Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

September 07, 2011 03:01 ET

Santa Fe Metals Corp.: Don Indio Channel Samples Return Up To 5.63% Copper and 25.3 oz/t Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2011) - Santa Fe Metals Corp. (TSX VENTURE:SFM) ("the Company") is pleased to announce results of systematic channel sampling on its Don Indio project, located in Coahuila, Mexico. Program highlights include 3.4 metres of 299 g/t (9.61 o/t) Ag and 4.12% Cu including 0.3m of 793 g/t (25.3 o/t) Ag, 4.33% Cu and 1.46% Pb as well as newly discovered Mo mineralization.

A total of 126 channel samples were taken from levels 1, 3 and 4 of the 'Pilar Grande' mine, one of several old mine workings on the Don Indio property. Significant grade and width of mineralization were found in all levels sampled. The results confirm the high-grades reported by Minera Cascabel in 1998 (Stratabound Minerals yearly report, 1999). These results also reveal that grade and width trend upward in the lower levels and that copper-silver mineralization is open at depth and along strike. Additionally, previously unreported values of molybdenum as high as 0.20% over 0.6 m, as well as high grade zinc and lead mineralization that was thought to be confined to the north of the project, were identified.

Ian Smith, President & CEO, commented: "We are extremely pleased with the initial success of the Don Indio sampling program. These initial findings are very encouraging and help to confirm the high grade historic data. Management will be implementing a phase 2 sampling program to determine the continuity of the mineralization along strike and down dip on both limbs of the anticline. A subsequent phase 3 program will include underground drilling at the Pilar Grande and San Marcos West deposits to develop a resource for the property."

Phase 2 will consist of an aggressive channel sampling program that will test 5 km of total strike length by sampling the 4 other adits that form Don Indio's Western Mineralization Zone. All of the adits were developed into the 30° westwards dipping mineralization. Sampling by Minera Cascabel in 1998 returned similarly high grade samples from all of the adits (Stratabound Minerals yearly report, 1999).

The Don Indio project covers over 17 km of strike length of the highly prospective contact between the limestone and sandstone of the Cupid formation. It is important to note that Minera Cascabel reported significant Cu and Ag mineralization along the full 17 km wherever the contact crops out at surface (Minera Cascabel report on the Don Indio project, 1998).

DON INDIO CHANNEL SAMPLE RESULTS – HIGHLIGHTS

Level

Channel
True Width
(m
)
Ag
(g/t
)
Ag
(oz/t
)
Cu
(%
)
Pb
(%
)
Zn
(%
)
Mo (ppm
)


3
4.5 m 180.5 5.8 2.05 0.06 0.03 51
Including 0.5 m 734.2 23.5 5.55 0.12 0.04 312
3.4 m 298.9 9.5 4.12 0.16 0.07 6
Including 0.3 m 793.8 25.3 4.33 1.46 0.16 39


1
1.1 m 460.12 14.7 3.30 0.29 0.32
Including 0.5 m 767.2 24.5 5.63 0.52 0.41 19
0.6 m 21.8 0.7 1.13 2.62 3.29 2043
0.8 m 129.3 4.1 2.03 7.37 0.63 147

4
0.4 m 168.8 6.0 3.44 0.02 0.14 11
1.1 m 48.8 1.7 1.76 0.02 0.14 26

Full test results will be made available on the Company's website at www.santafemetals.com.

Quality Assurance/Quality Control

Individual channel samples were continuous, 10 cm wide and cut perpendicular to the strike of the mineralized bedding to a depth of between 3 cm and 5 cm. The rock sampled was systematically logged by geologist Ing. Pedro Rocha Marquez (MAusIMM), who is also supervising the current sampling program. In addition to the internal laboratory standards a series of commercially prepared standards, blanks and split duplicates were inserted every 25 samples to ensure accuracy of the results. All samples were bagged and sealed on-site, then securely stored temporarily at Santa Fe Metals' field office in Cuatro Ciénegas prior to transport by company personnel to Inspectorate Exploration & Mining Services Ltd.'s preparation facility in Durango, Mexico. Samples were transported to and then analysed by the Inspectorate labs in Reno, Nevada, USA. Base metals, and trace elements are analyzed as part of a multi-element ICP package following a digestion in aqua regia. Samples were analyzed via 30 gram fire assay with AA finish for gold and silver.

Ian Smith, BE (Min), FAusIMM, CP (Man), a qualified person under NI 43-101, has approved this press release.

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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