Aug 31 2010
Santa Fe Gold Corporation (OTCBB:SFEG) is pleased to announce it has contracted with ASARCO LLC ("Asarco") to supply a trial shipment of 1,000 tons of siliceous flux material to Asarco's Hayden smelter in Hayden, Arizona.
The flux material will be processed for precious metals recovery. Santa Fe will be paid for the contained silver and gold less customary charges. The siliceous flux constitutes a beneficiated product of ore from the Summit mine upgraded in silica and precious metals contents through crushing and screening.
"This initial trial of siliceous flux to Asarco's Hayden smelter, together with a similar trial conducted earlier this year with Freeport-McMoRan Miami's smelter, is expected to lead to long term contracts," said Pierce Carson, President and Chief Executive Officer. "Flux sales potentially could be quite significant to Santa Fe and could account for a substantial portion of ore mined at Summit.
"Smelter flux sales add another dimension to our options for processing of Summit ore and to our strategy of expanding our production profile in the Lordsburg area. Ore sold as smelter flux does not have to be milled and therefore frees additional capacity at our Lordsburg mill."
Santa Fe's Lordsburg mill is producing a high value gold and silver concentrate. The company has been in negotiations with smelters for sale of the concentrate and expects to begin shipments shortly. The company plans to ramp up production from the Summit mine to 120,000 tons per annum over the next two quarters. At full production, revenues are projected to exceed $25 million annually, assuming metal prices of $1000 per ounce for gold and $16.67 per ounce for silver. Operating costs are projected to be less than $350 per ounce of gold equivalent produced.
Source: http://www.santafegoldcorp.com/