TORONTO, Jan. 9, 2014 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report annual 2013 production of 99,548 ounces of gold from its Holt, Holloway and Hislop mines achieving the mid-range level of its 2013 guidance. Fourth quarter production ("Q4 2013") was in line with expectations, with 24,300 ounces produced.
"We are very proud of our team for achieving record production and within our stated 2013 production guidance of 95,000 - 105,000 ounces", said Duncan Middlemiss, President and Chief Executive Officer of SAS. "The Holt Mine continues to increase its production profile on an annual basis, and we look forward to the continuation of this trend. All required infrastructure is in place and with the development of Zone 6, additional production flexibility will be enabled. We look forward to delivering on our objectives in 2014, with the same vigor as in previous years."
Q4 and Annual 2013 Production Results
|Q4 2013 Production||228,044||3.66||90.6%||24,300|
|Annual 2013 Production||879,759||3.85||91.3%||99,548|
Note: Columns may not add due to rounding
Holt Mine ("Holt")
Holt produced 13,579 ounces of gold derived from Zone 4 on the 925m Level and 1075m Level mining areas and Zone 6 on the 775m Level. Production was down approximately 20% from the previous quarter due to scheduled hoist motor and hoist drive upgrades performed during the quarter. This improvement will provide additional future hoisting capacity and increased reliability. Head grade during the quarter was 5.42 g/t Au, and mill recoveries were at their expected level of approximately 95%.
Holloway Mine ("Holloway")
Holloway produced 5,654 ounces of gold, mostly from the Smoke Deep Zone with minor contributions from the Lightning Zone. The mill recovery rate of approximately 89% was slightly below expectations due to challenging mineralogical conditions in the areas mined during the quarter. Ongoing development work continues to provide access for additional areas within the Smoke Deep Zone.
Hislop Mine ("Hislop")
Hislop produced 5,068 ounces of gold in Q4 2013. The head grade averaged 1.96 g/t Au, which was less than the reserve grade for the mine (2.16 g/t Au), primarily due to the transition to the west pit and weaker grades in the initial benches. Mill recovery for Hislop during the quarter averaged approximately 82%, due to the processing of a significant amount of ore containing a fine gold size fraction.
2013 FOURTH QUARTER AND YEAR END FINANCIAL RESULTS CONFERENCE CALL
The Company invites you to participate in the upcoming conference call to discuss its fourth quarter and year-end financial and operating results for 2013. The conference call will take place on Friday, February 14, 2014 at 10:00 AM EST. SAS' fourth quarter and year-end financial results will be released after market on Thursday, February 13, 2014.
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 Marc-Andre Pelletier, P. Eng., the Company's General Manager of Operations. Mr. Pelletier is a qualified person as defined by National Instrument 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. 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.
For further information about St Andrew Goldfields Ltd., please contact:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com
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 additional improvements in production at the Holt mine, and continued production from the Holloway and Hislop mines in 2014.
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.