SAS Provides Update on Smoke Deep Definition Drilling Program at the Holloway Mine
TORONTO, Dec. 5, 2011 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ('SAS' or the 'Company') is pleased to provide additional results from the definition drilling program at the Smoke Deep Zone ('Smoke Deep') located at the Holloway Mine. The 20,000 metre drill program commenced in May of this year and is expected to be completed by year end.
Highlights of Recent Drilling:
-- Hole 780-541 3.52 g/t Au over 17.1 metres
-- Hole 780-575 9.23 g/t Au over 4.1 metres
-- Hole 780-609 6.63 g/t Au over 10.3 metres
including 22.41 g/t Au over 1.0 metres
-- Hole 780-624 5.51 g/t Au over 8.4 metres
including 20.20 g/t Au over 0.5 metres
-- Hole 780-632 5.06 g/t Au over 6.2 metres
Note: All lengths are reported as true width. Assays capped at 25.00 g/t Au.
To view a long section of Smoke Deep for location of holes see attachment.
SD-LongSection-05Dec11.pdf
The 20,000 metre definition drilling program, which is designed to reduce the drill spacing from approximately 25 by 50 metres to approximately 15 by 15 metres, will be used to update the mineral resources and reserves at year end. The Smoke Deep resource was based on 32 underground holes drilled from the 550m Level drift. Thus far, 117 drill holes from the 780m Level decline ramp have been completed and continue to return encouraging results that are in agreement with earlier drilling; additionally, the drilling appears to have expanded the zone of higher grade gold mineralization within the low grade envelope.
Smoke Deep is situated 1km east of the Lightning Zone and approximately 1km west of the Blacktop Zone. Gold mineralization in the Smoke Deep Zone occurs at the geological contact between mafic volcanics to the south and ultramafic volcanics to the north.
Gold mineralization varies in thickness from less than 1 metre up to approximately 20 metres true thickness and the overall zone extends approximately 500 metres east-southeast along strike, and dips steeply to the south 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.
Smoke Deep has an Inferred Mineral Resource of 747,000 tonnes grading 5.83 g/t Au, totalling 140,000 ounces of gold. A $6 million development program approved in June 2010, involved the completion of a 1.2 km underground ramp from the neighbouring Lightning Zone in order to provide production access to Smoke Deep as well as additional exploration access where the zone remains open along strike, down dip and eastwards down plunge.
'We are encouraged by the results from the ongoing definition drilling program at Smoke Deep, and are pleased to announce that production from this zone has commenced earlier this quarter', said Jacques Perron, President & CEO of SAS. 'We continue to potentially expand the known mineral resources in areas where we have limited drill information, and these recent results continue to be positive. We will ramp up production from Smoke Deep over the next few quarters and look forward to commencing approximately 5,000 metres of exploration diamond drilling early in the new-year to test the eastern down plunge extension of the zone.'
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
HoleNumber From To Metres Grams per Tonne
(g/t Au)
780-541 177.0 198.4 17.1 3.52
780-552 89.0 99.8 10.8 2.54
780-575 80.4 84.5 4.1 9.23
780-579 101.5 105.4 3.9 6.52
including 104.5 105.4 0.9 17.34
780-587 109.8 112.9 3.1 8.81
780-592 139.9 146.8 5.5 5.03
including 141.8 142.8 1.0 18.66
780-594 91.7 102.0 10.3 3.38
780-608A 96.0 99.2 1.6 8.33
780-609 85.8 96.1 10.3 6.63
including 88.0 89.0 1.0 22.41
780-610 75.5 79.5 4.0 5.05
780-616 92.4 101.1 8.7 4.63
including 99.4 100.8 1.7 11.92
780-623 86.0 94.0 6.4 4.29
780-624 86.9 95.3 8.4 5.51
including 92.7 93.2 0.5 20.20
780-626 66.0 70.0 4.0 7.11
including 68.0 69.0 1.0 15.73
780-631 88.8 91.8 2.4 7.35
780-632 82.8 89.0 6.2 5.06
780-634 74.8 78.5 3.7 7.10
780-639 91.3 103.7 9.9 3.88
Note: All lengths are reported as true width. Assays capped at 25.00 g/t Au.
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 as well as production levels at the Smoke Deep Zone and the timing thereof; and continued exploration at the Smoke Deep Zone and the timing and results thereof, including the completion of a mineral reserve estimate and 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.
SOURCE St Andrew Goldfields Ltd.
PDF with caption: 'Long section of Smoke Deep for location of holes'. PDF available at: http://stream1.newswire.ca/media/2011/12/05/20111205_C3537_DOC_EN_7803.pdf
St Andrew Goldfields Ltd.
CONTACT: about St Andrew Goldfields Ltd., please contact:
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 Ben Au
President & CEO CFO, VP
Finance &
Email:jperron@sasgoldmines.com
Administration
Email:bau@sasgoldmines.com