|May 31, 2011|
SAS Successfully Advances Ramp to Smoke Deep Zone
|St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce that ramp development at the Smoke Deep Zone ("Smoke Deep") has sufficiently advanced to start excavation of the first crosscut providing access to the zone, which is situated approximately halfway between the Lightning Zone and the Blacktop Zone at the Holloway Mine.|
At the end of June 2010, the Company announced an inferred mineral resource estimated at 747,000 tonnes grading 5.83 g/t Au totalling 140,000 ounces of gold, and made a decision to advance its efforts at Smoke Deep by driving an underground ramp from the 730 level of the Lightning Zone (which lies approximately 1km to the west of Smoke Deep). The ramp is designed to conduct definition drilling and to provide drilling platforms to test the extension of Smoke Deep where it remains untested.
Ramp excavation commenced in July 2010, and as of May 2011 development crews started excavating the first crosscut to provide access to the western portion of the zone. Definition drilling has started and development work is expected to be conducted during the third quarter in order to facilitate the start of mining from Smoke Deep in the fourth quarter of this year.
In addition, ramp development will continue until it reaches the eastern extent of the zone, which is expected to be completed in the fourth quarter of this year, at which time drilling platforms will be put in place to allow access for continued exploration. This next phase of drilling is expected to commence towards the beginning of 2012 and will focus on testing the mineralized zone where it remains open along strike, down dip, and eastwards, down plunge, and where previous drilling encountered significant results; 5.83 g/t Au over 35.0 metres including 8.84 g/t Au over 14.0 metres, 4.40 g/t Au over 36.0 metres including 11.16 g/t Au over 7.5 metres (see press release dated June 22, 2010 available under the Company's profile on SEDAR at www.sedar.com or on the Company's website at www.sasgoldmines.com).
"We are pleased with the progress of the ramp development at Smoke Deep." said Jacques Perron, President & CEO of SAS. "We have initiated the definition drilling campaign and will be able to access the ore zone shortly. We are also excited to see what continued exploration will return once exploration drilling resumes. While the definition drilling will provide us with the information for near term mining at Smoke Deep, the future exploration drilling has the possibility to increase the current level of resources and to extend the mine life of the Holloway Mine."
SAS (operating as "SAS Goldmines") is a gold mining and exploration company with an extensive land package in the Timmins mining district, northeastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada. SAS is focussed on developing its assets in the Timmins Camp with three producing mines and aggressive exploration activities across 120km of land straddling the Porcupine-Destor Fault Zone.
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 in respect of the planned development of the Smoke Deep Zone at the Holloway Mine, and the timing thereof; and continued exploration on the Smoke Deep Zone and the timing and 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, the ability to convert inferred resources into mineable reserves, unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; 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, and changes in conditions in the financial markets. Such forward looking information is based on a number of assumptions including, 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.
Full Release attached in PDF:
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