Santa Fe Gold Corporation announced the commencement of ore production from its Jim Crow mine located in the historic Steeple Rock mining district of southwest New Mexico. The Jim Crow mine consists of a 300’ deep steeply inclined shaft with lateral workings along the vein on the 200’ and the 300’ levels. The company believe limited historic production has been from a zone extending from the 300’ level vertically up through the 200’ level and for an unknown distance above. Initial ore development is planned to be above 200’ with the produced vein material collected on the 300’ level and transported to the shaft for hoisting. The ore development under way should define the extent and quality of this mineralized zone. Initial production is planned to be stockpiled on the surface in preparation for shipment to Arizona smelters. Potential for developing additional mineralized resources within the Jim Crow Mine and in the adjacent Imperial Mine exists in multiple directions. In addition to the Jim Crow Vein itself which is undeveloped both laterally and at depth, company believe there are two parallel veins showing potential economic grades and widths on the surface 170 ft and 320 ft to the northeast, respectively. The company believe all three of these veins converge and project to intersect approximately 1500 ft to the northwest. The company's business strategy projects that if sustained production is achieved from the Jim Crow, then active development of the lateral and depth extent of the Jim Crow Vein and the development of the parallel veins and the Imperial Mine could begin. A similar mine, the Billali, is located approximately four miles to the north of the Jim Crow. The Billali mine is accessed by a decline and it is believed that this mine contains several parallel veins. Long term planning and expansion of production is expected to continue pending the development of sufficient ore within these three properties. The anticipated sale of the developmental “ore” from early production from the Jim Crow mine should offer a degree of mining flexibility to substantially expand ongoing development of this project.