Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

August 07, 2008 15:21 ET

Santa Fe Metals One Step Closer to Production at Cuatro Cienegas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2008) - Santa Fe Metals Corporation (TSX VENTURE:SFM) (the "Company") has received a favourable NI 43-101 compliant Technical Report on its Cuatro Cienegas Project located in the State of Coahuila, Mexico. The full report is available on SEDAR at www.sedar.com and will be made available on the Company's web site at www.santafemetals.com. The report was independently authored by Michael G. Bersch Ph.D., Licensed Professional Geologist, a qualified person pursuant to regulatory policies. Completion of the report allows the Company to begin the planning of a 1,000 tonnes per day copper leaching operation at the property.

Cuatro Cienegas is a high-grade copper project (with silver, lead & zinc) slated for production in late-2009. The Company intends to develop underground exploration drifts as part of its exploration program of this flat lying sedimentary copper system. Material gathered will be processed on site in a conventional acid heap leach operation to produce cement copper which can be shipped directly to a smelter for refining. This type of process has existed for centuries and is a reliable, cost-effective way of producing copper. Recovery of copper from copper oxides using this process is typically in the range of 85%. Other metals, however, are not recovered in the process. Any revenues generated from the operation will be used to fund exploration activities on this and other Company properties. Information gathered from the process can be used to establish resource estimates at Cuatro Cienegas. The Company cautions that no Feasibility Study has been completed at this time. The process is primarily for exploration and there is no certainty that its planned operation will be cash flow positive.

In the author's opinion, mineralization, stratigraphy, and structure are favourable for the occurrence of a classic, large-scale strata-bound copper-silver-lead-zinc deposit. Further exploration has been recommended, consisting of a preliminary geological mapping, sampling and surveying program, the results of which will be used to devise a more detailed exploration program.

In his report, Dr. Bersch concluded that the mineralization found in the Don Indio and El Granizo concessions is sediment-hosted stratiform copper-silver-lead-zinc mineralization of the Kuperschiefer-type (commonly referred to as "red-bed"). Deposit comparisons include Spar Lake (Troy), White Pine (Michigan, USA), Kupferschiefer district (Germany and Poland), and Zambia-Zaire copper belt (Zaire). Tabular deposits of this type have been known to extend laterally for tens of kilometers and vary in thickness from tens of centimeters to several meters. Within the Cuatro Cienegas project area, such lateral potential is indicated on the Don Indio concessions by mines and prospects along a strike length of at least five-kilometers and in El Granizo for approximately two kilometers on the opposite side of the valley. Previous exploration has identified copper-silver mineralization in the Don Indio concession at true thicknesses up to 23 meters. At El Granizo, the author estimated copper mineralization over a thickness of ten meters. Results of previous exploration conducted by others in historical workings at Don Indio have been reported and include a weighted average of 95 samples at 3.3% copper, and 117 g/t silver (from level 4 in the Pilar Grande mine); and a weighted average of 20 samples from level 1 in the San Marcos West mine at 3.0% lead, 5.0% zinc, and 53 g/t silver.

Santa Fe Metals Corp., through its wholly owned Mexican subsidiary, Compania Minera Coronado S.A. de C. V. (CMC), has acquired a 100% interest in the concessions comprising the Cuatro Cienegas property, which total 3,408 ha, subject to fulfillment of certain obligations including royalty payment.

CMC has initiated the process to obtain the necessary permits and has held discussions with a mining contractor to develop a design basis and costs.

This news release has been prepared by Ian Smith, B. E. Mining, F. Aus. I.M.M., and a Qualified Person under National Instrument 43-101.

About Santa Fe Metals Corp.

Santa Fe Metals Corp. is a diversified base and precious metals explorer with near-term copper production plans on its recently-acquired Cuatro Cienegas property. The Company is focusing its exploration efforts on the prolific Mexican gold, silver and CRD belts (silver, lead, zinc, copper) and has recently completed a Phase I exploratory diamond drilling program on its Lobos property. Assay results from this program are pending but should be available by month's end and will be reported at that time. The Company's management team and board of directors have over 200 years of combined industry experience, with numerous well-known success stories to their credit. Santa Fe is currently focused on evaluating and developing exploration plans for its Cuatro Cienegas, Lobos and Lorena properties and making additional acquisitions. Further information is available on the Company's website www.santafemetals.com.

SANTA FE METALS CORP.

IAN SMITH, President & CEO

This release contains forward-looking statements, including statements relating to Santa Fe Metals' future plans and objectives with respect to the exploration and development of its properties. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in Santa Fe Metals' business, including risks inherent in resource exploration and development. There can be no assurance that economic resources will be developed at any of its properties. Actual results may vary materially from those described in forward-looking statements.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

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