| VIEW FROM THE TOP
A NEW SILVER GIANT IS BORN CARLOS SILVA CEO of Carrizal Mining
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Q: What were the main motivations behind the merger
We also own the Minillas project that was previously owned
between Carrizal Mining and Santa Cruz Silver?
by a small miner, which is why it was never exploited. It used
A: The objective of the merger was to bring together two
to be a coin house given its abundance of silver. Our goal
Mexican companies, one listed on the TSX. For over 10
is to bring all its history back by continuing exploring the
years, I have witnessed how precarious financing is in our
property in 2019 and exploiting it in 2020. Our budget for
industry. The only way to grow a company is to venture into
this project is US$5 million for exploration and US$5 million
the stock exchange but the BMV tends to lack the proper
for development. By 2020, Carrizal Silver Mining will invest
tools. Instead, I think foreign stock exchanges, such as TSX,
US$60 million, which is our levy target on the stock exchange.
are better suited for the mining industry. We were lucky
The company also owns a smaller project named Charcas
to find in Santa Cruz Silver the opportunity and access to
in San Luis Potosi, with a 300t/d production capacity and
a stock listing that we needed. For its part, Santa Cruz
is applying for the La Libertad mine concession in Durango.
Silver succeeded in attracting financing but lagged in its operations. The merger aligns the operational excellence of
The structure and foundations of Carrizal Silver Mining are
Carrizal Mining with the financial access of Santa Cruz Silver.
simple. The previous philosophy of Santa Cruz Silver will evolve and adapt to that of Carrizal Mining, employing the
Carrizal is always looking for good projects. We know that
same people but organizing them more effectively through
the ZimapĂĄn mine has a limited life span and a low ore grade.
a distribution of responsibilities. We have an excellent
It is not a strong growth project despite how productive
workforce, mostly composed of millennials.
and efficient we made it. But together with Santa Cruz Silver, we can develop great projects with huge potential.
Q: What has been your personal experience with mine
We have around 9,000ha in Vetagrande, Zacatecas. For
financing in Mexico?
over half a century, this area saw just 57 small miners that
A: I have been seeking financing for mine operations in
could not develop the project. We now own 100 percent
Mexico for over 10 years. After knocking on countless doors,
of the property, which has a significant number of veins.
I realized that Mexico is not favorable for accessing this
This is the main reason why Santa Cruz Silver attracted my
kind of investment; it is much easier in Toronto. We had
attention. We wanted to quickly develop Vetagrande. We
an opportunity to access credit from FIFOMI but it was a
started by implementing a diamond drilling program that
difficult experience. When we finally got the money, we
hopefully will yield a high ore grade. All the mines that we
no longer required it. As a result, Carrizal Mining largely
will develop will be underground and high-grade. I think this
relied on our guile as resources were so scarce. But I do
project will become one of the main silver projects in the
acknowledge that FIFOMI prepared us to comply with the
country. We will construct a plant that will start operating
highest financing requirements. If a company can meet
in 2020 and increase productivity to 2,000t/d. I think that
FIFOMI’s standards, it is easier to later succeed with stock
in three years we can ramp up production to 4,000t/d. Our
exchanges. As a result, Carrizal Silver Mining is much more
budget to develop the plant is US$25 million and we also
institutionalized and our governance is much stronger. I
estimate another US$20 million to complete the exploration
advise junior companies to look beyond Mexico and reach
of the property.
out to foreign stock exchanges, but it is necessary to first have a well-planned project with demonstrated potential.
Carrizal Mining is a Mexican-owned company located in
Q: How do you manage human capital to keep productivity
Zimapan, Hidalgo. It produces lead, zinc and copper. It is
up and turnover low?
committed to being a sustainable company and to the health
A: Not all the potential of a mining project lies in its
of its human capital
mineral reserves. For example, the Charcas project is a
