SAS Provides Update on Development and Definition Drilling Program at the Smoke Deep Zone
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TORONTO, Sept. 15, 2011 /CNW/ --
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES
TORONTO, Sept. 15, 2011 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ('SAS' or the 'Company') is pleased to provide an update on the
development and definition drilling program at the Smoke Deep Zone
('Smoke Deep') located at the Holloway Mine. Ramp development commenced
in July 2010, and to date, over 2,100 metres of lateral development has
been completed. The definition drilling program commenced on the
western portion of the zone in May of this year, and since that time
over 6,000 metres of drilling has been completed with another 10,000
metres remaining in order to complete the initial phase of drilling.
Highlights of Recent Drilling:
- Hole 780-515 9.37 g/t Au over 6.1 metres
including 15.52 g/t Au over 3.3 metres
- Hole 780-522 3.74 g/t Au over 21.1 metres
including 5.78 g/t Au over 10.1 metres
- Hole 780-523 6.10 g/t Au over 6.4 metres
- Hole 780-527 3.17 g/t Au over 18.7 metres
including 6.55 g/t Au over 4.7 metres
- Hole 780-534 3.88 g/t Au over 18.7 metres
including 7.03 g/t Au over 4.3 metres
- Hole 780-573 6.37 g/t Au over 10.4 metres
Note: All lengths are reported as true width, Assays cut to 25g/t Au
The Smoke Deep Zone is situated approximately halfway between the
Lightning Zone ('Lightning') to the east and the Blacktop Zone to the
west. Gold mineralization in the Smoke Deep Zone occurs adjacent to the
geological contact of mafic volcanics to the south and ultramafic
volcanics to north. Generally, alteration and its associated gold
mineralization occur within the mafic volcanics that have experienced
significant alteration consisting of silica, sericite, hematite and
albite with lesser chlorite, ankerite and carbonaceous minerals.
Gold mineralization, which is directly associated with sulfide content,
varies in thickness from less than 1 metre up to approximately 20
metres true thickness, extends approximately 500 metres east-southeast
along strike and dips steeply to the south at approximately 80 degrees
over a vertical distance of approximately 350 metres. Several
sub-parallel zones of higher grade gold mineralization (i.e. > 6 g/t
Au) commonly define a moderate east dipping plunge.
In June 2010, the Company announced an inferred mineral resource
estimate (747,000 tonnes grading 5.83 g/t Au totalling 140,000 ounces
of gold) and made a decision to advance its efforts at Smoke Deep by
driving a 1.2 km underground ramp from the 730m level at Lightning to
access the zone, in order to conduct systematic definition drilling and
provide an exploration platform at the 870m level elevation where the
zone remains open along strike, down dip and eastwards down plunge.
Definition drilling commenced in May 2011, and the majority of drilling
has been conducted on the western portion of the zone as ramp
development to the east is still ongoing. The current drilling is
designed to reduce the drill spacing from approximately 25 by 50 metres
to approximately 15 by 15 metres. Recent drilling results along the
western margin of the zone have returned similar gold grades with
previous drilling and appear to have returned marginally greater
widths. Drilling is now focussing on the eastern margin of the zone.
Since August 2011, ore development has commenced on the 825m sublevel
and the 845m sublevel and further confirmed the zone's similarities to
that of the Lightning Zone, which was the primary ore zone for the
Holloway Mine. A raise bore has been mobilized to the 550m level drift
in order to excavate a 320m long 2.1m diameter ventilation raise
required for the zone's development. This raise is scheduled to be
completed in November and will allow for additional mining crews to
work within the zone. Production from Smoke Deep is on track to begin
during the fourth quarter of 2011. The Company intends to update the
mineral resources for the Smoke Deep Zone at year end.
Selected drilling results from the definition drilling program are
summarized in the table below:
Summary of Smoke Deep 2011 Drilling Program - Phase I
Intersection (Metres) True Width Gold Grade
Hole Number From To Metres Grams per Tonne (g/t)
780-512 174.1 185.2 11.1 3.49
780-515 75.2 81.3 6.1 9.37
including 75.2 78.5 3.3 15.52
780-518 135.4 136.2 0.8 20.28
including 89.7 93.9 4.2 8.54
780-522 65.0 86.1 21.1 3.74
including 65.0 75.1 10.1 5.78
780-523 69.0 75.4 6.4 6.10
780-527 76.5 95.2 18.7 3.17
including 90.5 95.2 4.7 6.55
780-528 73.3 79.2 5.9 6.55
780-531 168.7 178.5 9.8 3.90
including 168.7 170.1 1.4 16.56
780-534 68.5 87.2 18.7 3.88
including 75.1 79.4 4.3 7.03
780-569 63.4 68.3 4.9 5.29
780-570 66.3 70.9 4.6 6.37
780-571 56.9 64.5 7.6 7.45
780-573 69.0 79.4 10.4 6.37
Note: All lengths are reported as true width, Assays cut to 25g/t Au
'We are very pleased with the recent results from the Smoke Deep Zone,
and are happy to announce that development is moving ahead on track',
said Jacques Perron, President & CEO of SAS. 'We had limited drill
information on the western portion of the zone, and these recent
results are very encouraging. We remain on target to bring the zone
into production in the fourth quarter of this year and are looking
forward to recommencing the exploration efforts on the eastern portion
of the zone once the ramp development has been completed.'
Drilling, Assaying and QA/QC
Underground drilling at the Smoke Deep Zone was completed by Forage
Azimut Inc. Analytical work was performed by the Company's in-house
laboratory with check samples sent to Swastika Laboratories Ltd., for
quality control.
Qualified Person
The development programs at the Holloway Mine are under the supervision
of Duncan Middlemiss, P.Eng, the Company's Vice President of
Operations, who is the qualified person as defined by NI 43-101 and who
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,
northeastern Ontario, which lies within the Abitibi greenstone belt,
the most important host of historical gold production in Canada. SAS is
focussed on developing its assets in the Timmins Camp, with three
producing mines and aggressive exploration activities 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. Specifically this news release contains
forward-looking information regarding the ongoing development program
at the Smoke Deep Zone and the expected start of production from this
zone, and the timing thereof; and the continued exploration on the
Smoke Deep Zone and the timing and results thereof; including the
completion of an updated 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, uncertainties relating to the
interpretation of the geology, continuity, grade and size estimates of
the mineral resources, unanticipated operational or technical
difficulties which could escalate operating and/or capital costs,
fluctuations in gold prices and exchange rates, insufficient funding or
delays or inability to raise additional financing as required on
satisfactory terms, changes in laws or regulations, changes in general
economic conditions and changes in conditions in the financial markets.
Such forward looking information is based on a number of assumptions,
including but not limited to, the level and volatility of the price of
gold, the accuracy of resource estimates and the assumptions on which
such estimates are based, the ability to achieve capital and operating
cost estimates, the sufficiency of the Company's cash flows and
reserves to achieve its exploration objectives, the ability to attract
and maintain adequate skilled personnel to operate its mines and to
conduct its exploration programs, and no significant decline in 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 and 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/September2011/15/c3414.html
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com
Suzette N Ramcharan Manager, Investor Relations Email: sramcharan@sasgoldmines.com | ||
Jacques Perron President & CEO Email:jperron@sasgoldmines.com | Ben Au CFO, VP Finance & Administration Email:bau@sasgoldmines.com |