Santa Fe Gold to drill newly acquired mining property in south-west US

16 January 2017 (Last Updated January 16th, 2017 18:30)

Santa Fe Gold has announced that it has received the option for mining rights of a high-grade property in south-western US.

Santa Fe Gold has announced that it has received the option for mining rights of a high-grade property in south-western US.

The company is planning to begin drilling the property immediately to evaluate its reserves, which hold the potential to become the flagship mine for Santa Fe Gold.

The property includes patented and un-patented claims of around 200 acres. The company claimed that this high-grade deposit may host around 1.25 million tonnes of ore.

Recently completed assays at the property also suggest that the value of some ore veins can be in more than thousands of dollars per tonne.

Santa Fe Gold president and CEO Tom Laws said: “This is an exceptional property in one of the most highly mineralised areas anywhere on Earth that Santa Fe Gold now has under its control with an option to acquire subject to completion of a drilling programme to prove up reserves.

"We believe this has the potential to be a flagship property for Santa Fe Gold that can be brought into production relatively quickly."

“Given the dimensions and extent of the vein structures, we believe this has the potential to be a flagship property for Santa Fe Gold that can be brought into production relatively quickly.”

In 2012, drilling at the location reported 7.73oz of gold per tonne and 269.75oz of silver per tonne.

Santa Fe Gold intends to continue making additional acquisitions of high-grade properties in the following months. On the basis of the acquisitions, it plans to commence mining operations through the most effective and profitable means.

The company focuses on precious mining, owning multiple claims in New Mexico that includes Malone Mines Complex hosting 20 associated mine sites and the Playas Lake Bed area of Hidalgo County.