NI 43-101 TECHNICAL REPORT
ON RESOURCES
ROSARIO PROJECT
SAN LUIS POTOSI, MEXICO
PREPARED FOR
SANTACRUZ SILVER MINING LTD.
Suite 1125-595 Howe Street
Vancouver, BC
V6C 2T5
Effective Date: December 1, 2012
Report Date: December 19, 2012
Prepared by
Donald E. Hulse, P.E., SME-RM
Patrick F. Daniels, SME-RM
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Date and Signature Pages
DATE AND SIGNATURE PAGES
DONALD E. HULSE, P.E.
Principal Mining Engineer
Gustavson Associates, LLC
274 Union Boulevard, Suite 450
Lakewood, Colorado 80228
Telephone: 720-407-4062 Facsimile: 720-407-4067
Email: dhulse@gustavson.com
CERTIFICATE of AUTHOR
I, Donald E. Hulse do hereby certify that:
1. I am currently employed as Vice President and Principal Mining Engineer by Gustavson
Associates, LLC at:
274 Union Boulevard
Suite 450
Lakewood, Colorado 80228
2. I am a graduate of the Colorado School of Mines with a Bachelor of Science in Mining
Engineering (1982), and have practiced my profession continuously since 1983.
3. I am a registered Professional Engineer in the State of Colorado (35269), and a registered
member in good standing of the Society of Mining Metallurgy & Exploration
(1533190RM).
4. I have worked as a mining engineer for a total of 29 years since my graduation from
university; as an employee of a major mining company, a major engineering company, and
as a consulting engineer. I have worked in resource estimation since 1983, training in
geostatistics between 1983 and 1989 estimating resources under supervision and later
accepting responsibility for estimates of gold, gold-silver, and polymetallic deposits
containing silver. From 1989 to 1994 where I performed estimates for gold-silver deposits
in Mexico which successfully were produced as well as Volcanogenic Massive Sulfide
deposits in South Africa and Arizona, evaporates in South Africa and copper porphyries in
New Mexico. From 1994 to 1999 I worked for both a consulting group and an operating
company where I estimated resources on both narrow and massive precious metal vein
deposits as well as disseminated gold and silver and developed mine plans for those
deposits. During this period I performed modeling and mine planning on gold deposits in
Nevada, California, and Chile. As a consultant my projects included resource estimation
and mine planning of various gold deposits as well as providing training for my clients in
resource estimation and surface and underground mine design. With Gustavson Associates
I have worked on both disseminated and structurally controlled gold-silver deposits,
polymetallic veins and carbonate replacement systems.
December 19, 2012
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Rosario Project
NI 43-101 Technical Report on Resources
Date and Signature Pages
5. I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI
43-101”) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101.
6. I am responsible for sections 1- 4, 6 – 9, 10.1 and 11-20 of the technical report entitled NI
43-101 Technical Report on Resources, Rosario Project, Santacruz Silver Mining Ltd.”,
dated December 19, 2012, with an effective date of December 1, 2012, (the “Technical
Report”),. I visited the property on December 6, 2011.
7. I have had prior experience with the property that is the subject of this Technical Report. I
was responsible for Sections 1-6, 9-15, 17-20 and 23-27 of the technical report titled “NI
43-101 TECHNICAL REPORT PRELIMINARY ECONOMIC ASSESSMENT OF THE
ROSARIO PROJECT, SAN LUIS POTOSI, MEXICO,” dated December 21, 2011, with an
effective date of December 20, 2011 prepared for Forte Resources Inc. and Santacruz Silver
Mining Ltd.
8. I am independent of Santacruz Silver Mining Ltd. applying all of the tests in Section 1.5 of
National Instrument 43-101.
9. I have read National Instrument 43-101 and Form 43-101, and the Technical Report has
been prepared in compliance with that instrument and form.
10. I consent to the filing of the Technical Report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes, including electronic
publication in the public company files on their websites accessible by the public, of the
Technical Report.
11. As of the date of this certificate, to the best of my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be
disclosed to make the Technical Report not misleading.
Dated this 19th day of December, 2012
/s/ Donald E. Hulse
Signature of Qualified Person
Donald E. Hulse, P.E., SME-RM
Printed Name of Qualified Person
December 19, 2012
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Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Date and Signature Pages
PATRICK F. DANIELS
Principal Mining Engineer
Gustavson Associates, LLC
274 Union Boulevard, Suite 450
Lakewood, Colorado 80228
Telephone: 720-407-4062 Facsimile: 720-407-4067
Email: pdaniels@gustavson.com
CERTIFICATE OF AUTHOR
I, Patrick F. Daniels, do hereby certify that:
1. I am currently employed as Principal Mining Engineer by Gustavson Associates, LLC at:
274 Union Boulevard
Suite 450
Lakewood, CO, USA, 80228
2. I am a graduate of the Colorado School of Mines with a Bachelor of Science in Mining
Engineering (1986), and have practiced my profession continuously since 1986.
3. I am a Registered Member of the Society of Mining, Metallurgy and Exploration (728800RM).
4. I have worked as a mining engineer for a total of 26 years since my graduation from university.
My relevant experience includes work in mining, engineering companies, a major mining
equipment manufacturer and as a consulting engineer. I have been directly involved in the
mining, exploration and evaluation of mineral properties internationally for precious and base
metals. In 1989, I managed the sample preparation and an assay lab for a precious metal mine in
the Western US. From 1990-1999, in a consultancy, I worked on exploration databases,
reviewed drilling data, resource estimations, and mining engineering on a number of projects in
in the Southern Cone of South America. These projects included both narrow and massive
precious metal vein deposits as well as disseminated gold and silver. As a consultant my
projects included resource estimation and mine planning of various gold deposits as well as
providing training for my clients in exploration databases, resource estimation, and surface and
underground mine design. With Gustavson Associates, I have worked on both disseminated
and structurally controlled gold-silver deposits and polymetallic veins. I have read the definition
of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by
reason of my education, affiliation with a professional association (as defined in NI 43-101) and
past relevant work experience, I fulfill the requirements to be a “qualified person” for the
purposes of NI 43-101.
5. I am responsible for the preparation of Sections 5 and 10.2-10.3 of the technical report entitled
“NI 43-101 Technical Report on Resources, Rosario Project, Santacruz Silver Mining Ltd.”,
December 19, 2012
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Rosario Project
NI 43-101 Technical Report on Resources
Date and Signature Pages
dated December 19, 2012, with an effective date of December 1, 2012, (the “Technical
Report”). I visited the property on November 27 and 28, 2012 for two days.
6. I have not had prior involvement with the property that is the subject of the Technical Report.
7. I am independent of the Santacruz Silver Mining, Ltd. applying all of the tests in section 1.5 of
National Instrument 43-101.
8. I have read NI 43-101 and Form 43-101F1, and the Sections 5 and 10.2-10.3 of the Technical
Report have been prepared in compliance with that instrument and form.
9. I consent to the filing of the Technical Report with any stock exchange and other regulatory
authority and any publication by them for regulatory purposes, including electronic publication
in the public company files on their websites accessible by the public, of the Technical Report.
10. As of the date of this certificate, to the best of my knowledge, information and belief, the
Sections 5 and 10.2-10.3 of the Technical Report contain all scientific and technical information
that is required to be disclosed to make the Technical Report not misleading.
Dated this 19th Day of December, 2012.
Signature of Qualified Person
/s/ Patrick F. Daniels
Patrick F. Daniels
Printed Name of Qualified Person
December 19, 2012
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NI 43-101 Technical Report on Resources
Table of Contents
TABLE OF CONTENTS
SECTION
1.
SUMMARY.............................................................................................................................................................. 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
2.
PAGE
INTRODUCTION ......................................................................................................................................................1
PROPERTY DESCRIPTION AND OWNERSHIP ............................................................................................................1
INFRASTRUCTURE AND POWER .............................................................................................................................. 2
PRIOR EXPLORATION ACTIVITY ............................................................................................................................ 3
GEOLOGY AND MINERALIZATION..........................................................................................................................3
EXPLORATION STATUS ..........................................................................................................................................4
METALLURGICAL TESTING ....................................................................................................................................4
MINERAL RESOURCE .............................................................................................................................................5
MINERAL RESERVE ESTIMATES ............................................................................................................................. 6
ENVIRONMENTAL CONSIDERATIONS ................................................................................................................6
RECOMMENDATIONS AND CONCLUSIONS .........................................................................................................6
INTRODUCTION ...................................................................................................................................................8
2.1
2.2
2.3
2.4
2.5
PURPOSE................................................................................................................................................................ 8
QUALIFIED PERSON ...............................................................................................................................................8
SITE VISIT OF QUALIFIED PERSON .........................................................................................................................8
SOURCES OF INFORMATION ...................................................................................................................................9
UNITS OF MEASURE............................................................................................................................................. 10
3.
RELIANCE ON OTHER EXPERTS .................................................................................................................. 13
4.
PROPERTY DESCRIPTION AND LOCATION .............................................................................................. 14
4.1
4.2
4.3
5.
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY ....... 18
5.1
5.2
5.3
5.4
5.5
6.
ACCESS ............................................................................................................................................................... 18
CLIMATE ............................................................................................................................................................. 18
LOCAL RESOURCES AND INFRASTRUCTURE ........................................................................................................ 19
PHYSIOGRAPHY ................................................................................................................................................... 20
VEGETATION ....................................................................................................................................................... 20
HISTORY .............................................................................................................................................................. 21
6.1
6.2
6.3
6.4
7.
LOCATION ........................................................................................................................................................... 14
MINERAL TENURE, AGREEMENTS, AND ROYALTIES ............................................................................................ 14
SURFACE RIGHTS ................................................................................................................................................ 17
PROPERTY HISTORY ............................................................................................................................................ 21
EXPLORATION HISTORY ...................................................................................................................................... 21
HISTORICAL CORE DRILLING AND LOGGING ....................................................................................................... 22
MINERAL RESOURCE COUNCIL ........................................................................................................................... 22
GEOLOGICAL SETTING AND MINERALIZATION .................................................................................... 25
7.1 REGIONAL GEOLOGY........................................................................................................................................... 25
7.2 LOCAL GEOLOGY ................................................................................................................................................ 28
7.3 PROPERTY GEOLOGY ........................................................................................................................................... 30
7.3.1
Mineralization ........................................................................................................................................... 30
8.
DEPOSIT TYPES.................................................................................................................................................. 33
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Table of Contents
9.
EXPLORATION ................................................................................................................................................... 35
10.
DRILLING ............................................................................................................................................................. 37
10.1
10.2
10.3
11.
SAMPLE PREPARATION, ANALYSES, AND SECURITY ........................................................................... 39
11.1
11.2
11.3
11.4
12.
FIELD CHECK SAMPLES .................................................................................................................................. 48
MINERAL PROCESSING AND METALLURGICAL TESTING .................................................................. 50
13.1
13.2
13.3
14.
DRILLING 2011-2012 ...................................................................................................................................... 39
VERIFICATION OF THE QUALITY CONTROL PROGRAM 2011 ........................................................................... 40
VERIFICATION OF THE QUALITY CONTROL PROGRAM 2012 ........................................................................... 43
HISTORICAL DATA.......................................................................................................................................... 47
DATA VERIFICATION ....................................................................................................................................... 48
12.1
13.
SANTACRUZ DRILLING ................................................................................................................................... 37
2011 DRILLING ............................................................................................................................................... 37
2012 DRILLING ............................................................................................................................................... 37
CURRENT PROCESS TESTWORK ...................................................................................................................... 50
HISTORICAL PROCESS TESTING ...................................................................................................................... 50
HISTORICAL FLOTATION TEST WORK............................................................................................................. 51
MINERAL RESOURCE ESTIMATE................................................................................................................. 52
14.1
DATA USED IN RESOURCE ESTIMATION ......................................................................................................... 52
14.2
GEOLOGIC MODELING .................................................................................................................................... 52
14.3
ESTIMATION METHODOLOGY ......................................................................................................................... 53
14.3.1
Mineral Domains .................................................................................................................................. 53
14.3.2
Compositing ......................................................................................................................................... 53
14.3.3
Capping ................................................................................................................................................ 54
14.3.4
Statistical Analysis ............................................................................................................................... 55
14.4
METHODOLOGY .............................................................................................................................................. 56
14.4.1
Model Parameters ................................................................................................................................ 57
14.4.2
Topography .......................................................................................................................................... 57
14.4.3
Grade Model ........................................................................................................................................ 57
14.4.4
Bulk Density ......................................................................................................................................... 58
14.5
MODEL CHECKS ............................................................................................................................................. 58
14.6
MINERAL RESOURCE CLASSIFICATION ........................................................................................................... 63
14.7
MINERAL RESOURCE STATEMENT .................................................................................................................. 65
15.
ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT................. 69
15.1
15.2
16.
ENVIRONMENTAL LIABILITIES ........................................................................................................................ 69
OTHER PERMITS ............................................................................................................................................. 69
ADJACENT PROPERTIES ................................................................................................................................. 71
16.1
ADJACENT PROPERTIES .................................................................................................................................. 71
17.
OTHER RELEVANT DATA AND INFORMATION ....................................................................................... 72
18.
INTERPRETATIONS AND CONCLUSIONS ................................................................................................... 73
19.
RECOMMENDATIONS ...................................................................................................................................... 74
20.
REFERENCES ...................................................................................................................................................... 75
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Table of Contents
LIST OF FIGURES
FIGURE
PAGE
FIGURE 1-1 ROSARIO PROJECT LOCATION ..........................................................................................................................2
FIGURE 2-1 BULLDOZER TRENCH SHOWING ROSARIO VEINS ALONG STRIKE ....................................................................9
FIGURE 4-1 ROSARIO PROJECT LOCATION MAP ................................................................................................................ 14
FIGURE 4-2 LOCATION OF MINING CONCESSIONS ............................................................................................................. 16
FIGURE 5-1 ROSARIO PROJECT ACCESS ............................................................................................................................ 18
FIGURE 5-2 ROSARIO PROJECT WATER AND ELECTRIC SERVICES .................................................................................... 20
FIGURE 6-1 DRILL COLLAR MONUMENT........................................................................................................................... 23
FIGURE 7-1 REGIONAL GEOLOGIC MAP OF THE CHARCAS - SAN RAFAEL AREA, SAN LUIS POTOSI, MEXICO (AFTER SOTO
AND LOPEX, 2000) ................................................................................................................................................... 26
FIGURE 7-2 SAN RAFAEL ANTICLINE NE-SW SECTION LOOKING NORTHWEST ............................................................... 27
FIGURE 7-3 NORMAL FAULT AT ROSARIO II MINE ADIT (ARROWS SHOW DIRECTION OF MOVEMENT).............................. 29
FIGURE 7-4 LOCAL GEOLOGY OF THE ROSARIO PROJECT, ROSARIO VEINS ...................................................................... 30
FIGURE 7-5 SULFIDE MINERALIZATION IN ROSARIO II MINE ADIT ................................................................................... 31
FIGURE 7-6 CROSS SECTION SHOWING ROSARIO I AND ROSARIO II VEINS ....................................................................... 32
FIGURE 8-1 ROSARIO VEIN EXPOSED IN TRENCH.............................................................................................................. 33
FIGURE 9-1 ROSARIO TRENCH DATA ................................................................................................................................ 35
FIGURE 9-2 VEINING IN EXPLORATION TRENCH AT THE ROSARIO PROSPECT ................................................................... 36
FIGURE 10-1 DRILL HOLE LOCATIONS BY CAMPAIGN ...................................................................................................... 38
FIGURE 11-1 DRILL CORE FROM HOLE AP-08 .................................................................................................................. 40
FIGURE 11-2 COMPARISON OF GOLD ASSAY VALUES TO STANDARD MATERIAL 2011 .................................................... 41
FIGURE 11-3 COMPARISON OF SILVER ASSAY VALUES TO STANDARD MATERIAL 2011 .................................................. 41
FIGURE 11-4 COMPARISON OF DUPLICATE SILVER ASSAYS 2011 ..................................................................................... 42
FIGURE 11-5 COMPARISON OF DUPLICATE LEAD ASSAYS 2011 ....................................................................................... 42
FIGURE 11-6 COMPARISON OF DUPLICATE ZINC ASSAYS 2011......................................................................................... 43
FIGURE 11-7 COMPARISON OF DUPLICATE GOLD ASSAYS 2011 ....................................................................................... 43
FIGURE 11-8 COMPARISON OF SILVER ASSAY VALUES TO STANDARD MATERIAL 2012 .................................................. 44
FIGURE 11-9 COMPARISON OF GOLD ASSAY VALUES TO STANDARD MATERIAL 2012 .................................................... 45
FIGURE 11-10 COMPARISON OF DUPLICATE SILVER ASSAYS 2012 ................................................................................... 45
FIGURE 11-11 COMPARISON OF DUPLICATE GOLD ASSAYS 2012 ..................................................................................... 46
FIGURE 11-12 COMPARISON OF ALS CHEMEX AND METALLURGICAL ASSAYS FOR SILVER............................................. 46
FIGURE 11-13 COMPARISON OF ALS CHEMEX AND METALLURGICAL ASSAYS FOR GOLD ............................................... 47
FIGURE 12-1 FIELD SAMPLES TAKEN IN 2011 ................................................................................................................... 49
FIGURE 14-1 CROSS SECTION OF ROSARIO VEINS ............................................................................................................. 53
FIGURE 14-2 CUMULATIVE FREQUENCY PLOT - ROSARIO VEIN I ..................................................................................... 54
FIGURE 14-3 CUMULATIVE FREQUENCY PLOT - ROSARIO VEIN II .................................................................................... 55
FIGURE 14-4 LONG SECTION LOOKING SW - VEIN I ......................................................................................................... 59
FIGURE 14-5 LONG SECTION LOOKING SW - VEIN II ........................................................................................................ 59
FIGURE 14-6 GOLD SWATH PLOT VEIN II ......................................................................................................................... 60
FIGURE 14-7 SILVER SWATH PLOT VEIN II ....................................................................................................................... 61
FIGURE 14-8 LEAD SWATH PLOT VEIN II .......................................................................................................................... 61
FIGURE 14-9 ZINC SWATH PLOT - VEIN II ......................................................................................................................... 62
FIGURE 14-10 THICKNESS SWATH PLOT - VEIN II............................................................................................................. 62
FIGURE 14-11 LONG SECTION SHOWING RESOURCE CLASSIFICATION.............................................................................. 64
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Table of Contents
LIST OF TABLES
TABLE
PAGE
TABLE 1-1 ROSARIO I VEIN MINERAL RESOURCE ESTIMATE AT 75G/T AGEQ ....................................................................5
TABLE 1-2 ROSARIO II VEIN MINERAL RESOURCE ESTIMATE AT 75G/T AGEQ ..................................................................5
TABLE 1-3 TOTAL MINERAL RESOURCE FOR ROSARIO I AND II VEINS AT 75G/T AGEQ .....................................................5
TABLE 1-4 2013 ROSARIO EXPLORATION BUDGET 2013 ....................................................................................................7
TABLE 4-1 CLAIMS COVERING THE ROSARIO PROJECT ..................................................................................................... 15
TABLE 4-2 PURCHASE AND ROYALTY COMMITMENTS...................................................................................................... 17
TABLE 5-1 CLIMATOLOGICAL DATA FOR SAN LUIS POTOSI.............................................................................................. 19
TABLE 6-1 DISTRIBUTION OF DRILL HOLES ...................................................................................................................... 24
TABLE 6-2 HISTORIC RESOURCE ESTIMATION FOR ROSARIO VEINS ................................................................................. 24
TABLE 12-1 CONFIRMATION SAMPLES OF MINERALIZATION ............................................................................................ 48
TABLE 12-2 FIELD SAMPLES 2011 .................................................................................................................................... 48
TABLE 13-1 METAL AND RECOVERY RATES ..................................................................................................................... 50
TABLE 14-1 GRADE CAPPING VALUES BY VEIN ............................................................................................................... 55
TABLE 14-2 ROSARIO VEIN I STATISTICS ......................................................................................................................... 56
TABLE 14-3 ROSARIO VEIN II STATISTICS ........................................................................................................................ 56
TABLE 14-4 GRID MODEL DEFINITION ............................................................................................................................. 57
TABLE 14-5 ESTIMATION METHODS ................................................................................................................................. 57
TABLE 14-6 DENSITY BY LITHOLOGY ............................................................................................................................... 58
TABLE 14-7 RESOURCE CLASSIFICATION CRITERIA .......................................................................................................... 63
TABLE 14-8 ROSARIO I VEIN MINERAL RESOURCE ESTIMATE.......................................................................................... 65
TABLE 14-9 ROSARIO II VEIN MINERAL RESOURCE ESTIMATE ........................................................................................ 66
TABLE 14-10 TOTAL MINERAL RESOURCE FOR ROSARIO I AND II VEINS ......................................................................... 67
TABLE 15-1 PERMITS FOR CONSTRUCTION AND OPERATION ............................................................................................ 70
TABLE 19-1 2013 ROSARIO EXPLORATION BUDGET 2013 ................................................................................................ 74
TABLE A-1 HISTORICAL DRILL INTERCEPTS FOR ROSARIO ............................................................................................ A-2
TABLE A-2 2011 DRILL DATA FOR ROSARIO ................................................................................................................. A-3
TABLE A-3 2012 DRILL INTERCEPTS FOR ROSARIO ....................................................................................................... A-4
TABLE B -1 VERTICES OF THE REY DAVID CONCESSION AND CONTRACTED AREA OF SAN RAFAEL CONCESSIONS ....... B-2
LIST OF APPENDICES
A – Drill Hole Intercept Data
B – Concession and Contracted Boundary Vertices
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1.
SUMMARY
1.1
Introduction
NI 43-101 Technical Report on Resources
Summary
Gustavson Associates LLC (Gustavson) was commissioned by Santacruz Silver Mining Ltd.
(Santacruz or the Company) to prepare an independent Technical Report on Resources for the
Rosario Project in northern Sonora, Mexico. The purpose of this report is to present the mineral
resource estimate and describe the geology of the Rosario Project with respect to silver, zinc,
lead, and gold mineralization, and to include information from new sampling and drilling
performed in 2011 and 2012.
This report was prepared in a with National Instrument 43-101 Standards of Disclosure for
Mineral Projects (NI 43-101) and Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) “Best Practices and Reporting Guidelines”, November 27, 2010. The effective date of
this report is December 1, 2012.
The previous Technical Report applicable to the Rosario Project was entitled, “NI 43-101
Technical Report, Preliminary Economic Assessment of the Rosario Project, San Luis Potosi,
Mexico”, dated December 20, 2011 (“December 20, 2011 PEA”) and was issued by Gustavson.
This current Technical Report on Resources, also issued by Gustavson, supersedes the previous
Technical Report, the results of which are no longer to be relied on. The December 20, 2011
PEA is no longer current and valid in light of the update to the Mineral Resources, which have
been significantly upgraded. Gustavson does not consider the mine plan utilized in the previous
report to be current. As such, this Technical Report on Resources does not present the data and
information contained in the December 20, 2011 PEA.
1.2
Property Description and Ownership
The property consists of 500 hectares located approximately 13km southwest of the town of
Charcas in the state of San Luis Potosi, Mexico. The approximate center of the Rosario Project
is located at Easting 273,256, Northing 2,550,648, UTM WG84. Figure 1-1 shows the general
location of the Rosario Project area.
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Rosario Project
NI 43-101 Technical Report on Resources
Summary
Figure 1-1 Rosario Project Location
Santacruz's rights to the two mining concessions within the Charcas National Mining Reserve
have been acquired through its Mexican subsidiary, Impulsora Minera Santacruz S.A. de C.V.
(IMS). Pursuant to a mining exploration and promissory assignment of rights agreement dated
February 15, 2010 with Bertha Alicia Howlet Solis, IMS can acquire a 100% interest in 42
hectares comprising the Rey David mining concession (Title No. 230640). Pursuant to a mining
exploration and exploitation agreement dated February 22, 2011 with Industrial Minera Mexico
S.A. de C.V., IMS has exploration and exploitation rights to 458 hectares of the 2912 hectares
comprising the San Rafael concession (Title No. 230641). Pursuant to these agreements, IMS
has rights to 500 hectares, as more fully described in Section 4.
The decision to commence production at Rosario was 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.
1.3
Infrastructure and Power
The nearest population center to the Rosario Project is the Town of Charcas, which lies
approximately 13 kilometers northeast of the project and is approximately 20 kilometers distant
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NI 43-101 Technical Report on Resources
Summary
by road. Charcas has limited medical, fire protection, and law enforcement services. Modern
medical services and all industrial support are available in the state capital San Luis Potosi,
approximately 100 kilometers to the south. In addition to these services, Grupo Mexico which
runs the Charcas Mine maintains a mine rescue team, and due to the mining history of the town
trained underground labor and mine contract services are available.
Power may be accessed through a substation that provides power to the Charcas Mine.
Santacruz is constructing a 24.5km power line to the project with a planned completion in
December 2012.
Santacruz has initiated drilling and construction of two 22 inch water wells to a depth of 200m
approximately 15km from the project site. These two wells will provide the 10-15 liters/sec
needed for a plant of 500 tonnes/day. The road for the pipeline is being built.
1.4
Prior Exploration Activity
The Servicio Geologico de Mexico (SGM), formerly known as the Consejo de Recursos
Minerales (CRM), conducted exploration work at the Rosario Project from 1982 to 1987. During
that time, exploration was conducted in the San Rafael Valley by and on behalf of the Mexican
Government to investigate the geologic potential of mineralized veins including the Rosario
Veins. Two veins were identified by drilling: the Rosario I (or “upper”) vein and the Rosario II
(or “lower”) vein. One-hundred eighty-five diamond core holes totaling nearly 25,000 meters
were drilled in 3 distinct vein areas. The Rosario I and II veins showed the most promise, and 34
holes are located on the Rey David claims with another 28 which appear to be on the
continuation of the Rosario structures (Rodriguez, 1987) on the surrounding San Rafael claims.
Information from these 62 holes was provided to Gustavson for this study.
Upon conclusion of the San Rafael exploration effort, the project was halted and the Rosario
Project drill core abandoned at the site. Although the paper records and field monuments still
exist, time and weather have destroyed the core boxes and the core is no longer useable for
technical purposes.
1.5
Geology and Mineralization
The regional geologic structure that dominates the both the Rosario Project area and the Charcas
area is the north-south oriented San Rafael anticline. The Rosario Project is located within an
erosional valley formed along the axis of the anticline. Here, the middle to upper Triassic
Zacatecas formation is exposed by erosion and bounded on both sides by the younger formations
which comprise the limbs of the anticline.
Mineralization is hosted in two veins with a general strike of N60W, dipping between 45 to 60
degrees southwest. The host rock of the veins is comprised of the Zacatecas formation, a mid to
late Triassic turbidite sequence, consisting of beds of dark grey, green and grayish-green shale,
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NI 43-101 Technical Report on Resources
Summary
sandstone, conglomerate and siltstone. The veins extend over a length of 2.5 to 3.0 kilometers,
and to a depth of at least 150 to 200 meters, as determined from available drilling data
(Rodriguez et al., 1987). Each of the Rosario I and Rosario II veins vary in width from 0.4 to
2.5 meters. Mineralization appears to have occurred in three stages, with the third stage
precipitating the silver bearing minerals. This deposit has been described as a mesothermal vein
system based on temperature (195 to 338°C), although mineralization is typical of other deposits
in Mexico which are described as epithermal.
1.6
Exploration Status
During the initial review of the Rosario Project, Gustavson recommended 10 core holes to test
the CRM data in the heart of the ore zone. The first 9 holes were completed in 2011 and an
additional 26 holes plus four surface trenches in 2012. The deposit remains open along strike
and at depth. Visual evaluation of the core shows veining which corresponds to the good assay
intervals in the core.
Nine new core holes were drilled during 2011. The core was examined by Gustavson during the
site visit on 6 December 2011. Intercepts were similar in length and character to those reported
in the CRM drill reports and cross sections.
After completing the drill testing of the core of the Rosario zone in 2011 and starting bulldozer
trenches to expose the top of the veins, Santacruz has drilled an additional 26 holes in 2012.
These holes were spaced along the length of the property and tested the area drilled earlier by
CRM within the Santacruz property. Assays for these holes were recently received. A potential
low gold bias in some of the holes is being investigated. The only consequence of a low gold
bias is a potential conservative value for estimated gold grades.
These holes have supported both the grades and structures seen in the historical drilling.
1.7
Metallurgical Testing
Metallurgical testing is in process through a lab connected with the Autonomous University of
San Luis Potosi (UASLP) which has a highly respected metallurgy department. When this work
is complete Gustavson will include it in the a pre-feasibility Study.
Preliminary metallurgical testing was performed in 1987 using froth flotation to recover gold,
silver, lead and zinc from drill core samples.
Based on preliminary testing and knowledge of other mining operations in the Charcas area,
Santacruz has purchased a used mill and started construction of this facility. The proposed plant
will process up to 500 tonnes/day of material to produce two concentrates, a lead concentrate and
a zinc concentrate.
December 19, 2012
4
Santacruz Silver Mining Ltd.
Rosario Project
1.8
NI 43-101 Technical Report on Resources
Summary
Mineral Resource
Gustavson estimated this mineral resource estimate effective on 1 December 2012. The cutoff
for resource reporting is based on underground vein mining with long hole or shrinkage stoping
with milling and flotation. Gustavson has assumed similar metallurgical recoveries for all
metals. Gustavson is reporting the resources at a silver equivalent cutoff of 75g/t. The silver
equivalent (AgEq) calculation is described after the resource tables which follow.
Table 1-1 Rosario I Vein Mineral Resource Estimate at 75g/t AgEq
TONNAGE
Thickness
Silver Equivalent
Gold
Silver
Lead
Zinc
Classification
k tonne
m
gpt
k-oz
gpt
oz
gpt
k-oz
pct
lbsx1000
pct
lbsx1000
Measured
126.7
1.01
305
1,243.3
0.988
4,025
157.2
640.2
1.21
3,393.1
2.64
7,385.4
Indicated
408.4
0.85
273
3,579.4
0.904
11,873
136.0
1,785.7
1.14
10,306.5
2.43
21,911.8
Meas+Ind
535
0.88
280
4,822.7
0.924
15,898
141.0
2,425.9
1.16
13,699.6
2.48
29,297.2
Inferred
164.0
0.73
190
1,001.0
0.995
5,246
74.7
393.6
0.81
2,943.5
1.74
6,276.1
Table 1-2 Rosario II Vein Mineral Resource Estimate at 75g/t AgEq
TONNAGE
Thickness
Silver Equivalent
Gold
Silver
Lead
Zinc
Classification
k tonne
m
gpt
k-oz
gpt
Oz
gpt
k-oz
pct
lbsx1000
pct
lbsx1000
Measured
143.4
1.17
447
2,062.2
0.897
4,137
256.9
1,184.6
1.13
3,559.3
4.62
14,611.1
Indicated
302.6
1.10
345
3,351.3
0.852
8,286
198.6
1,932.5
1.22
8,123.7
2.82
18,778.6
Meas+Ind
446
1.12
378
5,413.5
0.955
12,423
217.4
3,117.1
1.19
11,683.0
3.40
33,389.7
Inferred
222.2
0.99
213
1,521.8
0.673
4,807
102.4
731.9
0.67
3,262.8
2.37
11,598.0
Table 1-3 Total Mineral Resource for Rosario I and II Veins at 75g/t AgEq
TONNAGE
Thickness
Silver Equivalent
Gold
Silver
Lead
Zinc
Classification
k tonne
m
gpt
k-oz
gpt
oz
gpt
k-oz
pct
lbsx1000
pct
lbsx1000
Measured
270
2.18
381
3,305.5
0.940
8,162
210.1
1,824.8
1.17
6,952
3.69
21,997
Indicated
711
1.95
303
6,930.7
0.882
20,159
162.7
3,718.2
1.18
18,430
2.60
40,690
Meas+Ind
981
2.01
325
10,236.2
0.898
28,320
175.7
5,543.0
1.17
25,383
2.90
62,687
Inferred
386
1.72
203
2,522.8
0.810
10,053
90.6
1,125..5
0.73
6,206
2.10
17,874
Note: Mineral resources which are not mineral reserves do not have demonstrated economic viability. The quantity and grade of
inferred resources reported herein are uncertain in nature and exploration completed to date is insufficient to define these mineral
resources as indicated or measured. There is no guarantee that further exploration will result in the inferred mineral resources being
upgraded to an indicated or measured mineral resource category.
*AgEq is the silver equivalent in ppm used to calculate the cutoff. The silver equivalent was
calculated with the following equation:
December 19, 2012
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Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Summary
AgEq= (Ag *Pag/31.1035)+ (Pb*Ppb*22.05)+(Zn*Pzn*22.05)+(Au*Pau/31.1035)
(Pag)
Where:
AgEq
Grade
Units
g/t
Silver
Ag
g/t
26.28 $/tOz
Pag
Gold
Au
g/t
1,341.00 $/tOz
PAu
Lead
Pb
%
0.9988 $/lb
Pcu
Zinc
Zn
%
0.9531 $/lb
Pzn
Metal
Silver Eq
Symbol
Price
Price
Symbol
* The calculation assumes equal recoveries in all metals pending further metallurgical work.
The grades for copper, lead, and zinc are multiplied by each metal's three year
trailing average price.
The quantity and grade or quality is an estimate and is rounded to reflect the fact that
it is an approximation.
1.9
Mineral Reserve Estimates
As a pre-feasibility study has not yet been performed, no mineral reserves can be stated at the
Rosario Project.
1.10
Environmental Considerations
Santacruz has nearly completed the permitting process. As with all projects in Mexico, the
Rosario Project requires an Environmental Impact Manifest (MIA), Change of Land Use Permit,
Municipal Construction permit, and explosives permit. All permits are current except the permit
for Purchase and Use of Explosives” which is pending.
Gustavson considers that there are no material risks in permitting, or environmental risks other
than those common to small metal mines.
1.11
Recommendations and Conclusions
Gustavson considers that the Rosario Project has potential which merits additional work. The
new drilling and modeling has supported the resource developed from historical drill data. Due
to the results of the new exploration work, Gustavson can now classify the resource to include
some measured and indicated mineral resource as well as inferred. New metallurgical testing is
currently proceeding on Rosario data.
Gustavson recommends that Santacruz continue the ongoing exploration work on the project site.
They should proceed with a pre-feasibility study to better define the project risks and potential.
Gustavson believes that the low percentage of assay errors discovered in the QA procedures is
not material to the estimated resource.
December 19, 2012
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NI 43-101 Technical Report on Resources
Summary
Based on the three dimensional correlation between the historical drilling and the 2011 and 2012
drill campaigns, Gustavson believes that it is reasonable to include the earlier assay data in this
study.
Gustavson considers the data adequate for estimation of a mineral resource.
Gustavson knows of no environmental issues that could materially impact Santacruz’s ability to
extract mineral resources from the Rosario property.
Risks at this stage will include the ability to successfully mine the narrow dipping veins, and the
ability to recover metals efficiently from the mineral.
Metallurgical testing on composites from each vein is the highest priority and Gustavson has
been informed that it is in process. Gustavson suggests a series of surface geochemical lines
crossing the bodies along strike and continuing to the southeast. Following the geochem work, at
least 5 new holes should be planned along strike to the SE to examine continued mineralization.
Drilling appears to successfully confirm the size and grade of the deposit. Gustavson
recommends that a pre-feasibility study be performed to define the project’s economic potential
as well as the project risks. An estimated budget to for metallurgical test work, pre-feasibility
and infill and step-out drilling is shown in Table 1-4.
Table 1-4 2013 Rosario Exploration Budget 2013
Activity
Estimate
Metallurgical Testing
60,000
Pre-Feasibility Study
400,000
Development Drilling 1000m
300,000
Step Out Drilling – 1000m
300,000
Total
December 19, 2012
$1,060,000
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Santacruz Silver Mining Ltd.
Rosario Project
2.
INTRODUCTION
2.1
Purpose
NI 43-101 Technical Report on Resources
Introduction
Gustavson Associates LLC (Gustavson) was commissioned by Santacruz Silver Mining Ltd.
(Santacruz or the Company) to prepare an independent Technical Report on Resources for the
Rosario Project in northern Sonora, Mexico. The purpose of this report is to present the mineral
resource estimate and describe the geology of the Rosario Project with respect to silver, zinc,
lead, and gold mineralization, and to include information from new sampling and drilling
performed in 2011 and 2012.
This report was prepared in accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects (NI 43-101) and Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) “Best Practices and Reporting Guidelines”, November 27, 2010. The effective date of
this report is December 1, 2012.
The previous Technical Report applicable to the Rosario Project was entitled, “NI 43-101
Technical Report, Preliminary Economic Assessment of the Rosario Project, San Luis Potosi,
Mexico”, dated December 20, 2011 (“December 20, 2011 PEA”) and was issued by
Gustavson. This current Technical Report on Resources, also issued by Gustavson, supersedes
the previous Technical Report, the results of which are no longer to be relied on. The December
20, 2011 PEA is no longer current and valid in light of the update to the Mineral Resources,
which have been significantly upgraded. Gustavson does not consider the mine plan utilized in
the previous report to be current. As such, this Technical Report on Resources does not present
the data and information contained in the December 20, 2011 PEA.
2.2
Qualified Persons
This report has been prepared in accordance with NI 43-101, Standards of Disclosure for Mineral
Projects dated June 30, 2011. The Qualified Persons responsible for this report are:
Donald E. Hulse, P.E., Principal Mining Engineer, Gustavson Associates LLC
Patrick F. Daniels, SME-RM, Principal Mining Engineer, Gustavson Associates LLC
Mr. Hulse is responsible for Sections 1through 4, 6 through 9, 10.1 and 11through 20 of this
Technical Report.
Mr. Daniels is responsible for Sections 5, 10.2 and 10.3 of this Technical Report.
2.3
Site Visit of Qualified Persons
Mr. Hulse, Principal Mine Engineer and Qualified Person according to NI 43-101, visited the site
on May 20, 2010 in the company of Santacruz personnel. Mr. Hulse and reviewed geologic
December 19, 2012
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Santacruz Silver Mining Ltd.
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NI 43-101 Technical Report on Resources
Introduction
cross sections and reports in the office of D & A Morales y Asociados S.A. de C.V. in
Monterrey, Nuevo Leon, Mexico.
Mr. Hulse visited the property a second time on 6 December 2011. Based on previous
recommendations new core holes have been drilled and several bulldozer trenches have been
opened to expose the top of the veins at intervals along its length. Figure 2-1 shows the exposed
veins in the trench.
Figure 2-1 Bulldozer Trench Showing Rosario Veins Along Strike
Mr. Daniels visited the property on November 27 and 28, 2012 to physically inspect drillhole
locations and trenches. In addition, a visit was paid to the core storage facility, to verify a
sampling of the core from the 2011 and 2012 drillhole campaigns. Mr. Daniels also reviewed
current infrastructure, inclusive of water and electrical, and accessibility, including the ongoing
construction and access to site. .
2.4
Sources of Information
The information, opinions, conclusions, and estimates presented in this report are based on the
following:
Information and technical data provided by Santacruz;
Review and assessment of previous investigations;
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NI 43-101 Technical Report on Resources
Introduction
Assumptions, conditions, and qualifications as set forth in the report; and
Review and assessment of data, reports, and conclusions from other consulting
organizations.
These sources of information are presented throughout this report and in Section 21 –
References. The qualified persons are unaware of any material technical data other than that
presented by Santacruz.
During this study, Gustavson relied on geological information provided by Santacruz, which
Gustavson believes to be of sound quality. Gustavson has reviewed the laboratory certificates
and checked them against the data base for the 2011 and 2012 drilling campaigns, and has
reviewed quality control data provided by Santacruz. Gustavson has reviewed copies of the
contracts for information regarding land ownership and tenure. Gustavson used data and reports
prepared by other consultants and government agencies, including the Servicio Geologico de
Mexico (SGM) and Arian Silver de Mexico, S.A. de C.V (ASM).
2.5
Units of Measure
All measurements used herein are metric units and all references to dollars are United States
dollars. Metric tons are used throughout unless otherwise stated:
Common Units:
Above mean sea level ............................................................ amsl
Cubic meter .............................................................................. m3
Day ............................................................................................... d
Degree .......................................................................................... °
Degrees Celsius ..........................................................................°C
Degrees Fahrenheit .................................................................... °F
Dollar US ............................................................................ $ US$
Foot ............................................................................................ ft
Gallon ........................................................................................ gal
Gallons per minute (US) ......................................................... gpm
Grams per metric ton..................................................................g/t
Greater than ..................................................................................>
Hectare ....................................................................................... ha
Hour ............................................................................................. h
Inch ........................................................................................ in. "
Kilo (thousand) ............................................................................ k
Less than ......................................................................................<
Kilogram .................................................................................... kg
Liter ............................................................................................... l
Mexican Peso ............................................................ M.N. $Mex
Micrometre (micron) ................................................................ µm
Milligram .................................................................................. mg
Metric ton ............................................................................. tonne
Metric ton (US) ............................................................................. t
Ounces per metric ton .............................................................. oz/t
Parts per billion ........................................................................ ppb
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NI 43-101 Technical Report on Resources
Introduction
Parts per million ...................................................................... ppm
Percent........................................................................................ %
Pound(s) ...................................................................................... lb
Short ton (2,000 lb) ..................................................................... st
Metric ton ..................................................................................... t
Specific gravity ......................................................................... SG
Square foot ............................................................................ feet2
Square inch................................................................................ in2
Yard............................................................................................ yd
Year (US) ....................................................................................yr
Metric Conversion Factors (divided by):
Short tons to metric tons .................................................. 1.10231
Pounds to metric tons ........................................................ 2204.62
Ounces (Troy) to metric tons .............................................. 32,150
Ounces (Troy) to kilograms ................................................ 32.150
Ounces (Troy) to grams .................................................... 0.03215
Ounces (Troy)/short ton to grams/metric ton .................... 0.02917
Acres to hectares ............................................................... 2.47105
Miles to kilometres............................................................ 0.62137
Feet to metres .................................................................... 3.28084
Abbreviations:
Absolute Relative Difference ................................................ ARD
Adsorption Desorption Refining ........................................... ADR
Acid Rock Drainage .............................................................. ARD
American Society for Testing and Materials....................... ASTM
Atomic Absorption Spectrometry .......................................... AAS
Canadian Institute of Mining and Metallurgy ........................ CIM
Carbon-in-Column .................................................................. CIC
Diamond Drill .......................................................................... DD
Environmental Assessment .......................................................EA
Environmental Impact Statement ............................................. EIS
Finding of No-Significant Impact ...................................... FONSI
Fleet Performance Calculator .................................................. FPC
Global Positioning System ......................................................GPS
Gold Standard Royalty ........................................................... GSR
Induced Polarization .................................................................. IP
Inductively Coupled Plasma ....................................................ICP
Internal Rate of Return ............................................................ IRR
Metallic Screen Fire Assay ................................................. MSFA
Mine and Quarry Engineering Services ............................... MQes
Mine Development Associates ..............................................MDA
Mount Diablo Base Meridian ............................................ MDBM
National Environmental Policy Act of 1969 ....................... NEPA
NI 43-101 ...................................................................... NI 43-101
Nearest Neighbour ................................................................... NN
Net Present Value................................................................... NPV
Net Smelter Royalty ............................................................... NSR
December 19, 2012
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Rosario Project
NI 43-101 Technical Report on Resources
Introduction
Ounces per short ton gold ................................................ OPT Au
Preliminary Economic Assessment ........................................ PEA
Probability Assigned Constrained Kriging ......................... PACK
Record of Decision................................................................ ROD
Reverse Circulation ......................................................... RC/RCV
Rock Quality Designation ..................................................... RQD
Selective Mining Unit ........................................................... SMU
Universal Transverse Mercator ............................................. UTM
December 19, 2012
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Santacruz Silver Mining Ltd.
Rosario Project
3.
NI 43-101 Technical Report on Resources
Reliance on Other Experts
RELIANCE ON OTHER EXPERTS
The qualified persons relied on information provided by Santacruz regarding property ownership
and mineral tenure (Section 4.2). The qualified persons have not independently verified the
status of the property ownership or mineral tenure.
Mr. Lorenzo de la Anda, Counsel, Santacruz Silver Mining Ltd. – Legal Matters
Mr. Arturo Prestamo, President, Santacruz Silver Mining Ltd. – Contractual Matters
Ing. y Lic. Juan Antonio Calzada Castro, Director de Concesiones Mineras, Geo
Procesos, Licensed independent surveyor for Santacruz – Mining Concessions
December 19, 2012
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Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Property Description and Location
4.
PROPERTY DESCRIPTION AND LOCATION
4.1
Location
The Rosario Project is located in the Municipality of Charcas in the State of San Luis Potosi in
Mexico, 184 kilometers north of the capital city of San Luis Potosi. The nearest town, Charcas,
is approximately 13 kilometers to the northeast and is the municipal administrative center.
Charcas is also a well-known mining district which has produced gold, silver, lead, and zinc for
the last 450 years. The approximate center of the Rosario Project is located at Easting 273,256,
Northing 2,550,648, UTM WG84. Figure 4-1 shows the location of the Rosario Project in
Latitude and Longitude.
Figure 4-1 Rosario Project Location Map
4.2
Mineral Tenure, Agreements, and Royalties
Santacruz is a company incorporated under the laws of the Province of British Columbia, which
is the parent of Impulsora Minera Santacruz S.A. (IMS), a private Mexican company which
holds options to acquire a 100-per-cent interest in the Rosario, Gavilanes and San Felipe silver
projects, located in the historical mining districts of Charcas, San Luis Potosi, San Dimas
Durango and San Felipe Sonora, Mexico, respectively.
Santacruz's rights to the two mining concessions within the Charcas National Mining Reserve
have been acquired through IMS. Pursuant to a mining exploration and promissory assignment
December 19, 2012
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NI 43-101 Technical Report on Resources
Property Description and Location
of rights agreement dated February 15, 2010 with Bertha Alicia Howlet Solis, IMS can acquire a
100% interest in 42 hectares comprising the Rey David mining concession (Title No. 230640).
Pursuant to a mining exploration and exploitation agreement dated February 22, 2011 with
Industrial Minera Mexico S.A. de C.V., IMS has exploration and exploitation rights to 458
hectares of the 2912 hectares comprising the San Rafael concession (Title No. 230641). The San
Rafael concession encompasses the entirety of the Rey David concession. The two concessions
are valid until 2057, and a summary of the parameters is in Table 4-1.
Table 4-1 Claims Covering the Rosario Project
Concession No
Name
Status
Area (Ha)
Renewal
Expiration
230640
Rey David
230641
San Rafael
Claimant
Current
42.0
28/09/2007
27/09/2057
Bertha Alicia Howlet Solis
Current
2,912.0
28/09/2007
27/09/2057
Industrial Minera Mexico S.A. de C.V.
The total mineral area of mining concessions controlled by Santacruz is 500 ha. Appendix B
delineates the vertex coordinates of the two concessions as shown in Figure 4-2. The figure
shows the limit of these concessions in blue with the contracted portion of the San Rafael
concession outlined in red.
December 19, 2012
15
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Property Description and Location
Figure 4-2 Location of Mining Concessions
December 19, 2012
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NI 43-101 Technical Report on Resources
Property Description and Location
The compensation for the rights to the Rey David claim is scheduled in a series of payments
summarized in the Table 4-2, as well as a variable NSR royalty. Upon completion of the
payment schedule, the cessation of rights will take effect and the title of the concessions will
convert to Santacruz.
Table 4-2 Purchase and Royalty Commitments
ROSARIO PROJECT
Mining Concession Contracts
Timing of
Payments
IMMSA*
TOTAL
Feb-12
Carlos
Perez
Rey David
(1)
$150,000
San Rafael
(2)
$20,000
$170,000
Aug-12
$200,000
$20,000
$220,000
Feb-13
$300,000
$20,000
$320,000
Aug-13
$350,000
$20,000
$370,000
Feb-14
$645,000
Concession
$20,000
$665,000
Aug-14
$20,000
$20,000
Feb-15
$20,000
$20,000
Aug-15
$20,000
$20,000
Feb-16
Total
$1,645,000
$20,000
$20,000
$180,000
$1,825,000
(1) NSR of 0.4%which may be purchased by IMS within 48 months for
US$637,000, failing which the royalty increases 0.1% per year until
it reaches 1%.
(2) NSR of 2.5% NSR
4.3
Surface Rights
Santacruz has contracted with the San Rafael Ejido to surface right of way on 100 hectares to
exploit the deposit and construct the plant. There are two contracts for 50 hectares each signed
on September 10, 2011, and September 2, 2012. The contract term is for 30 years renewable at
Santacruz’s discretion. The deposit is located within ejido lands. An ejido is Mexican communal
ownership of (usually) agricultural land, which gives the members of the ejido (ejidatarios)
surface rights to the land. The relationship with the ejido is cordial and undue difficulties are not
expected in reaching an agreement. Gustavson had an opportunity to meet some of the
ejidatarios during the first visit and a number of them are working with Santacruz in the project.
Gustavson judges that the 100ha under contract is sufficient for the mine and surface facilities.
Section 16 of this report addresses environmental considerations and permitting for this project.
Gustavson knows of no other significant factors or risks that may affect access, title, or the
ability to perform work on the Rosario property.
December 19, 2012
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Rosario Project
NI 43-101 Technical Report on Resources
Accessibility Climate Local Resources Infrastructure & Physiography
5.
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE &
PHYSIOGRAPHY
5.1
Access
The Rosario Project is located 13 kilometers southwest of the Town of Charcas, in the State of
San Luis Potosi, Mexico. The site can be accessed by the Charcas to Santo Domingo highway,
heading west of the town of Charcas. Approximately 8 km from the center of town is a dirt road
which leads south to the village of San Rafael and to the project site. The condition of the dirt
road is improved for approximately 10 km and the remaining 3 kilometers are unimproved but
accessible.
N
LEGEND
Highway
Improved dirt road
Unimproved dirt road
Scale
0
2 km
Figure 5-1 Rosario Project Access
5.2
Climate
The Rosario/Charcas area is slightly south of the Tropic of Capricorn and the climate is
considered to be semi-arid. In the capital city of San Luis Potosí, 183 kilometers to the south,
the average year-round high temperature is about 25.8°C (78.4°F). The average annual
precipitation in the capital is 34.2 cm (13.5 inches) per year (WWIS, 2010). Average monthly
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Accessibility Climate Local Resources Infrastructure & Physiography
temperatures in the Charcas area are generally cool to warm as shown in Table 5-1 below. With
little rainfall and a moderate climate, the mine is expected to operate year round.
Table 5-1 Climatological Data for San Luis Potosi
Mean Temperature
Rainfall
Month
Daily Min.°C
Daily Max.°C
Mean Total Cm
Mean no. of Rain days
Jan
4.5
21.7
18.0
3.1
Feb
5.8
23.9
6.5
2.0
Mar
7.7
27.0
4.2
1.7
Apr
10.0
28.9
20.4
3.8
May
12.3
30.2
38.6
6.5
Jun
13.1
28.7
51.1
7.2
Jul
12.5
26.9
52.5
7.5
Aug
12.4
26.6
42.1
7.9
Sep
11.9
25.4
50.1
9.0
Oct
9.2
24.7
32.8
5.1
Nov
7.1
23.9
7.0
2.2
Dec
4.9
21.9
18.7
2.6
Climatological information is based on monthly averages for the 30-year period 1971-2000.
(Source: WWIS, 2010)
5.3
Local Resources and Infrastructure
The nearest population center to the Project is the Town of Charcas with a population of about
20,000 (CONAPO, 2010). The town lies approximately 13 km northeast of the project area.
Charcas is connected to the capital city of San Luis Potosi by the Montezuma-Charcas Highway
to the south, and to the City of Matehuala to the east by the Charcas-La Concepcion Highway.
The Charcas-La Concepcion Highway 57 is a major north-south artery which runs between
Mexico City and Piedras Negras at the border with the United States. The nearest access to rail
transportation is a railhead at the Charcas station, 14 km east of Charcas.
Charcas has limited medical, fire protection, and law enforcement services. Modern medical
services and all industrial support are available in the state capital San Luis Potosi,
approximately 100 kilometers to the south. In addition to these services, Grupo Mexico which
runs the Charcas Mine maintains a mine rescue team, and due to the mining history of the town
trained underground labor and mine contract services are available. Power may be accessed
through a substation to the Federal Electric Commission (CFE) line. Santacruz has taken the
initiative to construct a 24.5km power line to the project. This power is expected to be available
in December 2012.
Santacruz has initiated drilling and construction of two 200m water wells approximately 15km
from the project site. These two wells will provide the 10-15 liters/sec needed for a plant of 500
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Accessibility Climate Local Resources Infrastructure & Physiography
tonnes/day. The road for the pipeline is in the process of being built. A drawing of the routing
for these services is shown in Figure 5-2.
CHARCAS
LEGE ND
ELECTRIC
LINE
WATER
PIPE
ELECTRIC LINE
LENGTH 24 KMS
0
1000
3000m
Graphic Scale
WATER PIPE
LENGTH 15.5 KMS
Source: INEGI 2011
ROSARIO PROJECT
WATER WELL SITE
Figure 5-2 Rosario Project Water and Electric Services
5.4
Physiography
The Project lies along the eastern edge of the Mesa Central physiographic province west of the
Sierra Madre Oriental fold belt. The terrain in the Mesa Central is typically north-south oriented
low lying mountains and valleys. The project area lies within an anticlinal valley. The
topography is relatively flat to gentle rolling, incised by several arroyos. The elevation of the
Project area ranges from about 2,180 to 2,200 meters.
5.5
Vegetation
The vegetation of the area is typical of Mexican deserts in this elevation. Common plants found
within the project area are mesquite (Proposis dulcis), huizache (Acacia sp.), nopal (Opuntia sp.),
and bisnaga (Mamillaria magnanima) (Butler, 1972). There are several small cultivated fields
containing lechugilla (agave) in the area.
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6.
NI 43-101 Technical Report on Resources
History
HISTORY
The Rosario Project is located within the Charcas Mining District which has been the focus of
exploration and development interest for over 400 years. The first mineral discovery in the
Charcas area was by Don Juan de Onate in 1563 (INAFED, 2010) with mineral production
beginning later from several small mines of the Hacienda de Charcas Viejas around 1570
(Butler, 1972). Mining has continued in the area at varying rates since the 16th century.
6.1
Property History
The Rosario Project is part of what was the Charcas National Mining Reserve. “No data is
available to the public prior which corroborate the legal status of the Mining Reserve. It was
supposedly canceled and the concessions placed in the custody of the Mining Directorate.”
(Crespo Hernandez, 2004) In 1990 Mexico started to liberalize their mining law, passing new
Mining legislation in 1992. (Sanchez Mejorada, 2001). Mining concessions across the country
were gradually released to concession by private individuals/companies. The Rey David and San
Rafael concessions covering this property were released in 2007 and were claimed by Berta
Alicia Howlett Solis and Industrial Minera Mexico, S.A. de C.V., respectively. These
concessions are controlled by Impulsora Minera Santacruz, the Mexican operating subsidiary of
Santacruz Silver Mining Ltd. Under different agreements signed between 2010 and 2011.
6.2
Exploration History
The Rosario Project area has been the subject of exploration work performed by the Mexican
Geologic Service (SGM) since 1978. Exploration began at the Buena Vista area near the Ejido
San Rafael. From 1982 through 1987, the SGM performed trenching, diamond core hole
drilling, and mercury vapor soil sampling.
Geophysical work performed from 1982 through 1987 included Electro-magnetic (Turam)
method and induced polarization and resistivity. The EM survey utilized a total of 24 lines at
550 m long with 50 m separation for a total of 13.2 km. A total of 6 km of line was surveyed for
induced polarization and resistivity with using 15 lines at 400 m long with stations 15 m apart.
A total of 2,073 soil samples were collected along a survey grid covering 231.2 hectares and
tested for mercury vapor (Rodriguez, 1987). The soil survey identified six discrete anomalies in
the Rosario area.
Exploration drilling began in 1982 and concluded in 1987 with a total 185 core holes reported as
being drilled with a recovery of 24,969.5m on several targets in the area. Rodriguez Moreno
(1987) reports that 91 holes, measuring 11,181m, were dedicated to delineating the area of the
Rosario veins. Gustavson has reviewed the data received as well as the plans and sections
created by the CRM and counted 62 holes with 91 intercepts. These holes had an average
recovery of the mineralized intercepts of 86%.
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6.3
NI 43-101 Technical Report on Resources
History
Historical Core Drilling and Logging
The core size of the CRM drilling at Rosario was not documented, however it appears to be a
mixture of BQ and NQ size (1.4 and 1.8 inch diameter respectively) based on abandoned core
found at the site. Drilling was performed using multiple drill rigs including Winkie Gw-15, JKS300, Boart Longyear 24, Boart Longyear 38 and a Gardner Denver 1500.
All core holes were logged and sent out for assay in the CRM laboratory, with the remaining
core stored on site. Core from the 1980’s drilling campaign was stored in wooden core boxes,
which were later destroyed. The sample preparation procedure is not described in any of the
CRM reports on the property, although the intervals assayed were those identified in the drill
core as being vein material.
The historic Rosario Project exploration work was conducted in the 1980’s prior to the creation
of NI 43-101 reporting requirements. As such, sample preparation and security procedures have
not been described in the studies performed by the CRM.
The field and laboratory work were performed by CRM. The CRM (now Mexican Geological
Service, SGM) maintained and continues to maintain in-house laboratory facilities. All assays
were analyzed through atomic absorption in the 1980’s. These laboratory facilities are widely
recognized within Mexico but were not internationally certified in the 1980’s. This laboratory
has been ISO9001 certified since 1998 and was ISO17025 certified in 2012.
The Rosario Project has been explored in modern times by a variety of methods including
surface geologic mapping, trenching, soil samples for mercury vapor, geophysics and most
notably diamond core drilling. All earlier documented exploration work was performed by CRM
at a time when the Mexican government was performing basic exploration works. The CRM
performed basic mapping and drilled the project looking for vein intercepts.
6.4
Mineral Resource Council
The CRM had several exploration campaigns in the Rosario area between 1978 and 1987. There
were seven individual areas identified:
1. Veta Azul
2.
3.
4.
5.
6.
7.
Rosario I
Rosario II
El Huizache
Providencia
El Membrillo
Azogues
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History
There were 185 drill holes spread between the various areas. The structures are within a 4 by 5
km area, and structures other than Rosario I and II are spread out to the southeast of the Rosario
veins with similar strike directions. None of the assays for these areas were provided to
Gustavson and there is only limited summary information in the CRM reports provided.
Reyes Reyes summarized the program from 1982 to 1984 as covering 54 Ha, with 67 outcrop
samples, and 531 core samples in 4,271 m of drilling. (Reyes Reyes, 1985) The report also
mentions 25 km2 of induced polarization (IP) studies and 13 km2 of electromagnetic response
studies. The geophysics reports were not available to Gustavson.
Rodriguez Moreno reports progress at the end of 1987 as including 4000 samples including the
samples reported in 1984, 11,181m of drilling, 3 large diameter holes for metallurgical studies,
and 231 Ha of soil geochemistry (described below).
In 1987, the CRM commissioned a soil geochemical survey of mercury halos by Raul Palacios
Garcia. Palacio Garcia concluded that the use of soil mercury vapor correlates positively with
the Rosario veins, and that it can be a valuable exploration tool in the area. The geochemistry
was recommended as a tool to identify other potential targets similar to Rosario.
Gustavson has confirmed that 6 concrete drill hole monuments corresponded to the locations
identified on the maps and in the digital data base. Figure 6-1 shows an example of one original
monument.
Figure 6-1 Drill Collar Monument
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History
During this time, 185 core holes were reported as being drilled with a recovery of 24,969.5
meters on several targets in the area. Table 6-1 shows the drill hole distribution as reported in
Crespo Hernandez 2004. Gustavson understands that the distance between these areas is small
enough that the naming conventions may not correlate directly to the current Rosario Project,
which is connected to the Rey David mining concessions. Rosario is identified as being part of
the Providencia area.
Table 6-1 Distribution of Drill Holes
Area
Vein System
No.
Drillholes
No. Meters
Providencia
Providencia
81
5,044.95
Providencia
Rosario
34
11,181.32
Providencia
Huizache
18
1,932.80
San Rafael
Azul
9
1,392.53
San Rafael
Azogues I and II
8
1,180.85
Cuchillas las Arañas
Membrillo
35
4,237.00
185
24,969.45
TOTAL
Two NW-SE bearing veins were identified by drilling within the Project, Rosario I (upper) and
Rosario II (lower). Resource estimations were performed between 1982 and 2004 using the
block triangulation method.
The most recent estimate was reported by the SGM in 2004 (Table 6-2). The 2004 SGM
resource estimate is not in accordance with NI 43-101, and does not use the categories defined
by CIM and NI43-101. Since that time, Santacruz has re-drilled the deposit and these data
support the grade and thickness of the structures sampled in the historical data. Due to the
methodology used, and the non-standard resource categories Gustavson has not relied on this
estimate and it is disclosed here for historical completeness only.
Table 6-2 Historic Resource Estimation for Rosario Veins
1982-1986, and 1987 Using Block Triangulation Method*
Vein
K Metric Ton
Au (g/t)
Ag (g/t)
Pb (%)
Zn (%)
Rosario I
Rosario II
Total
554.5
318.8
873.4
0.74
0.90
0.80
249.
289.
263.
1.87
1.62
1.77
3.04
4.05
3.45
* Crespo H. Francisco, Consejo de Recursos Minerales, 2004
There is no known historic production from the Project.
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Geological Setting and Mineralization
7.
GEOLOGICAL SETTING AND MINERALIZATION
7.1
Regional Geology
The Rosario Project is located approximately 13 km southwest of the Town of Charcas and the
Charcas lead zinc silver deposit. The project is situated within a north-south anticlinal valley
known as the San Rafael anticline, and Rosario is part of what is traditionally known as the San
Rafael District. The host rock of the veins is comprised of the Zacatecas formation, a mid to late
Triassic turbidite sequence, consisting of beds of dark grey, green and grayish-green shale,
sandstone, conglomerate and siltstone (Bartolini et al., 2001). The Zacatecas Formation is
thought to have formed along a passive continental margin of western Pangea and correlates with
a sea level drop during the Permian-Triassic (Bartolini et al., 2001).
The Nazas Formation, which unconformably overlies and is in fault contact with the Zacatecas
Formation (Bartolini et al., 2001) is the remnant of a volcanic arc. The base of the Nazas
formation is composed of intercalated siltstone, sandstone conglomerate, and andesite flows.
The middle to upper part of the formation is dacite, breccias, tuffs, andesite flows and pyroclastic
rock. The entire Nazas formation is cut by rhyolite dikes which are generally less than 3 meters
thick. The flanks of the San Rafael anticline are comprised of middle Jurassic to upper
Cretaceous formations beginning with the La Joya formation. These formations are primarily
limestone with subordinate siltstone, marlstone, shale, and chert (Butler, 1973). Much of the
quaternary sediments that overly the Zacatecas rocks have been cemented, forming caliche with
thickness that ranges from 0 to 10 meters, based on Gustavson’s field observation.
The regional geologic structure in Rosario Project is a north-south oriented, asymmetric, northplunging anticline known as the San Rafael anticline. The main San Rafael anticline is
asymmetric, overturned dipping west with smaller peripheral overturned anticlines and synclines
to the southwest of the project area. The Zacatecas formation is exposed along the anticline axis
in an erosional structural window (an exposure of the underlying unit through an eroded area of
the overlying unit) within the overlying limestone units. The formation of this anticline is
believed to have occurred during the compressive tectonics of the Laramide Orogeny. Reverse
faults along the Zacatecas, Nazas and La Joya formation contact were caused by folding of the
more plastic Jurassic-Cretaceous cover over a more rigid Zacatecas formation. Extensional
forces during the Paleogene resulted in NW-SE normal faulting (Soto and Lopez, 2000).
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Geological Setting and Mineralization
ROSARIO VEIN
Figure 7-1 Regional Geologic Map of the Charcas - San Rafael Area, San Luis Potosi, Mexico (After Soto and Lopex, 2000)
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Geological Setting and Mineralization
Figure 7-2 San Rafael Anticline NE-SW Section Looking Northwest
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7.2
NI 43-101 Technical Report on Resources
Geological Setting and Mineralization
Local Geology
The geology in the immediate vicinity of the Rosario Project is sandstone and siltstone of the
Zacatecas Formation, which form the axis of the San Rafael anticline. The majority of the
mining concession is covered by a Quaternary caliche deposit that appears to range from 0
meters to 10 meters thick based on observations of trenches in the area.
Mineralization is hosted in two veins, the Rosario I and II veins, with a general strike of N60W,
dipping between 45 to 60 degrees southwest. The veins extend over a length of 2.5 to 3.0 km,
and to a depth of at least 150 to 200 meters, as determined from available drilling (Rodriguez et
al., 1987). The vein width varies from 0.4 to 2.5 meters. Mineralization appears to have
occurred in three stages, the third stage precipitating the argentiferous (silver bearing) minerals.
This deposit has been defined as mesothermal vein system based on temperature (195 to 338°C),
although mineralization is typical of other epithermal deposits in Mexico. Abundant sulfides,
sphalerite pyrite and galena with subordinate amounts of chalcopyrite, arsenopyrite and hematite,
can be found within the veins. Additional minerals identified through electron microscopy
include freibergite, tetrahedrite, boulangerite, pyrargyrite, argentite, stromeyerite, and diaphorite
(Rodriguez et al., 1987)
Artisanal workings are situated at two locations where the Rosario I vein crops out along the
surface. At the Rosario I Mine, a decline follows the vein down approximately 9 – 10 meters.
Approximately 200 meters to the northwest, the Rosario II adit enters the vein from where a
small arroyo crosses the veins. At the Rosario II adit (Rosario I vein), Gustavson observed
normal faulting hosting mineralization (Figure 7-3). Approximately 20 meters south of the
Rosario II mine adit within the arroyo, Gustavson noted a 4 cm wide conjugate E-W striking,
mineralized vein.
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Geological Setting and Mineralization
Figure 7-3 Normal Fault at Rosario II Mine Adit (arrows show direction of movement)
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Geological Setting and Mineralization
(After Soto and Lopez, 2000)
Figure 7-4 Local Geology of the Rosario Project, Rosario Veins
7.3
Property Geology
7.3.1
Mineralization
The mineralization within the Rosario veins is strongly structurally controlled and occurs as
fracture filling of the two normal faults. Mineralization is mostly limited to the veins filling
these faults, although Gustavson did observe one 4 cm wide vein conjugate to the larger Rosario
veins. The Rosario veins, as mapped, strike N55 for approximately 1500 meters. The dip of the
veins is between 45 to 60 degrees SW. Drilling has indicated that the mineralization extends to
depth of 150 meters to 200 meters, limited by the depth of drilling performed (Rodriguez et al.,
1987). Minerals which can be observed macroscopically in the veins are sphalerite, pyrite and
galena with subordinate chalcopyrite, arsenopyrite and hematite in a matrix of quartz and calcite
with epidote and chlorite (Palacios and Arriaga, 1994). Microscopy identified other metallic
minerals including freibergite, tetrahedrite, boulangerite, pyrargyrite, argentite, stromeyerite, and
diaphyrite.
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Geological Setting and Mineralization
Palcios and Arriaga (1994) reported that the alteration within the vein system is propyllitic and
silicic in nature. The propyllitic alteration was observed in drill core, with a halo extending out 5
meters from the vein. Silicification is intense in both the Rosario I and II veins and is evident in
quartz veinlets for several meters above and below the veins.
Figure 7-5 Sulfide Mineralization in Rosario II Mine Adit
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Geological Setting and Mineralization
Figure 7-6 Cross Section Showing Rosario I and Rosario II Veins
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8.
NI 43-101 Technical Report on Resources
Deposit Types
DEPOSIT TYPES
The Rosario Veins at the Rosario Project are vein filled faults defined as mesothermal within
epithermal limits.
Based on fluid inclusion work in quartz and calcite, Palacios and Arriaga (1994) postulated that
the mineralization in the Rosario veins occurred in three stages, the most important of which was
the latest stage in which argentiferous minerals were deposited. The temperatures during deposit
formation were determined using fluid inclusions in quartz and calcite. The third stage occurred
within epithermal temperature ranges between 195 to 262 degrees Celsius with salinity of 12% to
16%. Palacios and Arriaga state that fluid inclusion temperatures indicate that this is a
mesothermal type deposit based on temperatures defined by Lindgren (1933) although based on
the presence of adularia and silver sulfosalts, the Rosario veins more closely resemble an
epithermal deposit.
Within the newly exposed trenches, one of the Rosario Veins can be seen near the site of the
original discovery. (Figure 8-1). The veins can be noted cross cutting the shear fabric of the
shale and sandstone.
Figure 8-1 Rosario Vein Exposed in Trench
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Deposit Types
Based on the proximity to the Charcas deposit, Palacios and Arriaga (1994) consider that the
source of mineralization is most likely related to the same convection heat cell and possibly the
same intrusive body that formed the Charcas deposit.
Deposit types are described in greater detail in Section 7 of this report.
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9.
NI 43-101 Technical Report on Resources
Exploration
EXPLORATION
In 2011 and 2012, Santacruz has advanced the work at the Rosario Project. Core drilling is
described further in Section 10. Other works include:
Geological mapping of 108.5 hectares
35 diamond core holes
76 surface samples
105 lineal meters of trenches crossing the strike of the veins to confirm linear continuity
including
o Zanja 1= 37.00m
o Zanja 2= 30.00m
o Zanja 3= 18.00m
o Zanja 4= 20.00m
These works have allowed the confirmation of continuity of the veins near to the surface. The
trenches and trench mapping are shown in Figure 9-1.
Figure 9-1 Rosario Trench Data
Trenches were developed by cutting through the alluvium using a tractor. Figure 9-2 shows
veining exposed in a trench.
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Exploration
Figure 9-2 Veining in Exploration Trench at the Rosario Prospect
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10.
DRILLING
10.1
Santacruz Drilling
NI 43-101 Technical Report on Resources
Drilling
Santacruz has conducted two drilling campaigns, one in 2011 and one in 2012. The procedures
have been identical between the two campaigns. Both campaigns drilled HQ core and were
drilled by AP Exploration Drilling using a Longyear 44. Nearly all of the samples had
recoveries above 90%.
Drill intercept information for the historical drilling and the 2011 and 2012 campaigns is
contained in Appendix A.
10.2
2011 Drilling
During the initial review of the Rosario Project, Gustavson recommended 10 core holes to test
the CRM data in the heart of the zone. The first 9 holes totaling 1,443.35 meters were completed
in December 2011. The deposit remains open along strike and at depth. Visual evaluation of the
core shows veining and mineralization which correspond to the assay intervals in the core.
Gustavson conducted a second site visit on 6 December 2011.
10.3
2012 Drilling
After completing the drill testing of the core of the Rosario zone in 2011 and starting bulldozer
trenches to expose the top of the veins, Santacruz has drilled an additional 26 holes in 2012.
Assays for these holes were received in November 2012. These holes were spaced along the
length of the properties and covering the volume drilled earlier by CRM within the Rosario
property.
Mr. Patrick Daniels made a third site visit to Rosario on November 27, 2012. During his visit
Mr. Daniels reviewed drill core, and rock quality designation (RQD) data, examined
mineralization in the core and trenches, visited 10 drill collars from the two new programs,
observed development of roads, a power line, and other infrastructure works on site.
These holes have supported both the grades and structures seen in the historical drilling. Figure
10-1 shows the location of these two campaigns relative to historical drilling.
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Drilling
Figure 10-1 Drill Hole Locations by Campaign
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Drilling
11.
SAMPLE PREPARATION, ANALYSES, AND SECURITY
11.1
Drilling 2011-2012
Sample preparation for the Santacruz drilling program consisted of a Santacruz geologist
supervising the removal of the core and labeling the boxes as the core is collected at the drill.
The core is then rinsed with water to remove extraneous matter, and washed with detergent and
rinsed if lubricants from the drilling are present.
Core is marked with wax crayons, color coded according to the mark as it is logged.
Blue
(Depth (m)
Red
Black
Yellow
Sample Intervals
Contacts
Structures
Core is logged for lithology and mineralization. The intervals marked for assay are controlled
between a minimum of 0.20m and 1.20m of length. Labels are entered to correspond to the
numbering in the sample log book. Insertion of control samples has been previously noted in the
log for each hole and these are inserted in the process.
Core is then photographed, and intervals designated to sample are cut with a diamond saw and
bagged with labels corresponding to the log inside the bag and written on the bag with indelible
marker. Prior to shipping the sample is crushed and split to an appropriate sample weight.
Coarse rejects are kept on site. Samples are sent to ALS Chemex in Zacatecas for preparation
with final assaying performed by ALS at their facility in Vancouver. Chemex is an independent
commercial laboratory with ISO 9001:2000 certification.
In addition to the samples for assay, three types of control samples are places in the sample
stream, duplicates, blanks, reference standards. The insertion and analysis of these samples is
discussed in Section 12.
Figure 11-1 shows drill core of a vein intercept from hole AP-08 drilled in late 2011.
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Drilling
Figure 11-1 Drill Core from Hole AP-08
Nearly all of the previously drilled area is now covered by 2011-2012 holes which have been
subject to the procedures described in Section 10. The historical data is being used in
conjunction with the modern data to produce a mineral resource estimate.
11.2
Verification of the Quality Control Program 2011
The quality control program as described by Santacruz consisted of blanks, duplicates and
standard reference materials. These were to be inserted one of each, in each 20 samples sent to
the labs. This quantity was exceeded and at least one of each was included with each drill hole
although not all intervals were included including 9 blanks, 12 standards and 12 duplicates in the
9 holes drilled in 2011. None of the blanks exceeded the expected values and only one of the
duplicates exceeded the expected difference for several metals. The standard reference materials
only included values for gold and silver and these were never outside of 2 standard deviations
from the expected value. Figures 11-2 and 11-3 show the assays received for the standard
reference samples compared to the accepted values.
Out of specification control samples have been sent for reassay, however these results have not
yet been received. Gustavson is of the opinion that this low percentage of assay errors does not
present a material impact to this resource estimate. As soon as the re-assay values are received
these will be corrected.
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Drilling
Standard-1 (Au)
Au (gr/ton.)
1.55
1.50
1.45
1.40
1.35
1.30
1.25
1.20
1.15
1.10
1
2
3
4
5
6
7
8
9
10
11
12
ALS Chemex Labs 1.35 1.38 1.45 1.40 1.34 1.38 1.40 1.43 1.42 1.45 1.42 1.31
STD Valor Real
1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38 1.38
+3SD
1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500
-3SD
1.260 1.260 1.260 1.260 1.260 1.260 1.260 1.260 1.260 1.260 1.260 1.260
-2SD
1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300
+2SD
1.460 1.460 1.460 1.460 1.460 1.460 1.460 1.460 1.460 1.460 1.460 1.460
Figure 11-2 Comparison of Gold Assay Values to Standard Material 2011
Standard-1 (Ag)
14.00
Ag (gr/ton)
12.00
10.00
8.00
6.00
4.00
2.00
0.00
1
2
3
4
5
6
7
8
9
10
11
12
ALS Chemex Labs. 10.00 9.00 8.00 11.00 10.00 12.00 9.00 10.00 10.00 9.00 10.00 10.00
STD Valor Real
10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
+3SD
13.09 13.09 13.09 13.09 13.09 13.09 13.09 13.09 13.09 13.09 13.09 13.09
-3SD
6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91
+2SD
12.06 12.06 12.06 12.06 12.06 12.06 12.06 12.06 12.06 12.06 12.06 12.06
-2SD
7.94 7.94 7.94 7.94 7.94 7.94 7.94 7.94 7.94 7.94 7.94 7.94
Figure 11-3 Comparison of Silver Assay Values to Standard Material 2011
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Drilling
Silver
120
100
80
60
40
20
0
0
100
200
300
400
500
600
700
Figure 11-4 Comparison of Duplicate Silver Assays 2011
Figures 11-5 through 11-7 show the comparison of duplicate assays in the 2011 drilling
campaign. Only one silver, and one gold assay were out of compliance and these were in the
same sample.
Comparison of Duplicate Lead
Assays
3.5
3
2.5
2
1.5
1
0.5
0
0
0.5
1
1.5
2
2.5
3
Figure 11-5 Comparison of Duplicate Lead Assays 2011
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Drilling
Comparison of Zinc Duplicate
Assays
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
0
1
2
3
4
5
Figure 11-6 Comparison of Duplicate Zinc Assays 2011
Comparison of Gold Duplicate
Assays
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
Figure 11-7 Comparison of Duplicate Gold Assays 2011
11.3
Verification of the Quality Control Program 2012
The 2012 drilling program used a purchased standard from RockLabs. The results are shown in
Figures 11-8 through 11-10.
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Drilling
Although one of the gold blanks was slightly elevated with a value of 0.03 rather than 0.005ppm.
This batch of samples should be sent for reassay. Out of 29 duplicate samples submitted, two of
the silver duplicates and one of the gold duplicates exceeded the expected difference. The
standard reference materials only included values for gold and silver. Of these 31 samples only
one gold value was outside of 3 standard deviations of the expected value.
Although these control failures should be presented to ALS for reassay, Gustavson considers the
low assay error rate to not have a material impact for the estimation of a mineral resource. When
the re-assay values are received they will be corrected in the database.
Estandar SP49 Ag
80.00
70.00
Ag (gr/ton)
60.00
50.00
40.00
30.00
20.00
10.00
0.00
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
ALS Chemex Labs. 60. 62. 64. 58. 67. 56. 59. 61. 65. 61. 64. 56. 60. 56. 66. 61. 60. 58. 62. 63. 65. 58. 58. 59. 57. 62. 57. 58. 66. 60. 63.
STD Valor Real
60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60. 60.
Limite Sup.
70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70
Limite Inf.
51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51 51
Figure 11-8 Comparison of Silver Assay Values to Standard Material 2012
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Drilling
Estandar SP49 Au
25.00
Au (gr/ton.)
20.00
15.00
10.00
5.00
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
ALS Chemex Labs 18 18 18 18 17 17 18 18 18 18 18 18 18 18 18 18 18 18 18 18 8. 18 18 18 18 18 18 17 18 18 18
STD Valor Real
18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18
Limite Sup.
23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23
Limite Inf.
13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13
Figure 11-9 Comparison of Gold Assay Values to Standard Material 2012
Silver Duplicate Assays 2012
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Figure 11-10 Comparison of Duplicate Silver Assays 2012
December 19, 2012
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Drilling
Gold Duplicate Assays 2012
1.4
1.2
1
0.8
0.6
0.4
0.2
0
0.000
0.200
0.400
0.600
0.800
1.000
1.200
1.400
Figure 11-11 Comparison of Duplicate Gold Assays 2012
Nine samples have been sent for metallurgical analysis. The assays of parts of these samples
appear to have a bias from the values received from ALS Chemex. The scatter plots are shown
in Figures 11-12 and 11-13
60
Silver Assays (ppm)
50
ALS Chemex
40
30
20
10
0
0
10
20
30
40
50
60
Inst. Metalurgico
Figure 11-12 Comparison of ALS Chemex and Metallurgical Assays for Silver
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Drilling
8.00
Gold Assays (ppm)
7.00
6.00
ALS Chemex
5.00
4.00
3.00
2.00
1.00
0.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Inst Metalurgico
Figure 11-13 Comparison of ALS Chemex and Metallurgical Assays for Gold
Based on these graphs, the silver assays from ALS may have a slightly low bias, and that the
gold assays from ALS have a low bias. Reviewing reports from the CRM shows that in part of
the deposit, extra pulverization was needed to correctly assay gold values. It is hypothesized that
gold in this part of the deposit is encapsulated in pyrite and the normal sample preparation is
inadequate for correct gold assays. Mineralogical studies are in process to assist in identifying
the issue.
Santacruz has requested that ALS re-pulverize and re-assay the samples from the 2012 drilling.
Gustavson cannot judge from the 9 samples presented if this effect is statistically significant, or
not, but believes that it is prudent to re-assay these samples. Any error caused by this problem
would result in an underestimation of gold values and possibly the silver values in the mineral
resource estimate. Values of lead and zinc are unaffected. Gustavson judges that the re-assay
and mineralogical analysis are prudent steps, and this is not material at this stage of the resource
estimate. The only consequence is a potential conservative value for estimated gold grades.
11.4
Historical Data
These data have been confirmed by the twinned and closely spaced holes in the 35 new holes in
2011 and 2012 campaigns. The new intercepts coincide closely with the 3-dimensional model of
the veins. The assays and geology as provided correlate exactly with the field observations
including collar locations. Gustavson is of the opinion that it is reasonable to use the earlier assay
data in this study, since it is now supported over the length of the known deposit by the
2011/2012 drilling.
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12.
NI 43-101 Technical Report on Resources
Data Verification
DATA VERIFICATION
Gustavson has audited the quality control program for both 2011 and 2012, and the resulting data
as described in Section 11. Gustavson has also reviewed the assay certificates from the 2011 and
2012 drilling programs. A small number of data entry errors were found and corrected.
Gustavson considers the data adequate for estimation of a mineral resource.
12.1
Field Check Samples
During the site visit on May 10, 2010, Gustavson collected two near surface samples to verify
the presence of mineralization. Sample R1-U was taken out of the underground working in the
Rosario vein from the hanging wall of the vein approximately 9 meters underground. Sample
420-1 was taken from a small 6 cm wide vein outcrop in the arroyo that runs sub parallel to the
Rosario I vein approximately 20 meters south of the Rosario 2 Mine (Rosario Vein I outcrop). At
the time of the initial visit the structures were only exposed and safely accessible at these two
locations. Both were sampled.
These samples were transported to Colorado with chain of custody maintained by Gustavson.
Each sample was hand split and delivered to Hazen Research Inc. in Golden, Colorado for
geochemical testing for gold, silver, lead and zinc. Fire assay method with gravimetric finish
was used to test for gold and silver. Lead and zinc were tested using Atomic Absorption.
Sample RU-1 was from the inclined shaft on the Rosario vein and Sample 420-1 from an outcrop
in an arroyo about 20m from the shaft. These samples confirm the presence of mineralization, as
shown in the cross sections and reports. Table 12-1 contains the assay results.
Table 12-1 Confirmation Samples of Mineralization
Sample #
Au ppm
Ag ppm
Pb %
Zn %
R1-U
0.479
96.00
1.79
0.344
420-1
ND
3.43
0.054
0.026
During the site visit on December 6, 2011 Santacruz had developed bulldozer trenches exposing
the veins at 2 new locations. Gustavson collected two additional samples from these trenches.
The samples were transported to Colorado with chain of custody maintained by Gustavson and
delivered to ALS Chemex in Reno Nevada for assay. Gold and silver were fire assayed and the
base metals assayed by Atomic Absorption. Sample R-12-11-A and Sample R-11-12-B were
from a vein exposure near the inclined shaft. Table 12-2 shows the assays of the 2011 samples.
Figure 12-1 shows these samples.
Table 12-2 Field Samples 2011
Weight kg
December 19, 2012
Au (ppm)
Ag (ppm)
Pb (ppm)
Zn (ppm)
R-12-11A
1.74
0.07
54
2300
4840
R-12-11B
1
<0.05
<5
283
365
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Data Verification
Figure 12-1 Field Samples Taken in 2011
Gustavson considers that this data is adequate for the estimation of a mineral resource as
described in this Technical Report.
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Mineral Processing and Metallurgical Testing
13.
MINERAL PROCESSING AND METALLURGICAL TESTING
13.1
Current Process Testwork
Metallurgical testing is in process through a lab connected with the Autonomous University of
San Luis Potosi (UASLP) which has a highly respected metallurgy department. When this work
is complete it will be included in a pre-feasibility study.
Based on preliminary testing and knowledge of other mining operations in the Charcas area,
Santacruz has purchased a used mill and started construction of this facility. Gustavson has not
reviewed or approved the planning for this work.
The proposed plant will process up to 500 tonnes/day of material to produce two concentrates, a
lead concentrate and a zinc concentrate. Additional metallurgical work and lab tests are needed
to determine the recovery of each of the metals, to determine the grade of the concentrate, and to
determine if the concentrate will be saleable. Gold and silver may be present in each of the
concentrates impacting the value of the concentrate, and affecting deductions.
13.2
Historical Process Testing
Summary reports document that four metallurgical tests were performed in the 1980’s to prove
that the sulfide mineralized material is amenable to flotation processing. The recovery rates
provided in Table 13-1 are from the sulfide flotation testing in 1987 completed by Fidecomiso de
Fomento Minero (FFM) (Mining Development Trust). Other testing at the University of
Guanajuato (1987) also indicated that metals are recoverable through differential flotation.
Differential floatation is the most probable process for this mineralized material. The summary
of the work performed at the University of Guanajuato was provided to offer insight until
definitive test work can be completed; sensitivity studies were performed on the economic model
changing the recovery rates of the metals. Table 13-1 shows the recovery rates from the 1987
FFM study.
Table 13-1 Metal and Recovery Rates
December 19, 2012
Metal
Recovery
Gold
71.6%
Silver
91.5%
Lead
97.6%
Zinc
31.3%
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NI 43-101 Technical Report on Resources
Mineral Processing and Metallurgical Testing
Historical Flotation Test Work
Though there are references to two metallurgical tests, one for a single sulfide concentrate and
one using differential flotation to produce both a lead and a zinc concentrate, the only results
available were for the single concentrate. Recoveries on ores assumed to be similar from the
nearby Charcas mine exceed the recoveries from previous testing, possibly due to reagents that
were not available in the early 1990’s.
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14.
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
MINERAL RESOURCE ESTIMATE
The mineral resource statement for the Rosario Project is effective as of December 1, 2012 and
was completed by Zachary J. Black, E.I.T, Associate Geological Engineer, under the supervision
of Donald E. Hulse, Qualified Person. This mineral resource estimate is made prepared in
accordance with NI 43-101 and CIM.
14.1
Data Used in Resource Estimation
Drill data for the Rosario Project has been collected and provided to Gustavson as three separate
phases. The historical data was provided as Microsoft Excel files supported by a series of
scanned documents detailing 70 drill holes in cross section, long section, and on surface maps.
Gustavson evaluated each document for relevant information to construct a historic drill hole
database. All information was cross checked with one of the sectional or plan view maps
provided.
For the 2011 and 2012 drilling campaigns, Santacruz provided drill hole data, including collar
coordinates, down hole surveys, and sample assay as Microsoft Excel sheets. The geologic logs
from 9 drill holes were provided to Gustavson as scanned documents containing the lithology
and alteration interpretations. The final compiled Rosario Project drill hole database contains
assay data with gold and silver grades in ppm, and lead and zinc grades in percent for 105 drill
holes (35 Santacruz and 70 Historic). Santacruz also provided Gustavson with AutoCAD cross
sections of the drill holes with interpreted veins. Gustavson is of the opinion that the data
provided is adequate for the preparation of a resource estimate.
14.2
Geologic Modeling
Mineralization at Rosario has been identified within two strongly structurally controlled veins
occurring as fracture filling between two normal faults. Mineralization is mostly limited to the
veins, although a few assay intervals indicate that additional vein sets may exist in the project
area. The Rosario veins, as mapped, strike approximately N55W for approximately 1,500
meters. The veins dip between 45 to 60 degrees to the SW. Drilling demonstrates that the veins
extend down dip 150 to 200 meters with average true thicknesses of 1.07 and 1.23 meters in
Rosario I and II, respectively. Gustavson used the plan maps and sectional views to construct the
two veins in Leapfrog 3D geologic modeling software (Figure 14-1).
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Mineral Resource Estimate
Figure 14-1 Cross Section of Rosario Veins
14.3
Estimation Methodology
To constrain the grade estimation, Gustavson created a rotated 2 dimensional grid model for each
of the two Rosario veins. This grid model enabled better controls for variography and estimation
of the veins. This model was transferred into normal space for graphic display purposes.
14.3.1
Mineral Domains
The individual sample assays within the modeled vein boundaries were selected and coded as
Rosario I or II. The data inside of the Rosario I or Rosario II veins were composited and
statistically analyzed by Gustavson.
14.3.2
Compositing
The vein assays were composited into a single intercept and the true thickness was calculated
assuming the veins strike N55W and dip 50 degrees to the southwest.
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14.3.3
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
Capping
Capping is the practice of replacing any statistical outliers with a value from the assumed sample
distribution. This is done statistically to better understand the true mean of the sample
population. The estimation of a highly skewed grade distribution can be sensitive to the presence
of even a few extreme values. Gustavson utilized a log scale Cumulative Frequency Plots (CFP)
of the gold, silver, lead, and zinc true thickness composites to identify the presence of any
statistical outliers within each vein. By accepting the statistical assumption that the assay sample
distribution is log normal, one can fit a lognormal model to the distribution. The point at which
data are no longer aligned with the model represents potential statistical outliers. The CFPs for
silver in Rosario I and II are presented below in Figures 14-2 and 14-3, respectively. Gustavson
capped the silver composites where the points along the CFP begin to deviate from one another
spatially. Table 14-1 below summarizes the capped maximum value for each metal.
Figure 14-2 Cumulative Frequency Plot - Rosario Vein I
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Mineral Resource Estimate
Figure 14-3 Cumulative Frequency Plot - Rosario Vein II
Table 14-1 Grade Capping Values by Vein
Vein
Gold (gpt)
Silver (gpt)
Lead (%)
Zinc (%)
14.3.4
I
4.0
600
5.0
7.0
II
5.2
1000
5.0
10.5
Statistical Analysis
Summary statistics for the two Rosario veins are shown in Tables 14-2Error! Reference source
ot found. and 14-3 below.
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Table 14-2 Rosario Vein I Statistics
Rosario Vein 1 Descriptive Statistics
Metal
Missing
No.
Minimum
Maximum
Mean
Variance
Std. Dev.
COV
Gold
14
73
0.003
4.000
0.695
0.633
0.796
1.14
Silver
12
75
1.0
2385.0
154.8
116925.0
341.9
2.21
Lead
18
69
0.01
9.18
1.09
3.52
1.88
1.73
Zinc
14
73
0.01
21.75
2.24
10.85
3.29
1.47
Thickness
12
75
0.24
2.96
1.03
0.47
0.68
0.66
Rosario Vein 1 Capped Descriptive Statistics
Metal
Missing
No.
Minimum
Maximum
Mean
Variance
Std. Dev.
COV
Gold*
14
73
0.003
4.000
0.695
0.633
0.796
1.14
Silver
12
75
1.0
600.0
121.8
34512.0
185.8
1.53
Lead
18
69
0.01
5.00
1.00
2.60
1.61
1.61
Zinc
14
73
0.01
7.00
1.94
4.62
2.15
1.11
Thickness
12
75
0.24
2.96
1.03
0.47
0.68
0.66
Table 14-3 Rosario Vein II Statistics
Rosario Vein 2 Descriptive Statistics
Metal
Missing
No.
Minimum
Maximum
Mean
Variance
Std. Dev.
COV
Gold
17
58
0.001
5.200
0.752
0.973
0.986
1.31
Silver
17
58
1.0
2832.0
277.5
294969.0
543.1
1.96
Lead
21
54
0.01
15.41
1.46
6.84
2.62
1.79
Zinc
17
58
0.01
15.35
7.95
24.02
4.90
0.62
Thickness
17
58
0.22
3.03
1.23
0.55
0.74
0.60
Rosario Vein 2 Capped Descriptive Statistics
14.4
Metal
Missing
No.
Minimum
Maximum
Mean
Variance
Std. Dev.
COV
Gold*
17
58
0.001
5.200
0.752
0.973
0.986
1.31
Silver
17
58
1.0
1000.0
207.2
90790.0
301.3
1.45
Lead
21
54
0.00
5.00
1.04
1.81
1.35
1.30
Zinc
17
58
0.01
10.50
3.20
10.87
3.30
1.03
Thickness
17
58
0.22
3.03
1.23
0.55
0.74
0.60
Methodology
A two dimensional grid model was created for the area covering the Rosario veins. The
composites for each vein were translated and rotated to a horizontal, north-south orientation from
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normal space and the original coordinate system for grade estimation. Composite point relative
separation was maintained from the original UTM WG84 survey system. The model was built
and grades estimated using MicroModel software.
14.4.1
Model Parameters
The grid model was defined to include all drilling within and around the Rosario deposit.
Composite sample points for each vein were rotated and translated in three steps using Microsoft
excel. First each sample was pressed to a plane striking N55W and dipping 50 degrees to the
southwest. The rotation was accomplished by translating the plane with an origin at point
(273,653.94, 2,550,004.33, 1819.27) in model space to coordinate (0,0,0) thus performing a
transformation on the composite coordinates. The plane was then rotated around the z-axis 55
degrees to true north and then around the y-axis to vertical. The grid model space is defined as
follows (Table 14–4):
Table 14-4 Grid Model Definition
Vein
Rosario I
Rosario II
X
Y
Z
X
Y
Z
Minimum
0
0
0
0
150
-20
Maximum
1
1190
600
1
1920
580
Cell size
1
10
10
1
10
10
14.4.2
Topography
Topography used in the model extracted from an AutoCAD drawing file provided by IMS.
Topography was based on a survey performed by the National Institute of Statistics and
Geography (INEGI) of Mexico. Data were provided by IMS as both three dimensional contour
lines and as a triangular mesh or wireframe. Grid modeled topography was used to truncate the
vertical extent of the vein grid model.
14.4.3
Grade Model
Grades for gold, silver, lead and zinc were estimated using the composite grades and the true
thickness of each vein. A total of five estimates were made for each vein. These are shown in
Table 14-5:
Table 14-5 Estimation Methods
Method
Power
Variable
Inverse Distance
2
Gold
Inverse Distance
2
Silver
Inverse Distance
2
Lead
Inverse Distance
2
Zinc
Inverse Distance
3
True Thickness
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Mineral Resource Estimate
Each of the metals and the true thickness were modeled using an inverse distance algorithm with
an isotropic distance of 150m or roughly twice the average drill spacing. The estimate was
completed using between two and five samples with a minimum of two drill holes required.
Each vein was estimated independently using only samples from the vein being estimated.
14.4.4
Bulk Density
64 density measurements were taken in eight distinct rock types in 2011, and 188 measurements
were taken in 2012. The densities are presented in Table 14-6. Although pure sulfide veins are
slightly denser, Gustavson has accounted for vugs and alteration with an average in-place density
of 3.0t/m3 for all vein material below topography.
Table 14-6 Density by Lithology
Description
14.5
2011
2012
Number
Density
Number
Density
Sandstone
13
2.55
80
2.54
Shales
11
2.56
75
2.59
Veins (with sulfides)
10
3.16
25
3.11
Sandstone Breccia
5
2.67
2
2.75
Qtz Vein
9
2.77
6
2.66
Vein with lead and zinc
5
2.95
Chlorite (Chlorite Alteration)
1
2.84
Altered Sandstone/Shale
3
2.74
5
2.44
Model Checks
The model was validated by evaluating the blocks against actual drill hole assay data to
determine if the estimated blocks fit the grades of the respective vein. Rotated long-sections
looking southwest displaying the block model silver content with the associated composite data
are presented in Figures 14-4 and 14-5.
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Mineral Resource Estimate
Figure 14-4 Long Section Looking SW - Vein I
Figure 14-5 Long Section Looking SW - Vein II
A swath plot is a graphical display of the grade distribution derived from a series of bands, or
swaths, generated in several directions through the deposit. Grade variations from the inverse
distance model (capped and uncapped) models are compared using the swath plot to the
distribution derived from the nearest neighbor grade model.
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Mineral Resource Estimate
On a local scale, the nearest neighbor model does not provide reliable estimations of grade, but
on a much larger scale, it represents an unbiased estimation of the grade distribution based on the
total data set. Therefore, if the inverse distance model is unbiased, the grade trends may show
local fluctuations on a swath plot, but the overall trend should be similar to the polygonal
distribution of grade.
Swath plots have been generated for the gold, silver, lead, zinc, and true thickness distributions
in the model to show the comparison between a nearest neighbor estimate, and estimates made
with capped and uncapped metal grades (Figures 14-6 through 14-10). All estimation models
correlate well with one another. Deviations tend to occur for two reasons. First, reduced tonnage
near the edges of the deposit accentuates the differences in grade between models. Second,
differences in grade are more apparent in the lower-grade areas, which typically represent the
edges of the deposit where the drilling density is sparse.
Gold Swath Plot South To North
3
Average Gold (ppm)
2.5
2
1.5
NN
1
ID Uncapped
0.5
0
2550000
2550500
2551000
2551500
Northing
Figure 14-6 Gold Swath Plot Vein II
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Mineral Resource Estimate
Silver Swath Plot South To North
400
Average Silver (ppm)
350
300
250
200
NN
150
ID Uncapped
100
ID Capped
50
0
2550000
2550500
2551000
2551500
2552000
Northing
Figure 14-7 Silver Swath Plot Vein II
Lead Swath Plot South To North
3
Average Lead (ppm)
2.5
2
NN
1.5
ID Uncapped
1
ID Capped
0.5
0
2550000
2550500
2551000
2551500
Northing
Figure 14-8 Lead Swath Plot Vein II
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Mineral Resource Estimate
Zinc Swath Plot South To North
6
Average Zinc (ppm)
5
4
NN
3
ID Uncapped
2
ID Capped
1
0
2550000
2550500
2551000
2551500
2552000
Northing
Figure 14-9 Zinc Swath Plot - Vein II
Thickness Swath Plot South To North
2
Average Thickness (m)
1.8
1.6
1.4
1.2
1
NN
0.8
ID
0.6
0.4
0.2
0
2550000
2550500
2551000
2551500
Northing
Figure 14-10 Thickness Swath Plot - Vein II
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14.6
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
Mineral Resource Classification
The mineral resources at Rosario are classified as measured, indicated, and inferred in
accordance with CIM.
The resource was classified based on the average distance to the two nearest composites. Blocks
were classified as measured if two drill holes completed by Santacruz were within an average
distance of 50m from the block centroid. Blocks were classified as indicated if two composites
from any drill program were within 75m of a block centroid. The remaining estimated blocks
were classified as inferred. The distances, in meters, used to assign classifications are listed in
Table 14-7. These classifications were confirmed by overlaying the classified blocks over the
drill holes in long-section (Figure 14-11) to review that the criteria were appropriate.
Table 14-7 Resource Classification Criteria
December 19, 2012
Domain
Measured
Indicated
Inferred
No. Santacruz Holes
2
1+
1+
No. Historical Holes
0
1+
1+
Minimum
2
2
2
Distance (m)
50
75
150
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Mineral Resource Estimate
Figure 14-11 Long Section Showing Resource Classification
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14.7
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
Mineral Resource Statement
Gustavson estimated this mineral resource estimate effective on 1 December 2012. The cutoff
for resource reporting is based on underground vein mining with long hole or shrinkage stoping
with milling and flotation. Gustavson has assumed similar metallurgical recoveries for all
metals. Gustavson is reporting the resources at a silver equivalent cutoff of 75g/t. The silver
equivalent (AgEq) calculation is described after the resource tables which follow.
Table 14-8 Rosario I Vein Mineral Resource Estimate
Rosario Vein 1 Measured Resources
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
Silver Equivalent
gpt
k-oz
gpt
Gold
oz
gpt
Silver
k-oz
pct
Lead
lbsx1000
pct
Zinc
lbsx1000
100
107.2
0.95
375
1,292.2
0.970
3,343
175.4
604.6
1.34
3,162.0
2.89
6,831.5
75
126.7
1.01
305
1,243.3
0.988
4,025
157.2
640.2
1.21
3,393.1
2.64
7,385.4
50
137.2
1.01
288
1,272.6
0.970
4,279
146.9
648.1
1.15
3,477.8
2.48
7,514.7
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
gpt
k-oz
gpt
oz
gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
323.5
0.83
320
3,323.9
0.961
9,993
164.5
1,710.4
1.35
9,637.4
2.83
20,181.0
75
408.4
0.85
273
3,579.4
0.904
11,873
136.0
1,785.7
1.14
10,306.5
2.43
21,911.8
50
548.2
0.88
223
3,935.1
0.796
14,036
108.2
1,906.7
0.95
11,540.4
1.99
24,064.2
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
100
431
0.86
75
535
0.88
50
685
0.91
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
Gpt
k-oz
Gpt
Oz
Gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
124.2
0.63
211
844.2
1.022
4,082
86.8
346.8
0.94
2,567.0
1.91
5,242.9
75
164.0
0.73
190
1,001.0
0.995
5,245
74.7
393.6
0.81
2,943.5
1.74
6,276.1
50
273.3
0.86
144
1,265.9
0.872
7,661
52.6
461.9
0.59
3,568.4
1.27
7,653.3
Rosario Vein 1 Indicated Resources
Silver Equivalent
Gold
Silver
Lead
Zinc
Rosario Vein 1 Measured Plus Indicated Resources
Silver Equivalent
gpt
Gold
Silver
Lead
Zinc
k-oz
gpt
Oz
gpt
k-oz
pct
lbsx1000
pct
lbsx1000
4,616.1
0.963
13,335
167.2
2,315.0
1.35
12,799.4
2.84
27,012.5
280
4,822.7
0.924
15,898
141.0
2,425.9
1.16
13,699.6
2.48
29,297.2
236
5,207.7
0.831
18,315
115.9
2.554.8
0.99
15,018.2
2.09
31,578.9
333
Rosario Vein 1 Inferred Resources
December 19, 2012
Silver Equivalent
Gold
65
Silver
Lead
Zinc
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
Table 14-9 Rosario II Vein Mineral Resource Estimate
Rosario Vein 2 Measured Resources
CUTOFF
TONNAGE
Thickness
Silver Equivalent
Gold
Silver
Lead
Zinc
gpt
k tonne
m
gpt
k-oz
gpt
oz
gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
141.5
1.21
463
2,106.5
0.901
4,099
266.3
1,211.5
1.15
3,578.4
4.84
15,095.9
75
143.4
1.17
447
2,062.2
0.897
4,137
256.9
1,184.6
1.13
3,559.3
4.62
14,611.1
50
147.2
1.06
410
1,941.2
0.857
4,058
235.2
1,112.9
1.06
3,435.3
4.15
13,457.7
Rosario Vein 2 Indicated Resources
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
Silver Equivalent
gpt
k-oz
Gpt
Gold
Oz
gpt
Silver
k-oz
pct
Lead
lbsx1000
pct
Zinc
lbsx1000
100
290.8
1.15
362
3,380.5
0.863
8,073
209.3
1,956.5
1.28
8,214.4
2.99
19,197.0
75
302.6
1.10
345
3,351.3
0.852
8,286
198.6
1,932.5
1.22
8,123.7
2.82
18,778.6
50
315.9
0.95
316
3,205.7
0.832
8,453
182.9
1,857.6
1.10
7,649.1
2.46
17,167.2
CUTOFF
TONNAGE
Thickness
gpt
tonne
m
gpt
Oz
Gpt
Oz
gpt
Oz
pct
lbsx1000
pct
lbsx1000
100
432
1.17
395
5,487.0
0.965
12,172
227.9
3,168.0
1.24
11,792.7
3.60
34,292.9
75
446
1.12
378
5,413.5
0.955
12, 423
217.4
3,117.1
1.19
11,683.0
3.40
33,389.7
50
463
0.98
346
5,146.9
0.926
12,511
199.5
2,970.5
1.09
11,084.4
3.00
30,624.9
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
Gpt
k-oz
gpt
Oz
Gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
196.2
1.01
232
1,462.4
0.677
4,269
110.5
696.9
0.74
3,191.3
2.72
11,756.0
75
222.2
0.99
213
1,521.8
0.673
4,807
102.4
731.9
0.67
3,262.8
2.37
11,598.0
50
238.3
0.89
198
1,514.1
0.658
5,039
94.7
725.1
0.63
3,300.1
2.12
11,161.8
Rosario Vein 2 Measured Plus Indicated Resources
Silver Equivalent
Gold
Silver
Lead
Zinc
Rosario Vein 2 Inferred Resources
December 19, 2012
Silver Equivalent
Gold
66
Silver
Lead
Zinc
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
Table 14-10 Total Mineral Resource for Rosario I and II Veins
Rosario Veins 1 and 2 Measured Resources
Silver Equivalent
Gold
Silver
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
gpt
k-oz
gpt
oz
gpt
k-oz
pct
Lead
lbsx1000
pct
lbsx1000
100
249
2.17
425
3,398.7
0.931
7,441
227.1
1,816.1
1.23
6,740
4.00
21,927
75
270
2.18
381
3,305.5
0.940
8,162
210.1
1,824.8
1.17
6,952
3.69
21,997
50
284
2.07
351
3,213.8
0.912
8,337
192.6
1,761.0
1.10
6,913
3.34
20,972
CUTOFF
TONNAGE
Thickness
Rosario Veins 1 and 2 Indicated Resources
Silver Equivalent
Gold
Silver
Zinc
Lead
Zinc
gpt
k tonne
m
Gpt
k-oz
Gpt
Oz
Gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
614
1.98
339
6,704.4
0.915
18,066
185.7
3,666.9
1.32
17,852
2.91
39,378
75
711
1.95
303
6,930.7
0.882
20,159
162.7
3,718.2
1.18
18,430
2.60
40,690
50
864
1.83
257
7,140.8
0.809
22,488
135.5
3,764.3
1.01
19,190
2.16
41,231
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
Gpt
k-oz
Gpt
Oz
Gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
863
2.03
364
10,103.1
0.919
25,508
197.6
5,483.0
1.29
24,592
3.22
61,305
75
981
2.01
325
10,236.2
0.898
28,320
175.7
5,543.0
1.17
25,383
2.90
62,687
50
1,149
1.89
280
10,354.6
0.835
30,825
149.6
5,525.3
1.03
26,103
2.46
62,204
CUTOFF
TONNAGE
Thickness
gpt
k tonne
m
Gpt
k-oz
Gpt
Oz
Gpt
k-oz
pct
lbsx1000
pct
lbsx1000
100
320
1.64
224
2,306.6
0.811
8,351
101.3
1,043.7
0.82
5,758
2.41
16,999
75
386
1.72
203
2,522.8
0.810
10,053
90.6
1,125.5
0.73
6,206
2.10
17,874
50
512
1.75
169
2,780.0
0.772
12,699
72.2
1,187.0
0.61
6,869
1.67
18,815
Rosario Veins 1 and 2 Measured Plus Indicated Resources
Silver Equivalent
Gold
Silver
Lead
Rosario Veins 1 and 2 Inferred Resources
Silver Equivalent
Gold
Silver
Zinc
Lead
Zinc
Note: Mineral resources which are not mineral reserves do not have demonstrated economic viability. The quantity and grade of
inferred resources reported herein are uncertain in nature and exploration completed to date is insufficient to define these mineral
resources as indicated or measured. There is no guarantee that further exploration will result in the inferred mineral resources being
upgraded to an indicated or measured mineral resource category.
*AgEq is the silver equivalent in ppm used to calculate the cutoff. The silver equivalent was
calculated with the following equation:
AgEq= (Ag *Pag/31.1035)+ (Pb*Ppb*22.05)+(Zn*Pzn*22.05)+(Au*Pau/31.1035)
(Pag)
Where:
AgEq
Grade
Units
g/t
Silver
Ag
g/t
26.28 $/tOz
Pag
Gold
Au
g/t
1,341.00 $/tOz
PAu
Lead
Pb
%
0.9988 $/lb
Pcu
Zinc
Zn
%
0.9531 $/lb
Pzn
Metal
Silver Eq
Symbol
Price
Price
Symbol
* The calculation assumes equal recoveries in all metals pending further metallurgical work.
December 19, 2012
67
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Mineral Resource Estimate
The grades for copper, lead, and zinc are multiplied by each metal's three year
trailing average price.
The quantity and grade or quality is an estimate and is rounded to reflect the fact that
it is an approximation.
December 19, 2012
68
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Environmental Studies Permitting & Social or Community Impact
15.
ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR
COMMUNITY IMPACT
15.1
Environmental Liabilities
There are no existing environmental liabilities. The land has always been used for agriculture
and grazing, and Gustavson knows of no environmental issues that could materially impact the
issuer’s ability to extract mineral resources from the Rosario property.
15.2
Other Permits
San Luis Potosi has a number of operating mines, and the procedures for permitting and
operation are well established. Santacruz has all of the permits necessary for the operation of the
project, except the permit for purchase and use of explosives which is pending.
On May 16, 2012, Santacruz received approval for their environmental impact statement (MIA).
This document establishes operation and closure requirements for the Rosario Project.
Gustavson has reviewed this and determined that the requirements are typical of all mines in
Mexico. Only one condition is not common to all mines and that is the creation of a botanical
conservation area for two protected species of flora found at the site, the maguey and the
bisnaga, two succulents native to northern Mexico and the Chihuahua Desert which extends into
the southern U.S.
Santacruz has also received approval for the Land Use Change (CUS). Based on this Santacruz
has posted a reclamation bond for the construction of the mine.
Santacruz has conducted hydro-geologic studies for construction, operation, and process water.
The aquifer in the area is not restricted and water rights are available, thus no permit for pumping
is required, however Santacruz will be required to file water consumption reports with the
National Water Commission (CNA). Santacruz has initiated the construction of two process
water wells and a pipeline.
December 19, 2012
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Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Environmental Studies Permitting & Social or Community Impact
Table 15-1 Permits for Construction and Operation
Permit
Agency
Date Granted
Expiration
Environmental Impact
Statement (MIA)
Secretary of Environment and natural
Resources (SEMARNAT)
16 May 2012
15 May 2045
Risk Analysis (Mining)
SEMARNAT
16 May 2012
N/A
Land Use Change
SEMARNAT and Municipality of Charcas
8 May 2012
N/A
Archaeological Release
Nation Institute of Archaeology and
History (INAH)
February 2011
N/A
Water Well Permit
National Commission of Water (CNA)
18 Oct. 2012
N/A
Construction Permit
Municipality of Charcas
19 Sept. 2012
N/A
Explosives Purchase and
Use Permit
National Defense Secretary (SEDENA)
Pending
1 year Renewable
Reclamation Bond
Fianzas Monterrey
11 Sept. 2012
N/A
December 19, 2012
70
Santacruz Silver Mining Ltd.
Rosario Project
16.
ADJACENT PROPERTIES
16.1
Adjacent Properties
NI 43-101 Technical Report on Resources
Adjacent Properties
The information presented in this section has not been independently verified by Gustavson and
is not necessarily indicative of mineralization with regard to the Rosario Project. The project is
surrounded by claims held by Grupo Mexico (IMMSA). Although other mineral occurrences
were identified in the area surrounding the Rosario veins, none of these intersect the larger San
Rafael claim surrounding the deposit.
The Charcas Mining District has been the focus of exploration and development interest for over
400 years.
IMMSA’s Charcas mine lies approximately 12 kilometers northeast of the Rosario Project site.
The Charcas mine has been classified as a Silver-Lead-Zinc limestone replacement deposit. It
may be temporally or spatially related to the Rosario deposit. The Charcas mine is located on the
eastern flank of the San Rafael anticline in a thick sequence upper Jurassic to lower Tertiary
limestone, mudstone and marl. In the Eocene, this carbonate sequence was intruded by the El
Temeroso intrusive, a granodiorite and rhyolite stock. Faulting and fissures developed upon
solidification of the cooling magma. These fissures and other zones of high permeability
provided conduits for mineralizing fluids, developing fissure filled veins and replacement bodies
along the contact of the marble and the El Temoroso stock. Because the El Temeroso stock
appears to have cooled prior to mineralization, it is not considered to be the source of the
mineralization (Butler, 1972).
December 19, 2012
71
Santacruz Silver Mining Ltd.
Rosario Project
17.
NI 43-101 Technical Report on Resources
Other Relevant Data and Information
OTHER RELEVANT DATA AND INFORMATION
Although the Rosario Project only has mineral resources, Santacruz has made the decision to
invest in the construction of the site. Gustavson was not consulted and the plans have not been
subject to independent technical review.
Santacruz has purchased a mill from Goldcorp Inc.'s Mexican subsidiary, Minera Nukay. The
mill is being constructed for a 500 tonnes/day capacity, although the process area and
foundations are built with space for expansion. Mill site preparations were completed including
leveling of the ground at the mill location and pouring of concrete foundations for both the mill
and the crushing facilities. The mill arrived onsite as scheduled during the second week of
September 2012 and assembly of the mill components including the flotation cells and thickeners
is in process. At the current rate, commissioning of the mill will be complete in the first quarter
of 2013.
In addition, about 200m of the initial ramp has been constructed a few hundred meters west of
the mill facility. Excavation will continue until the rock will withstand the construction of a
portal. This is expected to begin in early 2013.
The decision to commence production at Rosario was 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
prepared in accordance with NI 43-101.
December 19, 2012
72
Santacruz Silver Mining Ltd.
Rosario Project
18.
NI 43-101 Technical Report on Resources
Interpretations and Conclusions
INTERPRETATIONS AND CONCLUSIONS
The new drilling and modeling has supported the estimation of a mineral resource from the drill
data. New metallurgical testing is currently proceeding on Rosario data.
Gustavson believes that the low percentage of assay errors discovered in the QA procedures is
not material to the estimated resource.
Based on the three dimensional correlation between the historical drilling and the 2011 and 2012
drill campaigns, Gustavson believes that it is reasonable to include the earlier assay data in this
study.
Gustavson considers the data adequate for estimation of a mineral resource.
Gustavson knows of no environmental issues that could materially impact Santacruz’s ability to
extract mineral resources from the Rosario property
Due to the results of the new exploration work, Gustavson can now classify the resource to
include some measured and indicated mineral resource as well as inferred.
Risks at this stage will include the ability to successfully mine the narrow dipping veins, and the
ability to recover metals efficiently from the mineral.
December 19, 2012
73
Santacruz Silver Mining Ltd.
Rosario Project
19.
NI 43-101 Technical Report on Resources
Recommendations
RECOMMENDATIONS
Gustavson recommends that Santacruz continue the ongoing exploration works on the project
site. They should also proceed with a pre-feasibility study to better define the project risks and
potential.
Metallurgical testing on composites from each vein is the highest priority and Gustavson has
been informed that it is in process. It is not known when these results will be available. It is
necessary to confirm the recoveries as well as the quality of the concentrates that can be
produced.
Gustavson suggests a series of surface geochemical lines crossing the bodies along strike and
continuing to the southeast. The tendency of grades and thicknesses is increasing in that
direction and there may be potential to increase the high grade resource. Following the geochem
work, at least 5 deep holes should be planned along strike to the SE to examine continued
mineralization.
Drilling appears to successfully confirm the size and grade of the deposit. Gustavson
recommends that a pre-feasibility study be performed to define the project’s economic potential
as well as the project risks. An estimated, one phase budget for metallurgical test work, prefeasibility and infill and step-out drilling is shown in Table 19-1.
Table 19-1 2013 Rosario Exploration Budget 2013
Activity
Estimate
Metallurgical Testing
60,000
Pre-Feasibility Study
400,000
Development Drilling 1000m
300,000
Step Out Drilling – 1000m
300,000
Total
December 19, 2012
$1,060,000
74
Santacruz Silver Mining Ltd.
Rosario Project
20.
NI 43-101 Technical Report on Resources
References
REFERENCES
Butler, James H., 1972, Geology of the Charcas Mineral District, San Luis Potosi, Mexico,
Masters Thesis, Colorado School of Mines, Golden Colorado
Booth, Matthew., 2007, Rosario Mine Project, Internal Report by Arian Silver of Mexico
CONAPO, 2010, Consejo Nacional de Población,
http://www.conapo.gob.mx/index.php?option=com_content&view=article&id=36&Itemid
=234, website accessed on Jun. 18, 2010
Crespo Hernandez, Fransisco, 2004, Geologic Evaluation and Conceptual Economic Analysis,
Charcas Project, Report for Mexican Mineral Resource Council (Spanish), p. 23
GMEXICO, 2010, Grupo México Company history, Grupo México website,
http://www.grupomexico.com/aboutus/en-au01.asp, accessed on June 18, 2010
INAFED, 2010, Instituto Nacional para el Federalismo y el Desarollo Municipal, E-local
website, http://www.e-local.gob.mx/work/templates/enciclo/sanluispotosi/
municipios/24015a.htm , website accessed on Jun. 17, 2010
Palacios Garcia, Raul, 1987, Study of the Geochemical orientation of mercury halos in the NW of
the Rosario I and II veins, Municipality of Charcas, San Luis Potosi, Consejo de Recursos
Minerales, Gerencia Regional Zona Noreste (Mineral Resources Board, Northeast
Regional Management Area)
Palacios Garcia, Raul and Arriaga Melendez, Hilario, 1994, Results of the mining geological
evaluation of the Charcas National Mining Reserve, Municipality of Charcas, San Luis
Potosi, Mexico, Consejo de Recursos Minerales, Gerencia Regional Zona Noreste
(Mineral Resources Board, Northeast Regional Management Area)
Pérez Chacón, Carlos, June 2008, Rosario Mine, Charcas Mining District Summary Report
Reyes Reyes, Noel Arnaldo, January 1985, Works and REsulta obtained en the area of Rosario I
and II Veins – Sep-Dec 1984, Mineral Resource Counsel.
Rodiguez Moreno, Fernando, Cruz Peralta, Manual; Palacio Garcia, Raul; Arnaldo Reyes, Noel;
Barrios H., Manuel, 1987, Synthesis report of the evaluation work on the Rosario vein I
and II for the Charcas Expansion Project, Municipality of Charcas, San Luis Potosi,
Mexico, Consejo de Recursos Minerales, Gerencia Regional Zona Noreste (Mineral
Resources Board, Northeast Regional Management Area)
December 19, 2012
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Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
References
Sánchez Mejorada V, Rodrigo, Sánchez Mejorada, Velasco y Valencia, An Overview of Mining Law in
Mexico, Latin Lawyer, Nov/Dec 2001 pp 61-63; http://www.smvr.com.mx/art3e.htm.
Soto Araiza, Raul Gerardo and Lopez Ojeda, Jose Antonio, 2000, Geologic Mining Map,
Charcas F14-A43, San Luis Potosi, México, Servicio Geologico Mexicano (Mexican
Geologic Service), Secretary of Economy
WWIS, 2010, World Weather Information Service, Weather information for San Luis Potosi,
Mexico, http://worldweather.wmo.int/179/c01297f.htm#climate, website accessed on Jun.
18, 2010
Mining Cost Service, InfoMine 2009
December 19, 2012
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Rosario Project
NI 43-101 Technical Report on Resources
Appendices
APPENDIX A
December 19, 2012
A-1
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
Appendices
Table A-1 Historical Drill Intercepts for Rosario
Azimuth
Dip
X
Y
Z
Length
Recovery
From
To
Width
Au
gr/ton
Ag
gr/ton
Pb %
Zn %
BN-1
BN-1
BN-2
VERTICAL
VERTICAL
N 28° E
-90
-90
-60
273,226.37
273,226.37
273,284.32
2,550,552.84
2,550,552.84
2,550,452.14
2,181.90
2,181.90
2,185.11
236.7
236.7
185.35
83.7
83.7
83.8
106.00
148.85
106.19
106.50
149.85
107.25
0.50
1.00
1.06
0.37
0.15
0.37
222
40
195
5.99
0.03
1.68
4.17
10.70
2.77
BN-2
BN-3
BN-3
BN-4
BN-4
BN-5
N 28° E
VERTICAL
VERTICAL
N 28° E
N 28° E
VERTICAL
-60
-90
-90
-60
-60
-90
273,284.32
273,284.32
273,284.32
273,123.13
273,123.13
273,049.52
2,550,452.14
2,550,452.14
2,550,452.14
2,550,546.50
2,550,546.50
2,550,686.34
2,185.11
2,185.11
2,185.11
2,182.00
2,182.00
2,176.19
185.35
298.35
298.35
200.65
200.65
200.2
83.8
87.7
87.7
83.7
83.7
87.63
167.05
138.20
238.10
117.25
155.80
79.30
169.05
139.20
239.10
118.35
157.05
79.65
2.00
1.00
1.00
1.10
1.25
0.35
2.00
0.00
0.25
0.37
0.98
0.25
563
9
12
30
272
25
0.20
0.10
0.01
0.12
3.40
0.03
1.04
0.35
0.35
10.90
7.28
0.03
BN-5
BN-7
BN-8
BN-8
BN-9
BN-9
VERTICAL
N 32°E
N 28° E
N 28° E
VERTICAL
VERTICAL
-90
-56
-50
-50
-90
-90
273,049.52
272,961.46
273,278.40
273,278.40
273,278.40
273,278.40
2,550,686.34
2,550,747.52
2,550,548.30
2,550,548.30
2,550,548.30
2,550,548.30
2,176.19
2,181.40
2,182.22
2,182.22
2,182.22
2,182.22
200.2
182.3
84.65
84.65
167.2
167.2
87.63
92.4
87.9
87.9
88.71
88.71
98.99
101.18
56.69
73.60
74.62
115.60
100.25
101.68
58.10
74.25
79.00
126.43
1.26
0.50
1.41
0.65
4.38
10.83
2.70
0.35
0.25
0.75
0.35
0.49
20
110
20
72
218
3
0.04
2.40
0.70
1.10
1.03
2.79
0.14
3.10
0.75
1.78
2.42
2.98
BN-10
BN-10
BN-11
BN-11
BN-12
BN-12
N 28° E
N 28° E
VERTICAL
VERTICAL
VERTICAL
VERTICAL
-60
-60
-90
-90
-90
-90
273,368.99
273,368.99
273,368.99
273,368.99
273,325.81
273,325.81
2,550,502.43
2,550,502.43
2,550,502.43
2,550,502.43
2,550,420.74
2,550,420.74
2,181.12
2,181.12
2,181.12
2,181.12
2,185.24
2,185.24
133.2
133.2
155.1
155.1
300.4
300.4
76.53
76.53
89.54
89.54
92.06
92.06
32.50
85.66
41.60
132.31
139.20
256.60
32.95
88.32
44.19
133.34
140.97
257.03
0.45
2.66
2.59
1.03
1.77
0.43
0.15
1.00
1.00
2.70
0.62
0.15
36
401
949
66
249
23
0.75
5.08
8.32
0.90
2.13
0.16
0.02
3.03
6.71
0.18
4.87
0.25
BN-13
BN-13
BN-14
BN-15
BN-16
BN-17
N 28° E
N 28° E
N 28° E
VERTICAL
VERTICAL
N 28° E
-67
-67
-60
-90
-90
-60
273,408.92
273,408.92
273,446.92
273,444.33
273,420.71
273,473.25
2,550,469.03
2,550,469.03
2,550,540.77
2,550,449.39
2,550,405.09
2,550,504.33
2,180.65
2,180.65
2,176.34
2,180.09
2,182.05
2,177.33
161.05
161.05
72.6
89.8
112
100
89.74
89.74
74.58
83.3
83.51
79.2
43.75
139.40
42.70
49.90
87.18
75.47
45.15
140.40
44.35
53.54
91.05
76.55
1.40
1.00
1.65
3.64
3.87
1.08
0.25
1.50
0.29
1.73
3.00
1.00
312
130
433
438
119
565
0.60
0.90
4.20
2.79
0.65
6.65
3.10
21.75
3.70
4.31
1.09
6.30
BN-18
BN-19
BN-19
BN-20
BN-21
BN-23
VERTICAL
VERTICAL
VERTICAL
VERTICAL
N 28° E
N 28° E
-90
-90
-90
-90
-50
-60
273,473.25
273,220.73
273,220.73
273,370.16
273,370.16
273,517.97
2,550,504.33
2,550,612.35
2,550,612.35
2,550,450.46
2,550,450.46
2,550,503.92
2,177.33
2,177.00
2,177.00
2,182.48
2,182.48
2,175.62
142
90.7
90.7
160.9
72.8
98.85
77.27
87.1
87.1
81.14
67.53
71.54
112.55
23.46
55.90
84.30
61.72
70.35
113.87
24.39
58.80
86.15
63.10
71.75
1.32
0.93
2.90
1.85
1.38
1.40
0.88
0.00
1.95
0.25
2.35
0.25
950
12
1,229
150
2,832
154
7.38
0.03
2.53
2.10
15.41
0.50
1.89
0.02
15.24
2.75
15.35
1.65
BN-24
BN-25
BN-25
BN-26
BN-26
BN-27
VERTICAL
N 28° E
N 28° E
VERTICAL
VERTICAL
N 33° E
-90
-45
-45
-90
-90
-45
273,517.97
273,174.71
273,174.71
273,174.71
273,174.71
273,110.24
2,550,503.92
2,550,643.29
2,550,643.29
2,550,643.29
2,550,643.29
2,550,619.73
2,175.62
2,174.24
2,174.24
2,174.24
2,174.24
2,173.00
128.1
66.35
66.35
121.55
121.55
109.8
76.47
76.53
76.53
88.45
88.45
84.03
116.30
25.40
60.25
45.40
88.95
78.78
117.05
26.80
61.45
46.60
90.80
80.50
0.75
1.40
1.20
1.20
1.85
1.72
0.25
0.80
1.60
1.50
2.25
0.80
367
40
2,385
1,121
23
20
2.00
0.45
4.95
0.45
0.25
0.30
5.62
3.32
12.30
4.10
2.54
3.85
BN-27
BN-28
BN-28
BN-29
BN-29
BN-30
N 33° E
VERTICAL
VERTICAL
N 28° E
N 28° E
N 21° E
-45
-90
-90
-80
-80
-70
273,110.24
273,110.24
273,110.24
273,091.58
273,091.58
273,046.26
2,550,619.73
2,550,619.73
2,550,619.73
2,550,658.30
2,550,658.30
2,550,720.66
2,173.00
2,173.00
2,173.00
2,173.11
2,173.11
2,170.76
109.8
170.8
170.8
147.55
147.55
182.5
84.03
85.38
85.38
92.65
92.65
86.63
100.43
107.20
153.60
57.62
100.15
55.83
101.38
109.05
154.00
59.52
102.37
56.25
0.95
1.85
0.40
1.90
2.22
0.42
1.40
0.40
2.20
0.60
0.30
0.00
35
270
12
29
28
10
0.25
3.00
0.35
0.25
0.18
0.33
3.10
3.22
0.50
5.12
4.48
0.60
BN-30
BN-32
BN-33
BN-34
BN-37
BN-38
N 21° E
VERTICAL
N 32°E
VERTICAL
N 32°E
VERTICAL
-70
-90
-45
-90
-60
-90
273,046.26
272,896.55
272,823.74
272,823.74
272,716.77
272,716.77
2,550,720.66
2,550,785.85
2,550,790.78
2,550,790.78
2,550,892.57
2,550,892.57
2,170.76
2,183.32
2,188.19
2,188.19
2,177.51
2,177.51
182.5
194.95
140.35
194.65
189.63
143.65
86.63
94.48
89.09
95.19
94.17
86.22
74.30
114.75
115.70
167.00
94.95
130.90
74.60
115.25
116.72
167.65
96.43
131.30
0.30
0.50
1.02
0.65
1.48
0.40
0.15
3.40
1.50
1.60
0.40
1.72
11
40
43
9
17
63
0.47
0.45
0.25
0.60
0.45
0.64
0.40
0.44
0.50
0.58
0.44
0.70
BN-39
BN-40
BN-42
BN-43
BN-44
BN-45a
N 32°E
VERTICAL
VERTICAL
N 32°E
VERTICAL
VERTICAL
-60
-90
-90
-60
-90
-90
272,810.32
272,810.32
272,650.13
272,659.06
272,659.06
272,650.14
2,550,910.29
2,550,910.29
2,550,915.84
2,550,929.47
2,550,929.47
2,550,915.84
2,180.51
2,180.51
2,180.92
2,181.19
2,181.19
2,180.92
162.1
77.6
85.81
86.4
146.1
139.85
95.32
97.43
128.00
70.55
377.00
109.45
130.70
255.00
128.55
72.10
378.55
111.20
131.45
255.95
0.55
1.55
1.55
1.75
0.75
0.95
0.10
0.90
1.25
0.15
0.60
0.10
12
27
90
13
18
19
0.48
0.52
0.40
0.38
0.40
0.50
0.37
0.59
0.32
0.26
0.23
0.30
BN-46
BN-48
BN-52
BN-54
BN-l
BN-4a
VERTICAL
N 32°E
VERTICAL
N 32°E
VERTICAL
VERTICAL
-90
-60
-90
-65
-90
-90
272,599.27
272,534.18
272,484.27
272,364.98
273,497.90
273,123.13
2,550,966.24
2,550,993.02
2,551,049.17
2,551,132.45
2,550,550.96
2,550,546.50
2,181.19
2,158.09
2,165.51
2,165.04
2,174.38
2,182.00
26.2
278.65
67.14
92.25
143.65
143.90
134.15
200.92
22.25
156.50
144.35
145.75
134.92
202.00
22.8
157.58
0.70
1.85
0.77
1.08
0.55
1.08
0.10
0.13
0.25
0.00
3.00
0.26
21
19
18
15
512
17
0.50
0.55
0.20
0.65
2.3
0.08
0.35
0.15
ind
0.75
2.87
1.80
BN-4a
BN-a
BN-a
BN-b
BN-d
VERTICAL
N 28° E
N 28° E
N 28° E
N 28° E
-90
-55
-55
-50
-60
273,123.13
273,260.87
273,260.87
273,301.55
273,336.25
2,550,546.50
2,550,617.52
2,550,617.52
2,550,592.31
2,550,550.11
2,182.00
2,181.90
2,181.90
2,180.48
2,180.71
278.65
43.33
43.33
43.46
70.31
92.25
91.09
91.09
80.22
85.87
218.70
26.42
36.30
22.1
16.95
223.31
27.12
36.75
22.5
19.6
4.61
0.70
0.45
0.40
2.65
0.24
1.00
0.15
1.00
0.30
22
160
60
535
223
0.08
1.15
0.00
3.1
1.76
0.06
6.72
4.05
2.17
3.81
BN-g
BN-h
BN-j
BN-n
BN-n
BN-ñ
VERTICAL
N 28° E
VERTICAL
N 33° E
N 33° E
N 28° E
-90
-60
-90
-60
-60
-60
273,404.20
273,349.92
273,457.72
273,149.49
273,149.49
273,112.26
2,550,568.08
2,550,575.59
2,550,475.01
2,550,681.54
2,550,681.54
2,550,697.05
2,175.78
2,178.23
2,178.74
2,173.70
2,173.70
2,172.68
50.54
40.1
35.55
49.6
49.6
63
82.73
78.85
75.94
76.13
76.13
91.18
20.58
21.90
14.7
17.35
43.05
19.10
21.84
22.45
15.1
18.65
44.70
20.28
1.26
0.55
0.40
1.30
1.65
1.18
0.15
0.50
0.75
0.20
0.50
0.50
358
764
120
53
63
19
4.85
9.18
1.1
0.30
0.25
0.30
5.55
6.80
3.63
4.50
2.54
1.07
BN-ñ
BN-o
BN-p
BN-q
BN-s
BN-t
N 28° E
N 21° E
N 32°E
N 32°E
N 32°E
N 32°E
-60
-50
-55
-45
-55
-60
273,112.26
273,061.90
272,992.96
272,933.59
272,838.14
272,788.56
2,550,697.05
2,550,762.18
2,550,810.84
2,550,845.80
2,550,954.52
2,551,005.81
2,172.68
2,180.54
2,173.67
2,181.08
2,187.10
2,179.03
63
52.25
50.2
39.65
65.30
65.15
91.18
91.92
87.61
70.36
86.25
90.98
49.80
26.10
37.46
32.10
30.50
21.90
51.00
28.70
38.58
34.25
31.55
22.40
1.20
2.60
1.12
2.15
1.05
0.50
0.20
0.38
4.00
0.33
1.00
0.15
24
12
87
10
14
15
0.25
0.30
0.35
0.37
0.03
0.37
1.75
1.45
1.10
0.43
2.60
0.30
BN-u
BN-v
BN-w
BN-x
BN-y
BN-k
N 32°E
N 32°E
N 32°E
N 32°E
N 32°E
VERTICAL
-55
-60
-60
-60
-60
-90
272,729.34
272,666.29
272,595.11
272,547.95
272,490.60
273,478.59
2,551,043.41
2,551,077.23
2,551,101.30
2,551,151.64
2,551,194.86
2,550,433.71
2,169.51
2,169.77
2,170.25
2,166.54
2,165.41
2,178.60
40.95
39.65
94.84
42.7
91.5
17.80
38.85
21.35
34.20
78.70
35.65
18.05
39.80
23.65
35.10
80.20
36.73
0.25
0.95
2.30
0.90
1.50
1.08
0.60
0.00
0.20
ind
0.00
0.50
35
20
24
17
9
1228
0.43
0.49
0.38
0.20
0.20
3.27
0.25
1.95
0.37
0.12
0.25
5.85
December 19, 2012
A-2
Table A-2 2011 Drill Data for Rosario
Azimuth
Dip
X
Y
Z
Length
Recovery
From
To
Width
AP-1
N 25.8° E
-60.6
273,281.07
2,550,452.22
2185.69
220.50
99.90
114.30
115.35
1.05
Au
gr/ton
0.98
AP-1
N 25.80° E
-60.6
273,281.07
2,550,452.22
2185.69
220.50
99.90
181.05
181.95
0.90
0.99
AP-2
N 28.60° E
-60.8
273,241.88
2,550,485.57
2184.91
224.85
97.37
121.00
121.45
0.45
0.54
AP-2
N 28.60° E
-60.8
273,241.88
2,550,485.57
2184.91
224.85
97.37
166.20
166.90
0.70
0.80
AP-3
N 25.80° E
-62.0
273,286.62
2,550,576.26
2181.58
100.30
94.51
72.60
73.75
1.15
AP-4
N 31.45° E
-52.95
273,527.57
2,550,288.84
2171.53
238.30
98.44
0.00
AP-5
N 26.40° E
-61.2
273,444.13
2,550,446.79
2180.15
175.55
93.47
AP-6
N 33.20° E
-59.90
273,481.13
2,550,519.51
2176.45
75.15
88.02
42.45
AP-7
N 33.9° E
-66.9
273,407.10
2,550,463.46
2181.25
181.15
97.29
43.30
AP-7
N 33.90° E
-66.9
273,407.10
2,550,463.46
2181.25
181.15
97.29
AP-8
N 31.6° E
-60.40
273,444.39
2,550,536.51
2177.22
71.60
AP-9
N 34.30° E
-55.60
273,365.86
2,550,452.79
2183.08
155.95
AP-9
N 34.30° E
-55.60
273,365.86
2,550,452.79
2183.08
155.95
December 19, 2012
Ag
gr/ton
3464
Pb %
Zn %
4.74
10.46
18
0.02
0.76
378
0.23
5.00
362
4.87
4.14
0.19
225
0.37
3.64
NA
NA
NA
NA
0.00
NA
NA
NA
NA
42.75
0.30
0.25
694
1.65
0.97
44.75
1.45
0.07
169
0.17
1.04
147.60
149.80
2.20
0.24
157
0.29
2.29
70.53
22.00
23.80
1.80
0.14
367
1.92
1.88
97.01
64.70
66.55
1.85
0.04
24
1.06
0.20
97.01
131.40
132.40
1.00
0.25
4
0.01
0.39
A-3
Table A-3 2012 Drill Intercepts for Rosario
1.55
Au
gr/ton
0.12
Ag
gr/ton
304
58.30
1.20
0.33
44.00
46.10
2.10
60.15
62.75
2.60
94.83
83.15
83.65
0.50
97.29
96.70
99.75
3.05
149.20
97.29
116.80
117.35
2183.76
150.25
96.89
95.10
2550754.48
2182.39
278.75
98.30
273123.10
2550635.80
2171.86
115.80
-57.18
272,929.77
2,550,691.79
2,188.70
VERTICAL
-88.67
273,048.95
2,550,687.13
RS-11
N 30.85° E
-59.90
273121.55
RS-11
N 30.85° E
-59.90
RS-12
N 28.78° E
RS-13
Azimuth
Dip
X
Y
Z
Length
Recovery
From
To
Width
RS-01
N 28.8° E
-43.60
273177.95
2550648.75
2175.36
83.20
89.60
36.30
37.85
RS-01
N 28.8° E
-43.60
273,177.95
2,550,648.75
2,175.36
83.20
89.6
57.10
RS-02
VERTICAL
-80.80
273177.06
2550647.47
2175.19
-80.80
92.19
RS-03
VERTICAL
-88.30
273,217.01
2,550,611.37
2,177.04
85.95
91.68
RS-04
N 31.20° E
-59.35
272,777.51
2,550,898.34
2,175.05
129.65
RS-05
N 35.30° E
-60.97
272846.71
2550824.98
2183.89
149.20
RS-05
N 35.30° E
-60.97
272,846.71
2,550,824.98
2,183.89
RS-06
N 30.2° E
-61.43
272913.92
2550769.72
RS-07
N 32.78° E
-61.28
272739.38
RS-08
N 33.75° E
-60.55
RS-09
N 30.53° E
RS-10
Pb %
Zn %
0.2
3.4
634
0.28
6.66
0.36
122
0.05
2.12
1.23
344
0.12
12.10
0.39
7
0.01
0.01
0.76
24
0.01
0.32
0.55
0.34
7
0.02
0.29
96.65
1.55
0.17
3.4
0.01
0.06
190.20
192.55
2.35
0.04
2
0.00
0.01
94.72
59.00
61.50
2.50
0.40
75
0.02
3.76
210.20
98.15
129.55
132.25
2.70
0.38
2.15
0.00
0.01
2,176.19
155.20
95.27
102.15
103.40
1.25
2.13
43
0.01
1.08
2550541.52
2182.66
183.50
93.10
126.60
127.80
1.20
3.91
48
0.01
8.97
273,121.55
2,550,541.52
2,182.66
183.50
93.1
168.90
169.55
0.65
1.22
112
1.76
3.95
-58.32
272578.94
2550785.44
2180.88
349.15
96.62
233.10
234.40
1.30
0.02
5.35
0.01
0.00
N 30.73° E
-69.90
273085.54
2550581.23
2179.65
181.70
94.62
127.40
127.65
0.25
0.21
11
0.03
1.82
RS-14
N 31.65° E
-52.10
272660.55
2550817.05
2176.68
225.05
95.78
179.55
180.65
1.10
0.13
7
0.02
0.16
RS-15
N 30.33° E
-68.57
273220.76
2550539.23
2179.84
151.35
95.31
92.10
92.75
0.65
2.01
10
0.01
4.39
RS-16
N 33.17° E
-59.27
272987.27
2550701.92
2182.48
148.70
96.12
91.70
92.45
0.75
0.48
2
0.00
1.20
RS-16
N 33.17° E
-59.27
272,987.27
2,550,701.92
2,182.48
148.70
96.12
131.95
132.35
0.40
0.20
14
0.00
0.02
RS-17
N 34° E
-53.00
272990.53
2550795.93
2175.54
70.35
93.50
40.50
42.20
1.70
0.01
1
0.00
0.01
RS-18
N 39.3° E
-53.90
272932.40
2550852.91
2180.73
62.40
87.82
18.30
19.60
1.30
0.04
1
0.00
0.05
RS-18
N 39.30° E
-53.90
272,932.40
2,550,852.91
2,180.73
62.40
87.82
31.00
32.70
1.70
0.01
1
0.00
0.00
RS-19
N 39.00° E
-59.75
272,903.57
2,550,808.04
2,183.31
110.50
95.43
74.15
76.30
2.15
1.29
8.23
0.01
0.31
RS-20
N 32.5° E
-54.30
272882.03
2550887.90
2180.46
54.65
89.20
31.85
33.20
1.35
0.27
5.4
0.00
0.01
RS-21
N 27.33° E
-59.33
273257.71
2550402.49
2188.62
280.45
97.44
155.70
156.45
0.75
0.15
231
0.10
14.86
RS-21
N 27.33° E
-59.33
273,257.71
2,550,402.49
2,188.62
280.45
97.44
203.35
203.65
0.30
0.05
25
0.01
8.46
RS-22
N 25.44° E
-70.70
273382.73
2550423.57
2182.97
241.20
90.83
81.55
84.75
3.20
0.09
75
1.67
0.82
RS-22
N 25.44° E
-70.70
273,382.73
2,550,423.57
2,182.97
241.20
90.83
193.90
194.35
0.45
0.33
19
0.14
1.08
RS-22 Bis
N 27.2° E
-70.00
273380.85
2550420.04
2182.97
128.35
89.42
84.90
85.40
0.50
0.04
102
1.41
1.35
RS-24
N 26.1° E
-60
273106.49
2550510.68
2185.88
211.20
95.37
150.55
152.00
1.45
1.68
37
0.03
9.10
RS-24
N 26.10° E
-60
273,106.49
2,550,510.68
2,185.88
211.20
95.37
201.40
201.95
0.55
0.27
1
0.00
0.01
RS-25
N 40.7° E
-50.97
273046.60
2550687.78
2176.36
120.30
92.93
51.70
53.70
2.00
0.01
1
0.00
0.02
RS-25
N 40.70° E
-50.97
273,046.60
2,550,687.78
2,176.36
120.30
92.93
85.10
86.00
0.90
0.01
2
0.00
0.02
RS-30
N 26.70° E
-60.5
273,555.08
2,550,440.04
2,172.31
250.40
92.00
98.00
98.35
0.35
0.52
143
0.89
6.18
December 19, 2012
A-4
APPENDIX B
December 19, 2012
B-1
Santacruz Silver Mining Ltd.
Rosario Project
NI 43-101 Technical Report on Resources
References
Table B -4 Vertices of the Rey David Concession and Contracted Area of San Rafael Concessions
Rey David
Point
December 19, 2012
East
North
1
273,029.32
2,550,954.03
2
273,029.32
3
273,129.32
4
San Rafael
Point
East
North
1
272,500.00
2,551,700.00
2,550,904.03
2
274,500.00
2,551,700.00
2,550,904.03
3
274,500.00
2,549,200.00
273,129.32
2,550,804.03
4
272,500.00
2,549,200.00
5
273,329.32
2,550,804.03
6
273,329.32
2,550,704.03
7
273,429.32
2,550,704.03
8
273,429.32
2,550,604.03
9
273,529.32
2,550,604.03
10
273,529.32
2,550,404.03
11
273,629.32
2,550,404.03
12
273,629.32
2,550,304.03
13
273,729.32
2,550,304.03
14
273,729.32
2,550,104.03
15
273,529.32
2,550,104.03
16
273,529.32
2,550,204.03
17
273,229.32
2,550,204.03
18
273,229.32
2,550,304.03
19
273,129.32
2,550,304.03
20
273,129.32
2,550,404.03
21
273,029.32
2,550,404.03
22
273,029.32
2,550,504.03
23
272,929.32
2,550,504.03
24
272,929.32
2,550,604.03
25
272,829.32
2,550,604.03
26
272,829.32
2,550,704.03
27
272,729.32
2,550,704.03
28
272,729.32
2,551,004.03
29
273,029.32
2,551,004.03
B-2