TORONTO, Sept. 20, 2012 /CNW/ - St Andrew Goldfields Ltd. (TSX: SAS) (OTCQX: STADF), ("SAS" or the "Company") reports that it has filed on SEDAR (www.sedar.com) today amended versions of the 2011 Annual Report, Annual Information Form and annual Management Discussion and Analysis to correct an error in the stated amount of inferred mineral resources for the Holt and Holloway Mines.
The amended and restated inferred mineral resources as at the year ended December 31, 2011, is 1,045,000 tonnes at an average grade of 6.81 g/t Au for 229,000 ounces for the Holt Mine, and 2,755,000 tonnes at an average grade of 5.10 g/t Au for 452,000 ounces for the Holloway Mine. The inferred mineral resources at the Holt Mine were overstated by 665,000 ounces (3,791,000 tonnes at an average grade of 5.46 g/t Au). The inferred mineral resources at the Holloway Mine were overstated by 44,000 ounces (269,000 tonnes at an average grade of 5.09 g/t Au).
The measured and indicated mineral resources as well as the mineral reserves at Holt and Holloway as at the year ended December 31, 2011, have been reviewed in detail and there is no change to the previously reported numbers (see tables below).
"We have restated the inferred resources at Holt and Holloway as a result of a recently discovered tabulation error", said Jacques Perron, President and CEO. "We have had a successful year of exploration so far, focused on drilling targets situated on the Holt Mine property, as previously disclosed in our press releases dated May 7, 9, and July 31, 2012, which we believe will contribute significant upside to the year-end mineral resources estimation. Holt remains our flagship asset, with a great deal of exploration potential and we are confident we will continue to expand the reserve and resource base as we continue to advance our exploration programs."
Holt Mine - Amended and Restated Mineral Resources Estimate (As at December 31, 2011)
| Holt Mine |
Measured |
Indicated |
Inferred |
Tonnes
('000) |
Grad
(g/t Au) |
Ounces
Au
('000 oz) |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces
Au
('000 oz) |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces
Au
('000 oz) |
| At December 31, 2010 |
2,272 |
5.4 |
393 |
2,459 |
6.1 |
478 |
1,197 |
6.5 |
249 |
| At December 31, 2011 |
2,981 |
5.5 |
522 |
2,801 |
6.3 |
567 |
1,045 |
6.8 |
229 |
Holt Mine- Mineral Reserves Estimate (As at December 31, 2011)
| Holt Mine |
Proven |
Probable |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces Au
('000 oz) |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces Au
('000 oz) |
| At December 31, 2010 |
944 |
4.3 |
131 |
2,191 |
5.4 |
379 |
| At December 31, 2011 |
860 |
4.9 |
136 |
1,548 |
5.6 |
279 |
Holloway Mine - Amended and Restated Mineral Resources Estimate - December 31, 2011
| Holloway Mine |
Measured |
Indicated |
Inferred |
Tonnes
('000) |
Grad
(g/t Au) |
Ounces
Au
('000 oz) |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces
Au
('000 oz) |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces
Au
('000 oz) |
| At December 31, 2010 |
356 |
4.0 |
46 |
267 |
4.7 |
40 |
1,080 |
6.0 |
209 |
| At December 31, 2011 |
396 |
4.5 |
58 |
352 |
4.6 |
52 |
2,755 |
5.1 |
452 |
Holloway Mine - Mineral Reserves Estimate - December 31, 2011
| Holloway Mine |
Proven |
Probable |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces Au
('000 oz) |
Tonnes
('000) |
Grade
(g/t Au) |
Ounces Au
('000 oz) |
| At December 31, 2010 |
13 |
5.2 |
2 |
125 |
3.8 |
15 |
| At December 31, 2011 |
153 |
4.3 |
21 |
70 |
4.3 |
10 |
| Notes to Mineral Resources: |
| a) |
Mineral Resources are inclusive of Mineral Reserves; |
| b) |
Mineral Resources were estimated according to CIM Definition Standards - November 2010; |
| c) |
Mineral Resources for Holloway and Holt were estimated using an average long-term gold price of US$1,200 per ounce and an exchange rate of CAN$1.00 = US$0.98; |
| d) |
Mineral Resources for Holloway and Holt were estimated at a cut-off grade of 3.0 g/t Au; |
| e) |
Mineral Resources for the Deep Thunder Zone (included in the Holloway Mine) were estimated at a cut-off grade of 2.5 g/t Au; |
| f) |
Tonnes and gold ounce information is rounded to the nearest thousands. As a result, rows and columns may not add up exactly due to rounding. |
| Notes to Mineral Reserves: |
| a) |
Mineral Reserves were estimated according to CIM Definition Standards - November 2010; |
| b) |
Mineral Reserves for Holloway and Holt were estimated using an average long-term gold price of US$1,100 per ounce and an exchange rate of CAN$1.00 = US$0.98; |
| c) |
Mineral Reserves for Holloway and Holt were estimated using a cut-off grade of 3.5 g/t Au; |
| d) |
Tonnes and gold ounce information is rounded to the nearest thousands as such, rows and columns may not add exactly due to rounding. |
Qualified Person
The revised calculation of Mineral Resources for the Holt and Holloway mines completed by the Company was under the supervision of Doug Cater, P.Geo, the Company's VP of Exploration. The calculation of Mineral Reserves was completed by the Company under the supervision of Pierre Rocque, P.Eng, the Company's VP of Engineering. Messers. Cater and Rocque are qualified persons as defined by NI 43-101, and have 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 and is forecasting 2012 production of between 90,000 - 100,000 ounces of gold. 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 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 reserve and resource estimates; the impact of the results of the ongoing exploration programs on the Company's mineral resources and mineral reserves estimates ; the continuance of underground drilling at Zone 4 in 2013; and gold production levels in 2012.
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, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; fluctuations in gold prices and exchange rates; unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels; operational hazards and risks; compliance with applicable government regulations, including the ability to obtain requisite permits and licenses; dependence on key employees and changes in general economic conditions and changes in conditions in the financial markets. Such forward looking information is based on a number of assumptions, including but not limited to the level and volatility of the price of gold, the ability to achieve capital and operating cost estimates, the accuracy of reserve and resource estimates and the assumptions upon which such estimates are based, the continued availability of qualified personnel, and the sufficiency of the Company's cash reserves and operating cash flow to complete planned development and exploration activities. 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 and 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 description of these risks and uncertainties are can also be found in the Company's Annual Information Form obtained on SEDAR at www.sedar.com.
SOURCE: St Andrew Goldfields Ltd.
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
Suzette N Ramcharan
Manager, Investor Relations
Email: sramcharan@sasgoldmines.com
Jacques Perron
President & CEO
Email:jperron@sasgoldmines.com
Ben Au
CFO, VP Finance & Administration
Email:bau@sasgoldmines.com
