ALBUQUERQUE, N.M., April 29, 2019 (GLOBE NEWSWIRE) -- Santa Fe Gold Corporation OTC (SFEG), a U.S. based mining company and owner of 148 mining claims covering 42 mine sites and potential mines, is pleased to announce the commencement of ore production from its Jim Crow mine located in the historic Steeple Rock mining district of southwest New Mexico.
Jim Crow Mine Production Startup
The Jim Crow mine consists of a 300’ deep steeply inclined shaft with lateral workings along the vein on the 200’ and the 300’ levels. We believe limited historic production has been from a zone extending from the 300’ level vertically up through the 200’ level and for an unknown distance above. Initial ore development is planned to be above 200’ with the produced vein material collected on the 300’ level and transported to the shaft for hoisting. The ore development under way should define the extent and quality of this mineralized zone. Initial production is planned to be stockpiled on the surface in preparation for shipment to Arizona smelters.
Dan Gorski - Re: Potential of Initial Jim Crow, Imperial and Billali Mines
Santa Fe Gold’s Geologist Overseeing Development of Mines & Operations
Potential for developing additional mineralized resources within the Jim Crow Mine and in the adjacent Imperial Mine exists in multiple directions. In addition to the Jim Crow Vein itself which is undeveloped both laterally and at depth, we believe there are two parallel veins showing potential economic grades and widths on the surface 170 ft and 320 ft to the northeast, respectively. We believe all three of these veins converge and project to intersect approximately 1500 ft to the northwest.
Our business strategy projects that if sustained production is achieved from the Jim Crow, then active development of the lateral and depth extent of the Jim Crow Vein and the development of the parallel veins and the Imperial Mine could begin.
A similar mine, the Billali, is located approximately four miles to the north of the Jim Crow. The Billali mine is accessed by a decline and it is believed that this mine contains several parallel veins.
Long term planning and expansion of production is expected to continue pending the development of sufficient ore within these three properties. The anticipated sale of the developmental “ore” from early production from the Jim Crow mine should offer a degree of mining flexibility to substantially expand ongoing development of this project.
Chairman Brian Adair Comments
We are very pleased with our overall achievements to date to be able to announce commencement of production of ore on schedule, having made what we believe to be considerable progress to this point.
I would like to especially thank our lead geologist Dan Gorski for his outstanding work on the Steeple Rock Billali eleven mine complex preparation for production and in particular for his extensive studies and analysis, as well as for his historic project work on the Black Hawk Alhambra five mine complex.
I also want to compliment our mines management team and mining personnel for their efforts and success in bringing the Jim Crow Mine into production as rapidly, efficiently and economically as they have so far managed to accomplish.
From now on the focus will be on increasing output at a steady and sustainable pace and we look forward to adding capacity on a planned basis as soon as practicable to continue to build Santa Fe.
We anticipate that revenues can be generated in the near future and expect to continue to execute on our ongoing development plan. Our mission continues to be to develop bankable mining projects and bring them into production economically and propitiously, in anticipation of future revenue growth.
Geological and Operational Overview
Steeple Rock - Billali Complex of Mines
Santa Fe Gold is increasingly well-positioned to become an operating mining company. Although the Jim Crow, Imperial and Billali Mines were initially highlighted for their near term production potential, the additional eight mines within the district may be developable and available for later production.
Geology of the Steeple Rock district is well known as a Tertiary-age epithermal silver-gold mineralization is associated with northwest-trending quartz veins and silicification along fault line with silver-gold mineralization related to a Tertiary-age volcanic-intrusive complex.
Black Hawk Alhambra Complex of Five Silver Mines
In addition to completing the acquisition of its previously highlighted near term production mines Jim Crow, Imperial and Billali et al in the Steeple Rock district, Santa Fe more recently was also able to complete the acquisition of five silver mines, namely: The Alhambra, Black Hawk, Silver King, Good Hope and Bullard's Peak mines. These are covered by thirteen patented claims and 82 un-patented claims in the Black Hawk district located in Grant County, approximately 15 miles southwest of Silver City, New Mexico. Santa Fe is currently reviewing development options with respect to these mines.
This district, with a history of operations dating back more than a century is of an important geologic type known for grades of silver with associated nickel and cobalt values.
Financial Filings Continuing on Track
Santa Fe Gold continues to “bring current” its SEC filings.
About Santa Fe Gold
We are a mining company engaged in the business of acquisitions and intended development of and production from mining and mineral properties.
This release may contain certain “forward-looking” statements, which represent the Company’s expectations or beliefs, including but not limited to, statements concerning the company’s planned operations, financial condition, ability to obtain capital, and growth and acquisition strategies. Additionally, in order to implement the business strategy of the Company as reflected in this press release, the Company will be required to obtain additional capital to fund operations and there can be no assurance that the Company will be successful in its capital raising efforts. The failure to raise required financing will impact our plans, timing, and could adversely affect the Company, including the strategy outlined in this press release.
For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intent,” “intends,” “could,” “should,” “estimate,” “might,” “plan,” “predict,” “strategy” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements.
This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements.
For more information, investors should review the SEC filings on our website.
Please visit www.santafegoldcorp.com.
Frank Mueller, CFO