TORONTO, Oct. 8, 2014 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report third quarter 2014 production of 21,166 ounces of gold from its Holt, Holloway and Hislop mines. During the quarter, the Company's annual production guidance for 2014 was increased to between 85,000 – 95,000 ounces of gold.
"Third quarter production was as anticipated. The Company is on pace to meet revised guidance with the operations performing soundly. The contribution from the recently discovered down plunge trend of the Smoke Deep Zone, at the Holloway Mine, has certainly encouraged mine exploration efforts. Additionally, the Holt Mine continues to provide the Company with reliable lower cost production and this trend is likely to endure well into the future", said Duncan Middlemiss, President & Chief Executive Officer of SAS. "In addition, our advanced exploration program at Taylor is well positioned for the extraction of a 21,000 tonne bulk sample in the fourth quarter."
Q3 2014 Production Results
|
Tonnes
Milled
|
Head Grade
(g/t Au)
|
Average Mil Recovery
Rate
|
Gold Produced
(ounces)
|
|
Holt
|
101,826
|
4.82
|
95.5%
|
15,087
|
|
Holloway
|
47,651
|
4.27
|
91.8%
|
5,999
|
|
Hislop
|
1,747
|
1.76
|
81.2%
|
80
|
|
Q3 2014 Production
|
151,224
|
4.61
|
94.4%
|
21,166
|
|
YTD 2014 Production
|
534,482
|
4.28
|
92.5%
|
68,033
|
Holt Mine ("Holt")Holt produced 15,087 ounces of gold derived from Zone 4 on the 925m Level and 1075m Level mining areas and Zone 6 on the 775m Level. Head grade of 4.82 g/t Au, and mill recoveries of approximately 95% were both in line with expectations.
Holloway Mine ("Holloway")Holloway produced 5,999 ounces of gold from the Smoke Deep Zone. The head grade of 4.27 g/t Au and mill recovery rate of approximately 92% were both in line with expectations. Diamond drilling in this zone continues to garner positive results. The development of the Smoke Deep Zone at depth continued during the quarter reaching the 945m Sublevel.
Hislop Mine ("Hislop")Hislop produced 80 ounces of gold in Q3 2014, from processing 1,747 tonnes of the remaining ore stockpile at the Holt Mill, which had an average grade of 1.76 g/t Au.
Holt Mill, toll millingThe Company processed a total of 34,981 tonnes from toll mill operations. Revenue generated from toll mill operations is expected to have a positive impact on the overall processing costs for the quarter.
Advanced Exploration Program - Taylor Project UpdateUnderground exploration activities continued during the quarter. A total of 601 metres of lateral development and 44 metres of vertical development were completed during Q3 2014. The program remains on schedule to reach the area of the second bulk sample in Q4 2014.
2014 Third Quarter Earnings and Conference CallThe Company will release its 2014 third quarter results after market close on Wednesday, November 12, 2014, and will hold a conference call on Thursday, November 13, 2014, at 10:00 AM EST. The Company invites you to participate in the upcoming conference call to discuss its third quarter financial and operating results for 2014. 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. For more information regarding the conference call please visit the SAS website.
Qualified PersonProduction 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.
About SASSAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive land package in the Timmins mining district, northeastern 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 produced approximately 100,000 ounces of gold in 2013. The Company is also advancing the Taylor Project and is conducting aggressive exploration 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 achieving its 2014 production guidance, continued lower cost production from Holt, the impact of toll milling on production costs and the completion of a bulk sample at the Taylor Project.
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, including that the gold price will 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.