Santacruz Silver Intersects 2549 g/t Ag eq. Over 2.75 m at Gavilanes

20 Nov 2012 09:00 ET

Marketwire Canada

Santacruz Silver Mining Ltd. (TSX VENTURE:SCZ) ("Santacruz" or the "Company") is pleased to report results from the first 7 holes of an ongoing 6,000 meter diamond drill program at its 100% owned Gavilanes Silver project in Durango, Mexico. This first drill program is designed to test three of seven known silver-bearing veins and a stockwork area within the 7,347 hectare property (see attached map which is also posted on the company's website).

Drill results reported herein are from the Guadelupe-Soledad-Aranzazu (GSA) and San Nicholas veins. Both can be can be traced for approximately 1000 m and 900 m respectively along strike and vary between 0.5 - 10.0 m in width. Additionally, two holes intersected a high grade stockwork area (El Hundido). All 7 holes reported have intersected high grade silver. The geological environment is described in the Company's technical report of the Gavilanes project, filed on SEDAR on February 8, 2012.

Highlights (reported as true widths and assays uncut) include:

GSA Vein

--  SCGP-22: 2.75 m @ 2549 g/t Ag eq. (2540 g/t Ag, 0.10% Zn, 0.12% Pb and    0.03 g/t Au).--  SCGP-21: 1.55 m @ 567 g/t Ag eq. (212 g/t Ag, 8.09% Zn, 3.97% Pb and    0.72 g/t Au).--  SCGP-02: 6.50 m @ 307 g/t Ag eq. (184 g/t Ag, 2.03% Zn, 2.51% Pb and    0.15 g/t Au).

Hundido Stockwork

--  SCHN-05: 8.51 m @ 706 g/t Ag eq. (427 g/t Ag, 8.04% Zn, 2.90% Pb and    0.01 g/t Au).

Two drill rigs are currently working at Gavilanes. Arturo Prestamo, President and CEO stated "We are very pleased with the drill results thus far and have high hopes Gavilanes will continue to return high grade silver as the property is fully explored."

Complete results from the first 7 drill holes received to date are as follows: (Note that the holes reported are not in numeric sequence. This is because initially hole numbers were assigned using the proposed drill hole number instead of numbering them in the actual order they were drilled in. Since holes are not being drilled in the same sequence as the drill plan, the hole numbers are not in sequence. For example, hole 22 was actually the fourth hole completed. This has been rectified but will continue to appear in the reporting until the 22nd hole has actually been completed).

----------------------------------------------------------------------------                                          Au    Ag    Cu    Pb    Zn                                   True                              Len- Wid-                               gth   th                                 AgEqVEIN       DDH   From     To  mts. mts.    ppm             %             g/t----------------------------------------------------------------------------                86.00  86.80  0.80 0.77 0.65   799  0.21  4.14  3.56 1047.31GSA      SCGP-  86.80  88.50  1.70 1.63    0    24  0.01  0.33  0.33   42.03            01  88.50  91.20  2.70 2.60 0.03   110  0.02  0.22  0.19  123.73----------------------------------------------------------------------------         Total                5.20 5.00 0.12   188  0.05  0.86  0.75  237.08--------------------------------------------------------------------------------------------------------------------------------------------------------                94.00  94.55  0.55 0.50 0.98   328  0.25  4.16  4.89  630.70                94.55  95.40  0.85 0.77 0.64   318  0.19  7.67 10.15  820.87                95.40  96.60  1.20 1.08 0.01    24  0.03  0.79  0.52   60.22GSA      SCGP-  96.60  97.30  0.70 0.63 0.01   126  0.03  2.59  1.03  221.71            02  97.30  98.25  0.95 0.86 0.01   372  0.02  2.25  0.59  447.49                98.25  99.45  1.20 1.08 0.01   135  0.02  0.51  0.46  161.48                99.45 100.40  0.95 0.86 0.01    24  0.01  0.19  0.49   41.95               100.40 101.20  0.80 0.72 0.01   275  0.01  4.49  0.44  403.99----------------------------------------------------------------------------         Total                7.20 6.50 0.15   184  0.06  2.51  2.03  307.28--------------------------------------------------------------------------------------------------------------------------------------------------------               109.00 109.40  0.40 0.31 1.16   444 0.334 10.15  10.3 1054.38GSA      SCGP- 109.40 110.00  0.60 0.46 0.44   157 0.195  4.49  6.52  476.32            21 110.00 110.30  0.30 0.23 2.32   137 0.414  1.39  4.50  441.26               110.30 111.00  0.70 0.54 0.02   160 0.371  1.09  9.72  465.10----------------------------------------------------------------------------         Total                2.00 1.55 0.72   212  0.32  3.97  8.09  567.76--------------------------------------------------------------------------------------------------------------------------------------------------------GSA      SCGP- 127.40 128.90  1.50 1.39 0.00    71  0.01  0.05  0.09   75.69            06 128.90 129.40  0.50 0.46 0.04   279  0.40  0.60  0.43  343.35----------------------------------------------------------------------------         Total                2.00 1.85 0.01   123  0.11  0.18  0.18  141.99--------------------------------------------------------------------------------------------------------------------------------------------------------                51.65  52.55  0.90 0.74 0.02  95.1  0.26  0.39  0.36  138.85                52.55  53.40  0.85 0.70 0.00  16.3  0.22  0.26  0.38   52.62                53.40  54.20  0.80 0.66 0.00  16.7  0.02  0.43  0.60   44.61El              54.20  55.10  0.90 0.74 1.45   219  0.32  0.45  0.27  340.56Hundido  SCGP-  55.10  55.95  0.85 0.70 0.82   120  0.13  0.57  0.69  205.96ST          22  55.95  56.85  0.90 0.74 0.90   185  0.10  1.28  0.31  280.93                56.85  57.80  0.95 0.78 0.15    70  0.04  0.33  0.21   94.44                57.80  59.00  1.20 0.99 0.17  96.4  0.03  0.39  0.13  121.12                59.00  59.85  0.85 0.70 0.33  71.1  0.05  0.18  0.19  101.77                59.85  60.50  0.65 0.54 0.59   276  0.05  4.44  4.92  548.96                60.50  61.65  1.15 0.95 4.08   180  0.15  0.74  0.75  439.80----------------------------------------------------------------------------         Total               10.00 8.25 0.85   121  0.12  0.76  0.68  211.18--------------------------------------------------------------------------------------------------------------------------------------------------------                                          Au    Ag    Cu    Pb    Zn                                   True                              Len- Wid-                               gth   th                                 AgEqVEIN       DDH   From     To  mts. mts.    ppm             %             g/t----------------------------------------------------------------------------El       SCGP- 109.75 110.40  0.65 0.55 0.02   584  0.01  0.07  0.05  588.69Hundido     22 110.40 111.25  0.85 0.72 0.06  6590  0.06  0.32  0.22 6612.71ST             111.25 113.00  1.75 1.48 0.02  1300  0.01  0.05  0.06 1304.58----------------------------------------------------------------------------         Total                3.25 2.75 0.03  2540  0.02  0.12  0.10 2549.38--------------------------------------------------------------------------------------------------------------------------------------------------------         SCGP- 164.65 165.55   0.9 0.78 0.10    80  0.18  1.92  0.17  155.63GSA         22 165.55 166.20  0.65 0.57 0.69   722  1.04 20.00  0.38 1382.57               166.20 166.95  0.75 0.65 0.19   216  1.26  7.13  0.16  530.21----------------------------------------------------------------------------         Total                2.30 2.00 0.29   306  0.77  8.73  0.23  611.65--------------------------------------------------------------------------------------------------------------------------------------------------------                57.70  59.55  1.85 1.54 0.02  1420  0.07  0.74  2.77 1515.86                59.55  61.55  2.00 1.66 0.02   588  0.04  0.39  0.29  610.30El       SCHN-  61.55  63.10  1.55 1.29 0.01    19  0.03  0.19  0.18   31.18Hundido     05  63.10  64.45  1.35 1.12 0.00    70  0.01  0.11  0.18   77.96ST              64.45  65.45  1.00 0.83 0.00   191  0.02  0.14  0.18  200.82                65.45  66.85  1.40 1.16 0.00    99  0.01  0.13  0.12  106.56                66.85  67.95  1.10 0.91 0.00   108  0.01  0.08  0.12  113.82----------------------------------------------------------------------------         Total               10.25 8.51 0.01   427  0.03  2.90  8.04  692.03--------------------------------------------------------------------------------------------------------------------------------------------------------                50.55  51.90  1.35 1.31 0.10   498  0.05  0.20  0.22  518.30El       SCHN-  51.90  53.75  1.85 1.80 0.01   186  0.02  0.51  0.17  205.85Hundido     04  53.75  54.80  1.05 1.02 0.00  1220  0.02  0.04  0.21 1228.44ST              54.80  55.30  0.50 0.49 0.12  1270  0.06  0.13  0.24 1290.33                55.30  56.35  1.05 1.02 0.07   770  0.04  0.06  0.19  783.17                56.35  57.45  1.10 1.07 0.26   251  0.06  0.02  0.31  277.85----------------------------------------------------------------------------         Total                6.90 6.70 0.08   582  0.04  0.20  0.22  599.99--------------------------------------------------------------------------------------------------------------------------------------------------------                69.80  70.95  1.15 1.12 0.01  96.2  0.04  0.01  0.08  102.28                70.95  72.10  1.15 1.12 0.00  37.8  0.02  0.00  0.04   41.06El       SCHN-  72.10  73.35  1.25 1.22 0.00 14.55  0.02  0.00  0.02   17.14Hundido     04  73.35  74.35  1.00 0.98 0.00   169  0.01  0.02  0.02  170.49ST              74.35  74.90  0.55 0.54 0.00  50.4  0.00  0.03  0.07   52.98                74.90  75.60  0.70 0.68 0.00  1320  0.02  0.11  0.26 1330.67                75.60  76.35  0.75 0.73 0.00   115  0.03  0.05  0.12  121.41----------------------------------------------------------------------------         Total                6.55 6.40 0.00   211  0.02  0.02  0.07  214.87--------------------------------------------------------------------------------------------------------------------------------------------------------El       SCHN-Hundido     04 113.85 114.80  0.95 0.91 0.00   159  0.01  0.01  0.02  160.67ST             114.80 115.85  1.05 1.00 0.00  1460  0.02  0.04  0.04 1463.86----------------------------------------------------------------------------         Total                2.00 1.91 0.00   840  0.02  0.03  0.03  842.87--------------------------------------------------------------------------------------------------------------------------------------------------------                                          Au    Ag    Cu    Pb    Zn                                   True                              Len- Wid-                               gth   th                                 AgEqVEIN       DDH   From     To  mts. mts.    ppm             %             g/t----------------------------------------------------------------------------               121.05 121.70  0.65 0.62 0.06   111  0.14  0.46  0.16  142.79               121.70 122.40  0.70 0.67 0.01    49  0.03  0.04  0.10   55.77El             122.40 123.30  0.90 0.86 0.01    31  0.02  0.05  0.07   36.38Hundido  SCHN- 123.30 124.45  1.15 1.10 0.04   294  0.03  0.06  0.04  301.33ST          04 124.45 125.65  1.20 1.15 0.00   149  0.03  0.05  0.04  154.16               125.65 125.90  0.25 0.24 0.02  3330  0.03  0.14  0.04 3338.64               125.90 126.70  0.80 0.77 0.04  1570  0.06  0.09  0.09 1581.99               126.70 128.10  1.40 1.34 0.00  96.8  0.02  0.16  0.03  103.20----------------------------------------------------------------------------         Total                7.05 6.75 0.02   408  0.04  0.12  0.06  417.28--------------------------------------------------------------------------------------------------------------------------------------------------------San      SCHN- 190.95 191.35  0.40 0.38 0.17   131  0.01  0.02  0.02  141.27Nicolas     04 191.35 192.50  1.15 1.09 0.14   144  0.02  0.11  0.08  157.62               192.50 193.85  1.35 1.28 0.21   183  0.02  0.20  0.07  202.43----------------------------------------------------------------------------         Total                2.90 2.75 0.18   160  0.02  0.14  0.07  176.09----------------------------------------------------------------------------ST=Stock   work  EqAg= ((Au x Pau/31.1035)+(Ag x Pag/31.1035)(+(Cu x Pcu x 22.05)               +(Pb x Ppb x 22.05)+(Zn x Pzn x 22.05)) x 31.1035               -------------------------------------------------------------                                           (Pag)                        Diamond Drill Holes Location----------------------------------------------------------------------------DDH ID         UTM Collar Coordinates           Azimuth          Dip         ---------------------------------                                                                       Total                                                                      Length               North       East  Elevation                             (mts)----------------------------------------------------------------------------                                                   N 70       - 45.27SCGP-01    2,678,443    425,662      2,137    degrees E       degrees 141.15----------------------------------------------------------------------------                                                N 72.13      - 61.17SCGP-02    2,678,443    425,662      2,137    degrees E      degrees  159.95----------------------------------------------------------------------------                                                S 85.92      - 45.83SCGP-06    2,678,353    425,617      2,143    degrees E      degrees  195.95----------------------------------------------------------------------------                                                N 75.25      - 75.43SCGP-21    2,678,443    425,662      2,137    degrees E      degrees  197.80----------------------------------------------------------------------------                                                S 87.32      - 69.85SCGP-22    2,678,360    425,597      2,131    degrees E      degrees  216.00----------------------------------------------------------------------------                                                N 89.13      - 49.08SCHN-04    2,678,301    425,512      2,098    degrees E      degrees  220.00----------------------------------------------------------------------------                                                N 83.70      - 70.80SCHN-05    2,678,301    425,517      2,097    degrees E      degrees  203.05----------------------------------------------------------------------------                             Parameters--------------------------------------------------------------------Metal         Symbol      Grade      Price        Price        Price                          Units                   Units       Symbol--------------------------------------------------------------------Gold              Au        g/t    1455.47       $/t Oz          Pau--------------------------------------------------------------------Silver            Ag        g/t      27.99       $/t Oz          Pag--------------------------------------------------------------------Cooper            Cu          %     3.6565       $/t lb          Pcu--------------------------------------------------------------------Lead              Pb          %     1.0090       $/t lb          Ppb--------------------------------------------------------------------Zinc              Zn          %     0.9653       $/t lb          Pzn--------------------------------------------------------------------Note: Metal prices as of November 1st 2012. Recoveries are considered at 100%

These are the first holes on the property completed by Santacruz. Drilling is ongoing and results will be reported as assays are received from the laboratory. Gavilanes is a volcanic hosted, epithermal precious metal vein system. Drilling by previous operators totaled only 3200 m. Gavilanes has a historic, non 43-101 compliant, inferred resource of 1.2 million tonnes at 420 g/t Ag at Guadalupe-Soledad-Aranzazu vein on 500 meters of the known strike of 1000 meters. (This estimate was performed by Minas de San Luis in 1990. The Company believes that the grade assays are representative of the structures and the resource has been called inferred, however the assumptions of continuity are unclear. Santacruz is unaware of more recent data on the property, and the same results have been repeated by Hochschild Mexico in 2008. Confirmation drilling needs to be completed with documented sampling and preparation procedures and a new model developed to determine whether the Gavilanes resources is compliant with NI 43-101. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves. Santacruz is not treating this historical estimate as current mineral resources).