TORONTO, Aug. 8, 2012 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to provide an update on the activities at the Taylor Project located on the western portion of the Company's land package in the Timmins mining district, north-eastern Ontario, Canada. Dewatering of the existing ramp access commenced in late April and as of the end of June, the portal was open. SAS has awarded the contract to rehabilitate the underground workings for mine exploration and development and the contractor mobilized in late June in preparation for ramp rehabilitation and underground development. Once rehabilitation is complete and services are re-established to the ramp face, lateral development will commence to access the first ore lens in the West Porphry Zone. Test mining of this area will begin in the fourth quarter, and a bulk sample will be sent to the company's Holt Mill for processing towards the end of 2012.
"The dewatering process is progressing well," said Jacques Perron, President and CEO of SAS. "Surface facilities such as the mine dry and administration offices have been upgraded and are fully operational, and underground rehabilitation has commenced. We are on track to reach the first stope during the third quarter and subsequently extract the first bulk sample at the top of the West Porhyry Zone."
The Company recently completed five surface drill holes totaling 700 metres to test the area surrounding the first bulk sample. This drilling program has provided additional information which will be used to plan the stoping activities for the bulk sample program later this year. The results of the infill drilling program indicated the potential to increase the size of the bulk sample and provided additional validation for advancing the underground exploration program at the Taylor Project.
Results from these five holes are summarized in the table below.
Taylor Project - 2012 Drilling
|UTM Grid NAD 83||Degrees||Intersection (Metres)|| Core
|Notes: All lengths are reported as core lengths as true width is not available at this time; all assays capped at 30.00 g/t Au.|
Drilling, Assaying and QA/QC
Surface drilling was conducted by Orbit Garant Drilling Services Inc. Analytical work for the Taylor Project was performed by Agat Laboratories, an accredited lab located in Mississauga, ON. Gold analysis was conducted using 30 gram sample splits and an accepted Fire Assay technique with an ICP-OES finish. Assay results for samples where visible gold was observed in the core sample were determined by Pulp Metallic Analysis. Blanks and reference standard samples are routinely used as part of the Quality Assurance program at the lab.
Rehabilitation and development activities at the Taylor Project are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's COO and Vice President of Operations. The drilling program at the Taylor Project is under the supervision of Mr. Craig Todd, P.Geo, the Company's Exploration Manager. Messers Middlemiss and Todd are qualified persons as defined by NI 43-101, and have 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 owns and operate the Holt, Holloway and Hislop mines and is forecasting 2012 production of between 90,000 - 100,000 ounces of gold. The Company is also advancing the Taylor Project and is conducting an aggressive exploration program 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 in respect of the Company's development and rehabilitation efforts at the Taylor Project, including the initial bulk sampling program and the timing and results 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, unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, 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 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. 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. A further description of the risks and uncertainties facing the Company may also be found in the Company's Annual Information Form available on SEDAR at www.sedar.com.
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: [email protected]
President & CEO
CFO, VP Finance & Administration