THE GLOBAL SEARCH FOR GOLD SPECIAL — Santa Fe seeks opportunities abroad

Already one of North America’s largest gold miners, Santa Fe Pacific Gold (GLD-N) is pursuing projects both on and off the continent.

The company has revised its projections for gold production this year, and now expects to produce 845,000-855,000 oz. at a cash cost of US$215-225 per oz. The revision, a 5% decrease from initial forecasts, is attributed to higher sulphide-content ore at Nevada’s Lone Tree and Twin Creeks mines, as well as lower ore grades at the Lone Tree.

On an annual basis, Twin Creeks and Lone Tree yield 460,000-470,000 oz. and 185,000-195,000 oz. gold, repectively. The company also owns the Mesquite mine in California, which produces 190,000-200,000 oz. per year.

Elsewhere in Nevada, the company has formed a 50-50 joint venture with Hecla Mining (HL-N) to develop the Rosebud deposit, 50 miles west of Winnemucca. The project, an underground oxide deposit, carries a resource estimate of 1.2 million tons grading 0.45 oz. gold and 2.75 oz. silver.

The two companies are also exploring the Golden Eagle project in Washington state. Santa Fe can earn a 70% interest in the prospect, where the first phase of drilling has been completed, with results pending.

Meanwhile, the company has embarked on a growth plan that emphasizes grassroots exploration in major gold belts through- out the world.

In Brazil, Santa Fe has earned a 50% interest at the Gurupi project of TVX Gold (TVX-T). Four drills are on site and a fifth will soon be added.

In Kyrgyzstan, Santa Fe is exploring the Solton Sary gold project with Kyrgyzaltyn, a state-owned mining company. Santa Fe is negotiating a contract that would provide a framework for development of any newly discovered deposit. Already, two rigs are turning.

In Central Asia, Santa Fe reports that three drills and four reverse-circulation rigs are turning on the Sharaltyn joint-venture in Kazakhstan. The company says results to date have been encouraging and that more drilling is planned.

In Burkina Faso, Santa Fe has formed a joint venture with IMAR-B, a local private company, to explore a 124,000-acre licence in the Poni region. The company can earn a 78% interest in the project by spending US$3 million. Other properties in Burkina Faso and Ghana are also under exploration.