SAS announces drilling results from the Ghost Zone, Blacktop East Zone, and provides update on regional exploration projects

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

TORONTO, Sept. 19, 2011 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce results from the initial phase of drilling at the Ghost and Blacktop East zones near the Holloway and Holt mines, and provides an update on its ongoing exploration programs in the Timmins Camp.

Highlights:

  • Ghost Zone initial drilling returns 5.48 g/t Au over 12.0 metres, and 10.60 g/t Au over 8.1 metres, (including 22.65 g/t Au over 2.6 metres).
  • Blacktop East Zone initial surface drilling returns 5.04 g/t Au over 17.7 metres, including 6.20 g/t Au over 12.7 metres.

Ghost Zone
The Ghost Zone ("Ghost") is located approximately 1,000 metres east of the Holt mine workings along the Ghostmont Fault Zone. Limited historical drilling returned 7.23 g/t Au over 6.1 metres and 4.6 g/t Au over 14.1 metres, including 11.2 g/t Au over 4.0 metres. Gold mineralization is associated with silicified and albitic mafic volcanics with minor quartz veining and less than 5% disseminated pyrite.

The initial drilling occurs approximately 50 metres to both the east and west along strike from the previous drilling, and intersected similar style and widths of gold mineralization. The results from the recent drilling are summarized below.

Ghost Zone 2011 Drilling Program
  Intersection (Metres) Core Length Gold Grade
Hole Number From To Metres Grams per Tonne (g/t)
GZ11-001 563.7 573.7 10.1 3.54
GZ11-002B 513.0 525.0 12.0 5.48
  including 514.5 520.5 6.0 9.87
GZ11-003 558.2 566.2 8.1 10.60
  including 562.5 565.1 2.6 22.65
GZ11-003 576.4 577.8 1.4 19.80

Note:  All lengths are reported as core length as true width is not available at this time, Gold grades cut to 32 g/t Au,

Blacktop East Zone
The Blacktop East Zone is located immediately east of the Blacktop Zone, where current mining activities are underway. Previously, a limited amount of underground drilling was conducted to test the eastern extent of the Blacktop Zone and returned significant values in two holes, i.e. Hole 410-058 returned 11.62 g/t Au over 14.4 metres (True width 12.5 metres), and Hole 410-061 returned 6.55 g/t Au over 19.7 metres (True width 13.5 metres).

Recent surface drilling was completed to follow-up up on these two holes and extend the gold mineralization further to the east along strike. The holes were drilled from surface approximately 80 metres to the east and intersected a similar style of gold mineralization, consisting of silicified mafic volcanics with minor disseminated sulfides. One hole returned 5.04 g/t Au over 17.7 metres, which is similar to the results received from the underground drilling.

The results of the recent surface drilling are summarized in the table below.

Blacktop East 2011 Drilling Program
  Intersection (Metres) Core Length Gold Grade
Hole Number From To Metres Grams per Tonne (g/t)
GH11-008 470.1 487.7 17.7 5.04
  including 475.0 487.7 12.7 6.20
GH11-015 626.2 630.8 4.2 3.85
  including 629.2 630.4 1.2 9.79

Note:  All lengths are reported as core length as true width is not available at this time, Gold grades cut to 30 g/t Au.

Deep Thunder Zone
The Deep Thunder Zone (located approximately one kilometre east of the Blacktop Zone at the Holloway Mine), is considered prospective as it is interpreted to be in an area where east-northeast ("ENE") trending high strain zones intersect the more east-west trending stratigraphy and Porcupine-Destor Fault Zone ("PDFZ"), and is similar in geology and structure to that of the previously mined Lightning Zone further to the west, and the recently discovered Smoke Deep Zone.

Surface drilling at the Deep Thunder Zone commenced in March 2010. Continued drilling at the Deep Thunder Zone 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 350 metres.

This phase of exploration has now been completed and drilling has been suspended in order to compile the data in preparation of a mineral resource estimate for the zone before year end. Significant results from the recently completed drilling are summarized below.

Deep Thunder 2011 Drilling Program
  Intersection (Metres) Core Length True Width Gold Grade
Hole Number From To Metres Metres Grams per Tonne (g/t)
GH11-004B 754.3 762.3 8.0 6.9 3.41
GH11-005 1,246.3 1,252.6 6.3 5.7 5.93
  including 1,246.8 1,249.3 2.6 2.4 9.01
GH11-005W1 1,202.7 1,209.2 6.6 5.8 6.85
  including 1,205.0 1,209.2 4.2 4.0 8.57
GH11-007 1,358.5 1.361.9 3.4 2.5 3.96
  including 1,358.5 1,359.2 0.7 0.5 12.33
GH11-007W2 1,373.3 1,374.1 0.8 0.6 32.25
GH11-014W1 1,261.2 1,264.0 2.8 2.5 4.85

Note:   Gold grades cut to 30 g/t Au.

Other Exploration Properties
Exploration for the upcoming months will also include two new areas; the recently acquired Stroud Project (located immediately southwest of the Hislop Mine) and the northwestern portion of the Hislop Property located due south of Brigus Gold's recent exploration activities.

SAS has recently commenced a surface exploration drilling program along the northwestern extent of the Hislop Mine Property, which is located adjacent to and immediately south of Brigus Gold's Black Fox Mine where recent drilling has returned encouraging drilling results from the 147 Zone. One historic hole drilled along this northern boundary by SAS returned 6.1 g/t Au over 5.2 metres. An initial 10,000 metres of drilling is planned in this area, which commenced in July. A consultant has been commissioned to complete a structural review and exploration targeting exercise in this area to assist the drilling program.

In addition, drilling has commenced on the Stroud Project located within a complex 'tectonic wedge', bound to the north by the PDFZ, to the west by the Hislop Fault and to the south by a northeast striking shear zone in the footwall of the mineralized zone.  The mineralized zone has been traced approximately 600 metres along strike and to a vertical depth of approximately 225 metres. The planned drilling consists of approximately 25 holes totalling 10,000 metres.

"We are pleased with the recent drilling results at our exploration targets around the Holloway and Holt mines" said Jacques Perron, President & CEO of SAS. "The Holloway-Holt area has been the focus of the Company's exploration efforts over the past two years and has resulted in the discovery of the Smoke Deep and Deep Thunder zones. These initial results from the Blacktop East and Ghost zones, although limited, show great potential for further success with continued exploration. We are also excited about the potential of our two new exploration projects that include the Stroud Project and the Hislop North Project."

Drilling, Assaying and QA/QC
Surface drilling was completed by Orbit Garant. Analytical work was performed by Laboratoire Expert Inc., an accredited lab in Rouyn-Noranda, for the Deep Thunder, Ghost, and Blacktop East zones.  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.  Mr. Michaud is SAS' qualified person as defined by NI 43-101, and has 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 three producing mines and aggressive exploration activities across 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 extent, timing, objectives and interpretation of exploration drilling programs to be conducted by the Company at the Ghost, Blacktop East and Deep Thunder zones at the Holloway and Holt Mine and at the Stroud and Hislop North Projects; the completion of a mineral resource estimate for the Deep Thunder Zone, 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, 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 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 2011 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:

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

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St Andrew Goldfields Ltd.

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