Santa Fe Metals Corp.

Santa Fe Metals Corp.

July 27, 2011 03:01 ET

Santa Fe Metals Corp.: Work Program Now Underway on Don Indio Claim Zone at "Cuatro Cienegas"

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2011) - Santa Fe Metals Corp. (TSX VENTURE:SFM) ("the Company") is pleased to report that work is now underway on the Don Indio claims copper/silver/lead/zinc property located in Coahuila, Mexico. Systematic channel sampling is in progress on both limbs of the large anticline and follows the copper-silver rich contact between the contact of San Marcos and Cupido formations. Lead-zinc mineralization is also found within 'San Marcos West' zone in the northeast of the property.

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Ian Smith, President & CEO commented: "We are pleased to report the commencement of this sampling program within our high grade copper oxide zone at Don Indio. This is the first phase of a 2011 comprehensive evaluation program on all Santa Fe's Mexican and BC projects. Santa Fe is currently evaluating additional strategic asset acquisitions."

At present over 96 channel samples have been taken from the 'Pilar Grande' adit on the western limb of the anticline dipping at 30º. To date we have accessed and sampled all 4 levels of these workings. Preliminary field observations agree with historical data that shows Cu and Ag grades increasing with depth. Pilar Grande is one of several adits developed in over 5km of strike length, along the richest zone of the mineralization. In 1999 these workings were sampled by Stratabound Minerals Corp., who found "significant economic values of mineralization" in all workings targeted. It is important to note that at the time this was reported the prices of metals were much lower than today (Cu $0.838/lb, Pb $0.217/lb Zn 0.53, Ag $4.90; Stratabound Minerals Corp - Annual Report, 1999).

Prospecting along the 19km strike length on the Don Indio property confirmed that Cu-Ag mineralization is present where the contact is exposed (Stratabound resources property report – Cascabel, 1999). The widths and economic viability of these exposures will be assessed in future sampling programs.

The purpose of the current systematic channel sampling program is to both confirm the previous assay results, and to determine the true width and extent of the mineralization. Based on the results of this program, a phase 2 program will be initiated to determine the continuity of the mineralization along strike and down dip on both limbs of the anticline. A phase 3 program will include underground drilling at the Pilar Grande and San Marcos West deposits.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Ing. Pedro Rocha Marquez, a qualified person under National Instrument 43-101.

Quality Assurance/Quality Control

Channel samples are 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 is systematically logged by geologist Pedro Rocha Marquez, a qualified person under National Instrument 43-101, who is also supervising the current sampling program. In addition to the internal laboratory standards a series of commercially prepared standards and blanks will be inserted every 25 samples to ensure precision of results. All samples will be 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 will be 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 will be analyzed via 30 gram fire assay with AA finish for gold and silver.


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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