gold Au g/t 1,348.80 US$/t oz Pau
Silver Ag g/t 22.5638 US$/t oz Pag
Copper Cu % 3.7062 US$/lb Pcu
Lead Pb % 1.0164 US$/lb Ppb
Zinc Zn % 0.9349 US$/lb Pzn

* The calculation assumes equal recoveries in all metals pending further metallurgical work.

  • The grades for gold, copper, lead, and zinc are multiplied by each metal's specified price.

  • The quantity and grade or quality is an estimate and is rounded to reflect the fact that it is an approximation.

Diamond Drill Hole Locations
UTM Collar Coordinates

DDH ID

North

East

Elevation

Azimuth

Dip
Total
Length (mts)
SCVT-01 3,305,775.59 567,510.61 848.56 S 36.40° E - 57.00° 97.55
SCVT-02 3,305,841.90 567,576.44 823.78 S 35.35° E - 62.00° 88.45
SCVT-04 3,305,867.50 567,561.13 807.37 S 32.75° E -63.20° 124.50
SCVT-05 3,305,821.97 567,482.11 824.43 S 33.73° E -66.97° 187.70
SCVT-06 3,305,822.42 567,481.65 824.66 S 29.48° E -78.18° 233.50
SCVT-07 3,305,894.49 567,538.20 797.98 S 37.83° E -65.27° 174.30
SCVT-11 3,305,753.28 567,462.31 860.72 S 36.85° E -54.80° 101.80
SCVT-12 3,305,729.19 567,422.01 868.16 S 37.23° E -52.40° 139.55
SCVT-14 3,305,752.92 567,399.30 858.74 S 33.53° E -56.10° 191.65
SCVT-16 3,305,892.46 567,403.87 814.92 S 35.50° E -55.24° 247.25
SCVT-17 3,305,771.84 567,385.10 853.41 S 29.87° E - 64.70° 185.85

Drilling is ongoing and results will be reported as assays are received from the laboratory.

San Felipe Project

San Felipe is an advanced-stage exploration project, located in the State of Sonora, approximately 130 kilometers north-east of Hermosillo City, the state capital of Sonora. Previously, Minera Hochschild Mexico SA de CV ("MHM") explored and developed the property from 2001 to 2008, with more than 18,500 meters of diamond drilling and underground development work completed on the project at the La Ventana, San Felipe and Las Lamas veins.

Sampling and Laboratory

HQ-sized drill core was sawn in half at site and sent to ALS Chemex, a fully accredited and certified laboratory service. Samples were prepared at the ALS Chemex facility in Hermosillo, Mexico, and were assayed at ALS Chemex in Vancouver, Canada. All samples were analysed using a one assay ton fire assay with an AA finish Au and Ag (Au-AA23) and a 48 element ICP method for Pb, Zn and other elements (ME-MS61). A comprehensive QA/QC procedure is followed using standards, blanks and duplicates, with all samples being randomly placed.

Qualified Person

Marc Prefontaine, M.Sc. P.Geo, a Director of Santacruz Silver is the qualified person that approved this press release.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company with a producing project (Rosario); two advanced-stage projects (San Felipe and Gavilanes) and an early-stage exploration project (El Gachi). The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.

Arturo Préstamo Elizondo, President, Chief Executive Officer and Director

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.

Forward-looking information

Certain statements contained in this news release, such as potential mineralization on the Company's properties, the Company's exploration and development plans and 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 financial condition and development plans do not change as a result of unforeseen events, that the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. 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, 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 Company's Annual Information Form 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.

To view the Transversales DDH Program Map, please visit the following link: http://media3.marketwire.com/docs/scz1009-F1.pdf.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Santacruz Silver Mining Ltd.
Neil MacRae
(604) 569-1609
info@santacruzsilver.com
www.santacruzsilver.com

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