Canadian-based miner Santacruz Silver has cited a lack of profitability for its decision to suspend operations at its Rosario project in Mexico and place the asset on care and maintenance.
The company said the decision was made following an extensive managerial review that also looked at other potential options, including the sale of the mine.
Just last month, the mine and its sister operation, Zimapan, reported record production – jumping 30% year-over-year.
Now, the miner said concentrating on Zimapan is the better option.
“Management believes that the reallocation of capital and resources to the Zimapan mine and related satellite properties that have stronger economics is the most prudent course of action at this time,” CEO Carlos Silva said, adding that Santacruz will continue with its permitting and remediation work so that Rosario can be restarted in due course should economics improve.
“We have diligently tried to make the Rosario mine a profitable operation, but due to its narrow vein system and grade variability this is a challenging project.”
In addition to Rosario and Zimapan, Santacruz also has two exploration projects, La Pechuga and Santa Gorgonia.
The Rosario Mine is located within the Charcas Mining District. Exploration there first began by the Mexican Geologic Service in 1978.
Source: Santacruz Silver