Santacruz Silver Mining Ltd V.SCZ

Santacruz Silver Files Technical Report for the Veta Grande

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Vancouver, B.C. - Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") announces that it has filed on SEDAR an independent Technical Report titled "Technical Report, Veta Grande Project, Zacatecas State, Mexico" (the "Report"), for the Veta Grande Project located in Zacatecas, Mexico. The Veta Grande Project includes: the Veta Grande Properties and Mine, and Minillas property, held under the agreement with Contracua (see press release dated November 2, 2015), and the Zacatecas Properties held under option from Golden Minerals Company (see press release dated May 4, 2016).

The Report, with an effective date of May 17, 2016, was prepared in accordance with CIM Standards, by independent qualified persons. The report was completed by Van Phu Bui, P.Geo. and Gilles R. Dessureau, P.Geo. of Arc Geoscience Group. The Report is available on www.sedar.com and the Company's website www.santacruzsilver.com.

Arturo Prstamo, President and CEO, remarked, "This initial report is a first step in the Company's planned systematic review of its mineral prospects located in Zacatecas, Mexico and forms a basis for further exploration and development work." 

The Veta Grande Project mineral prospects located in the Mexican Silver Belt cover an area of 8,944 hectares (22,101 acres) in the Zacatecas Mining District, Zacatecas, Mexico, including two significant vein systems known for silver mineralization in the district: La Cantera and Veta Grande, both of which have extensive artisanal and small scale mining histories.

Oxide and sulphide bearing quartz veins within the La Cantera and Veta Grande vein systems strike northwest-southeast, generally dip southwest, and are characterized as low-sulphidation epithermal silver (+lead+zinc+gold) veins. They range in thickness from less than 1 m to over 30 m, average between 2-10 m, and in some instances have been traced along surface for several kilometres. 

The Veta Grande Mine is an intermediate stage mineral exploration project for the following reasons: access to past underground workings for continued exploration, a permitted mineral processing facility for 500 tpd with current operating capacity of approximately 750 tpd, and good infrastructure being situated between the municipality of Veta Grande and the state capital of Zacatecas. The project has access to electric power, highways and paved roads, civil amenities, and a local skilled labor force. 

Qualified Persons

All scientific and technical information included in this press release has been reviewed and approved by Van Phu Bui, P.Geo., and Gilles R. Dessureau, P.Geo. of Arc Geoscience Group. who are independent of the Company and each of whom is a qualified person, pursuant to the meaning of such terms in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Disclosure Correction

In its press release of April 14, 2016 the Company announced its first quarter 2016 production results and indicated that technical information in the press release had been reviewed and approved by Donald E. Hulse P.E. of Gustavson Associates LLC. The Company wishes to clarify that the press release contained production information (and not technical information) which was not reviewed by Mr. Hulse.

About Santacruz Silver Mining Ltd. 

Santacruz is a Mexican focused silver company with a producing silver mine (Rosario); the right to operate a silver mine and mill facility (Veta Grande); an advanced-stage project (San Felipe) and an exploration project (Gavilanes). The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.

'signed'

Arturo Prstamo Elizondo,
President, Chief Executive Officer and Director

For further information please contact:

Neil MacRae
Santacruz Silver Mining Ltd. 
Email: [e-mail]
Telephone: [phone]