Retraction of production estimatesSt Andrew to File Amended and Restated Preliminary Rights Offering Prospectus and Retracts Production Estimates for Its Timmins Development and Mining Operations
OAKVILLE, ONTARIO--(CCNMatthews - March 28, 2007) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") announces that, in response to comments from the Ontario Securities Commission pursuant to its review of the Company's preliminary rights offering prospectus dated February 26, 2007, the Company is retracting all previously announced Company projections of proposed tonnes mined, ounces produced or economic projections (collectively, the "Projections") with respect to the Company's Clavos, Taylor, Hislop and Aquarius properties, Stock Gold Complex and Holloway-Holt Gold Mine (collectively, the "Timmins Properties"). The retraction is being made because the Projections are management estimates only and are not supported by independently prepared technical reports under National Instrument 43-101 ("NI 43-101"). At the present time investors should not rely on the Projections.
The Company intends to commission independent qualified persons to prepare updated NI 43-101 technical reports on the Timmins Properties with a view to commenting on and verifying the Projections. Given the current demand for independent qualified persons, the Company does not expect updated technical reports on the Timmins Properties to be available until summer 2007. Prior to that time, however, the Company intends to file on SEDAR an updated technical report in respect of the Company's Clavos and Hislop properties. This updated technical report will contain revised resource estimates, but will not contain information to verify the Projections.
The Company also intends to file on SEDAR an amended and restated preliminary rights offering prospectus removing all references to the Projections. Additionally, the Company has shut down its website so that it can remove all references to the Projections.
St Andrew is a gold mining and exploration company producing gold from the Stock Gold Complex in Timmins, Ontario and the Nixon Fork Gold Mine in Alaska. St Andrew anticipates making a gold production decision with respect to its Holloway-Holt Gold Mine in the Timmins Mining Camp in the second quarter of 2007. St Andrew controls a very large land position in the Timmins Mining Camp, an extensive land position at Eskay Creek in northern British Columbia and land positions around Nixon Fork in the Kuskokwim-Tintina Mining Camp in Alaska. St Andrew also holds an approximate 50.2 % equity interest in New Zealand based gold explorer, Glass Earth Limited (TSX VENTURE:GEL) and an approximate 12.6 % equity interest in Apollo Gold Corporation.
For further information about St Andrew Goldfields Ltd., please contact Investor Relations toll-free at 1-800-463-5139 or email investor@standrewgoldfields.com.
FORWARD LOOKING STATEMENTS
The information in this release may contain forward-looking information under applicable securities laws. 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 implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. St Andrew 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.