Santa Fe Gold Corp Issues Update on its Acquisition of Malone, Patanka, Hillcrest, Barranca and Principal Mines incorporating some 20 Mine Sites

ALBUQUERQUE, N.M., Oct. 19, 2016 (GLOBE NEWSWIRE) -- Santa Fe Gold Corp. (OTC:SFEG), a U.S.-based mining and exploration enterprise with emphasis on Gold, Silver, Copper and owner of multiple claims, which include the Malone Mines and some 20 associated mine sites, is pleased to announce additional plans as part of its renewal of production and processing operations expected to begin soon.

I want to take this opportunity to reintroduce myself to all investors and to welcome our new shareholders. My name is Tom Laws. As CEO, this report is to bring you up to date on the progress your company is making and our immediate future plans.

My specialty is the economic optimization of mining and production with over 40 years of experience in the mining business with some of the largest companies. Proficiency in minerology and metallurgy has enabled me to gain intimate knowledge of quality local precious metals deposits and known high grade assets. I have personal relationships with many landowners and mine holders who have confidence in our ability to take these projects forward. As a result, we are in a unique position to make acquisitions relatively economically and create immediate value for shareholders of Santa Fe Gold. Since becoming CEO of the company, management has developed a plan to rapidly transform Santa Fe Gold into a growing and viable operating company.

Execution of that plan has been management's primary focus over the past few months. We have worked diligently to build value for the company’s shareholders which at this time is a very important first step in rebuilding Santa Fe Gold. I assure you we are making significant headway and believe you will see more tangible evidence of our progress over the next few months.

Another vital step in our plan is to improve the financial footing of Santa Fe. This will make it possible to complete necessary funding we are expecting, on favorable terms. These funds will be utilized to advance and expand all of our projects. Also important has been to bring the financial reports current. We continue to make progress on this and I am pleased to report that in the near future, we expect to file the required remaining 2014 quarterly reports as well as the 2015 and 2016 annual and quarterly financial statements, bringing financials completely up to date and into full compliance.

Upon regaining current status in our financial reporting, we plan to apply for resumption of quotation of the company’s stock on the OTC Bulletin Board. Our longer term objective is to further ascend to a higher market and return to the NYSE AMEX market in time, as the company continues to grow and executes on its new strategy.

Santa Fe Gold's new properties encompassing the Malone Mines actually comprise a group of some 20 mine sites: Acquisition of which includes contiguous areas that surround the main group of mines that have great potential. SFEG is using a strategy known as a “Roll-up”. Other companies have used this strategy whereby, in addition to growing organically, they are able to expand and accelerate their rate of growth through acquisition. Santa Fe is doing the same, except through the acquisition of mines and territory with the goal not just to acquire millions of ounces of gold for the future, but at the same time, build a veritable gold production powerhouse. This consolidation process combines multiple mines into something much larger, enabling economies of scale. Several leading junior miners have seized the initiative over the past year, taking advantage of recent temporarily low gold and silver prices and have increased their holdings by as much as 10 million ounces through strategic acquisitions and have received much praise and adoration from the market. Santa Fe Gold aspires not only to do the same, but has the ability and confidence to even exceed such levels in time.

Merging fragmented mines into one contiguous land holding is also strategically important, especially in the case of the Malone Mines which are of exceptional historical significance, given that 80% of all the Gold discovered in New Mexico has come from this region. In addition to the already named mine sites of Malone Mines, Barranca, Hillcrest, Patanka, Prinicipal is a secondary Malone Mine along with more than a dozen other mines, including: The Fujiama or Malone No. 1, Vesuvius or the Malone No. 2, Malone No.3, Paracutin or Malone No. 4, The Barria, Los Ancienos, Codena De Plata, Santos Mineros, Barra Rosea, Argonaut, Saragosa, Katmai or Jalisco and Stromboli or Tip Tilt and also several additional surrounding and contiguous nearby mine sites.

All of these mines within the Knight's Peak region and are estimated to hold some 15 million tons of high grade ore and higher grade gold veins that should provide ample feed for processing operations that could last some 25 years to three decades.

The opportunity to acquire all of these properties in one contiguous package was our primary mission. The reasoning behind our primary objective was the value of these coveted gold assets. We believe the area potentially contains immense inground resources and constitutes a very promising mining proposition. In addition, historic mining has demonstrated the existence of substantially higher than average grades than first indicated in our initial release. Analysis of recently obtained data leads us to now believe these grades could be much higher with reports of exceptionally higher yielding seams. Historic documentation from reliable sources suggests numerous mines with veins containing from five to sixteen ounces of gold per ton as known to have been encountered and recorded. Indeed, even researched material from the New Mexico Bureau of Mines and Mineral Resources supports this, with reports of revenues per ton received for mined material over the years as being substantially higher than most gold mining operations.

To illustrate this value: Historical data shows that in today's money, miners received the equivalent of $600 to $900 per ton and in certain instances two or three times that amount from various mines throughout the region. This confirms a very high rate of return, especially if mining costs can be kept to below $200 per ton, we anticipate will be achievable through optimization and scale mining with strict cost controls.

The most important task before us now is to bring these projects to fruition and thereby increase shareholder value.

Management has made it its mission to redirect the company’s strategic future to further acquisition of high quality gold, silver and copper properties to increase valuation and bring these projects into production and continue to grow the company.

With the recent run up in gold prices and brighter demand outlook, there is renewed interest in today’s mining markets. The acquisition of the Malone Mines, Patanka, Hillcrest, Barranca and Principal Mines and surrounding gold properties represents the first realization of our new strategic agenda. In addition, I am happy to report that we have been successful in identifying other attractive precious metals properties with high quality resources and expect to announce those additional acquisitions soon.

The Malone Mines have substantial potential with un-mined deposits that can be mined and processed on an industrial scale. We are currently evaluating several different ways in which to achieve this. We have conducted field verification and in house analysis of the large amount of our data that is now in our possession. We have also concluded that even at prices well below today’s gold price, the Malone Mines project should support development of one or more very profitable new gold mines.

We intend shortly to commission an independent engineering review and are confident it will support our conclusions.

The company already holds mineral rights to a very large area, estimated to contain some 15 Million tons of ore. The geology of the region suggests superb upside potential for discovery of other major gold deposits. Given that eighty percent (80%) of all the Gold discovered in New Mexico thus far has come from this region, the prospects of further major discoveries in the nearby areas surrounding the Malone Mines would appear to hold promise, a large amount of which is now under Santa Fe's control.

While development of mines in this area is a significant undertaking, we are considering all options to more quickly advance the project to production. With knowledge and many years of experience operating very large mines multiple times this size, we are confident that this can be achieved relatively quickly and our overall goal at Santa Fe Gold is to build a substantial mining company driven by strong cash flow while building a portfolio of quality exploration and development projects for future growth.

We believe the next several months will be an exciting time in the transformation of Santa Fe and want to thank you for your patience and support.

About Santa Fe Gold
Santa Fe Gold is a U.S. based mining and exploration enterprise and owns the following mining assets: The Knight’s Peak region of Grant County, New Mexico comprising the Malone Mines, Patanka, Hillcrest Barranca and Principal Mines altogether incorporating some twenty mine sites and all located at Knight’s Peak in the southern region of Burro Mountains, New Mexico.

Santa Fe’s Exploration and Development Team continues to analyze a number of attractive, economically viable opportunities that should enable the resumption of mining and production operations soon.

For more information please visit www.santafegoldcorp.com

Forward Looking Statements

Please refer to previous announcement for all disclosures re: Santa Fe Gold's acquisition of Malone Mines available at website.

Frank Mueller, CFO
Santa Fe Gold Corp.
+1 505 255 4852