TORONTO, April 11, 2012 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") reports first quarter production of 21,018 ounces of gold from the Holt, Holloway and Hislop mines in the Timmins mining district, north-eastern Ontario, Canada.
"We are very pleased with the first quarter production results", said Jacques Perron, President and CEO of SAS. "Compared to the first quarter of 2011, we are off to a solid start in 2012. We had a strong quarter of production which was in line with our expectations. The Holt and Holloway mines continue to ramp up, therefore we expect higher levels of production in the latter half of the year. We are on track to meet our annual production guidance of 90,000 to 100,000 ounces of gold for this year."
Q1 2012 Production Results
| Head Grade
| Average Mill
| Gold Produced
|Q1 2012 production||209,748||3.43||90.9%||21,018|
Holt Mine ("Holt")
Holt produced 11,025 ounces of gold, in line with the company's expectations. Production was derived largely from Zone 4 from the 925m Level and the 1075m Level mining areas. The shaft incident that occurred in February resulted in a slight impact on tonnes mined and milled during the first quarter. Development of Zone 4 on the 925m Level and 1075m Level has progressed far enough to enable an average mine production rate of 1,000 tonnes per day in the second quarter of 2012. Additional sublevel development is progressing as per plan. The head grade mined during the quarter was above the reserve grade for Zone 4 and recovery was at the planned level of 94%.
Holloway Mine ("Holloway")
Holloway produced 5,058 ounces of gold from the Smoke Deep Zone. The recovery rate of 88.6% was higher than that achieved in the fourth quarter of 2011 and is expected to remain at this level during 2012. The head grade at Holloway was 3.77 g/t Au, which was due to the mining of stopes in fringe areas of the zone. Development crews continue to advance the footwall ramp and sublevel development. The raise bore program that commenced in the fourth quarter of 2011 is now complete with the development of the backfill raise.
Hislop Mine ("Hislop")
Hislop produced 4,935 ounces of gold in the first quarter. The head grade averaged 1.88 g/t Au which is in line with the mining plan.
Q1 2012 Earnings Call
SAS is scheduled to release its 2012 first quarter results on Thursday, May 10, 2012. A conference call and webcast is scheduled for the morning of Friday, May 11, 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 is focussed 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 in respect of the Company's gold production levels in 2012; the improvement in throughput at the Holt Mine; and the maintenance of mill recovery rates from production at the Holloway Mine.
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.
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]