Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Summit mine in southwest New Mexico is ramping up to commercial production this month.
Santa Fe Gold Corporation (OTCBB:SFEG) said it is expecting to produce 400 tons per day in 2012, a four-fold increase in output from 2011 levels. Mechanized long-hole mining of the ore body began in December.
Operating costs are estimated at $364 per ounce of gold equivalent, with ore grades averaging 10.78 ounces per ton of silver and 0.143 oz/t of gold.
“The production ramp up has been aided significantly by the $25 million debt financing completed in December”, said Dr Pierce Carson, President and Chief Executive Officer. “In particular, we have been able to acquire additional underground equipment, which will help in the mining and removal of ore from the mine. Currently awaiting removal there are about10,000 tons of drilled and blasted broken ore underground.”
Santa Fe Gold stock was up 3% to trade at $1.00 on Thursday.
Image of entrance to the Summit mine is by Santa Fe Gold Corporation.
