Santa Fe Gold (SFEG:OB)
Today we begin a month long discussion with RJ Bommarito - Shareholder Communications / Santa Fe Gold Corp. (Listen Now)
Beacon Rock Research Nuggets
Santa Fe Gold Overview
Santa Fe management originally had planned to engage a contract miner, but as prices peaked, they opted to mine the project themselves. The company has recently benefited from falling base metal prices and the reduction in regional base metal mining activity. They have found an abundance of available skilled and unskilled labor. Even with the additional required capital investment in essential equipment to operate the mine themselves, the Summit Mine is coming in under budget, and with potentially lower costs over the scheduled life of the project. Work on the Banner Mill has been completed and ore has been stockpiled at the mill, ready to commence production. Operations should commence upon completion of the upgraded tailings dam, in early 2010. The transition from an exploration company to a precious metal producer during a period of rising precious metals prices has been positively received by investors.