Santacruz Silver to pay $20m for Zimapan mine in Mexico

Canada’s Santacruz Silver Mining (TSXV: SCZ) is one step closer to becoming the owner of the Zimapan silver mine in Mexico, as it recently signed a deal that involves a $20-million payment for the asset.

The definitive agreement was signed between Santacruz’s subsidiary, Carrizal Mining, and Minera Cedros, a subsidiary of Industrias Peñoles. 

In a press release, Santacruz said that included in the acquisition are the Zimapan processing facility with a capacity of 75,000 dry metric tonnes per month and zinc, lead and copper circuits; surface and underground infrastructure; and 34 mining concessions covering an area of 5,139 hectares, including the highly prospective 337-hectare Santa Gorgonia 1 concession. 

“The mining concessions are all located proximate to the municipality of Zimapan,” the company said in a media release.

“To date, Carrizal has identified 14 mineral zones that are characterized as polymetallic replacement mineralization of Pliocene age. Within the mineral zones, silver, lead, zinc and copper minerals have preferentially replaced the carbonate host rocks and pre-existing skarn bodies to produce disseminated, semi-massive sulphide and massive sulphide bodies that occur in proximity to monzonitic intrusions and quartz-feldspar porphyry dikes.”

Following the completion of the acquisition, the company plans to implement operational efficiencies, achieve quarterly production of approximately 200,000 wet metric tonnes by Q3-2021 and further explore opportunities for growth on the property.

Located in the eastern Hidalgo state, Zimapan was operated by Peñoles from 1964 until it leased the property to Santacruz in August 2009. In 2020, the mine produced 1,007,478 ounces of silver.