Santa Fe Gold Corporation announced significant developments in its permitted mining operations at its Billali Mine, located in the Steeple Rock District, Grant county New Mexico. The company has now received ground water discharge permit issued by the New Mexico Energy, Minerals and Natural Resources Department, Mining and Minerals Division, to discharge ground water from the Billali Mine. The receipt of this permit enables Santa Fe Gold to begin active development of the lower levels of the mine. This is particularly important because a lower level of the mine, the 230 level, is thought to be within 50 feet or so of historic diamond drill intercepts, reporting values as high as .45 oz/ton gold and 32.9 oz/ton silver over cored lengths of 8.5 feet. Santa Fe is currently developing the 30 and the 130 levels of the mine. With the addition of this accessible 230 level, the Company will have achieved a major step along the way to developing a resource base sufficient to commission a floatation mill at its permitted crushing and screening site near Duncan, Arizona.