Zimapan Mining District


Santacruz Silver Mining Ltd. through its wholly owned subsidiary, Carrizal Mining, S.A. de C.V. entered into a legally binding term sheet (with Minera Cedros, S.A. de C.V. ("Minera Cedros"), a wholly owned subsidiary of IndustriasPeñoles, S.A.B. de C.V. to acquire the Zimapan Mine and related assets located in Zimapan, Hidalgo State, Mexico for total consideration of US$20 million.

Zimapan Mine

The Zimapan Mine is currently under lease by Carrizal from Minera Cedros expiring December 31, 2020. The Zimapan Mine has had a long mining history with recent production for over the past 10 years being carried out by Carrizal under a mining lease agreement with Minera Cedros. During this time, mining operations were based on underground diamond drilling programs. Santacruz completed the acquisition of Carrizal in October 2019.

  • Zimapan mill facility is a 75,000 dry metric tonnes (DMT) per month facility with zinc, lead and copper circuits.  Over the past five years the Zimapan Mill has produced an annual average of 12,400 tonnes of zinc, 3,300 tonnes of lead, 1,850 tonnes of copper and 1,290,000 ounces of silver from an average annual throughput of 700,000 tonnes of mineralized material generating an average of 4,681,000 ounces silver equivalent* (source: Carrizal mine production records).
  • Surface and underground infrastructure including electrical and other necessary infrastructure to carry on day to day operations.
  • 34 mining concessions covering an area of 5,139 hectares. The mining concessions are located seven kilometers from the municipality of Zimapan. 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.

* The above Ag Eq references production results and have been calculated using the following metal prices:
2015 Ag Eq was calculated using metal prices of: Ag $17.75/oz, Pb $0.83/lb, Zn $1.09/lb and Cu $2.49/lb.
2016 Ag Eq was calculated using metal prices of: Ag $14.50/oz, Pb $0.76/lb, Zn $0.71/lb and Cu $2.20/lb.
2017 Ag Eq was calculated using metal prices of: Ag $16.00/oz, Pb $1.00/lb, Zn $1.15/lb and Cu $2.81/lb.
2018 Ag Eq was calculated using metal prices of: Ag $17.00/oz, Pb $1.00/lb, Zn $1.35/lb and Cu $2.93/lb.
2019 Ag Eq was calculated using metal prices of: Ag $15.25/oz, Pb $0.94/lb, Zn $1.20/lb and Cu $2.72/lb.

Property and Location

  • 39 mining concessions covering 5,139 ha
  • 7 km from the municipality of Zimapan in Hidalgo State, Mexico
  • Excellent infrastructure with access via paved and dirt roads, water and grid power


  • Zimapan mining district was discovered by Spanish miners in 1575. From 1632 to 1920, more than 18 mines were put into production, including the El Monte and Carrizal mines
  • Peñoles operated the mine from 1964 until leasing to Santacruz in August 2009
  • From 2011 to 2019, Santacruz completed ~30K m of underground drilling and mined ~5.9M tonnes of mineralized material from the El Monte and Carrizal mines

Geology& Mineralization

  • Located along the southern margin of the prolific Sierra Madre Oriental
  • 14 mineralization zones have been identified (six at Carrizal and eight at El Monte)
  • High temperature carbonate replacement deposits containing Ag-Pb-Zn-Cu in semi-massive and massive sulphide bodies hosted in skarns (typically up to 20 m wide and up to 200 m long) and quatz-feldspar porphyry dikes


  • Carrizal and El Monte mines are connected by a 7.4 km underground access tunnel
  • Underground mining using cut-and-fill, long-hole and sub-level stoping (typically 15 m to 20 m panels) and room and pillar (typically 5 m height)

Processing Facility

  • 3,200 tpd modern milling facility (conventional sulphide flotation)
  •  Three circuits for the production of high-quality lead, zinc and copper concentrates
  •  Overall process recoveries of ~67% Ag, 64% Pb, 70% Zn and 52% Cu
  •  Tailings dam with 5 years of capacity plus new permitted area with 15 years of capacity