Santa Fe Metals : News July 3, 2014

July!3,!2014! ! ! ! ! ! ! ! ! ! TSX.V:SFM!
! VANCOUVER! ;! Santa! Fe! Metals! Corporation! (TSXV:! SFM)! ("SFM"! or! the! "Company")! announces! that! its! Sully! project! team! has! completed! a! detailed! review! of! new! gravity! survey! data! and! core! drilled! in! 2014! at!the!East!Target.!The!month;long!program!highlights!that!drill!hole!SU14;09!likely!passed!within!100;m! of!the!large;scale!East!mass!and!has!brought!the!target's!geometry!into!sharper!definition.!Based!on!the! recent! comprehensive! data! review,! SFM! will! remobilize! a! drill! to! the! project! site! to! pinpoint! the! East! target!with!DDHSU14;10!as!soon!as!possible.!
!

East%Sully%Target%Highlights%

; Detailed!logging!of!2,697;m!of!core!has!confirmed!Sullivan;time!equivalent!stratigraphy!
; Geological!interpretation!shows!potential!for!a!large;scale!SEDEX!deposit!was!subjected!to!post!
depositional!folding,!tectonic!thickening!and!faulting!
; An!additional!150!gravity!measurements!has!further!defined!the!East!target's!complex!geometry!
and!re;confirms!an!estimated!mass!in!excess!of!100!Million!tonnes!
; Down! hole! temperature! and! magnetic! measurements! observed! in! DDH! SU14;09,! in! addition! to!
the!new!gravity!data!indicates!the!hole!passed!within!100;m!proximity!of!the!East!Target!
; Both!East!and!West!gravity!masses!have!near;coincident!deep!mag!anomalies!
; An! historic! zinc! and! lead! soil! geochemistry! anomaly! above! and! east! of! the! East! gravity! target!
remains!'open'!to!the!west!
; In! nine! drill! holes! completed! since! 2004! none! of! the! intersections! can! account! for! the! Sullivan;
size!gravity!anomaly!
!

Geophysical%Update%

The! Sully! project! has! been! the! focus! of! several! gravity! survey! campaigns,! all! providing! increased! resolution! and! clarity! of! the! target(s)! over! time.! Current! interpretation! shows! East! and! West! Targets,! trending! north;south! and! occupying! a! greater! than! 2;km! diameter! footprint,! as! shown! on! Figure! 1.! ! A! cross;section!through!the!anomalies!also!shows!a!separation!of!roughly!800;m!within!which!some!of!the! project's! earliest! deep! drilling! was! undertaken.! No! intersections! in! any! drilling! to! date! can! account! for! the!gravity!mass!measurements!or!large;scale!anomalies!observed.!
! In!June!2014,!Excel!Geophysics!Inc.!completed!an!additional!150!gravity!stations!over!the!East!Target!to! further! refine! its! gravity! profile.! That! work! revealed! the! mass! has! greater! complexity! than! previously! expected.! Detailed! interpretation! of! the! East! mass! dataset! shows! two! aligned! cntres! that! are! either! separated! or! joined! by! a! thin! zone.! Drilling! to! date! came! very! close! to! the! edge! of! this! irregular! mass.!! Down! hole! temperature! and! magnetic! field! readings! in! DDH! SU14;09! also! suggest! proximity! to! massive! sulphides,!as!shown!in!Figure!2.!
! The! gravity! targets! are! reinforced! by! the! presence! of! near;coincident! magnetic! anomalies,! shown! on! Figure! 2.! The! filtered! deep! anomalies! also! trend! north;south! and! broadly! overlap! the! gravity! footprint.! These! otherwise! completely! unrelated! datasets! highlight! possible! associated! pyrrhotite;rich! zones! and! suggest!potential!for!massive!base!metal!sulphide!SEDEX!horizons!within!the!assemblage.!

! 2

!
Brian! Jones,! P.Geophys.,! President! of! Excel! Geophysics! stated,! "The% Sully% gravity% anomaly% is% an% impressive% exploration% target.% The% gravity% anomaly% is% just% under% 1.0% mGal% in% amplitude,% which% is% large% compared%to%the%possible%sources%of%error.%The%mass%of%the%high%density%sulphide%that%can%account%for%the% measured%gravity%over%the%East%anomaly%is%in%excess%of%100%million%tonnes".!
! Geological%Update%and%Interpretation% SFM! has! completed! 2,697;m! of! new! drilling! utilizing! oriented! core! techniques! and! down! hole! surveys! that! provide! temperature! measurements! and! magnetic! field! readings.! Paul! Ransom,! P.Geo.! has! carried! out!detailed!logging!and!a!review!of!all!core!collected!and!has!also!re;visited!selected!intervals!from!drill! holes!finished!in!2004,!2012!and!2013!to!complement!the!developing!geological!model.!!
! The! structural! model! of! the! East! target! has! evolved! to! become! increasingly! complex! as! a! result! of! the! new! information.! In! addition! to! deep! offsetting! low! angle! normal! faults! and! steeply! dipping! normal! faults,! several! zones! of! locally! intense! folding! are! observed.! ! The! current! geologic! interpretation! is! presented!in!cross!section!on!Figure!3!and!indicates!post!depositional!folding,!thickening!and!faulting!of! the! mass.! Tectonic! thickening! like! this! has! been! observed! at! many! other! massive! sulphide! deposits! around! the! world,! including! Sullivan.! The! cross! section! is! a! projection! of! drill! holes! and! surface! information! over! a! one;km! width.! Therefore,! the! actual! distance! between! individual! drill! holes,! the! target!and!other!geological!features!is!variable,!however!it!appropriately!shows!that!the!East!Target!and! its! mass! can! be! readily! accommodated! in! the! 3;dimensional! volume! under! the! observed! gravity! anomaly.!!!
! The!volume!of!rock!tested!by!drilling!to!date!is!enormous!and!the!potential!to!host!the!target!mass!can! easily! be! contained! within! it.! ! As! drilling! has! progressed! over! time! the! model! has! developed! to! a! point! where! other! historic! observations! may! become! important.! ! Among! those! is! the! presence! of! anomalous! zinc!and!lead!in!surface!soil!geochemistry!surveys!above!and!to!the!east!of!the!mass,!as!shown!on!Figure!
2.! ! The! geochemical! anomaly! is! 'open'! to! the! west! highlighting! a! zone! where! the! target! horizon! may!
extend!to!surface.!
! Exploration%Plan% The! Company's! focus! in! 2014! has! been! the! East! Target,! selected! initially! for! its! large;scale! and! ease! of! drilling! from! established! collar! locations! using! techniques! perfected! to! minimize! hole! deviation.! ! Based! on!the!results!of!the!new!geophysical!work!and!updated!geological!model,!the!Company!will!re;mobilize! a!drill!to!the!site!to!commence!DDH!SU14;10!shortly!(see!Figure!3).!!The!planned!hole!is!expected!to!test! the!target!at!less!than!500;m!in!depth!and!will!be!aimed!toward!the!gravity!centre!north!of!the!section.! The!West!Target!also!remains!extremely!compelling!;!additional!gravity!survey!work!will!be!undertaken! to!provide!a!more!detailed!profile!of!that!mass!in!order!to!design!the!most!effective!drilling!plan.!
!
Paul! Ransom,! P.Geo,! Sully! Project! Manager! stated,! "The% Sully% Project% presents% one% of% the% best% exploration% targets% of% Sullivan% size% that% I% have% seen% in% my% career.% Located% at% equivalent% SullivanHtime% stratigraphy% where% successive% gravity% surveys% continue% to% confirm% and% refine% SullivanHscale% masses% and% combine% to% make% this% a% compelling% exploration% program.% % The% East% target% has% recently% shown% us% more% complexity% than% originally% imagined,% but% not% unusually% so% for% this% target% type.% % Having% completed% a% pragmatic% exploration% drilling% program% to% date,% we% have% now% pinpointed% the% best% location% to% pierce% the% East%mass%target".!
!

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! 3

The%Sully%project% Sully!is!located!near!Fort!Steele,!30!kilometres!east!of!the!Sullivan!mine!at!Kimberley,!B.C.!and!within!the! same! large! geologic! basin! that! is! prospective! for! one! of! the! world's! mega;,! but! also! several! smaller,! SEDEX! deposits.! The! East! mass! is! located! at! the! same! stratigraphic! position! equivalent! to! Sullivan! Time! with! observed! lead! and! zinc! mineralization! in! drill! core,! outcrop! and! soils.! ! Further,! the! large;scale! gravity! mass! anomalies! are! near! coincident! with! deep! magnetic! anomalies.! Management! believes! the! best!explanation!for!the!twin!mass!anomalies!is!the!presence!of!two!very!large!and!structurally!complex! SEDEX!massive!sulphide!bodies!yet!to!be!discovered!by!drilling.!The!last!hole!completed!DDHSU14;09!is! estimated! to! have! come! within! 100;m! of! the! massive! sulphide! target! and! new,! more! detailed! gravity! surveying!has!helped!to!pinpoint!the!location!and!likely!shape!of!the!East!Target.!

! The%Sullivan%mine% Sullivan!was!discovered!in!1892!and!is!one!of!the!world's!mega!silver;lead;zinc!SEDEX!deposits.!Over!its! roughly! 100;year! lifetime,! Sullivan! produced! almost! 300! million! ounces! of! silver,! 36! billion! pounds! of! lead!and!zinc,!plus!smaller!amounts!of!other!metals,!collectively!worth!over!$40;billion!at!current!metal! prices.! The% company% cautions% that% past% results% or% discoveries% on% proximate% land% are% not% necessarily% indicative%of%the%results%that%may%be%achieved%on%the%Sully%property.!
! Technical% contents% of% the% Sully% Project% disclosure% in% this% news% release% have% been% reviewed% and% approved% by% Paul% Ransom,% P.Geo.,% and% Brian% Jones,% P.Geophys.,% both% qualified% persons% as% defined% by% National% Instrument%43H101.%%

% Neither% the% TSX% Venture% Exchange% nor% its% Regulation% Services% Provider% (as% that% term% is% defined% in% the% policies% of% the% TSX% Venture% Exchange)% accepts% responsibility% for% the% adequacy% or% accuracy% of% this% news% release.%!

% Scott!E.!Broughton,!P.Eng.,!! President!and!CEO!

!

www.santafemetals.com!

604.684.2900!

!

1.0)mGal)

Gravity'Field'Profile' along'cross'sec9on'

N

+2'km'Dia.'Gravity'' Mass'Footprint'

W'

E'

Gravity)Mass)

!)Survey)Site)

Es7mated)Gra

=)+100)million)

TSXv:'SFM'

Figure)1) 0

DDH'SU14O09'

Proximity)Zone' Target)within)100#m) indicated)by)surface) gravity)and)downhole) Temp))&)Mag)X,Y,Z)Field)

SU14O07'

SU14O08'

Zinc'Soil' Anomaly' Open'to' West'

Zinc)in)soils)

!)Survey)Site)

Scale:)500m)

0.6)mGal)

Gravity'Field'Profile' along'cross'sec9on'

Pb'in' outcrop'

DDH'SU14O10'

Planned''''''

Zinc'Soil'Anomaly' Open'to'West'

Zn'in' outcrop'

1,000#m)

04#01)

04#02)

O4#03)

Eleva&on)Above) Sea)Level)

DDH'SU14O09'

Proximity)Zone' Target)within)100#m) indicated)by)surface) gravity)and)downhole) Temp))&)Mag)X,Y,Z)Field)

500)

DDH'SU14O09'

EOH'735Om'

A1c%

Possible'FoldO thickened' Target'Loca9on'

A1c%

Offse^ng'faults'

imply''eastO

dipping''Target'

12#05)

13#06)

DDH'SU14O08' 0)

EOH'1,115Om'

DDH'SU14O07'

EOH'1,289Om'

Scale:)500m)

TSXv:'SFM'

Figure)3)

03#JUL#14) PWR)

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