Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

September 29, 2011 03:01 ET

Santa Fe Metals' Exploration Update: Channel Sampling Continues at Don Indio, High Grade Copper Skarn Mapped at Cuyoaco and Gold in Sediment Samples in BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2011) - Santa Fe Metals Corp. ("the Company") (TSX VENTURE:SFM) is pleased to announce recent developments and assay results from its multiple active exploration projects located in Canada and Mexico including: "Don Indio" (Cu/Ag/Pb/Zn), "Cuyoaco" (Cu/Au), and the "Ahbau Creek" (Au) properties. The company is conducting multiple 2011 sampling initiatives on all three properties with diamond drill programs now being planned.

DON INDIO

The Company recently began additional channel sampling on Don Indio to test over 5 km of historic workings on the western mineralization zone. Highlights from recent channel sampling from three of four levels of the Pilar Grande mine include up to 0.5 m grading 5.63 % Cu and 734 g/t Ag as well as of 3.4 m grading 299 g/t Ag and 2.3 % Cu (click here for full results). That sampling also revealed previously unknown molybdenum-rich mineralization with samples returning up to 0.2 % Mo. These results confirm and improve upon historic data reported by Minera Cascabel in 1998 (Stratabound Minerals Annual Report, 1999). These results also demonstrate that copper-silver mineralization is open at depth and along strike.

For NI 43-101 compliant Technical Report on the Cuatro Ciénegas (and Don Indio) Properties click here

For "3D" view of the Cuatro Ciénegas area click here

The Don Indio property covers 17 km of strike length over the highly prospective, broadly folded, boundary between the "San Marcos" sandstone and the "Cupido" limestone that has been found to host bands of "sediment-hosted stratiform copper" style mineralization similar to that of the Kupfershiefer and Zambian copper belts (Bersh, 2008).

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. A channel sampling program is now underway to target further historic workings and to determine the continuity of the mineralization along the strike of the prospective, Cu-Ag rich limestone-sandstone boundary. A Phase 3 program that will include underground drilling is now being planned and will be used to start developing a NI 43-101 compliant resource for the property."

CUYOACO

The Company recently completed a field mapping and sampling program on its Cuyoaco, Cu-Au skarn, the Pau property, and on its Santa Anita Au target. A total of 103 samples were collected from high grade Cu skarn and channel samples were also taken from previously unexplored mineralized dykes along strike from the Santa Anita zone.

For NI 43-101 compliant Technical Report on the Cuyoaco property click here

For "3D" view of the Cuyoaco Area click here

Mineralization over the western portion of the Pau zone is now thought to extend continuously, forming over 600 metres of Cu rich skarn. This prospective skarn-mineralization-zone will be targeted in an upcoming drill program following geochemical mapping. Samples collected during this sampling program are currently being analyzed by the Inspectorate Labs, Nevada. Assay results are expected to be available shortly.

AHBAU CREEK

In August 2011, a preliminary sediment sampling program was conducted on the Ahbau Creek property located in the world famous Cariboo gold district of northern British Columbia, Canada. Results from 18 sediment samples include 3 with values above 100 ppb Au and a sediment concentrate that contained 4.5 g/t Au. 2011 sampling has indicated two geochemical anomalies that will be targeted during the next phase of exploration.

In total 5 rock samples and 18 sediment samples were collected by Dr. Thomas Hawkins and Alex Burton (PGeo) a Qualified Person under National Instrument 43-101.

ANNUAL GENERAL MEETING OF SHAREHOLDERS

The Company held its Annual General Meeting of Shareholders on September 26, 2011 where all matters proposed by management were passed. Mr. Mark J. Morabito, a director since the Company's inception, did not stand for re-election because of other business commitments. The board of directors of Santa Fe wishes to thank Mr. Morabito for his invaluable contributions to the Company during his tenure as a director and as a member of various committees.

Quality Control/Assurance

All samples collected were stored in polyethylene bags sealed with UV sensitive security straps and locked in a secure room at all times following collection.

The samples from the Ahbau creek project were transported by Alex Burton (PGeo) from Quesnel to Vancouver in locked steel box where they were sorted and then transported to Acme analytical labs, Vancouver, Canada for analysis.

Individual channel samples collected on the Cuyoaco project 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 transported all samples from the Cuyoaco project in a secure vehicle to the Inspectorate preparation labs in Zacatecas, Mexico.

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 Ian Smith (FAusIMM-CP), a qualified person under National Instrument 43-101.

SANTA FE METALS CORP.

IAN SMITH, President & CEO

Cautionary Note Regarding Forward-Looking Information

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. Forward-looking statements or information relate to, among other things the size and timing of the new resource estimate, the details of the planned drill program, the exploration potential of the Company's properties and the production potential of El Granizo. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and the tax consequences to U.S. shareholders and other risks and uncertainties. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to 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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