The mine is on track to reach full, steady production in 2011 from ore averaging 0.143 ounces per ton gold and 10.78 ounces per ton silver (0.35 ounces per ton gold equivalent).
Operating costs at full production are estimated as $340 per ounce of gold equivalent produced.
Recently a new internal ventilation shaft was completed and is being equipped with an upgraded fan system.
This central ventilation shaft, which is 300ft in length and 10ft in diameter, will be extended as deeper levels of the mine are reached.
The improved ventilation will allow Summit to operate additional equipment underground, which the company is purchasing.
Underground work remains focussed on two objectives, firstly advancement of headings for overall mine development and secondly, mining of two southern ore bodies.
Full production at a rate of 400 tons per day is expected to be achieved in 2011 upon reaching the northern larger and higher grade ore bodies that constitute the majority of Summit’s gold and silver reserves.
Revenues are projected to increase significantly over the next several months reflecting increases in both tonnage and grades, the company said.
Santa Fe is pursuing a strategy of developing multiple revenue streams from smelter sales of its products, including sales of precious metals concentrates and sales of ore as siliceous flux.
Santa Fe Gold is a US based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties.
