The Zimapan mine, owned by Santacruz Silver Mining and located in the state of Hidalgo, Mexico, produced 920,985 silver equivalent ounces in the third quarter of 2020, an increase of 51.8% year-on-year.
Santacruz is a silver company that currently owns and operates the Rosario Project. The company also owns 100% of Carrizal Mining, which has a 20% working interest in the Santacruz Silver Mining Veta Grande Project and has the right to operate the Zimapan Mine until December 31, 2020 under a lease miner agreement.
On July 28, 2020, Santacruz Silver Mining announced that it had reached an agreement with Minera Cedros, a wholly owned subsidiary of Industrias Peñoles, to acquire the Zimapan mine for $ 20.0 million (plus applicable VAT of $ 3.2 million). .
Santacruz has rights to two exploration properties, the Minillas property and the Zacatecas properties, as well as the Veta Grande Project, where mining operations are currently suspended.
Carlos Silva, CEO of Santacruz, stated: “Management’s focus for 2020 is to return the Zimapan mine to historic production levels, while achieving budgeted efficiencies and completing the mine acquisition.”
At Project Rosario, the company’s focus is to further increase the mill’s production tonnage from the already improved level achieved in October 2020, to 400 tpd by the end of the fourth quarter of 2020, which should result in positive cash flows in the fourth quarter of 2020.
Silva added: “The arrival of additional underground equipment at both the Zimapan mine and Rosario in mid-October has been essential to our month-over-month increase in production and cost efficiencies, which should allow us to achieve budgeted operating levels during the fourth quarter of 2020”.