Santacruz Silver Reports Operating Results At Veta Grande Project

VANCOUVER, BC - Santacruz Silver Mining Ltd. reported operating results from the Veta Grande Project in Zacatecas, Mexico and the Rosario Project in San Luis Potosi, Mexico.

The Company produced a total of 154,175 silver equivalent ounces in Q1 2018.  As compared to Q1 2017, the decreased production reflects 30% less tonnes milled at the Rosario Project and a 32% decrease in the average silver equivalent head grade at the Veta Grande Project.  As compared to Q4 2017, the increased production reflects an 11% increase in the average silver equivalent head grade at the Rosario Project and a 98% increase in tonnes milled at the Veta Grande Project offset by 22% decrease in the average silver equivalent head grade.

"During Q1 of 2018 management focussed activities on aggressively developing the Veta Grande main ramp in order to access in situ mineralized material from Q3 onwards. This strategy has resulted in lower head grades and reduced metal production for the short run but will pave the way for achieving targeted production for Q3 and beyond." said Arturo Prestamo.  "At Rosario the millfeed continued to be a blend of development muck and mineralized material from production stopes.  During Q2 the percentage of development muck will decrease as more production stopes come online and by Q3 we expect to be at targeted production and head grade levels."

Two important initiatives are currently ongoing at the Veta Grande Project.  One is the ongoing first phase of a surface drilling campaign consisting of 6,000 meters on the Veta Grande vein and a 3,000-meter underground drill program on the Armados vein.  The plan is to complete a 20,000-meter drill program during 2018 funded by Carrizal Mining, S.A. de C.V.  To this end, a second surface drill rig is expected on property shortly.  With respect to the current program, the first two surface drill holes have been completed and five underground drill holes been completed.  Assays are pending.

As disclosed previously the Company took the decision to consolidate all of its Rosario Project mining operations to the Membrillo Prospect.  Mine development has now reached Level 3 and mine production is increasing.  Management anticipates that the targeted production rate (350 tpd) and head grade will be achieved by the end of Q2.