SAS Produced 18,838 Ounces of Gold in Q4 2009


TORONTO, Jan. 13 /CNW/ - St Andrew Goldfields Ltd. (TSX:SAS), ("SAS" or the "Company") is pleased to announce its fourth quarter and annual 2009 production of 18,838 ounces of gold of which 18,712 ounces was derived from the Holloway Mine. A total of 101,941 tonnes of ore was milled at a head grade of 6.57 grams per tonne with a recovery rate of 86.9%, exceeding the Company's production target of 15,000 ounces. The Company also poured an additional 126 ounces of gold from clean-up work conducted prior to the re-start of milling operations at the Holt Mill.

The Holloway Mine commenced mining and milling operations in October 2009, following a US$16.2 million secured Gold Note financing completed in late April 2009, used to bring the Mine into production. The secured Gold Notes are interest free and require SAS to deliver a total of 32,400 ounces of gold, produced from its Timmins Mining Camp, over a three year period with the last instalment due on December 31, 2012.

During the fourth quarter of 2009, SAS delivered 1,296 ounces of gold to its note holders under the terms of its secured Gold Notes and sold 10,000 ounces of gold at an average price of US$1,143 per ounce. At December 31, 2009, the Company's cash position and unsold in-transit gold inventory stood at Cdn$15.6 million and 4,699 ounces of gold respectively. SAS estimates an additional 2,843 ounces of gold as in-circuit inventory at December 31, 2009.

"We are pleased with the initial start and the operating performance of our Holloway Mine during the quarter, which exceeded our production objectives for 2009", said Jacques Perron, President and CEO of SAS. "We are once again a gold producer in the Timmins Mining Camp, we are well financed, and are now working on our next immediate step which is to bring the Hislop Project into production in the second quarter of this year."

Qualified Person
Production at the Holloway Mine and processing at the Holt Mill was conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's Vice President & General Manager, East Timmins Operations, who is SAS' qualified person for this project as defined by National Instrument 43-101, and who has reviewed and approved this news release.

About SAS
SAS (operating as SAS Goldmines), is a Canadian based gold mining, and exploration company with an extensive land package in the Timmins mining district, Northeastern Ontario, Canada, which lies within the world famous Abitibi greenstone belt. With current and near-term production and 120km of exploration upside potential along the Porcupine-Destor Fault Zone, SAS is focussed on building a foundation for profitable growth.


This news release contains forward‐looking information and forward-looking statements ("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", "anticipate", "intend" and similar words referring to future events and results, including the development and commencement of production at the Hislop Project 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 estimates of the mineral resources, unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels, 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, changes in conditions in the financial markets and an adverse appeal Court decision in respect of the Company's obligations under a production royalty on the Holt Mine. 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 reserve and resource 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 securities laws.

SOURCE St Andrew Goldfields Ltd.

For further information: For further information:

St Andrew Goldfields Ltd.
Suzette N Ramcharan
Manager, Investor Relations
1-800-463-5139 or (416) 815-9855
(416) 815-9437 (FAX)
St Andrew Goldfields Ltd.
Jacques Perron
President & CEO
1-800-463-5139 or (416) 815-9855
(416) 815-9437 (FAX)
St Andrew Goldfields Ltd.
Ben Au
CFO, VP Finance & Administration
1-800-463-5139 or (416) 815-9855
(416) 815-9437 (FAX)

Organization Profile

St Andrew Goldfields Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890