TORONTO, Jan. 9, 2015 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report its fourth quarter ("Q4 2014") and annual production for 2014 of 22,643 and 90,676 ounces of gold, respectively, achieving the mid-range level of its 2014 production guidance.
"We are pleased to have achieved the midpoint of our 2014 production guidance of 85,000 – 95,000 ounces", said Duncan Middlemiss, President and Chief Executive Officer of SAS. "2014 throughput at the Holt Mine increased by 20% from 2013, and higher gold contribution than initially anticipated from the Holloway asset, allowed us to increase our previous guidance. We look forward to achieving our guidance of 85,000 – 90,000 ounces of gold from Holt and Holloway in 2015. In addition, the Taylor Bulk sample is proceeding as planned, and a production decision is expected in the first quarter of 2015."
Q4 and Annual 2014 Production Results
|
Tonnes
Milled
|
Head Grade
(g/t Au)
|
Average Mill
Recovery Rate
|
Gold Produced
(ounces)
|
|
Holt
|
120,721
|
4.05
|
94.8%
|
14,908
|
|
Holloway
|
54,674
|
4.80
|
91.6%
|
7,734
|
|
Q4 2014 Production
|
175,395
|
4.29
|
93.7%
|
22,643
|
|
Annual 2014 Production
|
709,877
|
4.28
|
92.8%
|
90,676
|
Holt Mine ("Holt")
Holt produced 14,908 ounces of gold derived from Zone 4 on the 925m Level and 1075m Level mining areas (60%) and from Zone 6 on the 775m Level (40%). Head grades were down approximately 16% from the previous quarter ("Q3 2014") due to Zone 4 stope sequencing. However, throughput was 19% higher from Q3 2014 as the operation has now established Zone 6 at the 775m Level. Mill recoveries were at their expected level of approximately 95%.
Holloway Mine ("Holloway")
Holloway produced 7,734 ounces of gold entirely from the Smoke Deep Zone. Production increased by approximately 30% compared to Q3 2014 as a result of higher tonnes, higher head grades, and stope sequencing. The head grade during the quarter was 13% higher than Q3 2014, and the mill recovery rate of approximately 92% was in line with expectations. Based on current information, production at Holloway is expected to continue into Q4 of 2015.
Holt Mill, Toll MillingDuring Q4 2014, a total of 28,179 tonnes of ore were processed from toll milling operations. Revenue generated from toll milling operations is expected to have a positive impact on the overall processing costs for the quarter.
2014 Fourth Quarter and Year End Financial Results Conference CallThe Company invites you to participate in the upcoming conference call to discuss its fourth quarter and year-end financial and operating results for 2014. The conference call will take place on Friday, February 13, 2015 at 10:00 AM EST. SAS' fourth quarter and year-end 2014 financial results will be released after market on Thursday, February 12, 2015.
Participants may join the call via webcast at www.sasgoldmines.com or call in toll free at 1-866-212-4491. A playback of the conference call will be available via the website and will be posted within 24 hours of the call.
Qualified PersonProduction at the Holt and Holloway mines, processing at the Holt Mill, and mine development and evaluation activities at the Taylor Project 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.
About SASSAS (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 and Holloway 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.
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 its 2015 production guidance, continued production from the Holloway Mine in 2015, the impact of toll milling on processing costs and the timing of a production decision on Taylor.
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