Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

June 29, 2011 03:01 ET

Santa Fe Metals Options Cuyoaco Gold/Copper Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2011) - Santa Fe Metals Corp., ("the Company") (TSX VENTURE:SFM) is pleased to announce that it has signed a letter of intent to option up to 100% of the Cuyoaco Gold and Base Metal Property in the State of Puebla, Mexico. The Cuyoaco property currently hosts 3 separate prospective zones of high-grade mineralization. Previous sampling has returned up to 6% Cu and 31 grams/ton Au with previous drill intercepts grading as high as 28 metres of 1.3g/t Au.

Ian Smith, President & CEO, commented: "We are excited to report this acquisition for Santa Fe. The Cuyoaco property is a great strategic fit in our project portfolio and has significant potential as both a high grade gold system and as a large copper-gold skarn deposit. With 3 separate target zones on the property, the Company is currently planning further drilling on the property to commence later this year. This will be a very active time for Santa Fe with the commencement of work on our new projects and the advancement of our high grade copper oxide, 'Cuatro Cienegas' project, located in Mexico."

The Property

The Cuyoaco property has the potential to host both a high grade gold system and a large copper-gold skarn deposit. It is located in the Talpizaco-Tateno Mining District and is a historic copper and gold project located in the north-west of Puebla State, approximately 155 kilometres north east of Puebla city. The Cuyoaco property covers 643 hectares over three separate mineralized targets; the Magistral Cu skarn, the California Cu-Au skarn and the Santa Elena dyke-hosted Au system. In total 12 adits, numerous trenches and a few shallow shafts were developed historically to explore and exploit these targets.

The mineralization is hosted within altered Jurassic-Cretaceous limestones that surround a large granodioritic pluton. Two outstanding properties within the same setting are the San Martin in Zacatecas and the Santa Maria de la Paz in San Luis Potosi.

The location and surface extent of mineralization was determined by geophysics, soil geochemistry, drilling and resampling of the historical workings. These have revealed three separate drill targets:

  1. The Magistralskarn zone trends approximately 1.5 km north-south along the western edge of the intrusive granodiorite and is approximately 250m wide. Dump rock from the Magistral zone contains as much as 6% copper as chalcocite and chalcopyrite. Resampling of the historical workings confirmed the positive results of soil sampling and demonstrated the potential for a large high-grade copper zone.
  1. The California skarn zone in the centre of the property is outlined by a geochemical anomaly of Cu, Au and Pb as well as a large geophysics anomaly.
  1. The potential of the Santa Elena gold-rich dyke system in the east of the property has been assessed by five, 140m deep diamond-drill-holes and resampling of the four historical adits. Results of the drilling include 28 metres of 1.3g/t Au (hole 1 from 38 to 66m), 12 metres of 0.946g/t Au (hole 3 from 60 to 72m), 51 metres of 0.258g/t Au (hole 4 from 8 to 59m) and 29 meters of 0.511g/t Au (hole 5 from 84 to 113m). Holes 1, 4 and 5 ended in gold rich mineralization. Resampling of the adits by the current owner revealed samples as high as 31g/t over 2m, high gold values were confirmed in a later NI 43-101 technical report.

Santa Fe Metals is currently planning a detailed exploration program to better assess the extent of the mineralization at all three targets. Further drilling of the Santa Elena gold zone, planned for later this year, aims to test the depth and north–south extent of the mineralization.

An independent NI 43-101 Technical Report was prepared by independent consultant Norm Tribe, P. Eng in 2008.

Acquisition Terms

The Company can earn up to 100% of the property by making cash payments and issuing shares as follows:

Cash – US$SharesInterest earned
On receipt of regulatory approval100,000360,000-
1st year anniversary100,000360,00020%
2nd year anniversary100,000360,00020%
3rd year anniversary100,000360,00020%
4th year anniversary100,000360,00020%
5th year anniversary-6,000,00020%
TOTAL500,0007,800,000100%

SFM may, at its option, accelerate the schedule of payments and share issuances.

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and no securities regulatory authority has either approved or disapproved of the contents of this release.

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