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Santa Fe Gold Begins Construction of Summit Silver-Gold Mine

Posted on: Monday, 11 February 2008, 09:00 CST

Santa Fe Gold Corp (OTCBB:SFEG), a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, announced that it has begun construction of its Summit Silver-Gold Mine, located in New Mexico. In December 2007, the company announced it had arranged $13.5 million of financing required for mine and mill construction.

Dr. Pierce Carson, CEO, said, "Since the procurement of financing, we have moved rapidly to begin development of the Summit mine. In January we hired an experienced project construction manager. At the Lordsburg mill site, clearing and ground preparation is underway and is expected to be completed this week. We are arranging with contractors for the installation of water facilities and are conducting preparatory work for installation of power. We also are finalizing a schedule for the disassembly and relocation to Lordsburg of our processing plant currently located at Winston, NM.

"At the Summit mine site, upgrade of roads and refurbishment of underground portal sites is planned for later in February. We expect to receive proposals for underground contract mining later this month, and to be able to award a mining contract during March. Underground mining operations would commence shortly thereafter.

"Our overall objective at Summit is to begin production as soon as possible. Barring unforeseen delays, we appear to be on track to achieve the twelve month construction schedule as outlined in last year's engineering report by Chapman, Wood and Griswold, Inc. At current silver and gold prices, we believe that the project's economics appear to be very attractive. We believe that the company strategically is well-positioned to take advantage of the rising silver and gold prices and to increase long-term shareholder value."

About Santa Fe Gold Corp:

Santa Fe Gold Corp (OTCBB:SFEG) is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. The company owns the Summit silver-gold property and a mill site and processing equipment in southwestern New Mexico; mineral lease rights to the Ortiz gold property in north-central New Mexico, believed to contain two million ounces of gold; the Black Canyon mica mine and processing facility near Phoenix, Arizona; and a large resource 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 the company, visit www.santafegoldcorp.com.

Forward Looking Statements:

The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

Source: Business Wire

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