Santacruz completes technical study on Veta Grande prospect

TORONTO (miningweekly.com) – Santacruz Silver Mining has completed an independent technical report on the Veta Grande project, in Zacatecas state, Mexico, marking a first step in the TSX-V-listed company's planned systematic review of its mineral prospects located in the region and forming a basis for further exploration and development work.

The Veta Grande project included the Veta Grande properties and mine; the Minillas property, held under an agreement with Contracuña; and the Zacatecas properties, held under option from Golden Minerals.

The company advised that the Veta Grande project mineral prospects, located in the Mexican Silver Belt, covered an area of 8 944 ha and comprised two significant vein systems known for silver mineralisation in the district – La Cantera and Veta Grande, both of which had extensive artisanal and small-scale mining histories.

Oxide and sulphide-bearing quartz veins within the La Cantera and Veta Grande vein systems laid along strike north-west to south-east, generally dipped south-west, and were characterised as low-sulphidation epithermal silver, and with lead/zinc/gold by-products in the veins. They ranged in thickness from less than 1 m to more than 30 m, with an average of between 2 m and 10 m. In some instances, the veins had been traced along surface for several kilometres, the company advised.

The Veta Grande mine was an intermediate-stage mineral exploration project, with access to past underground workings for continued exploration, a permitted mineral processing facility for 500 t/d with current operating capacity of about 750 t/d, and good infrastructure being situated between the municipality of Veta Grande and the state capital of Zacatecas. The project had access to electric power, highways and paved roads, civil amenities, and a local skilled labour force.

Mexico-focused primary silver producer Santacruz had set itself the objective of becoming a midtier silver producer by developing its portfolio of assets, including the producing Rosario silver mine, the right to operate the Veta Grande silver mine and mill facility, the advanced-stage San Felipe project and the Gavilanes exploration project.