Santa Fe Gold Reports Positive Preliminary Economic Assessment for Ortiz Gold Project

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Santa Fe Gold Reports Positive Preliminary Economic Assessment for Ortiz Gold Project

ALBUQUERQUE--(BUSINESS WIRE)-- Santa Fe Gold Corporation (OTCBB: SFEG) today announced positive results from the Preliminary Economic Assessment ("PEA") of the Carache and Lucas gold deposits completed by the independent firm Minerals Advisory Group, LLC ("MAG"). The PEA estimates the Carache and Lucas deposits could produce 874,000 ounces of gold from two open cut mines over an operating life ranging from 9 to 18 years depending on the development sequence employed. At a three-year moving average gold price of $1550 per ounce, revenues would total $1.35 billion and cash flows would approximate $350 million net of all costs including royalties, operating costs, taxes and capital expenses.

"We are extremely pleased to be able to announce these outstanding results, especially at a time when recovering gold prices have created an exciting climate for the Company and its future prospects," stated Pierce Carson, Chief Executive Officer. "MAG's study shows that the Carache and Lucas deposits would form the basis of an environmentally friendly and economically viable mining operation."

Dr. Carson continued, "The operation is somewhat unusual in that excellent gold recoveries of 90% or higher are achievable using gravity and flotation techniques alone, avoiding chemical leaching and minimizing environmental impact. Water also is a sensitive issue, and we propose to employ a dry stacking system for the tailings and thereby reduce water usage by about two-thirds."

Santa Fe is in the early stage of the permitting process at Ortiz, which is expected to require a minimum of two years to complete. Environmental baseline studies were initiated in January 2013 and in July 2013 a Sampling and Analysis Plan was submitted to the NM Mining and Minerals Division. The Company also is actively reaching out to a wide range of interested parties to solicit community input on mining development.

MAG's study analyzed three development scenarios and generated capital and operating costs for each, including 1) Carache and Lucas mined simultaneously at 3.0 million tons per year, 2) Carache alone at 1.5 million tons per year, and 3) Carache then Lucas also at 1.5 million tons per year. These development options yielded the following major results at a three-year moving average gold price of $1550 per ounce:

Plan           Direct Operating Cost     Capex     %IRR     NPV 5
Carache/Lukas     3.0 Mtpy     $684/oz     $259.5M     25.5     $215.3M
Carache Alone     1.5 Mtpy     670/oz     183.7 "     19.6     121.8 "
Carache then Lucas     1.5 Mtpy     768/oz     202.9 "     20.5     175.1 "

In 2012 Independent Mining Consultants, Inc. ("IMC") carried out mineral resource estimates on the Carache and Lucas deposits in compliance with Canada's NI 43-101 and Australia's JORC standards. Mineral resources were stated as follows:

Ortiz Project, JORC Compliant Mineral Resource Estimate



K tonnes

Gold (g/t)

Gold (koz)

Copper (%)

Copper (klbs)




Measured Resource






Indicated Resource






Carache M&I Total








Measured Resource






Indicated Resource






Lukas M&I Total







TOTAL M&I Resource







IMC is incorporating the results of MAG's PEA into an expanded NI 43-101 report that will be made available. Meanwhile, the Company will post the summary report of the PEA on its website.

About Santa Fe Gold

Santa Fe Gold is a U.S.-based mining enterprise with producing mining operations in Lordsburg, New Mexico, and exploration and development projects in southwestern New Mexico, north-central New Mexico and Arizona. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began commercial production in 2012; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Mogollon gold-silver project, within trucking distance of the Lordsburg mill; (iv) the Ortiz gold property in north-central New Mexico; (v) the Black Canyon mica deposit near Phoenix, Arizona; and (vi) a deposit 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

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable US securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended June 30, 2012 and its most recent quarterly reports filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's US public disclosure filings may be accessed via and readers are urged to review these materials.

Santa Fe Gold Corp
Pierce Carson, President and Chief Executive Officer

KEYWORDS:   United States  North America  New Mexico


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