SAS provides exploration update on Zone 4 deep drilling from the Holt Property

• 4.02 g/t Au over 37.3 metres including 7.64 g/t Au over 11.3 metres
• 21.37 g/t Au over 21.7 metres (18.71 g/t Au cut)  

TORONTO, Jan. 14, 2015 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to provide a year-end exploration update which includes assay results from both its deep surface drill  and 1055m Sublevel underground programs which targeted  Zone 4 and South Zone ("Zone 4") mineralization at its 100% owned Holt Mine ("Holt").

Highlights of Drilling Results

• WE14-002         5.09 g/t Au over 18.0 metres including 8.25 g/t Au over 7.8 metres  
• ME 98-05C        4.02 g/t Au over 37.3 metres including 7.64 g/t Au over 11.3 metres 
  (wedge)
• 1055-155            21.37 g/t Au over 21.7 metres (18.71 g/t Au cut)
  (underground)
• 1055-159            20.78 g/t Au over 10.9 metres (16.89 g/t Au cut) 
  (underground)

Notes: True widths for the underground holes are approximately 60% of core length. Surface drillhole core intercepts are reported as core length as true widths are not known at this time.  Assays are cut to 25.00 g/t Au.

"These recent drill results immediately to the west of the Holt Mine are very significant.", said Duncan Middlemiss, President and Chief Executive Officer of SAS.  "Not only do they provide the potential to increase the Holt Mine resources, but the proximity of these mineralized intercepts to the existing underground infrastructure at Holt bodes very well for the longevity of the Holt asset.  We are very excited about the potential of this new zone and look forward to providing further updates of the drilling program throughout 2015."

In mid-2014, SAS commenced a deep surface drilling program to test for multiple flat-lying, en-echelon mineralized zones and ultimately targeting mineralization associated with the westerly strike projection of Zone 4 (the most significant production horizon being mined at Holt). 

Refer to Figure 1.

In October 2014, SAS accelerated its surface drill program using a total of four (4) drills, and commissioned an underground drill on the 1055m Sublevel, to follow up on a surface hole WE14-001, which had intercepted Zone 4 and returned assay results of 9.97 g/t Au over 11.2 metres (9.28 g/t Au cut) commencing at a downhole depth of 1,199 metres, including 19.45 g/t Au (17.77 g/t Au cut) over 4.6 metres (refer to SAS press release dated October 9, 2014 available under the Company's profile on SEDAR at www.sedar.com or on the SAS website at www.sasgoldmines.com). The mineralized intercept which occurred at the 1050m elevation, was associated with a flat-lying, shallow dipping zone situated approximately 200 metres north of the Ghostmount Fault Zone, a major structural feature in the area.

Up to December 31, 2014, a total of 19 surface holes and associated wedge cuts totaling approximately 15,100 metres and 11 underground holes totaling 1,450 metres, were completed. Surface drilling also extended and wedged off of two historical holes, one drilled in 1998, and the other in 2012.  Hole ME98-05, which stopped short of Zone 4 mineralization, was wedged above (ME98-05B) and returned assays of 6.71 g/t Au over 5.7 metres. A subsequent wedge, ME98-05C intercepted the same zone approximately 40 metres north of ME98-05B, returned 4.02 g/t Au over 37.3 metres including 7.64 g/t Au over 11.3 metres. Wedge cuts were also obtained on surface hole Z4-12-002 which yielded additional assay intercepts on the Zone 4 extension which returned 3.77 g/t Au over 14.3 metres including 5.95 g/t Au over 4.3 metres and 7.95 g/t Au over 2.6  metres.  A diagram showing the positions of the drill holes is found in Figure 2 (below).

The mineralized zones (which are readily recognizable in core) consist of a quartz breccia zone containing approximately 3-5% disseminated pyrite hosted within a sericitic and hematite altered mafic volcanic host rock.

 These drill intercepts have extended the known mineralized strike length of Zone 4 by approximately 800 meters west of the 1075m Level drift ( the closest development access point) and some 600 metres west of SAS's historical surface drilling. Assay results from these drill programs will be compiled and used in the generation of an updated Mineral Resource estimate for the Zone 4 west extension. Recent drill results from the 1055m Sublevel which were fanned out to the west and within the resource envelope are expected to upgrade a previously Inferred Resource to an Indicated Resource.  Drilling on this target continues with numerous samples outstanding at the assay laboratory at this time.

Zone 4 mineralization consists of multiple, en-echelon shallow dipping zones (20° South) which are situated between the McKenna Fault to the north and the Ghostmount Fault Zone to the south. This recent drill program has tested only the southern section of the corridor to date.  In 2015, a total of 3 widely spaced holes are planned to follow-up and test for Zone 4 mineralization associated with the McKenna Fault zone (North side of the corridor).                

Refer to Figure 2 for an isometric view of Zone 4 surface and underground drill intercepts.

Table 1: Holt Zone 4 surface drill program assay results

Notes:  All lengths are reported as core length as true width is not available at this time. Assays are cut to 32.00 g/t Au.

In November 2014, an underground drill was mobilized to the west end of the 1055m Sublevel. A series of holes were fanned to the west to intercept the Zone 4 target above the level. Noteworthy intercepts were returned in holes 1055-155 which included 21.37 g/t Au over 21.7 metres (18.71 g/t Au cut) and in hole 1055-159 which returned 20.78 g/t Au over 10.9 metres (16.89 g/t Au cut). Recent 1055m Sublevel underground drill program assay results for Zone 4 are summarized in the table 2 below. 

Table 2: Holt Zone 4 1055m Sublevel underground drill program assay results

Notes: All lengths are reported as core length. True width is approximately 60% of core length. Assays are cut to 25.00 g/t Au.
NSV = no significant values

Drilling, Assaying and QA/QC

Surface drilling at Zone 4 was performed by Orbit Garant Drilling based in Val d'Or QC. Analytical work was performed by Lab Expert Inc. located in Rouyn-Noranda, QC. Samples consisted of half sawn NQ caliber core. Gold analysis was conducted using 30 gram samples (1AT portions) with gold grades determined by standard fire assay preparation and a gravimetric finish.  Underground drilling at Zone 4 was performed by Boreal / Azimut Drilling based in Val d'Or QC. Analytical work was performed at SAS's Holt mine assay lab and at Swastika Labs located in Swastika, ON. A check sampling program was conducted using drill program sample rejects at Cattarello Assay lab located in Timmins, ON. Underground samples consisted of whole BQ caliber sized core. Gold analysis was conducted using 30 gram samples (1AT portions) with gold grades determined by standard fire assay preparation and a gravimetric finish. 

SAS employs an industry accepted QA/QC program consisting of certified reference standards and blanks that are inserted into the sample stream, which represent approximately 5% of the total sample population.

Qualified Person

The exploration programs on the Company's various mineral properties are under the supervision of Doug Cater, P. Geo, the Company's VP, Exploration.  Mr. Cater is 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 and Holloway mines. The Company is also advancing the Taylor Project and is conducting various exploration programs 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 the expansion of mineralized zones at Holt, the completion of additional drilling at Holt and the timing thereof and the completion of an updated NI 43-101 compliant Mineral Resource estimate.

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 exploration and 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, the sufficiency of the Company's cash flow and financial reserves to carry out its planned exploration programs, the ability to attract and retain qualified personnel to conduct its exploration programs and operate its mines 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.

SOURCE St Andrew Goldfields Ltd.