SAS reports record fourth quarter production results of 25,829 ounces of gold and achieves 2012 production of 95,604 ounces of gold
TORONTO, Jan. 10, 2013/CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report record fourth quarter 2012 ("Q4 2012") production of 25,829 ounces of gold from its Holt, Holloway and Hislop mines achieving the mid-range level of its 2012 guidance for a total of 95,604 ounces produced during 2012.
"We are very proud of our team for achieving our 2012 production guidance", said {C}Jacques Perron{C}, President and CEO of SAS. "Holt has ramped up nicely throughout the year, and we expect additional improvements during 2013. We look forward to receiving the complete results from the initial bulk sample at Taylor, which we hope to receive at the beginning of the second quarter. We will continue to work towards meeting our 2013 goals and objectives."
Q4 and Year End 2012 Production Results
| | Tonnes
Milled | Head Grade
(g/t Au) | Average Mill
Recovery Rate | Gold Produced
(ounces) |
| Holt | 89,901 | 5.51 | 94.7% | 15,082 |
| Holloway | 46,606 | 3.90 | 89.7% | 5,240 |
| Hislop | 95,516 | 2.22 | 80.8% | 5,507 |
| Q4 2012 Production | 232,023 | 3.83 | 90.4% | 25,829 |
| 2012 Production | 897,509 | 3.64 | 90.9% | 95,604 |
Holt Mine ("Holt")
Holt produced 15,082 ounces of gold derived from Zone 4 from the 925m Level and the 1075m Level mining areas, as well as Zone 6. Total lateral development advance was above expectations for the quarter and the year. Holt produced at approximately 1,000 tonnes per day during the quarter. Construction of the new ore pass between the 1075m Level and 925m Level is substantially complete with commissioning expected to be finalized by mid-January. This will increase production capacity at Holt. The head grade during the quarter was 5.51 g/t Au. Mill recoveries were at their expected level of approximately 94%.
Holloway Mine ("Holloway")
Holloway produced 5,240 ounces of gold mostly from the Smoke Deep Zone with minor contributions from the Lightning Zone. The mill recovery rate of approximately 90% exceeded the Company's forecast due to improved mineralogical conditions in the areas mined during the quarter. Development crews continue to provide access for additional areas within the Smoke Deep Zone in order to sustain the production profile for the mine. Underground definition and exploration drilling continued throughout the quarter with positive results.
Hislop Mine ("Hislop")
Hislop produced 5,507 ounces of gold in Q4 2012. The head grade averaged 2.22 g/t Au, which was again above the reserve grade for the mine (1.88 g/t Au). Mill recovery for Hislop during the quarter averaged approximately 80%, due to the processing of a significant amount of green carbonate-syenitic ore where the size fraction of the gold was finer than usual, thereby challenging for recovery.
Taylor Project ("Taylor")
The extraction of a 15,000 tonne underground bulk sample at the West Porphyry Zone at Taylor was completed in December. The Company is sending the material through a sampling tower which is used to generate a representative sample. SAS expects to process the bulk sample during the first quarter of 2013. Results of the bulk sample program will be released once the material has been processed and all the data has been received and reviewed.
Qualified Person
Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations as well as the bulk sample program at Taylor are being conducted under the supervision of Duncan Middlemiss, P.Eng, the Company's COO and Vice President of Operations. Mr. Middlemissis a qualified person as defined by NI 43-101, and has 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 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