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  • Santa Fe Gold Corp. (SFEG) Hits Bonanza Grade Mineralization While Working Summit Mine, Strong Indicator For Extension Northwest 0 comments
    Nov 30, 2012 2:53 AM | about stocks: SFEG

    Santa Fe Gold, the ambitious and relatively young mineral developer focused primarily on their flagship Summit silver-gold project (including the underground mine and surrounding 117 patented acres, and 740 unpatented acres) and the associated Banner milling facility in Lordsburg, was overjoyed to report bonanza-grade gold and silver values occurring over mineable widths at Summit today.

    We are talking grades of 7.73 opt Au and 269.75 opt Ag, the best results thus far to be pulled at the project. It's a clear indication that the northern edge of the currently defined resource (especially in light of ongoing explorative work) where the assay material was pulled shows abundant potential for expansion. SFEG is looking at being able to expand northwest along-strike now through high-grade gold and silver, having kicked up this superb news while pursuing the 5600 level of the N-1 ore block.

    VP of Operations for SFEG, John White, noted how these findings roundly confirm the company's model for the N-1 mineralization and have created a great deal of exuberance at SFEG, instilling confidence in the procedural northwesterly movement to the point where the men are actually hungry to get at the metal. The epithermal vein system pattern for Summit is well known to all and here we have solid indicators that digging out more of the NW area will lead to additional high-grade mineralization outside currently identified resources. This could be huge for SFEG and the realization that such additional production potential is within reach has had an electrifying effect on people.

    Hitting this kind of potential while working your way through the material is a real boon for SFEG, and though the current assay bonanza returns are likely more highly localized, it is precisely this sort of localized mineralization that is a classic hallmark of epithermal vein systems in this geology. The assays results were encountered near a surface drill hole intersection that returned an 11.4 foot true width at 0.214 opt Au and 16.42 opt Ag, with face channel samples from a three consecutive round interval showing an average of 2.14 opt Au and 82.68 opt Ag over 12.7 feet. An additional 6-foot interval from the same zone yielded the brilliant 7.73 opt Au and 269.75 opt Ag figures.

    SFEG will also continue drift development below the 5300 level as they edge towards the high grade stuff down on the 5080 level, a progress target which the company anticipates hitting by the middle of next year. There is plenty of mining to be done within the broad, structurally controlled zone of epithermal mineralization bearing volcanic rock (hydrothermally altered) at Summit and the company has five years of ore reserve just in the main footwall zone (some 618k tons at 0.143 opt Au and 10.78 opt Ag).

    Production, discoveries that align with a clear geology model for the mineralization, and growing reserves; it's a recipe for success and SFEG has their sights set on the big time, with everyone across the company's asset portfolio driving hard to make Santa Fe the next major player in precious metals development.

    For more information on Santa Fe Gold, visit SantaFeGoldCorp.com

    Please see disclaimer on the QualityStocks website: disclaimer.qualitystocks.net

    Stocks: SFEG
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