TORONTO, Oct. 9, 2012 /CNW/ - St Andrew Goldfields Ltd. (TSX: SAS) (OTCQX: STADF), ("SAS" or the "Company") reports record third quarter ("Q3 2012") production of 25,742 ounces of gold from its Holt, Holloway and Hislop mines in the Timmins mining district, north-eastern Ontario, Canada.
"We are very happy to report another record quarter of production reaching a level which will enable us to sustain annual gold production of approximately 100,000 ounces in 2013", said Jacques Perron, President and CEO of SAS. "Our operations continue to perform well which will allow us to end the year with a strong balance sheet. Our immediate and future plans remain on track, and are not affected by the restatement of the inferred resources at Holt. We have reviewed our resources estimation processes to ensure that a similar error will not occur in the future. We are highly confident that we will meet our 2012 guidance on production and costs, and that we will see positive results from our exploration success experienced so far this year. We will be releasing additional drilling results on the Ghost, Hislop North and Zone 4 targets in the near future. Development at the Taylor Project is on schedule to extract the first bulk sample in the fourth quarter and we look forward to providing future updates on the advancement of this project. We look ahead to the last quarter for 2012 which we believe will prove to be another successful quarter for SAS, illustrating our ability to run successful operations and meet our objectives."
Q3 2012 Production Results
| Head Grade
| Average Mill
| Gold Produced
|Q3 2012 Production||226,956||3.86||91.3%||25,742|
|2012 Year-to-date Production||665,486||3.58||91.1%||69,775|
Holt Mine ("Holt")
Holt produced 13,145 ounces of gold derived largely from Zone 4 from the 925m Level and the 1075m Level mining areas, as well as a small contribution from the recently developed Zone 6. The lateral development advance rate continues to perform above expectations. The new ore pass being driven between the 1075m Level and 925m Level is progressing well and is expected to be completed in the fourth quarter. The head grade during the quarter was 5.40 g/t Au, 13% above the reserve grade of 5.18g/t Au. Mill recoveries were at their expected level of approximately 94%.
Holloway Mine ("Holloway")
Holloway produced 5,408 ounces of gold from the Smoke Deep Zone. The mill recovery rate of 91% exceeded the Company's forecast due to improved mineralogical conditions in the areas mined during the quarter. Development crews continue to advance the footwall ramp and sublevel lateral headings in order to prepare new mining faces for sustained production.
Hislop Mine ("Hislop")
Hislop produced 7,187 ounces of gold in Q3 2012. The head grade averaged 2.53 g/t Au, which was substantially higher than the reserve grade of 1.88 g/t Au. Mill recovery for Hislop during the quarter averaged 86%, slightly below expectations due to the mining of zones with more mineralogical complexity that adversely affected the leach kinetics.
Q3 2012 Earnings Call
SAS is scheduled to release its Q3 2012 results on Monday November 12, 2012, after market close. A conference call and webcast is scheduled for the morning of Tuesday November 13, 2012. For further information, please see the Company's website at www.sasgoldmines.com.
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 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 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 achieving the Company's gold production levels and cost estimates in 2012; the successful outcome of the Company's exploration programs; the continuance of the development initiatives at the Holt and Holloway mines; and the timeline for development and the extraction 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 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
CFO, VP Finance & Administration