Santa Fe Gold Proceeding with Construction of Summit Silver-Gold Project
Santa Fe Gold Corporation announced that the New Mexico Office of the State Engineer has issued a permit required to proceed with construction of the tailings dam impoundment at the Banner Mill located near Lordsburg, New Mexico. The company expects to complete construction of the tailings impoundment during the current quarter and to begin processing operations shortly thereafter.
“With this important permit now in hand, we are moving full speed ahead in executing our plan to begin processing of ore from the Summit mine,” said Pierce Carson, President and Chief Executive Officer. “Contractors are mobilizing to begin construction of the tailings dam and to install the plastic liner in the containment area.”
Issuance of the permit also was a condition to drawdown of $3.5 million of the $4.0 million provided under the gold sale agreement with Sandstorm Resources Ltd. announced September 14, 2009. The company anticipates receiving the remaining $3.5 million shortly.
The Summit mine is an underground silver-gold mine being developed on an epithermal vein deposit. For the past several months, in connection with mine development, Santa Fe has been mining and stockpiling ore. Ore from the Summit mine is transported to Santa Fe’s Banner Mill located in Lordsburg, New Mexico, where a marketable gold-silver concentrate will be produced. The mill is fully operational and will begin processing ore upon receipt of final permits and construction of the tailings dam impoundment. Santa Fe anticipates that the project will achieve commercial production in 2010.
