Santa Fe Metals Corp.

Santa Fe Metals Corp.

October 16, 2008 09:00 ET

Santa Fe Metals Corp.: Cuatro Cienegas Channel Samples Yield Grades Up to 3.2% Copper; Lobos Drill Results Reported

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - Santa Fe Metals Corporation (TSX VENTURE:SFM) (the "Company") is pleased to announce progress on its Cuatro Cienegas Project in the State of Coahuila, Mexico, and the drill results for the 2,000 metre drill program on its Lobos Property in the States of Zacatecas and Durango, Mexico.

Cuatro Cienegas

The Company has commenced metallurgical testwork on copper oxide material from Cuatro Cienegas at Professional Research Associates Ltd. (PRA) laboratories in Richmond, BC. The testwork is being conducted on a 150kg composite sample collected from the outcrop of the "red bed" system on the El Granizo concessions on the south side of the Valle de Jabali. Eight channel samples were taken over approximately 100 meters of exposed face. The average head grade as determined by PRA is 1.7% total copper (TCu), of which 86% or 1.46% is leachable oxide copper (OxCu). Sampled grades ranged from 3.2% TCu (2.78% OxCu) to 0.6% TCu (0.54% OxCu). Bed thicknesses range from 4.5m to 9.6m with an average thickness and grade thickness of 7m and 11.9m% respectively. Full results are posted on the Company's website at

A total of eight specific gravity ("SG") determinations were performed using the waxed immersion method. The average SG was estimated to be 2.5g/cm3. PRA will perform both bottle roll and column leach tests to determine recovery and leach times as a basis for process plant and leach pad design. Preliminary results from the bottle roll tests should be available by the end of October. Final results from the column tests are expected by the end of January 2009. This work is being supervised by John Fox, B.Sc (Met), P.Eng, a director of the Company and a Qualified Person under NI 43-101.

In addition, the Company has commenced work on an Environmental Impact Study as a pre-requisite to obtaining an operating permit.

Lobos Drill Results

The Company is also pleased to report results of the 9-hole, 2,017m preliminary diamond drilling program conducted at its Lobos project.

The Company's initial drilling program has tested five northwest-trending epithermal breccia structures and four potential Carbonate Replacement Deposits (CRD) within an area of 4.5km by 4.0km to depths of up to 200m.

Drilling in the Cerro Media Luna area, holes L-BD08-2, 3, and 4, returned significant mineralization as tabulated below. The style of mineralization and the presence of multiphase intrusive events at the Cerro Media Luna target area exhibit good potential for CRD's at depth. Mineralization is both disseminated and replacement type in volcanics and sediments and appears to be related to young Tertiary dioritic intrusives which intrude the older volcanic and sedimentary rocks.

Drill Hole Depth Interval Silver Lead Zinc
# (meters) (meters) (gpt) (%) (%)
08-2 026.60 6.92 5.70 0.120% 0.22%
08-2 077.50 2.62 19.32 0.250% 0.37%
08-3 113.65 11.15 00.00 0.000% 0.33%
08-4 075.43 1.00 18.50 2.140% 0.41%
08-4 225.70 1.00 27.40 0.080% 1.57%
08-4 329.50 1.00 09.20 0.065% 1.11%

At Charcos, drill hole L-BD08-7 intersected significant mineralization over four meter and eight meter intervals with values as high as 0.7% zinc and 0.29% lead. Silver and gold mineralization was also anomalous with values over one meter of 0.32gpt gold and 36.5gpt, 47.5gpt, and 34.0gpt silver. This zone has characteristics of a typical episodial epithermal vein system and has been mapped over a strike length of 1.5km.

Complete drill results are posted on the Company's website.

In the past three months, geologic mapping and sampling in the Espuela quartz vein and breccia zone has expanded that system to cover an area of approximately 1.5km x 1.5km with the identification of additional structures. In addition, the Media Luna and Animas systems have been further defined by field work with each system shown to have a strike length in excess of 1km (refer to Lobos Project - Geological Plan of the Breccia Field for the location of these systems on the Company's website). This new information on mineralization and structure from drilling, surface mapping and sampling has identified new, prospective targets that will be used to plan a comprehensive Phase II diamond drill program to define the extent of the precious and base metal mineralization at depth.

Based on this work, the Company has staked additional ground, increasing the size of the Lobos concession to 19,170ha with the addition of 7,500ha to the south of the original concession.

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 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. The positive results from this program led to the Company staking an additional 7,500ha and will be used in the planning for a more comprehensive Phase II drilling campaign. 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. Further information is available on the Company's website.

This news release has been prepared by Ian Smith, B. E. Mining, F. Aus. I.M.M., and Mr. Clancy Wendt, M.Sc, P. Geo, F. Aus. I.M.M., Qualified Persons under National Instrument 43-101.


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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