St Andrew Goldfields Ord STADF

RE: SAS & Wheaton model and MOE4

[Monedas1]

Benson, good to see you back. I liked the Aquarius purchase because of the mill feed. I understood that SAS shut down previously because the ore from the Stock Mill complex including Clavos, Taylor and Stock was not sufficient to efficiently feed the mill operations. That is why SAS spent the effort to identify additional resoures from the Stock Mill complex before starting production again and hence the delay until management was very sure. Given the Aquarius contribution, producing sufficient volume will no longer a potential efficiency problem at the mill and capacity could even be expanded. The Aquarius deal then serves to significantly increase the probability that SAS will indeed start production in January of 2006 assuming that the deal closes with Kinross on December 31, 2005. A poster on Stockhouse said that the local paper had employment adds and now we know that the mining permit has been submitted [thanks MOE4]. The grade is sufficient for open pit and I believe that the Kinross feasibility study said that Aquarius was profitable at a gold price above $325 per ounce. I would hope a production announcemnet in early January 2006. Also, has anyone herd about SAS updating their web site? IR told me that this new look was in progress and better information and access would help the stock when the production announcement happens.