TORONTO, Jan.
10, 2013 /CNW/ - St Andrew Goldfields Ltd.
(TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report record fourth quarter 2012
("Q4 2012") production of 25,829 ounces of gold from its Holt, Holloway
and Hislop mines achieving the mid-range level of its 2012 guidance for
a total of 95,604 ounces produced during 2012.
"We are very proud of our team for achieving our 2012 production
guidance", said Jacques Perron, President and CEO of SAS.
"Holt has
ramped up nicely throughout the year, and we expect additional
improvements during 2013.
We look forward to receiving the complete
results from the initial bulk sample at Taylor, which we hope to
receive at the beginning of the second quarter.
We will continue to
work towards meeting our 2013 goals and objectives."
Q4 and Year End 2012 Production Results
|
Tonnes Milled |
Head Grade (g/t Au) |
Average Mill Recovery Rate |
Gold Produced (ounces) | |
| Holt | 89,901 | 5.51 | 94.7% | 15,082 |
| Holloway | 46,606 | 3.90 | 89.7% | 5,240 |
| Hislop | 95,516 | 2.22 | 80.8% | 5,507 |
| Q4 2012 Production | 232,023 | 3.83 | 90.4% | 25,829 |
| 2012 Production | 897,509 | 3.64 | 90.9% | 95,604 |
Holt Mine ("Holt")
Holt produced 15,082 ounces of gold derived from Zone 4 from the 925m
Level and the 1075m Level mining areas, as well as Zone 6.
Total
lateral development advance was above expectations for the quarter and
the year.
Holt produced at approximately 1,000 tonnes per day during
the quarter.
Construction of the new ore pass between the 1075m Level
and 925m Level is substantially complete with commissioning expected to
be finalized by mid-January.
This will increase production capacity at
Holt.
The head grade during the quarter was 5.51 g/t Au.
Mill
recoveries were at their expected level of approximately 94%.
Holloway Mine ("Holloway")
Holloway produced 5,240 ounces of gold mostly from the Smoke Deep Zone
with minor contributions from the Lightning Zone.
The mill recovery
rate of approximately 90% exceeded the Companys forecast due to
improved mineralogical conditions in the areas mined during the
quarter.
Development crews continue to provide access for additional
areas within the Smoke Deep Zone in order to sustain the production
profile for the mine.
Underground definition and exploration drilling
continued throughout the quarter with positive results.
Hislop Mine ("Hislop")
Hislop produced 5,507 ounces of gold in Q4 2012.
The head grade averaged
2.22 g/t Au, which was again above the reserve grade for the mine (1.88
g/t Au).
Mill recovery for Hislop during the quarter averaged
approximately 80%, due to the processing of a significant amount of
green carbonate-syenitic ore where the size fraction of the gold was
finer than usual, thereby challenging for recovery.
Taylor Project ("Taylor")
The extraction of a 15,000 tonne underground bulk sample at the West
Porphyry Zone at Taylor was completed in December.
The Company is
sending the material through a sampling tower which is used to generate
a representative sample.
SAS expects to process the bulk sample during
the first quarter of 2013.
Results of the bulk sample program will be
released once the material has been processed and all the data has been
received and reviewed.
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 the bulk sample program at Taylor 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 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 continuance and timing
of the development initiatives at the Holt and Holloway mines; and the
timeline for the processing 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 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 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.
