Source: Santa Fe Gold Corporation
Company Focused on Near Term Production from Surface Mining of High Grade Silver Deposit, Gold, Silver and Multi Metallic Tailings
Santa Fe Gold completed and filed 2016 Annual Report as Annual and Quarterly Reports for 2017 are expected to be filed soon
ALBUQUERQUE, N.M., Nov. 30, 2017 (GLOBE NEWSWIRE) -- Santa Fe Gold Corporation (OTC:SFEG) is pleased to announce that preparations are under way to commence mining production as soon as possible upon completion of the acquisitions and final permitting. The company is in the closing stage of acquisition of 100% of Bullard’s Peak Corporation and Black Hawk Consolidated Mines Company, as mentioned in its last press release dated 10/20/2017.
The acquisitions include the formerly optioned AG1 Silver Mine and all lands surrounding the project including potential Porphyry Silver Discovery, Cobalt, Lithium, Manganese and Nickel and all rights to same.
SFEG is a U.S. based mining and exploration enterprise with emphasis on Gold, Silver, Copper, Precious, Industrial and Base metals and owner of multiple claims. These include the Malone Mines complex incorporating 20 associated mine sites, the Playas Lake Bed area of Hidalgo County, New Mexico and a Silver mining opportunity with a potential major Porphyry Silver discovery and is currently in the process of acquiring multiple additional acquisitions, all of which are considered high grade deposits.
The company expects to file the remainder of its 2017-year financial statements in the very near future.
To access recently filed 2016 Annual report:
Santa Fe Gold to Make Important Announcements in the Near Future Re: Additional Acquisitions of High Grade Mines, Tailings and Lithium with Near Term Production Part of Strategic Plan to Rebuild Value
According to a recent Gold Industry Report, since 2007, grades have fallen from an average of 2.5 grams a ton to about 1 gram. This is potentially very positive for the industry longer term as overall output declines. Santa Fe Gold wants to particularly emphasize its sole interest is in acquiring only the highest grade commercially viable deposits while prices are still affordable.
With Global Gold and Silver production expected to decline substantially into the end of the decade and beyond, global demand is expected to rise and if the US Dollar which has already fallen 10% in 2017 continues to decline further, it could auger well for Gold, especially with rising Central Bank demand and continued buying by China and Russia, all of which are positive for metals. Valuations in time should soar and demand should increase, especially for the highest-grade assets held in favorable jurisdictions with relative ease of near term output.
Add to that Santa Fe Gold's $103 Million tax loss, which when combined with recent highly favorable U.S. tax cut proposals, should enable the company to benefit from multiple years of tax free income that could also command a significant premium over other mining companies and potentially render the company an increasingly attractive takeover target.
Further Evidence of Presence of Cobalt, Lithium, Manganese, Nickel and Titanium
As ongoing work and preparations for production to begin have progressed at Santa Fe's properties and already additional benefits have resulted from these acquisitions which are of particular note: In addition to the highly valued and coveted Silver mines along with the potential Porphyry Silver discovery, below and adjacent at depth, which is the main focus of work, the properties include other high quality minerals and rare metals including Lithium, Zinc and especially Cobalt that have seen further significant prices with Cobalt recently rising a very sharp 13% just in the past month to $68,000 per ton, the highest price in over a decade.
This sought after rare metal is in increasingly high demand. Cobalt’s growing use in a wide variety of technological applications and more recently in Electric Vehicles and Batteries.
Lithium is also currently in extremely high demand, so much so that prices are projected to quadruple in the next few years as more manufacturers turn towards Electric Cars with Volvo set to go “All Electric” by 2019 and Volkswagen to spend $40 Billion by 2022. In addition, these rare and uncommonly valuable ore deposits are supplemented by additional high demand metals of Manganese and rising Nickel values and are expected to boost Santa Fe’s revenues once mining and processing of this material begins.
President and CEO Tom Laws Comments:
With filing of the 2016 Annual Financial Statement and final filings to follow, we are looking forward to becoming fully compliant in the very near future and achieving eligibility to apply for listing on a higher exchange.
The addition of several potentially commercially viable deposits of Cobalt, Lithium, Manganese and Nickel adds a dynamic new benefit towards developing additional revenues for Santa Fe and proprietary processing methods for these ores are currently being evaluated by Santa Fe.
“The company is continuing to execute on its strategic plan to acquire only the highest-grade deposits we have thus far been fortunate to avail of. Inevitably we see higher prices and rising demand for such prized assets by the major miners, some of whom have already staked high grade properties around us. These are all exceptional acquisitions for Santa Fe Gold that will now own and control these highly prospective increasing land areas in what is proving up to be the exceptionally highly mineralized zones we initially anticipated and expected to find. To be endorsed by outside geologists’ recent surveys and appraisals confirms our original views and high expectations regarding the exceptional potential of these surrounding properties.
With particularly high concentrations of Silver, including presences of near pure Silver nuggets in the upper zones nearer to the surface, visiting geologists concurred on the uncommonly high prospects of this unique Silver mine and Porphyry Silver Discovery”.
Given the broadening dimensions and extent of the structures: "The main Silver mine and potential Porphyry Silver deposit beneath represent tremendous near-term upside potential and value for Santa Fe Gold, which is estimated to contain a world class deposit of Silver and depending upon the extent of the Porphyry deposit discovery, could add ore bodies of additional breadth and value”.
"Proprietary surveillance methods recently revealed extraordinarily high concentrations of Silver and Gold in deposits, consistent with other high-grade veins throughout the region and management expects to make a major announcement in the near future of a significant new discovery."
We are committed to building up the company’s assets in line with our strategic agenda and our mission is to get as many of these new properties into production as soon as possible:
“Our growing portfolio of highly sought-after properties, with more to come, demonstrates the strong commitment, dedication and confidence in the future of Santa Fe Gold as management is intent on building the company to new heights and continues to progress towards a restart of production per our previously announced plans around asset acquisitions and production ramp up at a particularly opportunistic time for gold, silver and precious metals."
Area is Rich in High Grade Deposits
For the benefit of new investors and shareholders: As commented previously, the area in general and its surroundings, has an uncommon history of exceptionally high grades, as borne out by previous very high-grade discoveries reported by Santa Fe Gold in 2012, where assays showed bonanza type high grades of 7.73 ounces of gold per ton and 269.75 ounces per ton of Silver. While such exceptionally high grades are rare and could be considered as an anomaly, they do prove that such grades exist and reason for Santa Fe’s emphasis.
Recent assessment by outside geologists suggest the presence of a major Gold target in the Malone Mines Complex and a significant Silver rich target in the Black Hawk and Bullard’s Peak Silver Mines environs. Historically, Malone Mines uncovered exceptionally high-grade showings as borne out with grades reportedly as high as 16 oz per ton at one time encountered in the highest yielding area of this complex of mines, where some 80% of all the gold discovered in New Mexico has reportedly been found.
Release of Completed Financials:
June 30, 2016 Annual Report recently filed and updated through November 14, 2017 available at: https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12383649
About Santa Fe Gold
Santa Fe Gold is a U.S.-based mining and exploration enterprise and owns the following mining assets: The Knight’s Peak region of Grant County, New Mexico comprising the Malone Mines, Patanka, Hillcrest Barranca and Principal Mines, altogether incorporating some twenty mine sites and all located at Knight’s Peak, together with an expanded area surrounding the Malone Mines in the southern region of Burro Mountains, New Mexico. The company also owns very significant holdings in the Playas Lake Bed Area of Hidalgo County that includes the presences of Titanium ore and other rare earth minerals and deposits.
Santa Fe Gold is in the process of adding additional properties and two mining companies to its portfolio, with very substantial Silver holdings along with Cobalt, Lithium, Manganese, Nickel and other rare earths currently being investigated. The company’s Development Team continues to be extremely active in acquiring additional properties over recent months as it finalizes analysis of a number of attractive, economically viable opportunities and executes on the company's acquisition program that is totally focused on positioning the company to resume mining and production operations expected in the near term.
For more information and to register for updates:
Please visit www.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.
Santa Fe Gold Corporation
Frank Mueller, CFO