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Santa Fe Gold Corporation (OTCBB:SFEG.ob - News) is pleased to announce it has shipped three 20-ton containers of high-value precious metals concentrate to a German smelter under a contract announced in December 2010. At current gold and silver prices, these three containers are valued at approximately $2.0 million. Final payment will be based on average gold and silver prices for the months of April and May, 2011. In addition to sales of concentrates, Santa Fe also is delivering siliceous flux material to an Arizona smelter for precious metals recovery, under a contract announced in January 2011. Sales of precious metals concentrate and siliceous flux material are increasing in line with Santa Fe�s objective of ramping up production from its Summit mine. �Sales for the three months ending March 31, 2011 are projected to significantly exceed sales for all of 2010,� said Pierce Carson, President and Chief Executive Officer. �Sales for the six months ended December 31, 2010 totalled approximately $1.25 million. We expect production and sales to continue to build during 2011. �We have demonstrated that our two products, the concentrate and siliceous flux, are high quality products and anticipate no problem in selling all we can produce. At full production, we believe we will be able to sell up to 50% of Summit production as siliceous flux, which involves direct shipping of ore to smelters with a minimum of processing. Among other advantages, this would have the effect of freeing additional milling capacity at the Lordsburg mill. The mill then potentially could be used for processing ore from other sources and would add to output from the Summit mine.� The Summit mine is ramping up production and is expected to reach full, steady production during 2011. Revenues are expected to increase significantly over the course of 2011 reflecting increases in both tonnage and grades. At full production, annual revenues are estimated to approximate $40 million at recent gold and silver prices. Operating costs are projected to be $340 per ounce of gold equivalent produced. Ore reserves average 0.143 ounces per ton gold and 10.78 ounces per ton silver (0.35 ounces per ton gold equivalent). 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; (ii) a substantial land position at the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Ortiz gold property in north-central New Mexico, estimated to contain two million ounces of gold; (iv) the Black Canyon mica property and processing equipment near Phoenix, Arizona; and (v) a large resource 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. 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.
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