Santacruz Silver Mining Ltd. reported production results for the second quarter of 2016. The company reported Rosario Mine silver equivalent produced ounces of 271,985, down 6.4% from first quarter of 2016; Head grade decrease to 331 Ag Eqv. g/t, down 14.8% from first quarter of 2016; Veta Grande mining rate exiting second quarter of 2016 at 400 tpd, and new underground equipment is now at site.

The silver recovery in second quarter of 2016 decreased as the result of the 400 tpd ball mill not being available for approximately three weeks of operations due to an electrical component failure. During this period the company operated the two smaller ball mills with limited decrease in mill throughput but at a coarser grind leading to lower silver and gold recovery to the lead concentrate. Development work is advancing on the La Cantera vein at the La Mecha mine and the Guadalpana mine.

In addition, development is advancing rapidly on the San Jose, La Flor and Armados veins located at the Garcia mine. The company exited the quarter at a production rate of approximately 400 tpd. The company expects that this production rate will be maintained until the planned installation of an additional 1,200 tpd ball mill is completed during the fourth quarter of 2016 at which time mill production is expected to double.