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DISSEMINATION IN THE UNITED STATES/
TORONTO, Jan. 12, 2012 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company")is pleased to announce the fourth quarter and
year end production results for the Holt, Holloway and Hislop mines.
SAS achieved another record quarter of production of 22,350 ounces of
gold for a total of 74,022 ounces produced during 2011, at the higher
end of its 2011 guidance of 65,000 - 75,000 ounces of gold production.
The Holt Mine continues to ramp up towards steady state production
levels of 1,000 tonnes per day ("tpd") expected towards the end of the
first quarter of 2012, and concurrent production and development of the
Smoke Deep Zone at the Holloway Mine is ongoing. The Company is
forecasting annual gold production for 2012 of between 90,000 - 100,000
ounces of gold from its three operating mines.
The Holt, Holloway and Hislop mines are located on the eastern end of
the Company's 120km land package in the Timmins Mining District.
Record quarter of gold production of 22,350 ounces of gold with an increase in gold production of 12% over the
Annual gold production of 74,022 ounces at the higher end of the 2011
guidance of 65,000 - 75,000 ounces range.
Development at the Smoke Deep Zone at the Holloway Mine is ongoing, with
ramp up in production expected to increase throughout the year.
Holt Mine on track to reach steady state production levels of 1,000 tpd
towards the end of the first quarter of 2012.
"We are very happy with our fourth quarter performance, said Jacques
Perron, President and CEO of SAS. Our production in the second half of
2011 increased by 34% compared to the first half of 2011. We are still
in ramp up mode at Holloway and Holt, and expect to continue to see an
increase in production over the next few quarters. "
Q4 and Year End 2011 Production Results
Head Grade (g/t Au)
Average Mill Recovery Rate
Gold Produced (ounces)
Q4 2011 production
2011 Annual production (1)
Includes 43,458 tonnes of development ore from the Holt Mine at a head
grade of 4.15 g/t Au processed while the mine was in pre-production
producing 5,435 ounces of gold.
SAS is scheduled to release its 2011 fourth quarter and year end
earnings results on February 16, 2012, after market close. A conference
call and webcast is scheduled for the morning of Friday February 17,
2012. For further information, please see the Company's website at www.sasgoldmines.com.
Holt Mine, Operational Review
Production from Zone 4 was derived from both the 925m Level and the
1,075 m Level contributing a total of 11,421 ounces of gold.
Development of Zone 4 on the 925m Level and 1,075m Level is ongoing.
The head grade from the Holt Mine achieved during the fourth quarter
was higher than reserve grade for Zone 4 mainly due to the higher grade
stopes mined during the quarter. Recoveries were at their expected
levels of 94%.
The mining rate at Holt will continue to progress towards the
anticipated steady state rate of 1,000 tpd, expected by the end of the
first quarter of 2012. Approximately 50% of the 2012 annual production
is expected to come from the Holt Mine.
Holloway Mine, Operational Review
Production from the Smoke Deep Zone commenced during the month of
October at the western end of the zone while development continued
throughout the zone with ramp and stope access, as well as completion
of the ventilation raise. The Holloway Mine produced 6,126 ounces of
gold mainly derived from the Smoke Deep Zone, with the balance coming
from the final stopes at the Blacktop and Lightning zones. The recovery
rate of 84.1% was slightly lower than anticipated.
As the Smoke Deep Zone continues to be developed, the mining rate and
ore grades are expected to increase. SAS also expects the exploration
drift will be complete in the second quarter of this year which will
allow for the commencement of exploration drilling down dip and further
to the east where the zone remains untested. Holloway is expected to
contribute approximately 30% of the annual production for 2012.
Hislop Mine, Operational Review
The Hislop Mine produced 4,803 ounces of gold in the fourth quarter with
a head grade averaging 1.94 g/t Au, approximately 15% higher than that
achieved in the previous quarter. During the quarter the majority of
the overburden was removed from the eastern portion of the pit and
mining has since commenced. It is anticipated that the pit ramp system
will be joined together in the first quarter of the year thereby
leading to operational efficiencies.
Hislop is expected to contribute approximately 20% of the annual
production for 2012.
Production at the Holt, Holloway and Hislop mines, processing at the
Holt Mill, and mine development and production activities at the
operations are being conducted under the supervision of Duncan
Middlemiss, P.Eng, the Company's Vice President & General Manager, East
Timmins Operations. Mr. Middlemiss 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,
northeastern Ontario which lies within the Abitibi greenstone belt, the
most important host of historical gold production in Canada. SAS is
focused 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, including the planned gold production levels at the
Holt, Holloway and Hislop mines for 2012; the continued development of
Zone 4 at the Holt Mine; the continued development of the Smoke Deep
Zone at the Holloway Mine and the anticipated increase in mining rate
and ore grades; and the timing to complete the exploration drift and
commence drilling. 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 and reduce anticipated production levels, the
ability of the Company to continue to attract and retain a skilled
labour force; fluctuations in gold prices and exchange rates,
insufficient funding or delays or inability to raise additional
financing on satisfactory terms, changes in the availability of
personnel, 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 expected timeline to complete pre-production
activities, the availability of adequate financing, the level and
volatility of the price of gold, the accuracy of reserves and resources
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
SOURCE St Andrew Goldfields Ltd.
For further information:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com