TORONTO, April 11, 2013 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report first quarter 2013 ("Q1 2013") production of 24,461 ounces of gold from its Holt, Holloway and Hislop mines, and that it is on track to achieve its 2013 production guidance of between 95,000 - 105,000 ounces of gold.
"We are pleased that our first quarter production results have come in slightly above our expectations", said Jacques Perron, President and CEO of SAS. "The operations continue to perform well and grades at both Holt and Hislop were at or above reserve grade for the mines. With this third consecutive quarter of annualized production of approximately 100,000 ounces, we are well positioned to meet our 2013 guidance and expect the operations will continue to improve throughout the year."
|Q1 2013 Production Results|
|Q1 2013 Production||213,008||3.90||91.5%||24,461|
Holt Mine ("Holt")
Holt produced 14,806 ounces of gold derived from the 925m Level and the 1075m Level mining areas in Zone 4, Zone 6, and the C-99 Zone. Lateral development has now commenced in Zone 6 on the 775m Level. The development of the Zone 6 reserves will allow for an incremental increase in production by the end of 2013. Construction of the new ore pass between the 1075m Level and 925m Level was completed early in the quarter and has resulted in operational improvements and increased production capacity at Holt. The head grade during the quarter was 5.40 g/t Au, while mill recoveries were at their expected level of approximately 95%.
Holloway Mine ("Holloway")
Holloway produced a total of 5,140 ounces of gold with approximately 75% from the Smoke Deep Zone and approximately 25% from the Middle Zone. The mill recovery rate of approximately 92% exceeded the Company's forecast recovery 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 4,515 ounces of gold in Q1 2013. The head grade averaged 2.14 g/t Au and mill recoveries averaged approximately 82%, lower than anticipated due to winter conditions. The extreme weather experienced in the area caused freeze ups in the coarse ore bins resulting in inconsistent feed rates affecting the fineness of the grind.
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 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 continuance and timing of the development initiatives at the Holt and Holloway mines; and the 2013 level of production.
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 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 Company's Annual Information Form available on SEDAR at www.sedar.com.
SOURCE St Andrew Goldfields Ltd.