ALBUQUERQUE, N.M., Sep 01, 2010 -- Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce it will supply an additional 3,000 to 6,000 tons of trial siliceous flux material to Freeport--McMoRan Miami Inc. ("FM Miami"), a wholly owned subsidiary of Freeport--McMoRan Copper & Gold Inc. Santa Fe previously provided FM Miami with 3,000 tons of similar material earlier this year. The flux material will be processed for precious metals recovery. Santa Fe will be paid for the contained silver and gold. The net will be less customary charges.
The siliceous flux constitutes ore from the Summit mine upgraded in silica and precious metals contents. FM Miami uses siliceous flux in the smelting of copper ores.
"We are hopeful that this trial will lead to a long term contract," said Pierce Carson, President and Chief Executive Officer. "Flux sales should be quite significant to Santa Fe. They may account for a substantial portion of ore mined at Summit. Last week we announced a similar trial shipment of flux material to another Arizona smelter.
"Smelter flux sales add to our options for processing of Summit ore and to our strategy of expanding our production profile in the Lordsburg area. Ore sold as smelter flux does not have to be milled. This frees additional capacity at our Lordsburg mill."
Santa Fe's Lordsburg mill is producing a high value gold and silver concentrate. The company is moving forward in negotiations with smelters for on-going sale of its concentrate. Santa Fe expects to begin shipments of concentrate shortly. The company plans to ramp up production from the Summit mine to 120,000 tons per annum over the next two quarters.
Full production revenues are projected to exceed $25 million annually based on metal prices of $1000 per ounce for gold and $16.67 per ounce for silver. Operating costs are projected to be less than $350 per ounce of gold equivalent produced.
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 mine and processing facility 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.
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