TORONTO (miningweekly.com) – Mexico-focused miner Santacruz Silver Mining has reported a strong start to the year after Rosario mine, in San Luis Potosi, improved silver equivalent production by 8.3% over the previous quarter.
The Vancouver-based miner on Thursday noted that the Rosario mine produced 290 569 oz of silver equivalent, from processing higher-head-grade ore at 389 g/t silver equivalent.
Silver output rose 13.2% year-on-year to 162 802 oz, while gold production jumped 24.4% to 128 oz. Base metals output also rose during the period, with lead output rising 11.8% to 284 t and zinc output rising 18% to 793 t.
"The Rosario mine has now reached Level 4 and we are confirming a strong vein system which, together with improved mining methods, has resulted in less dilution, yielding improved head grades at Rosario. At the Veta Grande mine we are seeing significant progress both in terms of the milled tonnes and mine development, which will set us up very well for the second quarter,” stated CEO Arturo Préstamo.
Santacruz advised that the Veta Grande mill commissioning was progressing well, exiting the period ended March 31 at 330 t/d average throughput.
As a result of continued work on mine development at the El Cigarrero, Veta Grande, La Flor, San Jose and Armados veins, the sulphide zone of mineralisation had now been reached and all current ore delivered to the milling facility was being sourced from these zones.
Further, Santacruz advised that it believed that with nominal capital expenditure, the capacity of the Veta Grande mill could be raised to 650 t/d by the end of the year.
Despite trading down about 4% at C$0.37 apiece on Thursday, Santacruz’s TSX-V-listed stock had gained 322% since the start of the year.