Trader Tracks

“I shall choose friends among men, but neither slaves nor masters. And I shall
choose only such as please me, and them I shall love and respect, but neither
command nor obey. And we shall join our hands when we wish, or walk alone
when we so desire.” –Ayn Rand
Santacruz Silver is strategically located for silver production expansion.
Mexico is loaded with silver and Santacruz aims to earn their share. They have four properties in various stages.
The Rosario property is now in mining operations with production expansion underway. They are fiscally sound
for a junior miner and operate in the faster market of silver production in the precious metals sphere. –Trader Rog
“Santacruz Silver is a Canadian Mining Company with a primary focus on silver deposits. The Company owns
a producing mine (Rosario), two advanced-stage projects (San Felipe and Gavilanes) and an early-stage
exploration project (El Gachi) located in the historical mining districts of Charcas, San Luis Potosí, San Dimas
Durango, and San Felipe, Sonora, Mexico respectively. All properties are in a considerable advanced stage
and based on preliminary findings by the Company, offer excellent opportunities for mine operations.”
Corporate Highlights
Building Mexico’s next mid-tier silver producer:
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Rosario Mine continues to ramp-up production.
Rosario targeted to achieve full capacity during second semester of 2014.
Gavilanes project has completed its Maiden Resource Estimate Report.
For 2014, Santacruz is focused on ramping up Rosario Mine to full production
capacity and to increase resources in respect of its three properties.
Overview
Rosario Project Ag, Au, Zn, Pb Located in historical mining district of Charcas, S.L.P:
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Acquired 500 t/d mill from Goldcorp, onsite assembly nearing completion. Mill is currently operational.
Mesothermal, vein, low sulphidation system
Drilling has focused primarily on Rosario I and II veins
Mineralized structures to surface
Excellent infrastructure (good road access, water and power lines nearby)
Skilled labor, as the nearby Ejidos and Charcas town are a mining driven economy -Text & Photo company website
Santacruz One Year Chart Signals a Stock Price Basing near U.S.$.30
As the physical and paper silver prices regain footing and rally, a Santacruz
+50% technical chart retracement is $.70 per share, which is our 2015 forecast.
All data weekly chart (below) shows the company shares selling along with basic silver metal prices.
Keep in mind silver was near $50 per share at its peak and the company shares reflect the same.
Over the next 3-4 years, with expansion of global conflicts and national defense departments,
and related military hiring, there will be millions of new jobs, inflation and a strong silver rally.
“Santacruz Silver Mining Ltd. (TSX-V:SCZ), is a Mexican focused silver company with a producing project
(Rosario), two advanced-stage projects (San Felipe and Gavilanes) and an early-stage exploration project (El Gachi).
The Company is managed by a technical team of professionals with proven track records in developing, operating
and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.” -website
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Operational Review
“During the third quarter of 2014 the average mine production was 325 tpd (tons per day) exiting the quarter at 380 tpd.
The arrival in late November of the new motor for the third ball mill and commencement of commissioning now puts the
operation on a stronger footing.” Roger: This is time of building and positioning for the company in field operations.
“This will allow the milling facility capacity to increase to 450 tpd before the end ofDecember and with a planned installation
of additional flotation cells in early January the milling facility capacity will increase to approximately 700 tpd. With the
surface stockpile of ore at Rosario at over 12,000 tons the Company iswell positioned to see continued improvements in
the Rosario Mine operations over the coming quarters.” –website
“Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) is pleased to announce
the financial and operating results for the third quarter of 2014 (“Q3”). The full version of the financial statements and
accompanying management discussion and analysis can be viewed on the Company’s website at www.santacruzsilver.com
or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are
expressed in US dollars unless otherwise indicated.
“‘The third quarter has seen continued improvements at the Rosario Mine. Most importantly we have seen a significant
increase in our revenues while at the same time a continuous reduction in our operating costs per silver equivalent ounce
resulting in positive cash flow of $464,000 at our Rosario Mine during the quarter,’ said Arturo Préstamo, President and CEO.
“The cash cost per equivalent ounce of silver sold has decreased more than -18% when compared to the second quarter
of 2014, and we expect that this figure will decrease even further in subsequent quarters as production keeps ramping-up
and efficiencies are taking place. We have just started the commissioning of the third ball mill and expect it to be running
at specifications by mid-December, taking Rosario’s milling capacity up to 450-500 tpd. This will allow us to further reduce
our costs going forward.
“In addition, and in light of current volatility in metal prices, as announced on December 1, 2014, we have established a
floor price for silver production from the Rosario Mine through 2015 and 2016. We have minimum floor prices of $17/oz
for all of 2015 and Q1 2016 and $16/oz for the last three quarters of 2016.
“The financial instruments establishing the floor prices allow us to fully participate in any increase in the silver price.
Our main objective is to ensure the production and cost targets for Rosario that will allow us to keep building a strong
treasury with a view to advancing our properties as soon as a more stable environment to do so prevails.” -website
Trader Tracks Newsletter Market Summary for Santacruz Silver and the Precious Metals’ Markets
Trader Tracks Newsletter has examined the company website, associated reports and completed technical calculations on the
charts. It is our opinion the company is sound and can move forward in 2015 despite challenging raw silver prices. While
several analysts have made forecasts saying the many years’ commodity rally is over, we disagree. Many commodities,
particularly within the base metals, have slowed on related commercial sales. Yet autos (particularly in Asia)
and electronics’ precious metals demand, and some agricultural products move forward in rallies,
and/or will be, in new rallies moving into 2015.
Of all the precious metals our preference is for silver. It is rising from a lower base, it’s priced correctly for optimum
rally moves, and physical demand has never been greater. As we reported in our last issue of Trader Tracks Newsletter,
the U.S. Mint set an all time record in 2014 for production of silver dollars. Asians in particular are huge buyers of precious
metals along with Europe and Eastern Europe. Watch for higher physical silver prices versus the paper trading prices.
Eventually the futures and related cash markets will close in on true physical silver value as global bond interest rises.
We recommend purchasing the shares of Santacruz Silver with calendar entries on 12-29 and 12-30.
Silver prices on the cycles often do best trading from New Years through the middle of May. The month of
September, by history, is the best single month of all for higher silver prices. –Trader Rog
In Canada: Suite 1125-595 Howe Street
Vancouver, BC V6C-2T5
Telephone 1.604.569.1609
http://www.santacruzsilver.com/s/home.asp
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