EXPLORATION DRILLING EXPANDS DEEP THUNDER ZONE AND INTERCEPTS SIGNIFICANT RESULTS EAST OF THE BLACKTOP ZONE AT THE HOLLOWAY MINE

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Feb. 10 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce results from recent drilling conducted at the Blacktop Zone which returned encouraging results east of and along strike from the current mining activities. Ongoing drilling at the Deep Thunder Zone (located approximately 1km to the east of the Blacktop Zone) continues to expand the zone of gold mineralization and confirmed the presence of higher grade gold mineralization within a broader zone of alteration and lower grade gold mineralization. Both zones are located within the Holloway Mine area, which lies at the eastern end of the Company's land package in the Timmins mining district.

Highlights of Drilling:

East of Blacktop Zone

  • Hole 410-058  - 11.62 g/t Au over 14.4 metres (True width 12.5 metres)
  • Hole 410-061   - 6.55 g/t Au over 19.7 metres (True width 13.5 metres)

Deep Thunder Zone

  • Hole GH10-010W1  - 28.06 g/t Au over 6.2 metres (True width 5.0 metres)
  • Hole GH10-010W2   - 4.29 g/t Au over 4.5 metres (True width 3.6 metres)
  • Hole GH10-010W2   - 4.07 g/t Au over 4.5 metres (True width 3.6 metres)
  • Hole GH10-012W2  - 8.49 g/t Au over 4.5 metres (True width 3.6 metres)
  • Hole GH10-012W2 - 33.54 g/t Au over 0.3 metres (True width 0.2 metres)
  • Hole GH10-76W4  - 5.19 g/t Au over 7.2 metres (True width 5.8 metres)

East of Blacktop Zone

The Blacktop Zone is located at the Holloway Mine approximately 2 kilometres east of the Holloway main shaft, and is an area where current mining operations are being carried out. Limited underground drilling was conducted to test the eastern extent of the Blacktop Zone and returned significant values in two holes. Drilling was carried out from the 410m level, 225 metres east of the current known extent of the Blacktop Zone and approximately 50 metres north of the ventilation exhaust/backfill drift.

Additional drilling of this zone will be completed from surface, with a potential to add to the resource base of the Holloway Mine. Approximately 1 kilometre of strike remains untested between the Blacktop Zone and the near surface Canamax Zone to the east (nearing the western and northern margins of the newly identified Deep Thunder Zone). Significant intercepts from the underground drilling are summarized in the table below.

Summary of Underground Drilling Results East of Blacktop Zone - Holloway Mine
  Intersection (Metres) Core Length True Width Gold Grade
Hole Number From To Metres Metres Grams per Tonne (g/t)
410-058 58.7 73.1 14.4 12.5 11.62
410-061  64.7 84.4 19.7 13.5 6.55

Deep Thunder Zone

Continued drilling at the Deep Thunder Zone has expanded the zone of gold mineralization and confirmed the presence of higher grade gold structures within a broader zone of alteration. Gold mineralization is concentrated within several sub-parallel zones along steeply dipping structures, from true depths of 620 metres to 1,100 metres, over a strike length of 250 metres. The zone of mineralization remains open both to the east and down-dip.

Recent drilling consisted of wedges drilled off of previously drilled holes that intersected mineralized zones; i.e. GH92-76W - 30.08 g/t Au over 3.0 metres; GH10-010 returned 20.04 g/t Au over 2.7 metres; and GH10-012returned 3.86 g/t over 5.9 metres. The recent wedge holes have intersected similar alteration and mineralization to that of the pilot holes and continued to expand the known gold mineralization further to the east. Continued drilling will be designed to systematically step out further to the east to expand the gold mineralization along strike and down dip and to define the overall size and geometry of the higher grade gold mineralization. Significant intercepts from this recent round of drilling are summarized in the table below.

Summary of 2011 Deep Thunder Drilling Program
  Intersection (Metres) Core Length True Width Gold Grade
Hole Number From To Metres Metres Grams per Tonne (g/t)
GH10-010W1 909.0 915.2 6.2 5.0 28.06
GH10-010W2  969.0 973.5 4.5 3.6 4.29
GH10-010W2  981.0 985.5 4.5 3.6 4.07
GH10-012W2 879.5 884.0 4.5 3.6 8.49
GH10-012W2 943.5 943.8 0.3 0.2 33.54
GH10-76W4 1253.3 1260.5 7.2 5.8 5.19

Note:  For additional results from the Deep Thunder Zone drilling program, see press release dated December 6, 2010, available under the Company's profile on SEDAR at www.sedar.com or on the Company's website at www.sasgoldmines.com

Four drill rigs are currently active at the Deep Thunder Zone with the majority of holes being drilled to depths of approximately 1.1 kilometres; therefore, we expect to release additional results within the next 2-3 months.

"The recent drilling at the Blacktop zone seems promising, and we are eager to follow up on these intersections from surface", said Jacques Perron, President & CEO of SAS. "We have been very encouraged by the results of our exploration activities at and adjacent to the Holloway Mine, namely the Smoke Deep and Deep Thunder zones, and these recent results from Deep Thunder continue to confirm our belief of the presence of a potentially large zone of gold mineralization. We will continue to test the extent of this zone as well as confirm the higher grade portions and look forward to providing additional results as they become available."

Drilling, Assaying and QA/QC

Surface drilling at the Deep Thunder Zone was completed by Orbit Garant and underground drilling near the Blacktop Zone was completed by Forage Azimut Inc. Analytical work was performed by Laboratoire Expert Inc. in Rouyn-Noranda, an accredited lab. 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.

Qualified Person

The exploration programs on the Company's various mineral properties are under the supervision of Michael Michaud, P.Geo, the Company's Vice President of Exploration. Exploration drilling conducted at the Blacktop Zone is under the supervision of Craig Todd, P.Geo, the Company's Chief Mine Geologist at the Holloway Mine. Mr. Michaud and Mr. Todd are qualified persons as defined by NI 43-101, and have reviewed and approved this news release.

About SAS

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 current and near-term production, and exploration activities across a 120km of land, straddling the Porcupine-Destor Fault Zone.

FORWARD-LOOKING INFORMATION

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. Specifically this news release contains forward-looking information regarding the interpretation of exploration results received to date from the Blacktop Zone and the Deep Thunder Zone at the Holloway Mine, the continuance of additional exploration programs on these projects into 2011, and the timing 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 which could escalate operating and/or capital costs, fluctuations in gold prices and exchange rates, insufficient funding or delays or inability to raise additional financing as required on satisfactory terms, changes in laws or regulations, 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 but not limited to, 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, the sufficiency of the Company's cash flows and reserves to achieve its exploration objectives, the ability to attract and maintain adequate skilled personnel to operate its mines and to conduct its exploration programs, and no significant decline in 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.

SOURCE St Andrew Goldfields Ltd.

For further information:

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
Email: sramcharan@sasgoldmines.com
Jacques Perron
President & CEO
Email:jperron@sasgoldmines.com
                        Ben Au
CFO, VP Finance & Administration
Email:bau@sasgoldmines.com

Profil de l'entreprise

St Andrew Goldfields Ltd.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.