/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR 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 previous quarter.
- 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
|Tonnes Milled||Head Grade (g/t Au)||Average Mill Recovery Rate||Gold Produced (ounces)|
|Q4 2011 production||216,797||3.62||88.7%||22,350|
|2011 Annual production (1)||868,675||2.98||88.9%||74,022|
|(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 securities laws.
For further information:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com