Santacruz Silver Mining (TSX-V:SCZ) has acquired a 500-tonne-per-day (tpd) milling facility in Bolivia to expand processing capacity and unlock production growth.
The facility comprises two 250tpd processing circuits equipped with selective flotation systems for lead and zinc recovery with ‘high-grade’ silver contents. It will be dedicated to processing ore sourced through Santacruz’s wholly owned Bolivian subsidiary, San Lucas.
According to Santacruz, transitioning San Lucas materials to the new mill frees up processing capacity at the company’s existing three mine facilities, allowing it to advance mine development and increase self-operated production.
Located roughly 5km from the Reserva mine (part of the Caballo Blanco group), the site provides operational and logistical advantages while strengthening Santacruz’s vertically integrated model in Bolivia.
Executive Chairman and CEO Arturo Préstamo says the acquisition is a ‘win-win’ for Santacruz’s operating platform.
“The addition of 500tpd of milling capacity gives San Lucas a clear path to continue increasing its volumes, while freeing up capacity at our existing milling facilities for ore from our own mines,” Préstamo says.
“This will allow our mining operations to advance their development and production growth plans without being constrained by milling capacity.
“This is exactly the type of operating leverage we look for at Santacruz-one investment that allows two parts of our business to grow at the same time.”
Commissioning is planned for Q4 2026, with commercial production targeted by year-end 2026 following testing, circuit optimisation, and ramp-up activities.
Total investment is estimated at US$14 million ($19.65 million), covering acquisition, upgrades, working capital, and commissioning. Santacruz has paid US$4.6 million of the US$9.2 million purchase price, with the remaining US$4.6 million due 8 November 2026.
Handover of the plant is expected on 8 October 2026, whileUS$4.8 million will be allocated towards upgrades and working capital.
“The new facility also creates a significant opportunity to accelerate growth across our Bolivian operations,” Préstamo adds.
“We expect the additional processing capacity, together with ongoing mine development, operational optimisation initiatives, and increased ore availability, to support continued production growth across Santacruz’s platform.”
The company anticipates higher consolidated output in 2027, alongside expanded standalone production at San Lucas.
In Bolivia, Santacruz operates the Bolivar, Porco, and Caballo Blanco mining complexes (including the Tres Amigos and Colquechaquita mines), as well as the Zimapan mine in Mexico.
Santacruz Silver Mining is focused on acquiring, exploring, and developing mineral properties in Latin America.
Write to Paula Fabe at Mining.com.au
Main image: Santacruz Silver Mining
