TORONTO, Oct. 10, 2013 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report third quarter 2013 ("Q3 2013") production of 25,434 ounces of gold from its Holt, Holloway and Hislop mines, and reiterate the 2013 production guidance of between 95,000 - 105,000 ounces of gold.
"Third quarter production was in line with expectations as we achieved another quarter of approximately 25,000 ounces of gold production, for a total of 75,248 ounces produced year-to-date", said Duncan Middlemiss, President and CEO of SAS. "The production rate at Holt this quarter increased to 1,140 tonnes per day as Holt continues to show potential for additional throughput in the near term. Mining at Hislop will transition to the West Pit this quarter as the preparatory work has been completed. We look forward to ending the year on track as per our guidance."
Q3 2013 Production Results
|Q3 2013 Production||211,891||4.08||91.6%||25,434|
|2013 YTD Production||651,715||3.92||91.6%||75,248|
Note: Columns may not add due to rounding
Holt Mine ("Holt")
Holt produced 16,807 ounces of gold with approximately 90% of the production derived from Zone 4 and the remainder sourced from Zone 6 development. Production mining of the Zone 6 reserves will commence in the fourth quarter as lateral development is sufficiently advanced. The head grade during the quarter was 5.25 g/t Au, with mill recoveries of 95%, higher than anticipated mainly due to sequencing of higher grade ore sources from the second quarter of 2013 into Q3. The mining rate has increased to 1,140 tonnes per day, which is an improvement of 11% from the previous quarter.
Holloway Mine ("Holloway")
Holloway produced a total of 4,662 ounces of gold with the majority of production derived from the Smoke Deep Zone. The mill recovery rate of approximately 90% was in line with the Company's expectations.
Hislop Mine ("Hislop")
Hislop produced 3,965 ounces of gold in Q3 2013. The head grade averaged 2.27 g/t Au, with mill recoveries averaging 81%. The preparation work for the West Pit has progressed and ore mining will transition to this pit in the fourth quarter.
Q3 Earnings Release and Conference Call Details
SAS' third quarter financial results will be released after market on Wednesday November 6, 2013, and the conference call will take place on Thursday November 7, at 10:00 AM EST.
SAS invites interested parties to participate in the upcoming conference call to discuss its third quarter financial and operating results for 2013. Participants may join the call via webcast at www.sasgoldmines.com. A playback will be available via the website and will be posted within 24 hours of the call.
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. Mr. Middlemiss was the Company's Chief Operating Officer and Vice-President of Operations during the third quarter, and was appointed as SAS' President & CEO on October 1, 2013. 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 transition of mining to the West Pit at Hislop; 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 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.