VANCOUVER, Nov. 17, 2017 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") reports that on November 3, 2017, the Mexican
Environmental Protection Agency ("PROFEPA") requested that the Company's Mexican operating subsidiary, Impulsora Minera
Santacruz, S.A. de C.V., hold the Veta Grande Mine Environmental License directly in its name and not under the terms of the
agreement with Minera Contracuña I, S.A. de C.V. (see press release dated November 2, 2015).
In connection with this matter PROFEPA issued a notice temporarily suspending operation of the Veta
Grande mill until appropriate documentation was filed with regulatory bodies. On November 8,
2017 the Company submitted all appropriate documents to PROFEPA and the Secretariat of Environment and Natural Resources
("SEMARNAT"). The documentation has been confirmed by those agencies as being in order and as such the Company expects the
imminent resumption of operations at the Veta Grande mill. During the suspension of mill
operations the Company continued mining operations thereby building a substantial stockpile of mineralized material while at the
same time major mill maintenance activities were completed.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Rosario Project, including the Rosario Mine,
Cinco Estrellas Property and Membrillo Prospect, and the right to operate the Veta Grande Project and milling facility); and two
exploration properties, the Minillas Property and Zacatecas properties. Santacruz is managed by
a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico with a corporate objective to become a mid-tier silver producer.
'signed'
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking information
Certain statements contained in this news release constitute "forward-looking information" as such term is used in
applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at
the date the information is provided and is subject to certain factors and assumptions. In making the forward-looking
statements included in this news release, the Company has applied several material assumptions, that the Company's financial
condition and development plans do not change as a result of unforeseen events, that third party mineralized material to be
milled by the Company will have properties consistent with management's expectations, that the Company will receive all required
regulatory approvals, and that future metal prices and the demand and market outlook for metals will remain stable or
improve. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause
plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors
that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited
to, the risk that any of the assumptions referred to prove not to be valid or reliable, which could result in lower revenue,
higher cost, or lower production levels; delays and/or cessation in planned work; changes in the Company's financial condition
and development plans; delays in regulatory approval; risks associated with the interpretation of data (including in respect of
the third party mineralized material) regarding the geology, grade and continuity of mineral deposits; the possibility that
results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to
mineral exploration and development activities and to the Company as set forth in the Company's continuous disclosure filings
filed under the Company's profile at www.sedar.com . There can be no assurance that any forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader
should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update
forward-looking information or statements, other than as required by applicable law.
Rosario Project
The decisions to commence production at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect were not based on
a feasibility study of mineral reserves demonstrating economic and technical viability, but rather on a more preliminary estimate
of inferred mineral resources. Accordingly, there is increased uncertainty and economic and technical risks of failure associated
with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and
detailed site analysis according to and in accordance with NI 43-101.
Veta Grande Project
The decision to commence production at Veta Grande Project was not based on a feasibility study on mineral reserves
demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical
risks of failure associated with this production decision. Production and economic variables may vary considerably due to
the absence of a complete and detailed site analysis according to and in accordance with NI 43-101.
SOURCE SantaCruz Silver Mining Ltd.
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