|
|
|
|
|
|
|
Santa Fe Gold Commissions Lordsburg Mill and Prepares to Ramp Up Production from Summit Silver-Gold Mine
|
ALBUQUERQUE, N.M. - June 10, 2010 - Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce that commissioning of its Lordsburg flotation mill is nearing completion and that it is preparing to increase production rates of gold and silver ore from its Summit mine. The mill is consistently producing high quality gold and silver concentrates. The company began commissioning of the mill located in Lordsburg, New Mexico on March 25, 2010.
The Summit mine is an underground gold-silver mine being developed on an epithermal vein deposit. For the past several months, in connection with mine development, Santa Fe Gold has been mining and stockpiling ore. Ore from the Summit mine is transported to the company's Lordsburg mill, where a marketable gold-silver concentrate is produced. The mill is fully operational and will process increasing quantities of ore as mining ramps up to a planned production rate of 120,000 tons of ore per year.
"Commissioning of the mill has gone very well and is nearing completion", said Pierce Carson, President and Chief Executive Officer. "Over the past month we have continued, as planned, to process low grade ore at the rate of 150 tons per day, operating on a one-shift basis, five days a week. Based on the continuous hourly throughput rate we are achieving, we have demonstrated that the mill will process ore at the planned production rate. Over the next several months we will be ramping up production levels to the rate of 400 tons per day (120,000 tons per year) and will operate the mill on the basis of two shifts per day, seven days a week. As production ramps up, we also plan to process increasingly higher grades of gold and silver from the Summit mine.
"We have continued to produce high quality concentrates averaging around 10 ounces/ton gold and 600 ounces/ton silver that contain no significant deleterious elements. These high grade concentrates have been produced from low grade ore. The concentration ratio of metals (from the ore into the concentrates) has averaged significantly higher than originally expected. This means that we are recovering the silver and gold in a relatively small number of tons of concentrate, which will result in minimizing both transport costs of the concentrates to the smelter and smelter charges thereby increasing our net bottom line profits."
The company is currently stockpiling concentrates and is in discussions with three smelters for thepurchase of its concentrates, with the objective of achieving the best possible price. Sale of concentrates is planned to begin immediately upon finalizing a sales contract, which is estimated to be completed during July or August 2010.
Freeport-McMoRan Miami Inc. ("FM Miami"), an Arizona smelter, has completed the processing of a trial shipment of 3,000 tons of high-silica flux material shipped earlier this year. Santa Fe Gold shortly expects to be able to advance contract discussions relating to sale of additional flux material.
With this successful trial and the completion of a suitable flux agreement, sales of flux material will provide an additional outlet for the Summit ore; this is in addition to sales of the Lordsburg mill concentrates. The company has received payment of $297,000 comprising the majority of the amount to be received for the trial shipment of flux material, which in total is estimated to approximate $310,000.
On related matters, Santa Fe Gold reported that it was actively seeking and evaluating additional sources of ore, using the excess capacity at the Lordsburg mill; when completed, it will add to Santa Fe Gold's bottom line. The company also has initiated an exploration program on its Lordsburg ground holdings totalling 2.3 square miles comprising the core of the Virginia Mining District. The district historically produced over $1.0 billion in copper, gold and silver at today's metal prices.
At the Ortiz gold project, which contains a historic drilled gold resource of 2.0 million ounces, Santa Fe Gold reported it was beginning work focused on technical and environmental studies necessary to apply for operating permits. The company has engaged Gochnour & Associates, Inc., an experienced and respected environmental consulting firm, to help manage the required environmental studies.
Carson stated, "Gold and silver prices are at record levels and this is a great time to be bringing a new mine into production. We see the remainder of 2010 as one of building shareholder value as we ramp up production, generate increasing cash flows, add to our resource base through exploration and acquisition, and accelerate development of our second and largest mine, the exceptional Ortiz gold deposit." |
|
|
Forward-Looking Statements:
The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While Santa Fe Gold believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than any of those indicated in the forward-looking information contained herein. |
|
|
|
Santa Fe Gold Corp
R. J. Bommarito
Director, Shareholder Communication
810-392-5135 |
|
|
DISCLAIMER
This publication is an advertisement and/or a company update on behalf of Santa Fe Gold Corporation and may not be construed as investment advice. This is not a solicitation to buy or sell securities and this does not purport to be a complete analysis of the company mentioned. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. Readers should consult with their own independent tax, business and financial advisers with respect to any investment, including any contemplated investment in the advertised company. All information contained in this advertisement should be independently verified with the advertised company and by an independent financial analyst. You should independently investigate and fully understand all risks before investing. This email was prepared for and by Santa Fe Gold Corporation staff. The information set forth herein was obtained from sources believed to be reliable, but there no guarantee to its accuracy or completeness. For further information on Santa Fe Gold Corporation, please contact R.J. Bommarito, director of shareholder communications at rjbommarito@santafegoldcorp.com. Current stock price and trading volume information is available from your broker and from online information services such as America Online, Yahoo and Bloomberg. All projections, estimates, compilations of future earnings and/or market share represent the best estimate by management of the advertised company of the expected future growth of Santa Fe Gold Corporation and/or the industry as a whole. While management of Santa Fe Gold Corporation believe all facts and figures are accurate, no assurances can be given that any of the projected figures will be attained. This publication contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe, expect, estimate and project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. Santa Fe Gold Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlie the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the company's ability to meet its projected growth, the effects of government regulation, competition and other material risks. |
|
|
|
|
|
