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
Tonnes Milled |
Head Grade (g/t Au) |
Average Mill Recovery Rate |
Gold Produced (ounces) | ||||
Holt | 67,937 | 5.36 | 94.1% | 11,025 | |||
Holloway | 47,151 | 3.77 | 88.6% | 5,058 | |||
Hislop | 94,660 | 1.88 | 86.4% | 4,935 | |||
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 companys
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 Companys website at www.sasgoldmines.com.
Qualified Person
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 Companys 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.
About SAS
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.
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, including in respect of the Companys 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 Companys 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 Companys Annual
Information Form available on SEDAR at www.sedar.com.