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

Santa Fe Gold Corporation (OTCBB:SFEG) announced a positive PEA for the Carache and Lucas gold deposits. The PEA estimates the Carache and Lucas deposits revenues would total $1.35 billion at a three-year moving average gold price of $1550 per ounce, with production of 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.

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	NPV5
Carache/Lucas	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

Santa Fe Gold Chief Executive Officer Pierce Carson said:

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. MAG’s study shows that the Carache and Lucas deposits would form the basis of an environmentally friendly and economically viable mining operation.

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