Santa Fe inks cntract with Korean smelter

 At recent precious metals prices, the contract is valued at approximately US$12 million. The concentrates will be shipped to LS Nikko’s Onsan Smelter in Korea. The Company will be paid for the contained gold and silver less customary charges. Santa Fe’s Lordsburg flotation mill produces gold and silver concentrates from its Summit mine located in southwest New Mexico.

“We are pleased to have reached agreement for the sale of concentrates to LS Nikko,” said Pierce Carson, President and Chief Executive Officer. “We believe there are strategic advantages in developing multiple outlets for our high quality products. In 2012 we sold concentrates to a German smelter and silica flux material to two Arizona smelters.”

In addition to concentrate sales, during 2013 the Company anticipates continuing to sell a substantial portion of Summit output in the form of silica flux material to the two Arizona smelters. Sale of silica flux involves direct shipment of ore with only minimal processing required.

Santa Fe is focused on increasing gold and silver production from its Summit mine and in February 2013 began operating two 10-hour shifts, seven days a week, up from the previous five day schedule.