Santa Fe Gold Corporation OTC announced that it has been steadily increasing production of potentially economic grade, high silica vein material from its Jim Crow mine. The Steeple Rock Mining District contains numerous deposits of high Silica content quartz vein rock and Santa Fe Gold has marketed similar material to several copper smelters in the past, where it was used as a fluxing agent in the copper smelting process. Careful sampling and analysis of this vein from the 200-foot depth level development headings leads Santa Fe management to believe that this new zone is of an acceptable quality to be shipped to smelters, after crushing to a 3/8 inch specification. The company believes that it can develop sufficient tonnage in this zone to be able to demonstrate the capacity to fulfill a long term supply contract as required by smelters. Management’s initial goal is to be able to produce between 50 to 100 tons per day from the Jim Crow Mine. If achieved, further development of the Jim Crow vein both laterally and at depth will be explored. Thereafter, Santa Fe Gold would plan to develop additional mineralized and parallel veins believed to be present up to the surface representing further potential targets to be developed from the existing working levels of the Jim Crow Mine. Once full production can be achieved from the Jim Crow Mine, the plan is to further exploit and develop the adjacent Imperial Mine. Potential “down dip” extension of the Imperial vein should be able to be accessed from the Jim Crow Mine by extending the 300 level approximately 300 feet to the southeast. Jim Crow Mine Development: The Jim Crow mine has two historic levels at 200 and 300 feet depth, respectively. It is served by an inclined shaft capable of lifting 30 tons per hour. Historic production from the mine was mainly from the southeast of the shaft where the company believes that an existing zone has been partially mined both on the 200 and 300 levels with further potential for development. These workings are linked to the surface and serve as a secondary escape way. The Company plans to extend development from this zone pending completion of the present development work on the north western seam of the 200-foot level. The company believes that there is an additional mineralized segment of the vein near the surface above this area. Santa Fe management believes the Jim Crow, with careful, systematic expansion through ongoing ore development and mining can become a significant producer of direct shipping gold-silver fluxing ore.