Santa Fe Gold Corp. (fka SFEG)

[gumzsa]

News out financials virtually done and drilling soon




Friday, February 10 2017 1:34 PM, EST Santa Fe Gold Finalizing Preparations to Begin Drilling its High Grade Silver Mine Amid Reports of a Potential Major Porphyry Silver Discovery GlobeNewswire   "Press Releases"
ALBUQUERQUE, N.M. , Feb. 10, 2017 (GLOBE NEWSWIRE) -- Santa Fe Gold Corporation (OTC:SFEG), a U.S. -based mining and exploration enterprise with emphasis on Gold, Silver, Copper, Precious, Industrial and base metals and owner of multiple claims, including theMalone Mines complex incorporating20 associated mine sites andthe Playas Lake Bed area of Hidalgo County, New Mexico , is pleased to announce the company is finalizingpreparations to begin drilling its recently optionedhigh grade Silver mining property. Preliminary studies indicate the presence of a significant 'Porphyry Silver" discovery nearby andbeneath this highly prospective new mine's location.

This new property could become the flagship mine for Santa Fe Gold Corporation . Given the dimensions,structure and uniqueness of this property, it could further enable SFEG to begin production in the near term future. Early results are extremely promising and well beyond expectations regarding the consistency of grade, quality and quantityof materialand extent of reserves. Further evidence of a significant Porphyry Silverformationwould add substantialpotential tothis mine.
Overview of Property
The property, (see link below 'Geologic Setting')islocated in the South Western US and comprises patented and un-patented claims amounting to some 200 acres.It is Santa Fe Gold's intention to extensively drill this property to determine the entire dimension, magnitude and extent of this unusually high grade deposit's numerous vein structures. The estimated size of the deposit could be in excess of 3.06 million tons of ore, and recently completed assays suggest that some ore vein values could be worth in the thousands of dollars per ton.
Santa Fe Gold is already negotiating withbuyers ready to pay such amountsper ton ofore delivered from the mine site.
CompanyComment
President and CEO Tom Laws commented: "This is an exceptional property with severaluntapped veins containing very high grade silver ore and numerousnative silver specimens notfound anywhere else in the world.The property is located inone of the most highly mineralized areas anywhere on Earth. The geology indicates that an occurrence of exceptionally high grade ore this size is the result of a halo effect caused by being nearby or beneath a large 'Porphyry Silver' deposit formation. This explains the anomalous high grades as already displayed in these rare occurrences and specimens.It is well known that Porphyry deposits exist throughout the district. Santa Fe Gold'sconsulting geologist has identified evidence of an undeveloped Porphyry deposit quite close to or beneath this exceptionalproperty."
GEOLOGIC SETTING
The mining district lies in the Laramide Arizona-Sonora-New Mexico porphyry copper belt. It is the oldest porphyry copper deposit in the state; although the Pios Altos pluton is ca. 74.4 Ma (McDowell, 1971) and a Georgetown monzonite dike has been dated as ca. 71 Ma (McLemore, 1998), both of which have associated Cu-Au-Ag skarn or Ag carbonate-hosted replacement deposits. The Twin Peaks monzonite porphyry in the Burro Mountains is 72.5 Ma (Hedlund, 1980) and a hornblende andesite in the Hidalgo Formation in the Little Hatchet Mountains is 71.4 Ma (Lawton et al., 1993). Polymetallic veins and alteration suggests that a porphyry may underlie the Lordsburg district (57.4 Ma, McLemore et al., 2000a). Porphyry copper deposits are not known to occur in these areas, but certainly the possibility exists that the deposits may occur undiscovered in the subsurface.
For more informations courtesy of geoinfo.nmt.edu,please go to:https://geoinfo.nmt.edu/staff/mclemore/projects/mineralresources/hillsboro.html
In light of this and the discovery indicatedand potential existence of a substantial porphyry deposit, Santa Fe Golds consulting geologist believes the project has considerable merit and potential in line with the overview detailed above.
Production Potential
Mr. Laws further commented:"Plans have alreadybeen drawn up to begin production as soonas possible. It isbelieved substantial revenues can be generated from this mine over multiple years. Revenues can be through the dual processing fromboth the smelting of high grade ore and directdelivery of suitable ore to arefiner purchaser.
Given thedimensions and extent of the vein structures, the company is optimistic this minehas the potential to be a significant producer andtheflagship property. Santa Fe Gold believes this property can bebrought into production relatively quickly."
Funding update to finance operations
The company has alreadyreceived substantial funding commitments to enable start-up of operations. This capital will be disbursed as early as practicableonce the full drilling campaign, mining preliminaries andpreparations are completed.
Highly Promising Initial Assay Results
The area in general and its surroundings, (refer to link above)has a history of exceptionally high grades. This was borne outby previous high grade discoveriesreportedby Santa Fe Gold in 2012.Assays showed bonanza type high gradesof 7.73 ounces of goldper tonand 269.75 ounces per ton of Silver. Such exceptionally high grades are rare and could be consideredan anomaly, yet theyprove such gradesexist.Similar high grade showings have recently been uncovered, as borne out by recent assays. In the past,grades as high as 16 oz. per ton have historically been encountered in the Malone Mines Complex , which Santa Fe Gold nowcontrolsand some80% of all the gold discovered in New Mexico has been found. Also worth noting,these newly acquired properties are located close to properties controlled bybothBHP and Rio Tinto. These aretwo of the world's largest mining companies. The two companies fairly recently staked claim to verysubstantial territories extending some 20 square miles over a wide area.
Ongoing Acquisitions Update
Santa Fe Gold has a pipeline ofadditional acquisitions of other high grade properties. Further announcements can beexpected over the coming weeks and months. The companycontinues to execute on itsvalueaccumulationstrategy. Santa Fe Gold intendstobuild on these acquisitions to solidly recapitalize the company as a precursor to resuming mining and production operations from multiple mines,as earlyas possible in the near to intermediate future.
Production Plans
Mr. Laws went on toemphasize: " Santa Fe Gold's immediategoal isthe drilling of this new high grade mine deposit. Following thisis a plan to establishthe most efficient and profitable waytomonetize this important discovery. Other properties will follow,per Santa Fe Gold's stated mission:
Selecting only the very highest grade, highest quality and prospectivedeposits capable ofsustaining ongoingmining operations well into the future."The Company's goal is to produce significant cash flow from precious metals holdings while creating a portfolio of high quality exploration and bankable development projects that will ensure future revenue growth.
Progress to date
The rapid pace of acquisitions and this potential new discovery can be directly attributed to President and CEO,Tom Laws.
He hasextensive mining experience andintimatefamiliarity with all mining operations in the Southwestern United States . In particular, the Arizona and New Mexico environs has affordedSanta Fe Gold a huge exploration,acquisition and mining edge, thanks to Mr. Laws' own vast experience and expertise and his crack team of mining professionalsin this field.
He hasworked with local miners and a number of mining companies for decades,assistingthem inevaluatingmaterials, economic utility and the most effective processing methods, looking to develop and optimize all of their mining output.
With this experience, Mr. Laws has been able to bring this knowledge to Santa Fe Gold to help to rebuildthe company through strategic and highly coveted acquisitions that once in production,through his expertise, can also optimize mining output, revenue generation and economic profitability,implementinganambitiousmining agenda from the ground up.
Hisextensive area knowledge, broad experience and understanding of the local mineralogy in lesser knownmining areas, metallurgyand mineralization inmany of the most sought after mining environsand properties is helping Santa Fe Gold to rapidly execute on this mining agenda. Santa Fe Gold already now controls orowns approximately 53 million tons of valuable gold, silver, copper,precious and base metals and also some rare earths andtitanium ores. New Mexico has more rare earths than any other US state, fetching exceedingly high prices on world markets.Titanium, elements of which exist in the Playas Lake Bed area of HidalgothatSanta Fe also controls,todaysells for about $2,000 per ton.Santa Fe Gold intends to further build up its reserve tonnages over time, through ongoing acquisitions andfully exploit itsholdings.
Audit Update
Mr. Laws finallyadded: "While we regretthecompany's financial audits have not yet been announced,they arevirtually complete. The auditisin the final review stage. Meticulous attention to detail of any audit is a prerequisite and imperative. Our auditors have madenumerousrequests forhard to obtaininformation, at times going back as far as 15 years. All of these requests have been responded to promptly and methodically, ensuringthat the company's audit will represent athorough and complete financialhistory."
The filings areanticipated to be completed very soon. Once theaudited financials are all filed,the company will then be considered up to date and in compliance. This will enable the companyto migrate from its current exchange to the higher OTCQB Exchange Marketplace .
About Santa Fe Gold
Santa Fe Gold is a U.S. -based mining and exploration enterprise and owns the following mining assets: The Knights Peak region of Grant County, New Mexico comprising the Malone Mines, Patanka, Hillcrest Barranca and Principal Mines altogether incorporatingsometwentymine sites andall located at Knights Peaktogether withan extensive expandedarea surrounding the Malone Minesin the southern region of BurroMountains, New Mexico . It also owns multipleclaims in the Playas area of Hidalgo County, New Mexico . The company has also acquired considerable additionalresources expectedto be announced in due course that currently amounts to some 53 Million tons. It also just announced the optioning of a new and exceptionally high grade property.
Santa Fes Exploration and Development Team continues to analyze a number of attractive, economically viable opportunities and executeonthe company's acquisition program that is focused onpositioning the companyto resumemining and production operations as soon as possible.
For more information and to register for updates: Please visitwww.santafegoldcorp.com.
Forward Looking Statements
Please refer to the Forward Looking Statements link at the bottom left of Santa Fe Gold's website for all relevant disclosures.

Contact Frank Mueller , CFO 505-255-4852 [e-mail]


Source: Santa Fe Gold Corporation