TORONTO, July 15, 2013 /CNW/ - St Andrew Goldfields Ltd.
(TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report second quarter 2013 ("Q2
2013") production of 25,353 ounces of gold from its Holt, Holloway and
Hislop mines, and reiterates its 2013 production guidance of between
95,000 - 105,000 ounces of gold.
In addition the Company recovered 686
ounces from the processing of a portion of the bulk sample material
from the Taylor Advanced Exploration Project.
"Our second quarter results remain strong with production at the 25,000
ounce level", said Jacques Perron, President and CEO of SAS.
"With just
under 50,000 ounces of gold produced in the first half of the year, we
are on track with our plan and well positioned to meet our 2013
guidance.
We remain focussed on reducing costs and maintaining a strong
cash position."
Q2 2013 Production Results
Tonnes Milled |
Head Grade (g/t Au) |
Average Mill Recovery Rate |
Gold Produced (ounces) | |
Holt | 93,081 | 4.83 | 94.9% | 13,706 |
Holloway | 45,642 | 4.32 | 92.6% | 5,874 |
Hislop | 88,093 | 2.43 | 84.0% | 5,773 |
Q2 2013 Production | 226,816 | 3.79 | 91.7% | 25,353 |
2013 YTD Production | 439,824 | 3.85 | 91.6% |
49,814 |
Holt Mine ("Holt")
Holt produced 13,706 ounces of gold derived primarily from Zone 4, as
well as Zone 6, and the C-99 Zone.
Lateral development has now reached
the ore in Zone 6 on the 775m Level.
The mining of the Zone 6 reserves
is anticipated to commence in the fourth quarter.
The head grade during
the quarter was 4.83 g/t Au, with mill recoveries of 94.9%, meeting
expectations.
Holloway Mine ("Holloway")
Holloway produced a total of 5,874 ounces of gold with the majority of
production derived from the Smoke Deep Zone.
The mill recovery rate of
92.6% exceeded the Companys expected recovery due to improved
mineralogical conditions in the areas mined during the quarter.
Hislop Mine ("Hislop")
Hislop produced 5,773 ounces of gold in Q2 2013.
The head grade averaged
2.43 g/t Au, above reserve grade for the mine, and mill recoveries
averaged 84.0%.
Taylor Advanced Exploration Project ("Taylor") Update
A stepped approach was implemented in order to improve the quality of
information prior to allocating total capital expenditures for the
development activities at the West Porphyry Zone ("WPZ").
SAS targeted the 1008 lens in the upper portion of the WPZ as this
was the area it would gain access to first.
This was in an area of the
WPZ that had the least amount of drilling data, but would provide a
platform to test the mining method and gather information to confirm
the geological block model before moving ahead to the area of the
second bulk sample, located at a lower depth.
A 15,000 tonne bulk sample was extracted from the 1008 lens towards the
end of 2012, and during the first quarter of 2013, this material was
fed through a sampling tower.
The samples were assayed, additional
drilling was conducted in the area of the bulk sample, and structural
and geochemical analyses were conducted by external third parties.
This
additional information indicated that the orientation of the 1008 lens
was different than that of the geological block model, and the
structural analysis indicated that the 1008 lens was in a much more
complex geological environment than previously thought.
During Q2 2013, SAS processed approximately 8,500 tonnes of the bulk
sample, at an average grade of 2.65 g/t Au, and recovered 686 ounces of
gold.
Mill recovery of 95.2% was above expectations, especially
considering the grade of the material processed, and mill throughput
averaged 128 tonnes per hour.
Reconciled and calculated head grades
from the bulk sample correlated within 15% of the face chip samples and
the tower sampling program.
This validated the Companys process for
forecasting grades at Taylor, which is important in this type of nugget
gold environment.
At the beginning of Q2 2013, SAS made the decision to advance the ramp
in order to provide an optimal drill platform to target the 1004 lens,
which is slated to be the site of the second bulk sample.
This is the
location of approximately 91% of the reserves and is better drill
defined than the 1008 lens.
The results of this phase of drilling are
expected before the end of August.
The results of this drill program
and the gold price will be the determining factors on the rate of
advancement of Taylor.
Qualified Person
Production at the Holt, Holloway and Hislop mines, processing at the
Holt Mill, and mine development and production activities at the
operations as well as activities at Taylor are being conducted under
the supervision of Duncan Middlemiss, P.Eng., the Companys Chief
Operating Officer 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 owns and operates the Holt, Holloway and Hislop mines which
contribute approximately 100,000 ounces of annual gold production.
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.
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 commencement of mining
activities from Zone 6 at the Holt Mine; the 2013 level of production;
and the results from the drilling program on the 1004 lens of the
Taylor Project and the timing thereof.
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 increase the time necessary to complete the
development initiatives, 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 volatility and level of the price of gold including that
the gold price will generally remain within a reasonable range of
current levels, 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.
SOURCE: St Andrew Goldfields Ltd.