ALBUQUERQUE, N.M.–(BUSINESS WIRE)–Santa Fe Gold Corporation (OTCBB:SFEG) today announced that the New Mexico Office of the State Engineer has issued a permit required to proceed with construction of the tailings dam impoundment at the Banner Mill located near Lordsburg, New Mexico. The company expects to complete construction of the tailings impoundment during the current quarter and to begin processing operations shortly thereafter.
“With this important permit now in hand, we are moving full speed ahead in executing our plan to begin processing of ore from the Summit mine,” said Pierce Carson, President and Chief Executive Officer. “Contractors are mobilizing to begin construction of the tailings dam and to install the plastic liner in the containment area.”
Issuance of the permit also was a condition to drawdown of $3.5 million of the $4.0 million provided under the gold sale agreement with Sandstorm Resources Ltd. (TSX-V:SSL) announced September 14, 2009. The company anticipates receiving the remaining $3.5 million shortly.
The Summit mine is an underground silver-gold mine being developed on an epithermal vein deposit. For the past several months, in connection with mine development, Santa Fe has been mining and stockpiling ore. Ore from the Summit mine is transported to Santa Fe’s Banner Mill located in Lordsburg, New Mexico, where a marketable gold-silver concentrate will be produced. The mill is fully operational and will begin processing ore upon receipt of final permits and construction of the tailings dam impoundment. Santa Fe anticipates that the project will achieve commercial production in 2010.
About Santa Fe Gold
Santa Fe is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe owns: (i) the Summit Mine and Banner mill in southwestern New Mexico; (ii) mineral lease rights to the Ortiz gold property in north-central New Mexico (believed to contain two million ounces of gold); (iii) the Black Canyon mica mine and processing facility near Phoenix, Arizona; and (iv) a large resource of micaceous iron oxide (MIO) in western Arizona. Santa Fe intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
To learn more about Santa Fe, visit www.santafegoldcorp.com.
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 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.
CONTACT
W. Pierce Carson, President and Chief Executive Officer
Santa Fe Gold Corporation
+1 505 255 4852
Published 5 October 2009
