Santa Fe Reports $1.39M Cash, New Magnetic Data, and Gold Drilling Permits

Exploration Momentum at Watson's Well

Santa Fe Minerals Limited (ASX: SFM) has continued to build on its exploration efforts during the December 2024 quarter, focusing on its Watson's Well Vanadium-Titanium-Iron project in Western Australia. The company completed an ultra-detailed drone magnetic survey over a central 4km by 2km section of the 7km long magnetic anomaly, revealing multiple thick magnetite layers associated with vanadium, titanium, and iron mineralisation. This survey, flown at a low altitude of 28 metres with 25-metre spaced flight lines, provided a significant upgrade in resolution compared to previous 50-metre spaced aeromagnetic data.

The enhanced magnetic data clearly delineates the width and structure of the mineralised gabbro host, identifying an 800-metre wide zone with multiple potentially mineralised layers. Notably, prior reverse circulation (RC) drilling intersected thick magnetite zones up to 84 metres downhole with vanadium pentoxide (V2O5) grades around 0.4% and titanium dioxide (TiO2) grades exceeding 4%. However, drilling to date has only tested approximately half the potential width indicated by the new magnetic data, highlighting significant upside for further resource expansion.

Challa Gold Project: Permitting and Drilling Plans

At the Challa Gold project, Santa Fe has secured permits to commence air-core (AC) drilling targeting a prominent gold anomaly identified through extensive auger geochemical sampling. The anomaly spans approximately 600 metres by 200 metres with gold values peaking at 321 parts per billion (ppb). Historical shallow drilling partially overlapped this target but failed to effectively test the high-grade vein-hosted gold potential. The upcoming AC drilling program is designed to systematically test this zone with overlapping angled holes on a 100m by 25m grid to depths of around 60 metres.

This methodical approach aims to better define the gold mineralisation and guide future exploration efforts. The company is currently in the process of engaging a drilling contractor to execute this program, signaling a clear commitment to advancing its gold exploration portfolio alongside its vanadium assets.

Financial Position and Corporate Outlook

Santa Fe Minerals ended the quarter with a healthy cash position of approximately $1.39 million, including cash and liquid investments in listed entities such as Oakajee Limited. Operating cash outflows were modest at $133,000 for the quarter, reflecting disciplined expenditure focused on exploration and corporate costs. The company continues to evaluate additional opportunities within the resources sector, maintaining a strategic focus on gold exploration while progressing its existing projects.

Director fees and superannuation payments amounted to $61,325 during the quarter, consistent with prior periods. The company’s strong cash balance and targeted exploration programs position it well to deliver on its growth objectives in the near term.

Looking Ahead

Santa Fe Minerals’ recent technical advancements at Watson's Well and the imminent drilling at Challa underscore a pivotal phase in its exploration journey. The detailed drone magnetic survey provides a refined blueprint for future drilling, potentially unlocking substantial vanadium-titanium-iron resources. Meanwhile, the Challa gold drilling program could validate and expand known gold anomalies, adding further value to the company’s portfolio.

Investors and analysts will be watching closely as Santa Fe executes these next steps, which could materially influence the company’s resource base and market positioning.