Nov 03, 2009 SAS Announces Commencement of Gold Production from its Holloway Mine Near Timmins, Ontario
St Andrew Goldfields Ltd. (T-SAS) - ("SAS" or the "Company") is pleased to announce the commencement of gold production at its Holloway Mine with its first gold pour completed on October 31st, 2009. The Holloway Mine is located in the eastern portion of the Company's 120 km land package in the Timmins mining district.
Completed first gold pour of approximately 1,220 ounces of gold.
Approximately 30,000 tonnes of ore were processed at the Company's Holt Mill during the first 13 days of production.
Preliminary metallurgical reconciliation shows the following approximate values: average grade of 5.8 g/t; average recovery of 88%; an in-circuit inventory of 3,800 ounces of gold; and included in this first pour, 140 ounces of gold from clean-up work conducted earlier in the year, prior to the re-start of milling operations at the Holt Mill.
Commencement of 2nd phase of drilling at Smoke Deep exploration target.
After the successful completion of the custom milling arrangement with Apollo Gold Corporation (approximately 110,000 tonnes), ore from the Blacktop Zone of the Holloway Mine began being fed to the Holt Mill for processing on October 18, 2009. The Holloway Mine is now operating at a rate of approximately 1,000 tonnes per day (tpd), and has resumed all facets of production mining. Ore will continue to be sent for processing at the Company's Holt Mill, located approximately 1.5 km away from the Mine. Based on a nominal throughput of 1,000 tpd, SAS expects to achieve its anticipated objective of 15,000 ounces of gold production for the 4th quarter of 2009.
With the initiation of mining operations at the Blacktop Zone, SAS has been able to start some of its planned exploration activities. A second phase of drilling has commenced at the "Smoke Deep Zone", with a total of 3,000 metres and 10 holes planned over the course of the next months. Drilling will be conducted from the 550 metre drift level, and should conclude towards the end of 2009. The Smoke Deep Zone was initially drilled in March 2008 (see press release dated March 28, 2008), with 6 holes over approximately 500 metres of strike length.
"We are pleased that production at the Holloway Mine has commenced ahead of schedule and according to plan." said Jacques Perron, President and CEO of SAS. "After only two weeks of production we are pleased with our results which are in line with our expectations on recovery and grade, and which we believe can be further improved upon as we move forward. We have returned to being a producer in the Timmins camp, and wish to thank all of our employees who have contributed to achieving this milestone. We will continue to work diligently to complete the development work on the remaining two projects (Hislop and Holt) in order to have all three mines in production within the next 12 months. We look forward to updating our shareholders with news flow from our near-term production and exploration projects."
Production at the Holloway Mine and processing at the Holt Mill was conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's Vice President & General Manager, East Timmins Operations, who is SAS' qualified person for this project as defined by National Instrument 43-101, and who has reviewed and approved this news release.
SAS (operating as SAS Goldmines), is a Canadian based gold mining, and exploration company with an extensive land package in the Timmins mining district, Northeastern Ontario, Canada, which lies within the world famous Abitibi greenstone belt. With near-term production and 120 km of upside exploration potential along the Porcupine-Destor Fault Zone, SAS is focussed on building a foundation for profitable growth.
For further information about St Andrew Goldfields Ltd., please contact:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com
Suzette N Ramcharan
Manager, Investor Relations
President & CEO
CFO, VP Finance & Administration
This news release contains forward‐looking information and forward-looking statements (collectively, "forward-looking information") under applicable securities laws, concerning the Company's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward-looking information is frequently identified by such words as "may", "will", "plan", "expect", "estimate", "anticipate", "believe", "intend" and similar words referring to future events and results, including the production target for the Holloway Mine in the fourth quarter of 2009, the improvement of grade and mill recoveries, the development and commencement of production at the Hislop and Holt Projects, and the completion of the exploration program at the Smoke Deep Zone. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward‐looking information. Factors that may cause actual results to vary materially include, but are not limited to, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources, unanticipated operational or technical difficulties which could escalate operating and/or capital costs, insufficient funding or delays or inability to raise additional financing on satisfactory terms, fluctuations in gold prices and exchange rates, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions, changes in conditions in the financial markets and an adverse appeal Court decision on the Holt Royalty . Such forward looking information is based on a number of assumptions, including but not limited to the expected timeline to complete pre-production activities, the availability of adequate financing, the level and volatility of the price of gold, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the ability to achieve capital and operating cost estimates and general business and economic conditions. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward‐looking information. SAS does not assume the obligation to revise or update this forward‐looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
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