TORONTO, Oct.
9, 2012 /CNW/ - St Andrew Goldfields Ltd.
(TSX: SAS) (OTCQX: STADF), ("SAS" or the "Company") reports record third quarter ("Q3 2012")
production of 25,742 ounces of gold from its Holt, Holloway and Hislop
mines in the Timmins mining district, north-eastern Ontario, Canada.
"We are very happy to report another record quarter of production
reaching a level which will enable us to sustain annual gold production
of approximately 100,000 ounces in 2013", said Jacques Perron,
President and CEO of SAS.
"Our operations continue to perform well
which will allow us to end the year with a strong balance sheet.
Our
immediate and future plans remain on track, and are not affected by the
restatement of the inferred resources at Holt.
We have reviewed our
resources estimation processes to ensure that a similar error will not
occur in the future.
We are highly confident that we will meet our 2012
guidance on production and costs, and that we will see positive results
from our exploration success experienced so far this year.
We will be
releasing additional drilling results on the Ghost, Hislop North and
Zone 4 targets in the near future.
Development at the Taylor Project is
on schedule to extract the first bulk sample in the fourth quarter and
we look forward to providing future updates on the advancement of this
project.
We look ahead to the last quarter for 2012 which we believe
will prove to be another successful quarter for SAS, illustrating our
ability to run successful operations and meet our objectives."
Q3 2012 Production Results
Tonnes Milled |
Head Grade (g/t Au) |
Average Mill Recovery Rate |
Gold Produced (ounces) | |
Holt | 80,219 | 5.40 | 94.4% | 13,145 |
Holloway | 44,546 | 4.15 | 91.0% | 5,408 |
Hislop | 102,191 | 2.53 | 86.5% | 7,189 |
Q3 2012 Production | 226,956 | 3.86 | 91.3% | 25,742 |
2012 Year-to-date Production | 665,486 | 3.58 | 91.1% | 69,775 |
Holt Mine ("Holt")
Holt produced 13,145 ounces of gold derived largely from Zone 4 from the
925m Level and the 1075m Level mining areas, as well as a small
contribution from the recently developed Zone 6.
The lateral
development advance rate continues to perform above expectations.
The
new ore pass being driven between the 1075m Level and 925m Level is
progressing well and is expected to be completed in the fourth quarter.
The head grade during the quarter was 5.40 g/t Au, 13% above the
reserve grade of 5.18g/t Au.
Mill recoveries were at their expected
level of approximately 94%.
Holloway Mine ("Holloway")
Holloway produced 5,408 ounces of gold from the Smoke Deep Zone.
The
mill recovery rate of 91% exceeded the Companys forecast due to
improved mineralogical conditions in the areas mined during the
quarter. Development crews continue to advance the footwall ramp and
sublevel lateral headings in order to prepare new mining faces for
sustained production.
Hislop Mine ("Hislop")
Hislop produced 7,187 ounces of gold in Q3 2012.
The head grade averaged
2.53 g/t Au, which was substantially higher than the reserve grade of
1.88 g/t Au.
Mill recovery for Hislop during the quarter averaged 86%,
slightly below expectations due to the mining of zones with more
mineralogical complexity that adversely affected the leach kinetics.
Q3 2012 Earnings Call
SAS is scheduled to release its Q3 2012 results on Monday November 12,
2012, after market close.
A conference call and webcast is scheduled
for the morning of Tuesday November 13, 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 owns and operates the Holt, Holloway and Hislop mines and is forecasting 2012 production of between 90,000 - 100,000 ounces of gold. 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 achieving the Companys
gold production levels and cost estimates in 2012; the successful
outcome of the Companys exploration programs; the continuance of the
development initiatives at the Holt and Holloway mines; and the
timeline for development and the extraction of the first bulk sample at
the Taylor Project.
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.
SOURCE: St Andrew Goldfields Ltd.