Santa Fe Gold Reports “Exceptional” Silver Grades at Alhambra

Santa Fe Gold (OTCBB:SFEG) reported silver grades of up to 35.8 ounces per ton from pre-production trenching and independent testing at its Alhambra silver mine and tailings asset. 

The company said Tuesday (May 22) that additional drill target results involving upwards of 100 samples are set to come out over the coming weeks.

“We are pleased to report these initial results of our pre-production testing and are optimistic that the broad spectrum of tests results currently underway will prove to be considerably better than most silver mines and will further establish and confirm Santa Fe Gold’s ‘one of a kind’ Alhambra silver mine as a potential multi-decade producer of both silver and potentially cobalt,” said President and CEO Tom Laws.

“The state of the art processing method that Santa Fe Gold intends to employ can separate each element individually for sale to buyers,” he added. 

Law also said the company expects current mine output material to run contained ounces of at least 13.3 ounces per ton silver. This material can be concentrated at surface, he said, allowing Santa Fe Gold to accrue minimal costs and create a saleable product containing up to 150 ounces per ton silver.

He explained, “the initial plan at Alhambra will be to produce the dump material which will include the richer quality known vein where grades are unusually high, as will be borne out in upcoming tests, using a crushing and a flotation system to produce concentrate.”

Concentrate will be sold into the market “to a number of purchasers both locally and overseas and later switching to a state of the art processing system,” said Law.

Santa Fe Gold said it has rolled out plans for a second production source with a mill tailings reclamation project in another location. Drilling and assaying of this additional material is to be determined, but will take place in the near future.

Looking ahead, Santa Fe Gold is set to announce a potentially significant cobalt discovery. As of 3:06 p.m. EST on Tuesday, Sante Fe Gold was trading at US$0.11.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.