Saturday, June 14, 2008

SFEG Santa Fe Gold CEO Updates Shareholders on Recent Acquisitions


Interview with Dr. Pierce Carson
Santa Fe Gold CEO
June 13, 2008

Consensus Recommendation - BUY

SFEG Research Report

Rating Information - Strong Buy

Recent Price: $0.75 (6/12/2008)
Price Target: $3.00
Time Frame: 12 Months

Earnings Growth Estimates
Next Year SFEG






ABR Rank in Industry: MINING
(The lower the ABR number, the more favorable Wall Street is on the company)







1 BILLITON ADR BBL 1.00 1.00 0
2 INTL ROYALTY CP ROY 1.00 1.00 0
4 NEW GOLD INC NGD 1.00 1.00 0
6 SANTA FE GOLD SFEG 1.00 1.00 0


Santa Fe Gold Exercises Option to Purchase Planet Micaceous Iron Oxide (MIO) Property and Settles Litigation
Marketwire(Tue, Jun 10)

Santa Fe Gold Agrees to Purchase Processing Equipment and Real Property for Summit Silver-Gold Project
Marketwire(Tue, Jun 3)

Santa Fe Gold Reports Progress on Summit Silver-Gold Mine
Business Wire(Thu, May 29)

Dutton Associates Announces Investment Opinion: Santa Fe Gold Strong Speculative Buy Rating In Update Coverage By Dutton Associates
Business Wire(Wed, Apr 2)

Research Report

J. Taylor
SFEG Report

Dr. Pierce Carson presents March 27th, 2008 at -

Santa Fe Gold Corporation is a U.S. based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. The company 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; the Black Canyon mica mine and processing facility near Phoenix, Arizona; and a large resource of micaceous iron oxide in western Arizona.

Santa Fe Gold intends to build a portfolio of high quality, diversified mineral assets with an emphasis on precious metals. So, without any further introduction, I would like to introduce Dr. Pierce Carson, President and Chief Executive Officer.

Pierce Carson

Gerry, thank you for that introduction. It's a pleasure to be here today and introduce everyone to Santa Fe Gold Corporation. Of course, everything that I say today is qualified by our Safe Harbor Statement. Santa Fe Gold is in a transition from an exploration company to a production company. It's very exciting times for us, and it will be here for the next year or two at least and I am pleased to be able to try to point out some of the important investments highlights for the company.

First of all, management. We are a small team, but we are very highly experienced with an outstanding track record of success in exploration, development and mining. All of us at Santa Fe Gold have done it before all the way from exploration through production quite successfully and we are very confident we can do it again.

Our assets. We've quality, advanced precious metals projects with substantial in-ground values, excellent operating margins and favorable location in the southwestern U.S. Very briefly and we'll be talking about these projects in more detail, at least the precious metals projects.

Our projects are the Summit Silver-Gold Project in New Mexico, the Ortiz Gold Project also in New Mexico, and the Black Canyon Mica and Planet micaceous iron oxide deposits in Arizona. We are headed for near-term cash flow. The Summit Silver-Gold mine is financed through to production and is currently under development.

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.

Our strategy is rapid growth through a profile of increased production, explorations, acquisition and/or merger. At the current time, we believe our stock price is undervalued with respect to our peers, but we think that will change as we move closer to production and we believe that we will get a market reevaluation over the next 12 months as the Summit project comes online and we go from an exploration company to a production company.

Santa Fe Gold is traded on Over-The-Counter Bulletin Board. The symbol is SFEG. Our corporate headquarters are in Albuquerque, New Mexico, although we are a Delaware company. Our stock price is trading right now around $0.72 a share. It's varied all the way from about $0.22 to $1.40 over the last year or let's say, a year to 18 months. Currently we have 74.8 million shares outstanding, giving us a market capitalization of about $55 million. Our average daily trading volume over the last 90 days is about 160,000 shares a day.

At the end of February, we had cash of $1.2 million, management ownership of the company 25% and institutional ownership is quite low, around 5%.

I would like to just very quickly go through some of the key management people. Larry Olson is our Chairman. He has 42 years of diversified minerals experience with private and public companies. Larry has got a degree in Civil Engineering from the University of Southern California.

My background has always been in the mining side of things I have got 38 years of worldwide mining and public company experience with Exxon Minerals, Kennecott Copper and Nord Pacific. Previously I have been present on companies listed on New York, NASDAQ, Toronto and Australian stock exchanges. I have been responsible for the discovery, successful commercial development, and operation of gold and copper deposits in Australia and in the United States. I have got a Bachelors degree in Geology from Princeton University and a PhD in economic geology from Stanford University.

John Frost who is the Director, he calls himself Jack for us, joined about the middle of last year. Jack has 50 years of international mining experience. He has been credited with the discovery of over 40 commercial mineral deposits. He established Exxon minerals domestic and international exploration programs and he for many years was the president of Exxon Minerals International.

Quotes from
Dr. Pierce Carson
Santa Fe Gold Corp

"I believe the next several months will be an exciting time in the precious metals sector, and an exciting time for Santa Fe Gold as it builds its precious metals asset base and heads toward a production profile. We welcome you and thank you for your patience and trust and reiterate our intention to monetize these projects in due time"

"Through strategic acquisitions using its proven experience and expertise in mining and markets, Santa Fe Gold's Corporate mission is to enhance shareholder value and build a strong cash-flow driven resource company, with significant sustainable annual revenues, over the next few years".

'We have 24 acquisitions and Jack Frost and myself intend to go after them'.

'With 60% of the World's reserves, according to one mining analyst our MIO deposit is a near infinite resource, we could have enough reserves to supply the entire World for the next 50 years and with all the steel infrastructure, oil rigs and pipelines the World's going to need a lot of corrosive protection'.

"Our Gold and Silver properties have superb upside exploration potential"




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