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Company Is Making Solid Progress in Developing a Potential New Gold-Silver Zone at the Jim Crow Mine
Mined resources are currently being stockpiled at the surface pending execution of sales contracts with Arizona smelters
ALBUQUERQUE, N.M., June 28, 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 it has been steadily increasing production of potentially economic grade, high silica vein material from its Jim Crow mine.
The Steeple Rock Mining District contains numerous deposits of high Silica content quartz vein rock and Santa Fe Gold has marketed similar material to several copper smelters in the past, where it was used as a fluxing agent in the copper smelting process.
Careful sampling and analysis of this vein from the 200-foot depth level development headings leads Santa Fe management to believe that this new zone is of an acceptable quality to be shipped to smelters, after crushing to a 3/8 inch specification.
Santa Fe Gold believes that it can develop sufficient tonnage in this zone to be able to demonstrate the capacity to fulfill a long term supply contract as required by smelters.
Management’s initial goal is to be able to produce between 50 to 100 tons per day from the Jim Crow Mine. If achieved, further development of the Jim Crow vein both laterally and at depth will be explored. Thereafter, Santa Fe Gold would plan to develop additional mineralized and parallel veins believed to be present up to the surface representing further potential targets to be developed from the existing working levels of the Jim Crow Mine.
Once full production can be achieved from the Jim Crow Mine, the plan is to further exploit and develop the adjacent Imperial Mine. Potential “down dip” extension of the Imperial vein should be able to be accessed from the Jim Crow Mine by extending the 300 level approximately 300 feet to the southeast. We believe that historic diamond drilling indicates mineralized quartz veins are present within the area. Another similar mine, the Billali, is situated some four miles north and we plan to develop this mine in due course.
Jim Crow Mine Development
The Jim Crow mine has two historic levels at 200 and 300 feet depth, respectively. It is served by an inclined shaft capable of lifting 30 tons per hour. Historic production from the mine was mainly from the southeast of the shaft where we believe that an existing zone has been partially mined both on the 200 and 300 levels with further potential for development.
These workings are linked to the surface and serve as a secondary escape way. The Company plans to extend development from this zone pending completion of the present development work on the north western seam of the 200-foot level. We believe that there is an additional mineralized segment of the vein near the surface above this area.
Santa Fe management believes the Jim Crow, with careful, systematic expansion through ongoing ore development and mining can become a significant producer of direct shipping gold-silver fluxing ore.
Chairman Brian Adair Comments
We are very pleased to report continued impressive progress at the Jim Crow mine as it nears delivery of content from its first quarter of ore preparation and production. We anticipate generating revenues from this mine in the near future.
Our strategy has been to acquire and develop a portfolio of high grade gold deposits, mines and other resources as economically as possible with the goal to place them into production at an applicable pace.
Fortuitously, the recent increase in metals prices and robust precious metals markets could positively impact our business model.
Once again, I would like to especially thank our mining and exploration team for their outstanding efforts in spearheading Santa Fe Gold into production in minimal time and for their expertise and ongoing endeavors in advancing the preparation of its eleven Steeple Rock and Billali Gold and Silver Mines and also the continuing development and analysis of Black Hawk Alhambra Silver Mine Complex with newly acquired high quality samples and an enormous cache of data Santa Fe has just received.
Our goal is to maximize output at a steady and sustainable pace and add capacity as soon as possible.
Technical Advisor Dan Gorski Adds
The potential ability to attain profitable production from the Jim Crow and other mines in the Steeple Rock district quickly, coupled with the longer-term development of the very high potential Alhambra Mine and others in the Black Hawk district, makes Santa Fe Gold a unique situation.
Black Hawk Alhambra Complex of Five Silver Mines
The Black Hawk-Alhambra Complex comprises five silver mines, namely: The Alhambra, Black Hawk, Silver King, Good Hope and Bullard's Peak mines and numerous other carbonate veins showing metal values at the surface. These mines are covered by 13 patented claims and 82 un-patented claims in the Black Hawk district located in Grant County, approximately 15 miles southwest of Silver City, NM.
This district, with a history of operations dating back more than a century is of an important geologic type known as 'Five Element Veins' with high grades of silver and associated nickel and cobalt values.
Santa Fe management plans to develop a phased project approach to locate and develop the potential high grade silver lenses within these veins.
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 and expand the business strategy of the Company as reflected in this press release, the Company may be required to obtain additional capital to continue operations. There can be no assurance that the Company will be successful in obtaining required capital to execute and further our business plan and strategy outside of our available funding sources.
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