Santa Fe Gold Corporation OTC (SFEG) takes pleasure in announcing that the production of potentially economic-grade, high silica vein material at its Jim Crow mine is progressively increasing.
Santa Fe Gold is a U.S. based mining company that owns 148 mining claims encompassing 42 mine sites and prospective mines.
Various deposits of high-silica content quartz vein rock are present in the Steeple Rock Mining District, and Santa Fe Gold has previously marketed analogous material to a number of copper smelters, where it was utilized in the copper smelting process as a fluxing agent.
After this vein was meticulously sampled and analyzed from the 200-foot depth level development headings, the management at Santa Fe Gold believed that the quality of this latest zone was acceptable enough to be transported to smelters, following crushing to a specification of 3/8”.
According to Santa Fe Gold, adequate tonnage can be developed in this new zone which would allow the company to show its potential to meet a long-term supply contract as demanded by smelters.
The original goal of Santa Fe management is to have the capacity to generate approximately 50 to 100 tons in every single day from the Jim Crow Mine. If this is accomplished successfully, then additional developments of the Jim Crow vein both at depth and laterally will be investigated. Afterward, Santa Fe Gold has planned to develop more parallel and mineralized veins that are believed to exist up to the surface indicating more prospective targets to be developed from the current operating levels of the Jim Crow Mine.
As soon complete production is realized from the Jim Crow Mine, Santa Fe Gold has planned to exploit and develop the neighboring Imperial Mine further. By extending the 300 level about 300 feet to the southeast, prospective “down dip” extension of the Imperial vein could be accessed from the Jim Crow Mine. It is believed that historic diamond drilling denotes that mineralized quartz veins exist within the region. The Billali is another similar mine that is located about four miles north and would be developed eventually.
Jim Crow Mine Development
There are two historic levels at 200 and 300 feet depth, respectively in the Jim Crow mine. In addition, it is served by an inclined shaft that can lift 30 tons every hour. From the Jim Crow mine, historic production was primarily from the shaft’s southeast where an existing zone is expected to be partly mined on the 200-foot as well as the 300-foot levels with more potential for development.
These workings are associated with the surface and act as a secondary escape route. Santa Fe Gold intends to further develop from this zone upon completing the current development work ongoing on the north western seam of the 200-foot level. It is believed that there is more mineralized segment of the vein close to the surface above this region.
Santa Fe management hopes that the Jim Crow mine, with systematic and careful expansion via ongoing ore development and mining, can turn out to be a major producer of direct shipping gold-silver fluxing ore.
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.
Brian Adair, Chairman, Santa Fe Gold Corporation
“Fortuitously, the recent increase in metals prices and robust precious metals markets could positively impact our business model.”
Adair added that “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,” he further added.
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,” stated Dan Gorski, Technical Advisor.
Black Hawk Alhambra Complex of Five Silver Mines
The Black Hawk-Alhambra Complex includes five silver mines, such as The Alhambra, Good Hope, Silver King, Black Hawk, and Bullard's Peak mines and various other carbonate veins demonstrating metal values at the surface. Such mines are enclosed by 82 un-patented claims and13 patented claims in the Black Hawk district situated in Grant County, about 15 miles southwest of Silver City, NM.
This district has a history of operations that date back to more than 100 years. It is a vital geologic type called “Five Element Veins” that have high-grades of silver and related cobalt and nickel values.
Santa Fe management intends to develop a phased project approach in order to locate and further develop the prospective high-grade silver lenses inside these veins.