TORONTO, Feb.
1, 2012 /CNW/ - St Andrew Goldfields Ltd.
(T-SAS), ("SAS" or the "Company") provides a summary of its 2011 exploration
program and reports results from the remaining 2011 drill programs at
the Ghost Zone near the Holloway-Holt mines, and at the Hislop North
Project; and announces its 2012 plans for exploration in the Timmins
Camp.
HIGHLIGHTS
- Spent $11 million in 2011 and drilled a total of 69,000 metres.
- Advanced the Taylor Project towards the pre-feasibility stage, which will include an updated resource for the West Porphyry Zone; and finalizing a first resource estimate for the Deep Thunder Zone.
- Confirmed geological model to test new targets near Holloway-Holt.
- Commenced drilling on the Ghost Zone, with recent results of 2.96 g/t Au over 10.2 metres (including 4.56 g/t Au over 4.0 metres) and 7.69 g/t Au over 20.2 metres (including 10.05 g/t Au over 4.0 metres, 13.25 g/t Au over 3.3 metres, and 9.80 g/t Au over 2.5 metres).
- Commenced drilling on the Hislop North Project with initial results of 12.41 g/t Au over 9.0 metres; including 16.20 g/t Au over 6.0 metres.
- 2012 Exploration budget of $7 million focussed on targets near the existing operations.
"We are very excited to kick off our 2012 exploration program", said
Jacques Perron, President & CEO of SAS.
"We commenced our exploration
efforts in 2010, so we are still in the early stages; however, we have
a number of new discoveries that have the potential to turn into
profitable ore bodies.
We have quite a large land position and as we
continue to develop and perfect our geological model, we have been able
to better target our efforts in order to reap the best rewards.
"
2011 Program Summary
The 2011 exploration program was focussed on areas near the Companys
Holloway-Holt mines, and on advancing the Taylor Project.
SAS drilled a
total of 69,000 metres with the majority of surface drilling spent on
the Deep Thunder Zone and at the Taylor Project.
At the Holloway Mine, continued drilling of the Smoke Deep, Blacktop
East, and Deep Thunder zones confirmed the validity of the geological
model which was also used to target the Ghost Zone.
This model will
assist with identifying new targets near the Holloway-Holt mines, which
are considered to have the greatest exploration potential within the
Companys current exploration projects.
With extensive drilling
conducted in 2011, SAS is currently finalizing a resource estimate on
the Deep Thunder Zone at the Holloway Mine.
The mineral resources will
be included as part of the Companys annual Resource/Reserve update
expected before the end of February.
The 2011 drilling program conducted at the Taylor Project provided
greater confidence in the continuity of the gold mineralization and
identified the potential for new zones of mineralization at depth.
The
updated resource estimate was completed at the end of 2011, and the
Company is finalizing a pre-feasibility study, expected before the end
of the first quarter.
Ghost Zone
The Ghost Zone ("Ghost") is located approximately 800 metres east of the
Holt mine workings along the Ghostmount Fault Zone.
Limited historical
drilling returned 7.21 g/t Au over 7.1 metres and 4.60 g/t Au over 19.0
metres, including 11.19 g/t Au over 4.0 metres.
Gold mineralization is
associated with silicified and albitic mafic volcanics with minor
quartz veining and less than 5% disseminated pyrite.
Continued drilling at Ghost was designed to expand the intercepts
previously reported: 5.48 g/t Au over 12.0 metres, and 10.60 g/t Au
over 8.1 metres, including 22.65 g/t Au over 2.6 metres (see press
release dated September 19, 2011).
All of the holes intersected the
zone of mineralization with varying widths and alteration intensity.
The wider zones of alteration consisting of silicified and albitic
mafic volcanics occurred in the footwall of the Ghostmount fault.
The recent discovery of high grade values (including visible gold in GZ11-006, which returned 32.00 g/t Au over 0.8 metres) in the hangingwall of the Ghostmount fault provides a previously untested mineralized horizon that will require further investigation.
The highlights of the 2011 drilling program are summarized in the table below:
Ghost Zone 2011 Drilling Program | |||||
Intersection (Metres) | Core Length(2) | Gold Grade(3) | |||
Hole Number | From | To | Metres | Grams per Tonne (g/t) | |
(1) GZ11-001 | 563.7 | 573.7 | 10.1 | 3.54 | |
(1) GZ11-002B | 513.0 | 525.0 | 12.0 | 5.48 | |
including | 514.5 | 520.5 | 6.0 | 9.87 | |
(1) GZ11-008 | 499.0 | 509.2 | 10.2 | 2.96 | |
(1) GZ11-003 | 558.2 | 566.2 | 8.1 | 10.60 | |
including | 562.5 | 565.1 | 2.6 | 22.65 | |
(1) GZ11-003 | 576.4 | 577.8 | 1.4 | 19.80 | |
GZ11-006 | 410.3 | 411.2 | 0.8 | 32.00 | |
GZ11-009 | 556.3 | 560.1 | 3.8 | 3.34 | |
including | 556.3 | 558.0 | 1.7 | 4.62 | |
GZ11-012 | 547.7 | 567.9 | 20.2 | 7.69 | |
including | 547.7 | 551.7 | 4.0 | 10.05 | |
including | 554.6 | 557.9 | 3.3 | 13.25 | |
including | 561.0 | 563.5 | 2.5 | 9.80 |
Note:
(1)Denotes previously reported value.
(2) All lengths are reported as core length as true width is not available
at this time.
(3)Gold grades cut to 32.00 g/t Au.
Hislop North Project
SAS utilized one drill to test along its northern boundary of the Hislop
property in order to follow-up on recent exciting results from its
neighbours, which identified north-south structures with a potential of
extending onto SASs property.
This is a structurally complex area as
the Porcupine Destor Fault-Zone, the main structure in this region,
turns southwards and splits into numerous splay faults.
Seven holes were drilled as part of this initial test program and all
have intersected anomalous values.
The most significant intersection to
date is in hole H11-007 which returned 12.41 g/t Au over 9.0 metres in
a brecciated albitic mafic volcanic with significant quartz veining.
The interpretation remains open in all directions and follow-up
drilling to further define the zone is ongoing.
The highlights of the 2011 drilling program are summarized in the table below:
Hislop North Project 2011 Drilling Program | ||||
Intersection (Metres) | Core Length(1) | Gold Grade(2) | ||
Hole Number | From | To | Metres | Grams per Tonne (g/t) |
H11-002 | 518.4 | 519.5 | 1.1 | 11.95 |
H11-004 | 210.6 | 211.1 | 0.5 | 6.42 |
H11-004 | 212.7 | 213.2 | 0.5 | 7.36 |
H11-004 | 432.2 | 433.2 | 1.0 | 16.68 |
H11-007 | 211.0 | 220.0 | 9.0 | 12.41 |
Note:
(1)All lengths are reported as core length as true width is not available
at this time.
(2)Gold grades cut to 32.00 g/t Au.
2012 Exploration Program
SAS has budgeted a minimum of $7 million on its 2012 exploration
program, which will focus on targets that lie near the existing
operations.
A surface drilling program at the Holt Mine will focus on
testing the down plunge extension of Zone 4 (which currently hosts
approximately half of the reserves at Holt).
Once the exploration drift
at Holloways Smoke Deep Zone is complete (expected towards the end of
Q2), underground drilling will commence on the eastern down dip
extension of the Smoke Deep Zone.
Follow up surface drilling will also
continue at the Ghost and Deep Thunder zones, and preliminary drilling
will take place at the Lightning Vein which lies further to the east.
Additional surface drilling has commenced on the Hislop North Project,
and regional grass roots targets will receive some preliminary test
drilling throughout the year as well.
Mike Michaud, VP of Exploration, recently resigned in order to pursue an
alternate career path.
Mr.
Michaud played a key role in early stage
targeting and setting up the exploration program at SAS.
We thank him
for his commitment and wish him all the best in his future career.
Craig Todd, the Companys Exploration Manager, will be supervising the
programs and will continue to manage the exploration team as before.
Drilling, Assaying and QA/QC
Surface drilling was completed by Orbit Garant.
Analytical work for the
Ghost Zone was performed by Laboratoire Expert Inc., lab in
Rouyn-Noranda, and SGS Canada Inc., in Toronto was utilized for the
Hislop North Project.
SAS utilized a quality control/quality assurance
program consisting of a number of sample standards and blanks that were
inserted into the sample string, which represented approximately 5% of
the total sample population.
Qualified Person
The exploration programs on the Companys various mineral properties are
under the supervision of Craig Todd, P.
Geo, the Companys Exploration
Manager. Mr.
Todd is SAS qualified person as defined by NI 43-101,
and has reviewed and approved this news release.
About SAS
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
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.
FORWARD-LOOKING INFORMATION
This news release contains forward‐looking information and
forward-looking statements (collectively, "forward-looking
information") under applicable securities laws, concerning the
Companys business, operations, financial performance, condition and
prospects, as well as managements 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.
Specifically this news release contains
forward-looking information regarding the extent, timing, objectives
and interpretation of exploration drilling programs to be conducted by
the Company at the Ghost, Blacktop East and Deep Thunder zones at the
Holloway and Holt Mine, and Hislop North Project; the time the
Companys Resource/Reserve update; the time to complete the
pre-feasibility study for the Taylor Project; and completion of the
exploration drift and the commencement of drilling at the Smoke Deep
Zone;.
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, fluctuations in gold
prices and exchange rates, 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 level and volatility of the price of
gold, the accuracy of reserve and resource estimates and the
assumptions on which such estimates are based, the ability to achieve
capital and operating cost estimates, the sufficiency of the Companys
cash flows and reserves to achieve its 2012 objectives, the ability to
attract and maintain adequate skilled personnel to operate its mines
and to conduct its exploration programs, and no significant decline in
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.