Santa Fe Gold Settles Litigation on Ortiz Gold Project and Proceeds with Work Program
Santa Fe Gold Corporation (OTCBB: SFEG) today reported Santa Fe
and Ortiz Mines, Inc. had settled the federal court litigation between
them. Santa Fe had filed a complaint in response to a dispute concerning
termination of its lease and other claims between the parties, which it
announced on August 31, 2011. The settlement agreement confirms the
continuation of Santa Fe′s exclusive lease rights to explore, develop
and mine gold, silver, copper and other minerals on 66 square miles of
the Ortiz Mine Grant in Santa Fe County, New Mexico. Historical drilling
by other companies identified approximately 2.0 million ounces of gold
resources on ground now under Santa Fe′s control.
'Now that the litigation is behind us, we intend to proceed immediately
with our proposed work programs,? said Pierce Carson, President and CEO.
'We believe new technical studies will support our previous preliminary
conclusion that the Ortiz gold deposits could form the basis of an
economically attractive mine development.?
In connection with the settlement, annual lease payments remain
unchanged but Santa Fe has agreed, subject to certain qualifications, to
expend at least $500,000 by November 22, 2012, and a total of $1.0
million by May 22, 2013, on work programs in support of project
development.
Santa Fe plans to commission an independent NI 43-101 technical report
that will provide a resource statement and a preliminary economic
assessment. The Company plans also to proceed with baseline
environmental surveys and other work necessary to submit applications
for development permits.
Additional Information:
The settlement agreement is included as an Exhibit to Santa Fe′s Current
Report on Form 8-K, which it will file promptly with the SEC and will be
available at www.sec.gov
and also may be accessed via www.sedar.com.
About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused
on acquiring and developing gold, silver, copper and industrial mineral
properties. 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 Ortiz gold property in
north-central New Mexico; (iv) the Black Canyon mica deposit near
Phoenix, Arizona; and (v) 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 www.santafegoldcorp.com.
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 and Canadian 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, 2011
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 www.sec.gov
and its Canadian public disclosure filings may be accessed via www.sedar.com,
and readers are urged to review these materials.
Santa Fe Gold Corp
Pierce Carson, President and Chief Executive
Officer
505-255-4852
or
Investor Relations
Torrey
Hills Capital
Clay Chase, 858-456-7300
cc@sdthc.com
