TORONTO, May 9, 2012 /CNW/ - St Andrew Goldfields Ltd.
(TSX: SAS) (OTCQX: STADF), ("SAS" or the "Company") is pleased to report results from underground
drilling conducted at Zone 4 at the Holt Mine and the planned start of
a 5,000 metre surface drilling program to test the westerly extent and
plunge of the zone.
HIGHLIGHTS
| • | 1075-219 | 13.01 g/t Au over 11.6 metres | |||||
| • | 1075-222 | 11.30 g/t Au over 13.5 metres | |||||
| • | 1075-224 | 6.80 g/t Au over 12.8 metres | |||||
| • | 1075-225 | 10.20 g/t Au over 12.5 metres | |||||
| • | 1075-226 | 9.32 g/t Au over 20.7 metres | |||||
| • | 1075-229 | 7.34 g/t Au over 18.1 metres | |||||
| • | 1075-231 | 8.32 g/t Au over 21.4 metres | |||||
| • | 1075-234 | 11.28 g/t Au over 12.8 metres |
Notes: All lengths are reported as core length as true width is not available at this time; all assays cut to 25.00 g/t Au
"Results down dip of Zone 4 at the Holt Mine are very encouraging", said
Jacques Perron, President & CEO of SAS.
"This zone, which has performed
very well to date, continues to demonstrate positive potential to
increase the level of resources and reserves for the Holt Mine.
We look
forward to commencing the surface drilling program and results will be
released as they become available."
Zone 4 - Holt Mine
Development of a drill platform was completed late in 2011 on the 1075m
Level, designed to test the mineralization of the Zone 4 ore body below
and west of the lowest working levels of the Holt mine. Drilling
confirmed the high grade and very consistent nature of the
mineralization and will be used to update the mineral resources and
mineral reserves at year end.
As at December 31, 2011, the mineral
resources estimate for Zone 4 outlined 3.8 million tonnes at an average
grade of 5.47 g/t Au, for a total of 667,000 ounces of measured and
indicated resources, and 4.2 million tonnes at an average grade of 5.43
g/t Au, for 731,000 ounces of inferred resources.
The mineral reserves
for the zone were estimated at 1.2 million tonnes, at an average grade
of 5.18 g/t Au, for a total of 202,000 ounces of gold reserves.
A 5,000 metre surface drilling program is planned approximately 200 metres west of the underground drilling to test the westerly extent and plunge of the zone, and is expected to commence during the quarter.
Highlights of the most recent drilling results are summarized in the table below:
| Highlights of Recent Underground Drilling Program at Zone 4 | ||||||||||
| Hole | Holt Mine Grid | Degrees | (Metres) | Core Length | Gold Grade | |||||
| Number | Easting | Northing | Elevation | Azimuth | Dip | From | To | (Metres) | (g/t) | |
| 1075-218 | 9046 | 9073 | 3935 | 051 | -72 | 5.2 | 12.0 | 6.8 | 7.70 | |
| 1075-219 | 9047 | 9073 | 3935 | 051 | -26 | 7.7 | 19.3 | 11.6 | 13.01 | |
| 1075-220 | 9044 | 9074 | 3935 | 000 | -51 | 7.0 | 22.5 | 15.5 | 5.20 | |
| 1075-221 | 9044 | 9074 | 3936 | 000 | -15 | 17.0 | 21.0 | 4.0 | 10.00 | |
| 1075-222 | 9043 | 9074 | 3935 | 301 | -53 | 9.5 | 23.0 | 13.5 | 11.30 | |
| 1075-223 | 9042 | 9074 | 3936 | 301 | -21 | 40.2 | 50.0 | 9.8 | 6.20 | |
| 1075-224 | 9043 | 9072 | 3935 | 253 | -59 | 8.2 | 21.0 | 12.8 | 6.80 | |
| 1075-225 | 9042 | 9071 | 3935 | 253 | -42 | 16.5 | 29.0 | 12.5 | 10.20 | |
| 1075-226 | 9043 | 9072 | 3935 | 231 | -77 | 7.1 | 27.8 | 20.7 | 9.32 | |
| 1075-227 | 9043 | 9071 | 3935 | 231 | -55 | 11.5 | 22.5 | 11.0 | 6.58 | |
| 1075-228 | 9042 | 9071 | 3935 | 231 | -42 | 41.5 | 48.6 | 7.1 | 7.93 | |
| 1075-228 | 9042 | 9071 | 3935 | 231 | -42 | 49.5 | 52.0 | 2.5 | 8.79 | |
| 1075-229 | 9053 | 9063 | 3934 | 231 | -76 | 5.9 | 24.0 | 18.1 | 7.34 | |
| 1075-231 | 9053 | 9063 | 3935 | 231 | -45 | 18.9 | 40.3 | 21.4 | 8.32 | |
| 1075-232 | 9055 | 9065 | 3934 | 051 | -75 | 3.3 | 15.0 | 11.7 | 11.47 | |
| 1075-234 | 9062 | 9061 | 3934 | 051 | -80 | 3.7 | 16.5 | 12.8 | 11.28 | |
| 1075-235 | 9062 | 9061 | 3935 | 051 | -34 | 3.9 | 12.7 | 8.8 | 8.83 | |
Note: All lengths are reported as core length as true width is not available at this time; Assays capped at 25.00 g/t Au
Drilling, Assaying and QA/QC
Underground drilling at Zone 4 was completed by Forage Azimut Inc.
Analytical work was performed by the Companys in-house laboratory with
check samples sent to Swastika Laboratories Ltd., for quality control.
Qualified Person
The development programs at the Holt and Holloway mines are 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 extent, timing,
objectives and interpretation of drilling programs to be conducted by
the Company at Zone 4 at the Holt Mine and the completion of an updated
mineral resources and reserves estimate.
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; 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, the sufficiency of the Companys cash flows to
achieve its planned programs and the ability to attract and retain
adequate qualified personnel to conduct its exploration programs and
operate its mines.
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.
