SAS Provides an Exploration Update for the Smoke Deep Zone at the Holloway Mine
Drilling Returns: 13.07 g/t Au over 31.6m (7.43 g/t Au Cut); and 11.10 g/t Au over 8.9m (10.72 g/t Au Cut)
TORONTO, July 8, 2014 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to announce additional drilling results for the Smoke Deep Zone ("Smoke Deep") at the Holloway Mine.
HIGHLIGHTS OF DRILLING RESULTS (Refer to Figure 1 for a longitudinal section of Smoke Deep drilling)
|• 905-05:||13.07 g/t Au (7.43 g/t cut) over 31.6 metres|
|• 905-21:||11.10 g/t Au (10.72 g/t cut) over 8.9 metres|
|8.75 g/t Au (7.79 g/t cut) over 6.3 metres, including 18.97 g/t Au|
|• 945-01:||(16.07 g/t Au cut) over 2.0 metres|
|• 945-03:||18.35 g/t Au over 2.2 metres|
Notes: All lengths reported at Smoke Deep are reported as core length as true width is not available at this time. Assays are cut to 25.00 g/t Au.
"These recent Smoke Deep results are positive and encouraging", said Duncan Middlemiss, President & CEO of SAS. "As the reserve base is limited, the down dip extension of Smoke Deep is significant and could potentially extend the mine life at Holloway."
Underground drilling at Smoke Deep commenced earlier this year from underground drill platforms (situated on the 865m Level, 905m Level, 925m Level and most recently the 945m Level), to test for the mineralized extensions of the zone further to the east, west and down dip. The drill program has been successful and drilling continues to extend the Smoke Deep deposit along strike to the east. This drilling has effectively extended the known mineralized strike length of the deposit by approximately 200 meters to the east for a total strike length of 500 metres.
In July 2013, a surface drill tested the down dip and easterly plunge component of the zone. Surface hole GH13-027 returned 4.94 g/t Au over 4.1 metres, including 6.21 g/t Au over 2.8 metres. This intersection is typical Smoke Deep mineralization, associated with the mafic volcanic and ultramafic volcanic contact. It is located approximately 375 metres directly east of the current Smoke Deep resource model and 160 metres below the current drill platform elevation. Drilling has demonstrated that the Smoke Deep mineralization appears to be wider, possesses a stronger alteration halo, is more consistent in grade and displays a 20 degree change in azimuth to the east at depth.
SAS recently extended the 945m Level hangingwall drill drift both to the east and west to provide a drill platform, with drilling in progress to test for the mineralized extensions both to the east, west and at depth.
Recent underground drill results for Smoke Deep are summarized in the table below.
Smoke Deep Zone - 2014 Underground Drill Program
|Holloway Mine Grid||Degrees||Intersection (Metres)||
Notes: Core lengths are reported as true widths have not been determined at this time. High grade assays are capped at 25 g/t Au.
Drilling, Assaying and QA/QC
Underground drilling at Smoke Deep is performed by Boreal Drilling based in Val-d'Or, QC. Core samples consist of BQ calibre split core, which is submitted to the Company's Holt Mine assay laboratory for gold analysis. Sample size used for analysis consists of 30 grams of sample material (1 Assay Ton). The laboratory employs an industry standard fire assay sample preparation with an atomic absorption finish. SAS employs an industry accepted QC /QA program consisting of certified reference standards and blanks that are inserted into the sample stream, which represent approximately 5% of the total sample population. Mineralized samples are routinely sent to an external laboratory for comparative laboratory analysis.
The exploration programs on the Company's various mineral properties are under the supervision of Doug Cater, P. Geo, the Company's VP, Exploration. Mr. Cater is a qualified person as defined by NI 43-101, and has reviewed and approved this news release.
SAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive land package in the Timmins mining district, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada.
SAS owns and operates the Holt, Holloway and Hislop mines which contribute approximately 100,000 ounces of annual gold production. The Company is also advancing the Taylor Project and is conducting an aggressive exploration program across 120km of land straddling the Porcupine-Destor Fault Zone.
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 potential extension of the mine life at Holloway and the completion of additional drilling at Smoke Deep.
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, unanticipated operational or technical difficulties which could increase the time necessary to complete the exploration initiatives; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, the volatility and level of the price of gold including that the gold price will generally remain within a reasonable range of current levels, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the sufficiency of the Company's cash flow and financial reserves to carry out its planned programs, the ability to attract and retain qualified personnel to conduct its exploration programs and operate its mines, 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. 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. A further description of the risks and uncertainties facing the Company may also be found in the Company's Annual Information Form available on SEDAR at www.sedar.com.
SOURCE St Andrew Goldfields Ltd.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
Director, Investor Relations
President & CEO
CFO, VP Finance & Administration