TORONTO, Jan. 10, 2013 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report record fourth quarter 2012 ("Q4 2012") production of 25,829 ounces of gold from its Holt, Holloway and Hislop mines achieving the mid-range level of its 2012 guidance for a total of 95,604 ounces produced during 2012.
"We are very proud of our team for achieving our 2012 production guidance", said Jacques Perron, President and CEO of SAS. "Holt has ramped up nicely throughout the year, and we expect additional improvements during 2013. We look forward to receiving the complete results from the initial bulk sample at Taylor, which we hope to receive at the beginning of the second quarter. We will continue to work towards meeting our 2013 goals and objectives."
Q4 and Year End 2012 Production Results
| Head Grade
| Average Mill
| Gold Produced
|Q4 2012 Production||232,023||3.83||90.4%||25,829|
Holt Mine ("Holt")
Holt produced 15,082 ounces of gold derived from Zone 4 from the 925m Level and the 1075m Level mining areas, as well as Zone 6. Total lateral development advance was above expectations for the quarter and the year. Holt produced at approximately 1,000 tonnes per day during the quarter. Construction of the new ore pass between the 1075m Level and 925m Level is substantially complete with commissioning expected to be finalized by mid-January. This will increase production capacity at Holt. The head grade during the quarter was 5.51 g/t Au. Mill recoveries were at their expected level of approximately 94%.
Holloway Mine ("Holloway")
Holloway produced 5,240 ounces of gold mostly from the Smoke Deep Zone with minor contributions from the Lightning Zone. The mill recovery rate of approximately 90% exceeded the Company's forecast due to improved mineralogical conditions in the areas mined during the quarter. Development crews continue to provide access for additional areas within the Smoke Deep Zone in order to sustain the production profile for the mine. Underground definition and exploration drilling continued throughout the quarter with positive results.
Hislop Mine ("Hislop")
Hislop produced 5,507 ounces of gold in Q4 2012. The head grade averaged 2.22 g/t Au, which was again above the reserve grade for the mine (1.88 g/t Au). Mill recovery for Hislop during the quarter averaged approximately 80%, due to the processing of a significant amount of green carbonate-syenitic ore where the size fraction of the gold was finer than usual, thereby challenging for recovery.
Taylor Project ("Taylor")
The extraction of a 15,000 tonne underground bulk sample at the West Porphyry Zone at Taylor was completed in December. The Company is sending the material through a sampling tower which is used to generate a representative sample. SAS expects to process the bulk sample during the first quarter of 2013. Results of the bulk sample program will be released once the material has been processed and all the data has been received and reviewed.
Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations as well as the bulk sample program at Taylor are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's COO and Vice President of 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, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada.
SAS owns and operates the Holt, Holloway and Hislop mines which contribute approximately 100,000 ounces of annual gold production. 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 continuance and timing of the development initiatives at the Holt and Holloway mines; and the timeline for the processing of the first bulk sample at the Taylor Project.
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 increase the time necessary to complete the development initiatives, 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.
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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