Santa Fe Gold Increases Production at Summit Silver-Gold Mine
Santa Fe Gold Corporation (OTCBB: SFEG), a U.S. based mining and
exploration enterprise focused on acquiring and developing precious
metals and industrial minerals properties,today provided an
update to shareholders.
Summit Silver-Gold Mine, New Mexico
Ramp up is continuing and the operation is on track to achieve
commercial production during March 2012. Mechanized long-hole mining
began in late December 2011 and has proved to be very successful.
Production rates have increased steadily since January 2012 and
currently are in the range of 200 to 300 tons per day. The company
expects to be able to reach a consistent rate of 400 tons per day later
in the month.
Pierce Carson, President and CEO, said, 'Results of mechanized mining
demonstrate that mining rates of 400 tons per day or greater should be
readily achievable. In fact, ten thousand tons of drilled and blasted
broken ore currently are awaiting removal from underground. This broken
ore is sufficient to provide a month′s worth of feed to the mill at the
full targeted processing rate.
'We are making improvements that will enable us to more rapidly extract
broken ore from underground and to consistently produce at the rate of
400 tons per day. Among others, these improvements include construction
of more draw points for better access to broken ore. The additional draw
points will be completed shortly. We also have ordered additional mining
equipment to help in the mining and removal process. And we have
increased the company′s work force, which now numbers 70.?
Dr. Carson continued, 'With the greater levels of production, we are
pleased to report also that we have begun to increase deliveries of
silica flux material to one of the Arizona smelters.?
Revenues are expected to increase progressively over the course of 2012
reflecting increases in both tonnage and grades. Annual life of mine
revenue at full production is estimated to be approximately $40 million
at recent gold and silver prices. Ore reserves are estimated to average
10.78 ounces per ton silver and 0.143 ounces per ton gold (0.35 ounces
per ton gold equivalent). Direct operating costs are projected to be
$364 per ounce of gold equivalent produced over the life of the mine.
Acquisition of Columbus Silver (TSXV: CSC)
The acquisition of Columbus Silver appears to be on track for potential
completion around the end of March 2012. Santa Feannounced
December 15, 2011 it had conditionally agreed to acquire all of the
common stock of Columbus Silver for CDN$0.20 per share in a cash
transaction valued at approximately $10 million. The acquisition remains
subject to conditions, including Columbus Silver obtaining shareholder
and regulatory approvals. Columbus Silver has submitted a circular to
its shareholders for voting approval of the transaction. The
acquisition, when completed, will add significantly to Santa Fe′s silver
and gold resources potentially available for processing at its fully
permitted and operating flotation mill near Lordsburg, New Mexico.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused
on acquiring and developing gold, silver, copper and industrial mineral
properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in
southwestern New Mexico, which began processing operations in 2010; (ii)
a substantial land position near the Lordsburg mill, comprising the core
of the Lordsburg Mining District; (iii) the Ortiz gold property in
north-central New Mexico; (iv) the Black Canyon mica deposit and
processing equipment near Phoenix, Arizona; and (v) a deposit of
micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to
build a portfolio of high-quality, diversified mineral assets with an
emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and
forward-looking information (collectively, 'forward-looking statements?)
within the meaning of applicable US and Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward-looking statements. Although the Company believes
that such statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results may
differ materially from those in forward-looking statements as a result
of various factors, including, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, variations in the market price of any mineral products the
Company may produce or plan to produce, the Company's inability to
obtain any necessary permits, consents or authorizations required for
its activities, the Company's inability to produce minerals from its
properties successfully or profitably, to continue its projected growth,
to raise the necessary capital or to be fully able to implement its
business strategies, and other risks and uncertainties disclosed in the
Company′s Annual Report on Form 10-K for the year ended June 30, 2011
and its most recent quarterly reports filed with the United States
Securities and Exchange Commission (the 'SEC?), and other information
released by the Company and filed with the appropriate regulatory
agencies. All of the Company's US public disclosure filings may be
accessed via www.sec.gov
and its Canadian public disclosure filings may be accessed via www.sedar.com,
and readers are urged to review these materials.
Santa Fe Gold Corporation
W. Pierce Carson, President and Chief
Executive Officer
505-255-4852