Santacruz Silver declares commercial production at Veta Grande

VANCOUVER (miningweekly.com) – TSX-V-listed miner Santacruz Silver Mining has declared commercial production, effective from October 1, at the new cornerstone Veta Grande mine, in Zacatecas, Mexico.

The Vancouver-based miner reported that the mill had achieved stable throughput of 395 t/d, or 80% of design capacity, over the previous 30-day period in September, with metal recoveries of about 85% of design rates.

The Veta Grande mine comprises multiple vein sources that serve to feed a central milling facility. The primary La Canterra vein is accessed from both the La Mecha mine and the Guadalupana mine, while the Garcia mine currently accesses four further veins that yield less volume but higher-grade ore.

Santacruz stated that it was blending the ores from these various sources to produce the optimal mix of grade and tonnage to allow the mill to advance to 800 t/d during the first quarter of 2017.

Meanwhile, over at the Rosario mine, production in the third quarter ended September was impacted by the development of levels 4.5 and 5 in areas of greater structural complexity and narrower veins, resulting in the increased mining dilution and lower realised grades during the quarter.

Santacruz expects detailed underground mapping and exploration work will provide it with key data to further inform development.

The company also reported that it was working to advance the satellite Cinco Estrellas property to add to the mill feed from the Rosario property, in an effort to augment and diversify feed material. It sent about 2 000 t of ore to the Rosario mill in October, which is expected to increase in the current quarter.

Santacruz advised that it was assessing other satellite mineral prospects located close to the Rosario mine with a view to further increasing the high-grade feed. 

Silver equivalent output for the third quarter fell 40.6% year-on-year to 164 924 oz, mainly owing to significantly lower head grades.