U.S.-based Santa Fe Gold Corp. said it will begin recommissioning its Billali mine to substantially increase output of its economic grade, high silica vein gold and silver siliceous vein material. This is in addition to its already expanding production from its Jim Crow mine for delivery to a major smelter, under arrangement to ship all of its maximum attainable output as it builds to higher levels, according to the company.

Management said it will continue to develop and increase production of gold and silver siliceous vein material from the Jim Crow mine.

Both of these mines are said to have potential for expansion by developing already known parallel veins and extending the present workings along known strike lengths and by developing new levels throughout.

Chairman Brian Adair said, “This should enable Santa Fe to ramp up production substantially over coming quarters and beyond. Thereafter, it is expected Santa Fe will begin preparations to commence production from its Gold King and Imperial Mines, as sustainable output is achieved from Billali and Jim Crow to maintainable levels.”

“With shipments to smelters getting under way, the potential ability to attain profitable production from the Jim Crow mine and soon the Billali and other mines in the Steeple Rock district, coupled with the longer-term development of the Alhambra mine and other mines in the Black Hawk district, along with higher asset prices, continues to augur well for Santa Fe Gold as a particularly unique opportunity,” said Dan Gorski, consulting geologist for Santa Fe Gold Corp.