Feb 08, 2010 Holloway Mine - Smoke Deep Drilling Returns Encouraging Results
St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce results from the ongoing underground exploration drilling program which commenced in November 2009, on the Smoke Deep Zone at the Holloway Mine. The phase of drilling has confirmed that this new zone of gold mineralization is similar in nature and characteristic to that of the Lightning Zone (which has historical gold production of 0.9 million ounces of gold from 1994 - 2004). The Holloway Mine (which recommenced production in October 2009) is located in the eastern portion of the Company's 120 km land package in the Timmins mining district, near the Quebec border.
Smoke Deep Zone
The Smoke Deep Zone ("Smoke Deep") is located at the Holloway Mine, halfway between the Lightning Zone ("Lightning") to the west, and the Blacktop Zone to the east, and was originally tested towards the end of 2007, with a modest 6 holes drilled over approximately 500 metres of strike length. Of the 6 holes, 5 returned positive values and are included in this release (also see press release dated March 28, 2008).
This recent phase of drilling was aimed at defining the overall geometry of a zone of lower grade mineralization, and at the same time, to intersect the higher grade shoots that lie within this envelope. Using the information from the original 2007 holes, and the holes recently completed, the Company conducted a structural analysis of Smoke Deep to assist with better defining these shoots which is the focus of the second phase of drilling, currently underway and expected to be completed by the second quarter of this year. Once the geometry of the mineralized zone, and distribution of gold is better defined, the Company will make a decision to extend a drift from Lightning into the Smoke Deep Zone.
The Smoke Deep Zone is interpreted to be an extensive zone of gold mineralization, measuring in excess of 500m along strike and 300m down dip, and remains open along strike to the east, and down dip. Gold mineralization, which is steeply plunging to the east, occurs in highly silicified and albitized mafic volcanic rocks with approximately 5% disseminated pyrite mineralization. Gold mineralization is similar to the neighbouring Lightning Zone and occurs at the intersection between the east-west trending Porcupine-Destor Fault Zone ("PDFZ") and the east-northeast trending high strain zone ("HSZ"). These high strain zones occur as sub-parallel zones up to several tens of metres wide of highly sheared rocks that are thought to be the pathways for gold bearing fluids to migrate, which is evident at the neighbouring Lightning and Blacktop zones. The gold mineralization defined at the Smoke Deep Zone is distributed in a similar pattern to that of the Lightning Zone where higher grade gold mineralization (i.e. >8 g/t gold) forms shoot zones within a broader envelope of lower grade mineralization that plunges steeply to the east. This gold distribution coincides with the intersection line between the PDFZ and the HSZ. As with the Lightning Zone, flat or shallow dipping faults play an important role, and at Smoke Deep, appear to limit the extent of the gold mineralization up plunge or up-dip.
Highlights of Selected Higher Grade Intercepts
The following results have been selected from drill holes that intersected the higher grade shoots from the 2007 and 2009 drilling programs at Smoke Deep. These results are similar to the gold grade and width characteristics of the nearby Lightning Zone. As such, the focus of the ongoing exploration drilling program is to better delineate these higher grade shoots within the overall broader zone of lower grade mineralization at the Smoke Deep Zone.
Summary of 2007 and 2009 Drilling Program
Complete results from the recent drilling campaign are summarized below along with historical drilling conducted during SAS' initial drill program in 2007. The 2009 drilling program included 16 holes for a total of 5,703 metres, resulting in a drill spacing of approximately 20-50 metres.
Intersection (in Metres)
Note: Holes 550-635 and 550-641 returned no significant values
"After analyzing the latest round of drilling, and having a better understanding of the structure of Smoke Deep, we believe we are on the verge of another potential Lightning Zone." said Jacques Perron, President and CEO of SAS. "Knowing that Holloway produced a million ounces in the past makes us very confident that we have encountered a significant zone of mineralization that will continue to add ounces to our reserves. We are excited to continue further exploration in this area as well as further to the east of Blacktop where there appears to be a number of similar targets."
Drilling and Assaying
Drilling was completed by Orbit Garant Drilling Inc. Analytical work was performed by Laboratoire Expert Inc. (Laboratoire Expert), an ISO 9001:2000 certified laboratory in Rouyn-Noranda. Samples are dried and then reduced to 90% passing -10 mesh with a rolls crusher. The sample is then riffled using a Jones type riffle to approximately 300 g. The 300 g portion is pulverized to 90% passing -200 mesh in a ring and puck type pulverizer. A 29.166 g sample is taken for fire assay with an atomic absorption finish. In addition, SAS utilized a quality control/quality assurance program consisting of a number of sample standards and blanks that were inserted into the sample string, which represented approximately 5% of the total sample population.
The exploration drilling was completed under the supervision of Michael Michaud, P.Geo. the Company's Vice President of Exploration, who is SAS' qualified person for this project as defined by NI 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 current and near-term production as well as 120 km of exploration potential along the Porcupine-Destor Fault Zone, SAS is poised for success.
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 time to complete the exploration program at the Smoke Deep Zone and the anticipated results thereof. 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 and fluctuations in gold prices and exchange rates. Such forward looking information is based on a number of assumptions, including but not limited to; the assumption that drilling will continue as planned and that the results thereof will be positive, the availability of drills and personnel, the level and volatility of the price of gold and, the accuracy of the assay results . 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.
Full Release attached in PDF:
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