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Hislop

Project Summary

The Hislop Property, consisting of approximately 24 leased or patented claims in Hislop and Guibord Townships totaling approximately 571 hectares, is located approximately 85 kilometres by road east of Timmins, Ontario and 50 kilometres by road West of the Holt Mill and is accessible from Highway 101 using paved secondary roads.

Project History

Exploration on the Hislop Property dates from 1934 with initial production from some deposits beginning in 1939. The property has changed ownership several times and there have been numerous diamond drilling campaigns conducted. In 1990 and 1991, the property was operated as a joint venture with Goldpost Resources Inc. and St Andrew during which 288 underground diamond drill holes totaling 5,401 metres were drilled with some underground mining. In 1993, St Andrew purchased the remaining interest in the property, and subsequent underground mining was conducted from 1993 to the end of 1994. From 1990 through 1994 a total of 215,990 tonnes grading 5.55 g/t Au were mined.

In 1999 and 2000, St Andrew conducted open-pit mining operations at the Hislop Property. Production during this period totaled 185,100 tonnes of ore, processed at an average grade of 3.4 g/t gold, producing about 20,000 ounces. The operations were placed on care and maintenance in late 2000 because of the then-prevailing low gold prices.

Geology and Mineralization

Several gold zones have been identified on the Hislop Property. These zones occur along a strike length of 1,200 metres, following the fault contact between mafic flows to the north and ultramafic rocks to the south. Gold is associated with the margins of feldspar porphyritic syenite dikes that have intruded the mafic and ultramafic rocks. The dikes are generally conformable to the contact between the mafic and ultramafic rocks striking west-northwest and dipping steeply to the north. The mineralized areas have been called from west to east - the West Zone, Shaft Zone and the South Area.

Mineral Reserves and Resources

Scott Wilson RPA provided an estimate of the mineral reserves and resources of the Hislop Project in the September 2009 "Tehcnical Report on Preliminary Feasibility Study of the Hislop Project", and in the August 2009 "Technical Report on the Hislop Project - Resource Estimate". The reserve/resource estimates are summarized in the tables below:

Hislop Project - Mineral Reserves Estimate, Sept 28, 2008

  Probable
 
Tonnes
('000 t)		 Grams Au
per tonne
("g/t")		 Ounces
Au
('000 oz)
Hislop Project1,9122.3142
Notes:

  1. CIM definitions were followed for Mineral Reserves.
  2. Mineral Reserves are estimated at a cut-off grade of 1.1 g/t Au.
  3. Mineral Reserves are estimated using an average long-term gold price of US$800 per ounce, and and exchange rate of C$1.00 = US$0.85
  4. The Mineral Reserves are included within the stated Mineral Reserves.


Hislop Project - Mineral Resource Estimate, Aug 06, 2008

  Indicated Inferred
 
Tonnes
('000 t)		 Grams Au
per tonne
("g/t")		 Ounces
Au
('000 oz)
Tonnes
('000 t)

g/t Au
Ounces Au
('000 oz)
Zone
1-011,6811.42779271.4242
3-011,7932.161251,4461.71180
3-025161.93321,1261.8467
3-032,3582.211681,4271.9489
3-043132.28234122.3231
Total6,6611.981255,3381.80309
Notes:

  1. CIM definitions were followed for Mineral Resources.
  2. Mineral Resources were estimated at a block cut-off grade of 0.94 g/t Au.
  3. Mineral Resources are estimated using a gold price of US$950 per ounce, and an exchange rate of C$100 = US$0.85.
  4. A minimum mining width of 2.0m was used.
  5. A bulk density of 2.84 t/m3 was used for all rock types except seyenite (2.68 t/m3).
  6. Totals may not add exactly due to rounding.
  7. Mineral Resources are inclusive of the Mineral Reserve.
You may download a copy of the NI 43-101 compliant technical reports prepared for the Company by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") (formerly known as Roscoe Postle Associates Inc.):

Development and Mining

The Mineral Reserves are amenable to open pit mining and processing at the Company's nearby Holt Mill for recovery of the gold.

SAS completed an independant Pre-feasibility Study in September of 2009, and subsequently made a positive production decision to begin open pit mining operations in 2010.

Stripping activities at the Hislop Project commenced in the beginning of 2010, waste rock drilling and blasting commenced in March 2010, and site preparation work performed during the quarter included the re-electrification of the Hislop site, site planning and office mobilization, as well as mobilization of the crusher, fuelling station and mobile equipment. As of March 2010, the crusher is fully operational and is connected to the power grid. Capital expenditures including pre-production costs incurred during the quarter were approximately $1.2 million.

Ore mining activities at the Hislop Project commenced in March 2010. Ore mined will be stockpiled and transported to the Holt Mill for processing at a reduced level until the half load restrictions on the highway is lifted. The volume of ore feed from the Hislop Project to the Holt Mill will increase throughput to the budgeted tonnage of 1,500 tpd by the end of the second quarter. Currently all facets of the pit mining activities are in place and performance has been satisfactory. The Company anticipates the Hislop Project will produce approximately 25,000 ounces of gold in 2010.

Processing

Ore mined from production at the Hislop Project will be milled at the Company's nearby Holt Mill (see "Holt-Processing", for more information), located approximately 45km east of the Hislop Project.

Exploration

For further information on all of SAS' exploration targets, please refer to the Exploration section of the website.

 
Operations
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