Post by CT on Feb 7, 2009 1:39:01 GMT -5
We touched on how many Billionaires would have liked to have switched out of their inflated valuations a year ago, who with hindsight would have gladly bought into Gold blindfolded. So, if any Billionaire were to spend a Billion dollars to acquire SFEG, what would he get for it? About $5.5 Billion in in-ground assets. OK. So these are not yet reflected in today's values, but in due course they will be and this time, with the prospect of Gold and Silver emulating their dramatic performances of 30 years ago to the month, at 4.5 fold and 10 fold respectively: Would now be a good time to consider such an acquisition or the taking of a major stake, just in case?
If the US Dollar does become a casualty of the Trillion Dollar bailout or fallout, as these properties are monetized, their values will inevitably and inexorably rise, especially, with our Gold and Silver worth around $2.0 Billion today and at $1350 per ounce for the Gold and $25 for the Silver that would grow by an additional $2 Billion net in value, or the equivalent of $20 per share for SFEG.
In light of this, and we're willing to wait... At some time in the future, we could easily become the target of any Private Equity buyout, or become the object of desire of some Billionaire, bent of grabbing all the reserves he can amass, just as the Hunt brothers tried to do back in 1980, when they attempted to corner the Silver market. This time around, the smarter idea might be to acquire the real thing, that is in the ground, because as we already know, the World is running out of Gold and Silver and many of the other resources, SFEG is uniquely rich in, such as owning 60% of the Worlds MIO Micaceous Iron Oxide New Planet Arizona deposit potentially already four times as valuable as the day SFEG acquired it, thanks to competitive alternative prices going through the roof with 400% gains of late, setting new all time record highs again...
Santa Fe Gold Corporation
A Portrait of Portfolio Diversification
Five Valuable World Class Major Asset Properties...
And Counting. Following its Early 2008 Gold acquisition
with the prospect of additional reserves to be added in time
Azco Acquires Rare Domestic Source of Micaceous Iron Oxide in Arizona
GLENDALE, AZ (MARKET WIRE)—Nov 7, 2005—Azco Mining Inc. (Other OTC: AZMN.PK - News),
a US based mining and exploration enterprise with an emphasis on gold, copper and industrial minerals, today announced it had reacquired 100% interest in a mineral lease with New Planet Copper Mining Company ("New Planet") on 31 patented mining claims covering 523 acres in La Paz County, Arizona. The New Planet property contains a world-class resource of micaceous iron oxide ("MIO"), an industrial mineral valued around the world as an important coating pigment used in corrosion-control systems for structural steelwork.
Dr. Pierce Carson, CEO, stated, "This property fits the Company’s strategic agenda of building a portfolio of high quality, diversified mineral assets. Quality deposits of MIO are a geologic rarity, with only a handful of primary suppliers worldwide, and none in North America. The New Planet property represents an unusual opportunity to acquire, under attractive terms and in the United States, an exceptional ore deposit characterized by high grade, favorable metallurgy and a drilled resource sufficient to sustain an open pit mining operation for over thirty years. At today’s MIO prices of around $0.50/lb, the in-ground value of recoverable MIO in that portion of the deposit that has been drilled exceeds $300 million.
"The proposed new operation would produce MIO pigment, for sale to paint manufacturers domestically and internationally. Our extensive pre-feasibility work indicates the project would have extremely low mining and processing costs, which would enable it to compete effectively in world markets. The new operation would form the basis of a potentially very lucrative and long-lived industrial minerals business."
In Europe and Asia, MIO is the most important anti-corrosion barrier pigment in coatings used to protect structural steelwork and is applied widely on bridges, oilrigs, transmission towers, pipelines, storage tanks, industrial plants and structural steelwork of all descriptions. North American paint manufacturers also use MIO for its superior anti-corrosion and non-toxic, environmentally friendly properties. However, because of the lack of a domestic source, the domestic market depends on imports, which has restricted market expansion. As a result the United States uses only a small amount of MIO pigment as compared to other regions of the world. The New Planet project would establish a reliable domestic source of MIO pigment.
Dr. Carson said, "MIO offers various performance and environmental advantages over zinc-based and chromate-based coatings now widely used for corrosion control in North America. While we recognize the marketing challenges involved, we believe the establishment of a domestic source of supply could lead to substantially greater usage in North America, especially considering the trend of increasingly stringent environmental regulations. Based on a relative comparison with MIO usage in Europe, MIO appears to be significantly under-utilized in the North American market by a factor of fifteen."
The Company originally entered into the lease with New Planet in 2000, but in August 2003 assigned the lease, subject to certain back-in rights, to Metallica Ventures LLC ("Metallica"), a corporation controlled by the Company’s current President and Chief Executive Officer. Metallica recently reassigned all of its interest in the property to the Company in return for cash and common stock. Under terms of the underlying lease with New Planet, the Company is obligated to make monthly rental payments and to pay a royalty on the value of any production.
MIO, being the largest and only deposit in the US, with minelife extended from the original 30 year estimate to 50 years plus, its value has already, potentially increased from $300 Million to almost $2 Billion, extrapolating out. And, that's based on today's prices and not the average over the next 50 years or so!!! How many companies can actually claim to have enough reserves to supply the entire World for the next 50 years? Not too many, but Santa Fe can, and as for its envied Mica and Feldspathic Sand Deposit at Black Canyon: Florida Rock's recent takeover for $4.6 Billion by aggregate building materials supplier Vulcan Minerals, once again sheds a new light on the hidden billions that lie in SFEG's own reserves of aggregate construction material in the 88 Million tons of Felthspathic Sand conservatively, worth well over $1.5 Billion over the 20 year mine life, which incidentally represents only a mere 5% drilled, of this massive resource...
On the Gold front, with an anticipated potential production ultimately estimated at 250,000 ozs per year and likely to run for at least 10 years straight, such a pace could likely see revenues of between $165 Million and $250 Million annually or between $1 and $2 per share, depending on metals pricing, equating to between $1.65 Billion and $2.5 Billion in the range of valuation, in all at $3.5 Billon at $1,200 oz. So it's not too hard to foresee how anyone from the savviest Billionaire to a new investor just starting out, could stand to gain exceptional return from SFEG.
Unearthing Santa FE's Hidden Values With More to Come
In a follow-up report we'll try to expound more on SFEG's Upside Potential, in particular, how its existing properties could hold much larger reserves than originally estimated, in all four of its advanced projects and its latest asset and how these rich reserves can be more effectively and financially exploited through potential significant addition of value that could be obtained thru blending of minerals and resources that would be highly sought after, in one of the fastest growing industries, ie Mica Reinforced Plastics, exotic paints and non-toxic protective coatings.
A Bold and Bright Future for Car Colors
After years of low-key silvers, whites and grays dominating the market, vibrant colors and glitzy finishes are not only on the upswing today's finishes are awesome compared to past.
Color trends that affect every conceivable consumable, from cars, purses, shoes, cell phones, linens, paints and even wallpapers, are going vibrant. To make this happen needs ingredients.
The color of your next car may come from the makeup counter. Today much bolder colors and glitzy paint finishes are very much in demand and on the rise, in the auto market and others, and promise to offset staid shades of black, gray, silver and white that in the days of old past dominated our roads are no longer the norm, paint bases and coatings are all the rage today...
You might say: What's that got to do with SFEG? And the answer might be a whole lot more than you imagine: Today, SFEG's finest and purest grade Mica's can be found in some 200 cosmetic products around the World, but the real hidden promise of how much more can be derived, will be, how SFEG's Mica, when specially treated with a unique Blend of Titanium Di-Oxide, can literally be transformed into the most exotic paint blends of all colors of the spectrum, that can command added high valuations of up to a stunning $40 per pound or 10 times cosmetic prices.
And that's not all, when one considers 20,000 lbs of Mica per year, even at $10 per pound, close to net revenues, as a result a dual production process of Feldspathic sand, could fetch value added $100 per ton as Aggregate Building Materials, and help to satiate Maricopa County's and Phoenix's contruction appetite at 500,000 tons per annum, or with even greater potential for its minerals content as a non-toxic organic fertilizer, prices could fetch upwards of $500 per ton.
Meanwhile, the MIO, Micaecious Iron Oxide unique deposit containing some 60% of the World's reserves coming from the only US source, with near in-exaustible supplies, is likely to be sorely needed to supply the entire World for the next 50 years. With less desirable toxic high priced alternatives continuing to rise, that could positively increase values of the MIO, to an over-the-top at $5 Billion plus, if median value projections over just the next 25 years or so, are applied.
The biggest problem in the World today is oxidization, rusting and longer term deterioration of anything metal, especially exposed superstructures such as the Eiffel Tower Sydney Harbour Bridge and the many thousands of offshore platforms. This problem is not going away... It'll get worse as the World will continue to build more and more steel and mass metallic infrastructure
Santa Fe Gold Corporation
Unequaled Acquisition and Discovery Possibilities...
More on these appealing themes in our follow-up report on how such blockbuster reserves could add revenue to outstanding Gold and Silver net revenues and impact SFEG's share price...
At around $220 per ounce production for Gold, $2-3 per ounce for Silver a net income of $100 - $250 Million, it would not be unreasonable to expect for a rate of production such as this, which could in time, easily equate to a net return of more than One Billion Dollars to the investor... Not including additional valuations that could be generated from any new acquisitions, explorations and / or new discoveries on the 57,267 acre Ortiz Land Grant, one of the largest remaining Gold Exploration Frontiers in the US, the Silver-Rich Summit Property, the recently acquired historic Virginia mining district, the seven square mile Mica and Sand Deposit, and ultimately the MIO.
Santa Fe Gold Corporation
Exceptional Accelerating Revenue Growth Potential...
Given all of the above, does SFEG present an attractive acquisition for any private equity company worth its salt. Could a Billionaire potentially really multiply his entire net worth by buying SFEG? It's kind of a no brainer. Because at these current prices, he'd be buying this priceless asset for less than a tenth of that Billion Dollar price tag, based on its future earnings SFEG is already almost worth that now. But given its many attributes below, we make the case for so much greater potential for SFEG and try to explain why Accelerating Revenue Growth, could not only drive its values sharply and substantially higher, but also how much higher Gold and Silver prices in the long run, could add to massively significant premiums for investors.
In conclusion if you could buy any business for under $100 Million and that business would pay you $100 Million net for 10 years straight, how much is that really worth?
At 10 x Earnings: At least $ 1 Billion, but since some Gold companies have sold at average up to 60 times earnings and PDG was taken over at 123 time earnings, you be the judge.
At 10 x earnings of $100 Million, Santa Fe would equal $15, therefore 60 x Summit and Ortiz earnings combined, SFEG would equal $90 per share and at 120 x $180, so numbers outlined, not only have merit, but are highly credible.
Prospective investors have asked, what basis do we have to call for SFEG to rise up to 100 times from current levels? In one of our most successful recommendations in terms of actually being able to make at least one investor over a million dollars, we did not have that 20/20 foresight, we feel so much, that we have today with SFEG. Never-the-less, we believed in the project and we felt confident that we had a major winner in Headwaters, which ultimately rose 90 fold in just over 5 1/2 years. But, at that time, many were not able to fully partake in or appreciate Headwater's huge upside potential, in the way they can now with Santa Fe Gold. This time we want to do better than make a millionaire or two, we want to make as many millionaires we can.
And, though it may appear that we are sticking our necks out, with this mega-call for $15 - $30 towards the early part of next decade and if all of what we're expecting comes to pass, in due time with Gold and Silver: The potential clearly exists for SFEG, to rise significantly higher. And, if slated additional acquisitions are made, it would not surprise, if man of our objectives are exceeded by some degree. Regardless of that ultimate objective, we earnestly believe that all possibilities definitively exist for such exceptional gains to actually happen soon and we're also confident, we are likely to see very significant percentile type gains, over the next 18 months...
Known for making outlandish calls, we believe our analysis is valid, based on the overwhelming amount of data the company of renowned analysts and high confidence in SFEG's management:
"We are highly optimistic about our Future"
President & CEO - Dr W Pierce Carson - Santa Fe Goldcorp Inc
Mission Statement
"I intend to redirect the strategic future of this company to include identification and acquisition of high quality Gold, Silver and Copper resources".
Strategic Agenda and Timeline
Exploration - Acquisitions - Production
"I believe the next several months will be an exciting time in the precious metals sector, and an exciting time for Santa Fe Gold as it builds its precious metals asset base and heads toward a production profile. We welcome you and thank you for your patience and trust and reiterate our intention to monetize these projects in due time". "Through strategic acquisitions using its proven experience and expertise in mining and markets, Santa Fe Gold's Corporate mission is to enhance shareholder value and build a strong cash-flow driven resource company, with significant sustainable annual revenues, over the next few years".
Dr. W. Pierce Carson
President and CEO
Santa Fe Gold
Upon joining Santa Fe Gold, Dr Carson bought with him a bounty of 24 potential acquisitions, (see below resume). We don't believe these were trophy's having already acquired three of them and certainly believe, he'll waste no time in building SFEG into a mining conglomerate, especially now with the former President of mining giant "Exxon Minerals International", Dr Jack Frost at his side.
Could Dr Carson be the most underestimated CEO in America today? We believe so. While investors may bid up prices of promising precious metals plays, often with no proven reserves to speak of: We know serious investors focus on what is in the ground and what it will be worth in the future. Santa Fe Gold Corp currently possesses independently verified in-ground Gold, Silver, Copper, Feldspathic Sand, Mica and Iron Oxide assets totalling some $5.5 billion, equating to a stunning $73 per share in monetizable assets and the proof is in how well Santa Fe has performed over the past year in light of this. Actually doubling since it changed to its new name and image.
The difference between Santa Fe Gold's CEO and many others who may not yet possess proven reserves is, Dr Carson has a truly amazing record of discoveries and identifications of viable economic resources and has achieved exceptional success having literally turned deserts into Gold mines along with other achievements. Companies with fewer reserves have been severely discounted of late.
Some History and Background to Present
"In August 2003, Dr W Pierce Carson (see bio), decided to return home to the US, after apparently developing more overseas Gold mines than any other individual in history, from prospector data, to ingot. Dr Carson was very familiar with Sierra Nevada minerals claims and that is in essence how SFEG came to inherit the fabled Ortiz Gold Land Grant, apparently originally given by the then King of Spain for services rendered and then passed on down, over many generations. Recognizing the immense inground reserves and noted potential of Santa Fe's Felthspathic Sand and Mica Deposits, Dr Carson became CEO of Santa Fe rather than vie for absentee mine owners". Over the past 2 1/2 years, Santa Fe Goldcorp has acquired an increasingly valuable portfolio of mining properties, that could yield immense value with increasing resources and rising metal prices. In keeping with Azco's Mission Statement and Strategic Agenda a decision was soon made to proceed and expand with mine ownership and operation, which is Dr Carson's specialty, and rather than proffer his numerous discoveries and valued identified claims to other companies, SFEG entered into a secured term agreement, with Dr Carson for exclusive rights to all of the designated acquisitions, he has assigned to Santa Fe, currently believed to include at least 24 delineated properties with which Dr Carson has some very special relationships. The improvement in the standing of SFEG, has permitted attractive financing to be obtained, at very favorable rates, for the purpose of developing these claims on an as need basis. Use of funds will be to support rapid development of the several mines within Santa Fe which will retain the considerable profits in house and enhance shareholder value. With near term production and high metals prices, SFEG's future will surely be more Golden.
From Humble Beginnings... To a Great Future: Can Santa Fe Gold manage to leverage an original $40 M windfall from overnight Copper discoveries and subsequent sale to mining giant Phelps Dodge to $5.5 Billion in assets and perhaps many times that over years hence?
You've seen it happen before: Goldcorp increases its market cap from $50 M to $10 Billion as the premier Gold producer in North America and our very own pick surprised even us, as Headwaters went from 10 Million to over 1 Billion in revenues, becoming a US #2.
Remember how Santa FE started out...It's really an unlikely story of how a little known company ended up discovering two hugely significant Copper deposits, selling them almost overnight to then mining giant Phelps Dodge for windfall profits of $40 Million net and leveraging this into acquisition of one of the world's largest and purest Mica and Feldspathic Sand formations. Now it has since pulled off the almost unimaginable in acquiring very economically, two extremely valuable Gold properties with proven reserves of 2.5 Million ounces and yet another new acquisition in Virginia Minining District, with potentially enormous ongoing upside discovery potential, given the immense 90 Square Mile 57,267 acre size Ortiz location and the especially conducive geological structure of the formation. Now, its more recent acquisition of the Virginia Mining District Micaceous Iron Oxide deposit has already leveraged assets to $5 Billion.
And, with additional acquisitions apparently imminent, at a time when Gold and Silver prices are surging, Santa Fe Gold could well be positioned for hypergrowth. With its Exploration Acquisition and Production agenda, strong cashflows could soon develop in the interim future in near record time for an emerging mining company as additional asset acquisitions could add to all values, so that as Gold prices continue to rise and with the recently updated project values by SFEG we are starting to see the possibility of earning as much as $1 per share as no longer remote, but at $850 per ounce could be increasingly likely.
SFEG's stunningly economic, highly successful and potentially enormously valuable acquisition of the Ortiz Land Grant, as one of the few remaining uniquely large mining reserve areas in the United States, covering such an extensive area, it is a geologically highly prospective property containing 2 Million Ounces of proven Gold reserves and also holds potentially enormous additional exploration multi-metal upside, including Silver, Tungsten, Molybdenum and extra-valuable base metals such as Nickel, Copper and Zinc and very real probabilities of additional Gold, in part already determined by 386,000 feet of drilling outlined in over 1,500 drill sites. That is again something that investors are not fully valuing Santa Fe for at this time. Its ability to acquire properties so inexpensively is something that is likely to become increasingly recognized and rewarded for, should additional acquisitions be made on exceptionally good terms.
With one of the World's foremost explorationists at Santa Fe Gold Corporation and with not just a proven but enviable track record for creating wealth and discovering and identifying numeorus properties, Dr. W. Pierce Carson has initiated a new and highly revitalized exploration, acquisition and mining agenda for Santa Fe.
His 38 year career record for raw exploration around the world leading to many significant discoveries and acquisitions, is quite unparalleled in many respects, with 50 + discoveries and identifications: He has been described in industry circles along with Dr Jace Frost, among the foremost explorationists of our era.
Dr. W. Pierce Carson PhD in Economic and Structural Geology an MS in Ore deposits from Stanford University and a Bachelors Degree in Geology from Princeton. With a highly accomplished international mining career spanning 35 years with extensive experience in directing exploration development and mining of base metals, precious metals, industrial minerals projects with emphasis on economic geology.
Dr W Pierce Carson
Exploration and Mining Career Highlights
Early in his career, his geologic work with an exploratory task force at Exxon Minerals on all five continents, Central and South America, Asia, Europe and Africa led to major exploration programs in Australia, Chile, Germany, Spain and Africa.
Responsible for all precious metals exploration activities in the United States and Canada at Kennecott Copper Inc: A property that Dr Carson identified and recommended for acquisition, was acquired and later developed by Kennecott, subsequently became a significant Gold-Silver producer.
* Acquisition of the Tabar Islands Gold property, in a joint venture with Kennecott.
* Discovery of the Kurara Gold Mine in Western Australia with subsequent successful financing, development and operation of the mine.
* Discovery of Emu South gold mine in Western Australia, joint venture of the property to Western Mining and subsequent sale of interest and $40 million distribution to limited partner investors.
* Completion of Ramu Nickel pre-feasibility study based on pressure acid leaching.
* Acquisition of the Girilambone copper property and design of the technically innovative and highly successful SX-EW processing system.
* Arrangement of financing for Girilambone mine development through joint venture participation and bank debt. Implementation of hedging programs.
* Successful operations of the Girilambone copper mine and the Kurara Gold mine.
* Discovery of Tritton Copper deposit using state-of-the-art geophysical methods.
* Purchase of Kennecott's interest in the Tabar Islands gold project.
* Acquisition of the Johnson Camp Copper mine and Tritton Copper property in the United States and Australia.
* Sale of Ramu nickel project, Papua New Guinea and Sierra Rutile titanium mine, Sierra Leone.
* Arrangement of project debt financing of $42 Million for copper and other mines.
Property Identification Agreement Between Dr W Pierce Carson
And Santa Fe Gold Covering 24 Or More ~ Potential Acquisitions
From his extensive experience in the mining industry prior to his association with the Company, Dr Carson has become aware of specific properties that may represent attractive acquisition opportunities for Santa Fe Goldcorp and SFEG has already succeeded in acquiring three of these, namely the coveted and extremely valuable Ortiz Land Grant with its 2 Million ounce Gold deposit, the New Planet Micaceous Iron Oxide (MIO) deposit and the Summit Siver-Gold deposit in N.M. Over the span of his 35 year mining career, including properties above, Dr Carson has discovered or identified as many as 50 properties around the World considered economically viable or with very high potential for mining success at some future time and since Santa Fe Gold wishes to acquire high quality exploration and mining properties as part of its objectives for growth, as part of his employment contract, Dr Carson agreed to make available to Santa Fe a list of twenty-four (24) properties and all the information he possesses in regards to these properties and cooperate fully to facilitate detailed assessments and aid with the acquisitions of same. As to what Dr Frost may also bring to Santa Fe remains to be seen, but given his record as one of the most prolific geologists of all time in regards to new discoveries bodes very well.
Acquisition of properties is a laborious and time consuming process however in spite of this, SFEG has already succeeded in acquiring three extremely valuable properties and has disclosed that negotiations on several others are already in progress and may be well advanced while actually considering up to 24 potential acquisitions at this time. Given that 24 properties may be attractive enough to acquire, it wouldn't be unreasonable to assume that up to 4 acquisitions per year might be possible and therefore over the next 6 years be able to build strategic long term reserves up quickly in anticipation of higher metals and mineral prices over time. SFEG
's immediate objectives are to bring its properties on line and into full production as quickly as possible to satisfy a rapidly growing demand for exotic minerals and increasing demand for Gold and Silver driving today's price to 25 year highs through new acquisitions.
Santa Fe Gold's Strategic Mission
"Through strategic acquisitions using its long experience and expertise in mining and markets, Santa Fe Goldcorp's aim is to enhance shareholder value and build a strong cash-flow driven resource company with significant sustainable revenues annually over the next several years"
Dr W Pierce Carson President and CEO
Santa Fe Gold Corporation Inc
Santa Fe Gold Corporation
An Investment For Your Future...
In Conclusion
In summary, the recent Press Releases Santa Fe Goldcorp has pomulgated essentially state that notwithstanding a few setbacks, against all odds, Santa Fe has not only come from behind, but for a brief time, it became the # 1 Mining stock gainer in the United States in the early part of February 2006, up a stunning 2,300%: It has already eliminated one huge millstone of debt from around the company's neck in the form of $6.26 Million in debt, no mean accomplishment, and now appears poised to execute on everything we've commented on and outlined in this special report and more...
Read between the lines, look at how this picture is unfolding. Look at the progress being made: The information and promise is there for all to see
When former high-flyers resume their powerful uptrends, they tend to do so vigorously and relentlessly over time. That is their Stock Karma...
About Santa Fe Goldcorp
Santa Fe Gold Corporation is a U.S.-based mining and exploration company focused on acquiring and developing gold, silver copper and industrial mineral properties. The company owns the Summit Gold-Silver property and a mill site and processing equipment in Southwestern New Mexico. It recently acquired another potential million ounce reserve in the Virginia Mining District of South Western New Mexico and may be sitting on a massive new Gold / Copper Porphyry deposit that could be worth Billions of Dollars. And in North-Central New Mexico it also holds the mineral lease rights to the Ortiz Gold property said to contain at least 2 million ounces of gold with superb upside exploration potential that could include some additional millions of ounces of Gold. Santa Fe Gold also owns a high-quality mica mine and processing facility near Phoenix and a large resource of Micaceous Iron Oxide MIO in La Paz County Arizona. Santa Fe intends to build a portfolio of high-quality diversified mineral reserves with a strong emphasis on precious metals.
The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein. The valuations are opinions based on proven in-ground reserves of Gold, Silver, Copper and other metals and minerals in-ground.
If the US Dollar does become a casualty of the Trillion Dollar bailout or fallout, as these properties are monetized, their values will inevitably and inexorably rise, especially, with our Gold and Silver worth around $2.0 Billion today and at $1350 per ounce for the Gold and $25 for the Silver that would grow by an additional $2 Billion net in value, or the equivalent of $20 per share for SFEG.
In light of this, and we're willing to wait... At some time in the future, we could easily become the target of any Private Equity buyout, or become the object of desire of some Billionaire, bent of grabbing all the reserves he can amass, just as the Hunt brothers tried to do back in 1980, when they attempted to corner the Silver market. This time around, the smarter idea might be to acquire the real thing, that is in the ground, because as we already know, the World is running out of Gold and Silver and many of the other resources, SFEG is uniquely rich in, such as owning 60% of the Worlds MIO Micaceous Iron Oxide New Planet Arizona deposit potentially already four times as valuable as the day SFEG acquired it, thanks to competitive alternative prices going through the roof with 400% gains of late, setting new all time record highs again...
Santa Fe Gold Corporation
A Portrait of Portfolio Diversification
Five Valuable World Class Major Asset Properties...
And Counting. Following its Early 2008 Gold acquisition
with the prospect of additional reserves to be added in time
Azco Acquires Rare Domestic Source of Micaceous Iron Oxide in Arizona
GLENDALE, AZ (MARKET WIRE)—Nov 7, 2005—Azco Mining Inc. (Other OTC: AZMN.PK - News),
a US based mining and exploration enterprise with an emphasis on gold, copper and industrial minerals, today announced it had reacquired 100% interest in a mineral lease with New Planet Copper Mining Company ("New Planet") on 31 patented mining claims covering 523 acres in La Paz County, Arizona. The New Planet property contains a world-class resource of micaceous iron oxide ("MIO"), an industrial mineral valued around the world as an important coating pigment used in corrosion-control systems for structural steelwork.
Dr. Pierce Carson, CEO, stated, "This property fits the Company’s strategic agenda of building a portfolio of high quality, diversified mineral assets. Quality deposits of MIO are a geologic rarity, with only a handful of primary suppliers worldwide, and none in North America. The New Planet property represents an unusual opportunity to acquire, under attractive terms and in the United States, an exceptional ore deposit characterized by high grade, favorable metallurgy and a drilled resource sufficient to sustain an open pit mining operation for over thirty years. At today’s MIO prices of around $0.50/lb, the in-ground value of recoverable MIO in that portion of the deposit that has been drilled exceeds $300 million.
"The proposed new operation would produce MIO pigment, for sale to paint manufacturers domestically and internationally. Our extensive pre-feasibility work indicates the project would have extremely low mining and processing costs, which would enable it to compete effectively in world markets. The new operation would form the basis of a potentially very lucrative and long-lived industrial minerals business."
In Europe and Asia, MIO is the most important anti-corrosion barrier pigment in coatings used to protect structural steelwork and is applied widely on bridges, oilrigs, transmission towers, pipelines, storage tanks, industrial plants and structural steelwork of all descriptions. North American paint manufacturers also use MIO for its superior anti-corrosion and non-toxic, environmentally friendly properties. However, because of the lack of a domestic source, the domestic market depends on imports, which has restricted market expansion. As a result the United States uses only a small amount of MIO pigment as compared to other regions of the world. The New Planet project would establish a reliable domestic source of MIO pigment.
Dr. Carson said, "MIO offers various performance and environmental advantages over zinc-based and chromate-based coatings now widely used for corrosion control in North America. While we recognize the marketing challenges involved, we believe the establishment of a domestic source of supply could lead to substantially greater usage in North America, especially considering the trend of increasingly stringent environmental regulations. Based on a relative comparison with MIO usage in Europe, MIO appears to be significantly under-utilized in the North American market by a factor of fifteen."
The Company originally entered into the lease with New Planet in 2000, but in August 2003 assigned the lease, subject to certain back-in rights, to Metallica Ventures LLC ("Metallica"), a corporation controlled by the Company’s current President and Chief Executive Officer. Metallica recently reassigned all of its interest in the property to the Company in return for cash and common stock. Under terms of the underlying lease with New Planet, the Company is obligated to make monthly rental payments and to pay a royalty on the value of any production.
MIO, being the largest and only deposit in the US, with minelife extended from the original 30 year estimate to 50 years plus, its value has already, potentially increased from $300 Million to almost $2 Billion, extrapolating out. And, that's based on today's prices and not the average over the next 50 years or so!!! How many companies can actually claim to have enough reserves to supply the entire World for the next 50 years? Not too many, but Santa Fe can, and as for its envied Mica and Feldspathic Sand Deposit at Black Canyon: Florida Rock's recent takeover for $4.6 Billion by aggregate building materials supplier Vulcan Minerals, once again sheds a new light on the hidden billions that lie in SFEG's own reserves of aggregate construction material in the 88 Million tons of Felthspathic Sand conservatively, worth well over $1.5 Billion over the 20 year mine life, which incidentally represents only a mere 5% drilled, of this massive resource...
On the Gold front, with an anticipated potential production ultimately estimated at 250,000 ozs per year and likely to run for at least 10 years straight, such a pace could likely see revenues of between $165 Million and $250 Million annually or between $1 and $2 per share, depending on metals pricing, equating to between $1.65 Billion and $2.5 Billion in the range of valuation, in all at $3.5 Billon at $1,200 oz. So it's not too hard to foresee how anyone from the savviest Billionaire to a new investor just starting out, could stand to gain exceptional return from SFEG.
Unearthing Santa FE's Hidden Values With More to Come
In a follow-up report we'll try to expound more on SFEG's Upside Potential, in particular, how its existing properties could hold much larger reserves than originally estimated, in all four of its advanced projects and its latest asset and how these rich reserves can be more effectively and financially exploited through potential significant addition of value that could be obtained thru blending of minerals and resources that would be highly sought after, in one of the fastest growing industries, ie Mica Reinforced Plastics, exotic paints and non-toxic protective coatings.
A Bold and Bright Future for Car Colors
After years of low-key silvers, whites and grays dominating the market, vibrant colors and glitzy finishes are not only on the upswing today's finishes are awesome compared to past.
Color trends that affect every conceivable consumable, from cars, purses, shoes, cell phones, linens, paints and even wallpapers, are going vibrant. To make this happen needs ingredients.
The color of your next car may come from the makeup counter. Today much bolder colors and glitzy paint finishes are very much in demand and on the rise, in the auto market and others, and promise to offset staid shades of black, gray, silver and white that in the days of old past dominated our roads are no longer the norm, paint bases and coatings are all the rage today...
You might say: What's that got to do with SFEG? And the answer might be a whole lot more than you imagine: Today, SFEG's finest and purest grade Mica's can be found in some 200 cosmetic products around the World, but the real hidden promise of how much more can be derived, will be, how SFEG's Mica, when specially treated with a unique Blend of Titanium Di-Oxide, can literally be transformed into the most exotic paint blends of all colors of the spectrum, that can command added high valuations of up to a stunning $40 per pound or 10 times cosmetic prices.
And that's not all, when one considers 20,000 lbs of Mica per year, even at $10 per pound, close to net revenues, as a result a dual production process of Feldspathic sand, could fetch value added $100 per ton as Aggregate Building Materials, and help to satiate Maricopa County's and Phoenix's contruction appetite at 500,000 tons per annum, or with even greater potential for its minerals content as a non-toxic organic fertilizer, prices could fetch upwards of $500 per ton.
Meanwhile, the MIO, Micaecious Iron Oxide unique deposit containing some 60% of the World's reserves coming from the only US source, with near in-exaustible supplies, is likely to be sorely needed to supply the entire World for the next 50 years. With less desirable toxic high priced alternatives continuing to rise, that could positively increase values of the MIO, to an over-the-top at $5 Billion plus, if median value projections over just the next 25 years or so, are applied.
The biggest problem in the World today is oxidization, rusting and longer term deterioration of anything metal, especially exposed superstructures such as the Eiffel Tower Sydney Harbour Bridge and the many thousands of offshore platforms. This problem is not going away... It'll get worse as the World will continue to build more and more steel and mass metallic infrastructure
Santa Fe Gold Corporation
Unequaled Acquisition and Discovery Possibilities...
More on these appealing themes in our follow-up report on how such blockbuster reserves could add revenue to outstanding Gold and Silver net revenues and impact SFEG's share price...
At around $220 per ounce production for Gold, $2-3 per ounce for Silver a net income of $100 - $250 Million, it would not be unreasonable to expect for a rate of production such as this, which could in time, easily equate to a net return of more than One Billion Dollars to the investor... Not including additional valuations that could be generated from any new acquisitions, explorations and / or new discoveries on the 57,267 acre Ortiz Land Grant, one of the largest remaining Gold Exploration Frontiers in the US, the Silver-Rich Summit Property, the recently acquired historic Virginia mining district, the seven square mile Mica and Sand Deposit, and ultimately the MIO.
Santa Fe Gold Corporation
Exceptional Accelerating Revenue Growth Potential...
Given all of the above, does SFEG present an attractive acquisition for any private equity company worth its salt. Could a Billionaire potentially really multiply his entire net worth by buying SFEG? It's kind of a no brainer. Because at these current prices, he'd be buying this priceless asset for less than a tenth of that Billion Dollar price tag, based on its future earnings SFEG is already almost worth that now. But given its many attributes below, we make the case for so much greater potential for SFEG and try to explain why Accelerating Revenue Growth, could not only drive its values sharply and substantially higher, but also how much higher Gold and Silver prices in the long run, could add to massively significant premiums for investors.
In conclusion if you could buy any business for under $100 Million and that business would pay you $100 Million net for 10 years straight, how much is that really worth?
At 10 x Earnings: At least $ 1 Billion, but since some Gold companies have sold at average up to 60 times earnings and PDG was taken over at 123 time earnings, you be the judge.
At 10 x earnings of $100 Million, Santa Fe would equal $15, therefore 60 x Summit and Ortiz earnings combined, SFEG would equal $90 per share and at 120 x $180, so numbers outlined, not only have merit, but are highly credible.
Prospective investors have asked, what basis do we have to call for SFEG to rise up to 100 times from current levels? In one of our most successful recommendations in terms of actually being able to make at least one investor over a million dollars, we did not have that 20/20 foresight, we feel so much, that we have today with SFEG. Never-the-less, we believed in the project and we felt confident that we had a major winner in Headwaters, which ultimately rose 90 fold in just over 5 1/2 years. But, at that time, many were not able to fully partake in or appreciate Headwater's huge upside potential, in the way they can now with Santa Fe Gold. This time we want to do better than make a millionaire or two, we want to make as many millionaires we can.
And, though it may appear that we are sticking our necks out, with this mega-call for $15 - $30 towards the early part of next decade and if all of what we're expecting comes to pass, in due time with Gold and Silver: The potential clearly exists for SFEG, to rise significantly higher. And, if slated additional acquisitions are made, it would not surprise, if man of our objectives are exceeded by some degree. Regardless of that ultimate objective, we earnestly believe that all possibilities definitively exist for such exceptional gains to actually happen soon and we're also confident, we are likely to see very significant percentile type gains, over the next 18 months...
Known for making outlandish calls, we believe our analysis is valid, based on the overwhelming amount of data the company of renowned analysts and high confidence in SFEG's management:
"We are highly optimistic about our Future"
President & CEO - Dr W Pierce Carson - Santa Fe Goldcorp Inc
Mission Statement
"I intend to redirect the strategic future of this company to include identification and acquisition of high quality Gold, Silver and Copper resources".
Strategic Agenda and Timeline
Exploration - Acquisitions - Production
"I believe the next several months will be an exciting time in the precious metals sector, and an exciting time for Santa Fe Gold as it builds its precious metals asset base and heads toward a production profile. We welcome you and thank you for your patience and trust and reiterate our intention to monetize these projects in due time". "Through strategic acquisitions using its proven experience and expertise in mining and markets, Santa Fe Gold's Corporate mission is to enhance shareholder value and build a strong cash-flow driven resource company, with significant sustainable annual revenues, over the next few years".
Dr. W. Pierce Carson
President and CEO
Santa Fe Gold
Upon joining Santa Fe Gold, Dr Carson bought with him a bounty of 24 potential acquisitions, (see below resume). We don't believe these were trophy's having already acquired three of them and certainly believe, he'll waste no time in building SFEG into a mining conglomerate, especially now with the former President of mining giant "Exxon Minerals International", Dr Jack Frost at his side.
Could Dr Carson be the most underestimated CEO in America today? We believe so. While investors may bid up prices of promising precious metals plays, often with no proven reserves to speak of: We know serious investors focus on what is in the ground and what it will be worth in the future. Santa Fe Gold Corp currently possesses independently verified in-ground Gold, Silver, Copper, Feldspathic Sand, Mica and Iron Oxide assets totalling some $5.5 billion, equating to a stunning $73 per share in monetizable assets and the proof is in how well Santa Fe has performed over the past year in light of this. Actually doubling since it changed to its new name and image.
The difference between Santa Fe Gold's CEO and many others who may not yet possess proven reserves is, Dr Carson has a truly amazing record of discoveries and identifications of viable economic resources and has achieved exceptional success having literally turned deserts into Gold mines along with other achievements. Companies with fewer reserves have been severely discounted of late.
Some History and Background to Present
"In August 2003, Dr W Pierce Carson (see bio), decided to return home to the US, after apparently developing more overseas Gold mines than any other individual in history, from prospector data, to ingot. Dr Carson was very familiar with Sierra Nevada minerals claims and that is in essence how SFEG came to inherit the fabled Ortiz Gold Land Grant, apparently originally given by the then King of Spain for services rendered and then passed on down, over many generations. Recognizing the immense inground reserves and noted potential of Santa Fe's Felthspathic Sand and Mica Deposits, Dr Carson became CEO of Santa Fe rather than vie for absentee mine owners". Over the past 2 1/2 years, Santa Fe Goldcorp has acquired an increasingly valuable portfolio of mining properties, that could yield immense value with increasing resources and rising metal prices. In keeping with Azco's Mission Statement and Strategic Agenda a decision was soon made to proceed and expand with mine ownership and operation, which is Dr Carson's specialty, and rather than proffer his numerous discoveries and valued identified claims to other companies, SFEG entered into a secured term agreement, with Dr Carson for exclusive rights to all of the designated acquisitions, he has assigned to Santa Fe, currently believed to include at least 24 delineated properties with which Dr Carson has some very special relationships. The improvement in the standing of SFEG, has permitted attractive financing to be obtained, at very favorable rates, for the purpose of developing these claims on an as need basis. Use of funds will be to support rapid development of the several mines within Santa Fe which will retain the considerable profits in house and enhance shareholder value. With near term production and high metals prices, SFEG's future will surely be more Golden.
From Humble Beginnings... To a Great Future: Can Santa Fe Gold manage to leverage an original $40 M windfall from overnight Copper discoveries and subsequent sale to mining giant Phelps Dodge to $5.5 Billion in assets and perhaps many times that over years hence?
You've seen it happen before: Goldcorp increases its market cap from $50 M to $10 Billion as the premier Gold producer in North America and our very own pick surprised even us, as Headwaters went from 10 Million to over 1 Billion in revenues, becoming a US #2.
Remember how Santa FE started out...It's really an unlikely story of how a little known company ended up discovering two hugely significant Copper deposits, selling them almost overnight to then mining giant Phelps Dodge for windfall profits of $40 Million net and leveraging this into acquisition of one of the world's largest and purest Mica and Feldspathic Sand formations. Now it has since pulled off the almost unimaginable in acquiring very economically, two extremely valuable Gold properties with proven reserves of 2.5 Million ounces and yet another new acquisition in Virginia Minining District, with potentially enormous ongoing upside discovery potential, given the immense 90 Square Mile 57,267 acre size Ortiz location and the especially conducive geological structure of the formation. Now, its more recent acquisition of the Virginia Mining District Micaceous Iron Oxide deposit has already leveraged assets to $5 Billion.
And, with additional acquisitions apparently imminent, at a time when Gold and Silver prices are surging, Santa Fe Gold could well be positioned for hypergrowth. With its Exploration Acquisition and Production agenda, strong cashflows could soon develop in the interim future in near record time for an emerging mining company as additional asset acquisitions could add to all values, so that as Gold prices continue to rise and with the recently updated project values by SFEG we are starting to see the possibility of earning as much as $1 per share as no longer remote, but at $850 per ounce could be increasingly likely.
SFEG's stunningly economic, highly successful and potentially enormously valuable acquisition of the Ortiz Land Grant, as one of the few remaining uniquely large mining reserve areas in the United States, covering such an extensive area, it is a geologically highly prospective property containing 2 Million Ounces of proven Gold reserves and also holds potentially enormous additional exploration multi-metal upside, including Silver, Tungsten, Molybdenum and extra-valuable base metals such as Nickel, Copper and Zinc and very real probabilities of additional Gold, in part already determined by 386,000 feet of drilling outlined in over 1,500 drill sites. That is again something that investors are not fully valuing Santa Fe for at this time. Its ability to acquire properties so inexpensively is something that is likely to become increasingly recognized and rewarded for, should additional acquisitions be made on exceptionally good terms.
With one of the World's foremost explorationists at Santa Fe Gold Corporation and with not just a proven but enviable track record for creating wealth and discovering and identifying numeorus properties, Dr. W. Pierce Carson has initiated a new and highly revitalized exploration, acquisition and mining agenda for Santa Fe.
His 38 year career record for raw exploration around the world leading to many significant discoveries and acquisitions, is quite unparalleled in many respects, with 50 + discoveries and identifications: He has been described in industry circles along with Dr Jace Frost, among the foremost explorationists of our era.
Dr. W. Pierce Carson PhD in Economic and Structural Geology an MS in Ore deposits from Stanford University and a Bachelors Degree in Geology from Princeton. With a highly accomplished international mining career spanning 35 years with extensive experience in directing exploration development and mining of base metals, precious metals, industrial minerals projects with emphasis on economic geology.
Dr W Pierce Carson
Exploration and Mining Career Highlights
Early in his career, his geologic work with an exploratory task force at Exxon Minerals on all five continents, Central and South America, Asia, Europe and Africa led to major exploration programs in Australia, Chile, Germany, Spain and Africa.
Responsible for all precious metals exploration activities in the United States and Canada at Kennecott Copper Inc: A property that Dr Carson identified and recommended for acquisition, was acquired and later developed by Kennecott, subsequently became a significant Gold-Silver producer.
* Acquisition of the Tabar Islands Gold property, in a joint venture with Kennecott.
* Discovery of the Kurara Gold Mine in Western Australia with subsequent successful financing, development and operation of the mine.
* Discovery of Emu South gold mine in Western Australia, joint venture of the property to Western Mining and subsequent sale of interest and $40 million distribution to limited partner investors.
* Completion of Ramu Nickel pre-feasibility study based on pressure acid leaching.
* Acquisition of the Girilambone copper property and design of the technically innovative and highly successful SX-EW processing system.
* Arrangement of financing for Girilambone mine development through joint venture participation and bank debt. Implementation of hedging programs.
* Successful operations of the Girilambone copper mine and the Kurara Gold mine.
* Discovery of Tritton Copper deposit using state-of-the-art geophysical methods.
* Purchase of Kennecott's interest in the Tabar Islands gold project.
* Acquisition of the Johnson Camp Copper mine and Tritton Copper property in the United States and Australia.
* Sale of Ramu nickel project, Papua New Guinea and Sierra Rutile titanium mine, Sierra Leone.
* Arrangement of project debt financing of $42 Million for copper and other mines.
Property Identification Agreement Between Dr W Pierce Carson
And Santa Fe Gold Covering 24 Or More ~ Potential Acquisitions
From his extensive experience in the mining industry prior to his association with the Company, Dr Carson has become aware of specific properties that may represent attractive acquisition opportunities for Santa Fe Goldcorp and SFEG has already succeeded in acquiring three of these, namely the coveted and extremely valuable Ortiz Land Grant with its 2 Million ounce Gold deposit, the New Planet Micaceous Iron Oxide (MIO) deposit and the Summit Siver-Gold deposit in N.M. Over the span of his 35 year mining career, including properties above, Dr Carson has discovered or identified as many as 50 properties around the World considered economically viable or with very high potential for mining success at some future time and since Santa Fe Gold wishes to acquire high quality exploration and mining properties as part of its objectives for growth, as part of his employment contract, Dr Carson agreed to make available to Santa Fe a list of twenty-four (24) properties and all the information he possesses in regards to these properties and cooperate fully to facilitate detailed assessments and aid with the acquisitions of same. As to what Dr Frost may also bring to Santa Fe remains to be seen, but given his record as one of the most prolific geologists of all time in regards to new discoveries bodes very well.
Acquisition of properties is a laborious and time consuming process however in spite of this, SFEG has already succeeded in acquiring three extremely valuable properties and has disclosed that negotiations on several others are already in progress and may be well advanced while actually considering up to 24 potential acquisitions at this time. Given that 24 properties may be attractive enough to acquire, it wouldn't be unreasonable to assume that up to 4 acquisitions per year might be possible and therefore over the next 6 years be able to build strategic long term reserves up quickly in anticipation of higher metals and mineral prices over time. SFEG
's immediate objectives are to bring its properties on line and into full production as quickly as possible to satisfy a rapidly growing demand for exotic minerals and increasing demand for Gold and Silver driving today's price to 25 year highs through new acquisitions.
Santa Fe Gold's Strategic Mission
"Through strategic acquisitions using its long experience and expertise in mining and markets, Santa Fe Goldcorp's aim is to enhance shareholder value and build a strong cash-flow driven resource company with significant sustainable revenues annually over the next several years"
Dr W Pierce Carson President and CEO
Santa Fe Gold Corporation Inc
Santa Fe Gold Corporation
An Investment For Your Future...
In Conclusion
In summary, the recent Press Releases Santa Fe Goldcorp has pomulgated essentially state that notwithstanding a few setbacks, against all odds, Santa Fe has not only come from behind, but for a brief time, it became the # 1 Mining stock gainer in the United States in the early part of February 2006, up a stunning 2,300%: It has already eliminated one huge millstone of debt from around the company's neck in the form of $6.26 Million in debt, no mean accomplishment, and now appears poised to execute on everything we've commented on and outlined in this special report and more...
Read between the lines, look at how this picture is unfolding. Look at the progress being made: The information and promise is there for all to see
When former high-flyers resume their powerful uptrends, they tend to do so vigorously and relentlessly over time. That is their Stock Karma...
About Santa Fe Goldcorp
Santa Fe Gold Corporation is a U.S.-based mining and exploration company focused on acquiring and developing gold, silver copper and industrial mineral properties. The company owns the Summit Gold-Silver property and a mill site and processing equipment in Southwestern New Mexico. It recently acquired another potential million ounce reserve in the Virginia Mining District of South Western New Mexico and may be sitting on a massive new Gold / Copper Porphyry deposit that could be worth Billions of Dollars. And in North-Central New Mexico it also holds the mineral lease rights to the Ortiz Gold property said to contain at least 2 million ounces of gold with superb upside exploration potential that could include some additional millions of ounces of Gold. Santa Fe Gold also owns a high-quality mica mine and processing facility near Phoenix and a large resource of Micaceous Iron Oxide MIO in La Paz County Arizona. Santa Fe intends to build a portfolio of high-quality diversified mineral reserves with a strong emphasis on precious metals.
The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein. The valuations are opinions based on proven in-ground reserves of Gold, Silver, Copper and other metals and minerals in-ground.