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
|Q2 2013 Production||226,816||3.79||91.7%||25,353|
|2013 YTD Production||439,824||3.85||91.6%||
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 Company's 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 Company's 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.
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 Company's 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.
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.
This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") under applicable securities laws, concerning the Company's business, operations, financial performance, condition and prospects, as well as management's 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 Company's 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 Company's Annual Information Form available on SEDAR at www.sedar.com.
SOURCE St Andrew Goldfields Ltd.