SAS Provides Update on Development and Definition Drilling Program at the Smoke Deep Zone


TORONTO, Sept. 15, 2011 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to provide an update on the development and definition drilling program at the Smoke Deep Zone ("Smoke Deep") located at the Holloway Mine. Ramp development commenced in July 2010, and to date, over 2,100 metres of lateral development has been completed. The definition drilling program commenced on the western portion of the zone in May of this year, and since that time over 6,000 metres of drilling has been completed with another 10,000 metres remaining in order to complete the initial phase of drilling.

Highlights of Recent Drilling:

- Hole 780-515 9.37 g/t Au over 6.1 metres
  including   15.52 g/t Au over 3.3 metres
- Hole 780-522  3.74 g/t Au over 21.1 metres
  including   5.78 g/t Au over 10.1 metres
- Hole 780-523  6.10 g/t Au over 6.4 metres
- Hole 780-527 3.17 g/t Au over 18.7 metres
  including   6.55 g/t Au over 4.7 metres
- Hole 780-534  3.88 g/t Au over 18.7 metres
  including   7.03 g/t Au over 4.3 metres
- Hole 780-573   6.37 g/t Au over 10.4 metres

Note:  All lengths are reported as true width, Assays cut to 25g/t Au

The Smoke Deep Zone is situated approximately halfway between the Lightning Zone ("Lightning") to the east and the Blacktop Zone to the west. Gold mineralization in the Smoke Deep Zone occurs adjacent to the geological contact of mafic volcanics to the south and ultramafic volcanics to north. Generally, alteration and its associated gold mineralization occur within the mafic volcanics that have experienced significant alteration consisting of silica, sericite, hematite and albite with lesser chlorite, ankerite and carbonaceous minerals.

Gold mineralization, which is directly associated with sulfide content, varies in thickness from less than 1 metre up to approximately 20 metres true thickness, extends approximately 500 metres east-southeast along strike and dips steeply to the south at approximately 80 degrees over a vertical distance of approximately 350 metres. Several sub-parallel zones of higher grade gold mineralization (i.e. > 6 g/t Au) commonly define a moderate east dipping plunge.

In June 2010, the Company announced an inferred mineral resource estimate (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 a 1.2 km underground ramp from the 730m level at Lightning to access the zone, in order to conduct systematic definition drilling and provide an exploration platform at the 870m level elevation where the zone remains open along strike, down dip and eastwards down plunge.

Definition drilling commenced in May 2011, and the majority of drilling has been conducted on the western portion of the zone as ramp development to the east is still ongoing. The current drilling is designed to reduce the drill spacing from approximately 25 by 50 metres to approximately 15 by 15 metres. Recent drilling results along the western margin of the zone have returned similar gold grades with previous drilling and appear to have returned marginally greater widths. Drilling is now focussing on the eastern margin of the zone.

Since August 2011, ore development has commenced on the 825m sublevel and the 845m sublevel and further confirmed the zone's similarities to that of the Lightning Zone, which was the primary ore zone for the Holloway Mine. A raise bore has been mobilized to the 550m level drift in order to excavate a 320m long 2.1m diameter ventilation raise required for the zone's development. This raise is scheduled to be completed in November and will allow for additional mining crews to work within the zone.  Production from Smoke Deep is on track to begin during the fourth quarter of 2011. The Company intends to update the mineral resources for the Smoke Deep Zone at year end.

Selected drilling results from the definition drilling program are summarized in the table below:

Summary of Smoke Deep 2011 Drilling Program - Phase I
  Intersection (Metres) True Width Gold Grade
Hole Number From To Metres Grams per Tonne (g/t)
780-512 174.1 185.2 11.1 3.49
780-515 75.2 81.3 6.1 9.37
  including 75.2 78.5 3.3 15.52
780-518 135.4 136.2 0.8 20.28
  including 89.7 93.9 4.2 8.54
780-522 65.0 86.1 21.1 3.74
  including 65.0 75.1 10.1 5.78
780-523 69.0 75.4 6.4 6.10
780-527 76.5 95.2 18.7 3.17
  including 90.5 95.2 4.7 6.55
780-528 73.3 79.2 5.9 6.55
780-531 168.7 178.5 9.8 3.90
  including 168.7 170.1 1.4 16.56
780-534 68.5 87.2 18.7 3.88
  including 75.1 79.4 4.3 7.03
780-569 63.4 68.3 4.9 5.29
780-570 66.3 70.9 4.6 6.37
780-571 56.9 64.5 7.6 7.45
780-573 69.0 79.4 10.4 6.37

Note:  All lengths are reported as true width, Assays cut to 25g/t Au

"We are very pleased with the recent results from the Smoke Deep Zone, and are happy to announce that development is moving ahead on track", said Jacques Perron, President & CEO of SAS. "We had limited drill information on the western portion of the zone, and these recent results are very encouraging. We remain on target to bring the zone into production in the fourth quarter of this year and are looking forward to recommencing the exploration efforts on the eastern portion of the zone once the ramp development has been completed."

Drilling, Assaying and QA/QC
Underground drilling at the Smoke Deep Zone was completed by Forage Azimut Inc. Analytical work was performed by the Company's in-house laboratory with check samples sent to Swastika Laboratories Ltd., for quality control.

Qualified Person
The development programs at the Holloway Mine are under the supervision of Duncan Middlemiss, P.Eng, the Company's Vice President of Operations, who is the qualified person as defined by NI 43-101 and who 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.


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 ongoing development program at the Smoke Deep Zone and the expected start of production from this zone, and the timing thereof; and the continued exploration on the Smoke Deep Zone and the timing and results thereof; including the completion of an updated mineral resource estimate. 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 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 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:

Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website:

  Suzette N Ramcharan
Manager, Investor Relations
Jacques Perron
President & CEO
  Ben Au
CFO, VP Finance & Administration


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