Sunday, April 13, 2008

Santa Fe Gold Corporation to Mine the Ortiz?

From Seeking Alpha:

"The company (Santa Fe Gold Corporation) owns the Summit Silver-Gold property in a mill site and processing equipment in southwestern New Mexico; mineral lease rights for the Ortiz Gold property in north-central New Mexico, believed to contain 2 million ounces of gold...

...Earnings potential. The Summit and Ortiz properties form a solid base for long-term earnings growth. The operating earnings at $650 gold for Summit are projected to be $10 million a year and for Ortiz $35 million a year....

At the current metal prices, which of course are much higher than the $650 gold, I think gold now is around $950, those operating earnings go up quite substantially. And we'll have a look at that as well.

I do also want to make another point about these assets, the Ortiz and the Summit assets. Both of them are quality assets in the sense that when they go into production, they will be in the lower quartile of operating costs worldwide for gold production and that's a very important thing for us." (full article, click here)

For link to Santa Fe Gold Corporation, click here

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