SAS reports additional drilling results from its 2011 exploration program and provides overview of 2012 program
TORONTO, Feb. 1, 2012 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ('SAS' or the 'Company') provides a summary of its 2011 exploration program and reports results from the remaining 2011 drill programs at the Ghost Zone near the Holloway-Holt mines, and at the Hislop North Project; and announces its 2012 plans for exploration in the Timmins Camp.
HIGHLIGHTS
-- Spent $11 million in 2011 and drilled a total of 69,000 metres.
-- Advanced the Taylor Project towards the pre-feasibility stage,
which will include an updated resource for the West Porphyry
Zone; and finalizing a first resource estimate for the Deep
Thunder Zone.
-- Confirmed geological model to test new targets near
Holloway-Holt.
-- Commenced drilling on the Ghost Zone, with recent results of
2.96 g/t Au over 10.2 metres (including 4.56 g/t Au over 4.0
metres) and 7.69 g/t Au over 20.2 metres (including 10.05 g/t
Au over 4.0 metres, 13.25 g/t Au over 3.3 metres, and 9.80 g/t
Au over 2.5 metres).
-- Commenced drilling on the Hislop North Project with initial
results of 12.41 g/t Au over 9.0 metres; including 16.20 g/t Au
over 6.0 metres.
-- 2012 Exploration budget of $7 million focussed on targets near
the existing operations.
'We are very excited to kick off our 2012 exploration program', said Jacques Perron, President & CEO of SAS. 'We commenced our exploration efforts in 2010, so we are still in the early stages; however, we have a number of new discoveries that have the potential to turn into profitable ore bodies. We have quite a large land position and as we continue to develop and perfect our geological model, we have been able to better target our efforts in order to reap the best rewards. '
2011 Program Summary
The 2011 exploration program was focussed on areas near the Company's Holloway-Holt mines, and on advancing the Taylor Project. SAS drilled a total of 69,000 metres with the majority of surface drilling spent on the Deep Thunder Zone and at the Taylor Project.
At the Holloway Mine, continued drilling of the Smoke Deep, Blacktop East, and Deep Thunder zones confirmed the validity of the geological model which was also used to target the Ghost Zone. This model will assist with identifying new targets near the Holloway-Holt mines, which are considered to have the greatest exploration potential within the Company's current exploration projects. With extensive drilling conducted in 2011, SAS is currently finalizing a resource estimate on the Deep Thunder Zone at the Holloway Mine. The mineral resources will be included as part of the Company's annual Resource/Reserve update expected before the end of February.
The 2011 drilling program conducted at the Taylor Project provided greater confidence in the continuity of the gold mineralization and identified the potential for new zones of mineralization at depth. The updated resource estimate was completed at the end of 2011, and the Company is finalizing a pre-feasibility study, expected before the end of the first quarter.
Ghost Zone
The Ghost Zone ('Ghost') is located approximately 800 metres east of the Holt mine workings along the Ghostmount Fault Zone. Limited historical drilling returned 7.21 g/t Au over 7.1 metres and 4.60 g/t Au over 19.0 metres, including 11.19 g/t Au over 4.0 metres. Gold mineralization is associated with silicified and albitic mafic volcanics with minor quartz veining and less than 5% disseminated pyrite.
Continued drilling at Ghost was designed to expand the intercepts previously reported: 5.48 g/t Au over 12.0 metres, and 10.60 g/t Au over 8.1 metres, including 22.65 g/t Au over 2.6 metres (see press release dated September 19, 2011). All of the holes intersected the zone of mineralization with varying widths and alteration intensity. The wider zones of alteration consisting of silicified and albitic mafic volcanics occurred in the footwall of the Ghostmount fault.
The recent discovery of high grade values (including visible gold in GZ11-006, which returned 32.00 g/t Au over 0.8 metres) in the hangingwall of the Ghostmount fault provides a previously untested mineralized horizon that will require further investigation.
The highlights of the 2011 drilling program are summarized in the table below:
Ghost Zone 2011 Drilling Program
Intersection(Metres) CoreLength(2) Gold Grade(3)
Hole Number From To Metres Gramsper Tonne (g/t)
(1)GZ11-001 563.7 573.7 10.1 3.54
(1)GZ11-002B 513.0 525.0 12.0 5.48
including 514.5 520.5 6.0 9.87
(1)GZ11-008 499.0 509.2 10.2 2.96
(1)GZ11-003 558.2 566.2 8.1 10.60
including 562.5 565.1 2.6 22.65
(1)GZ11-003 576.4 577.8 1.4 19.80
GZ11-006 410.3 411.2 0.8 32.00
GZ11-009 556.3 560.1 3.8 3.34
including 556.3 558.0 1.7 4.62
GZ11-012 547.7 567.9 20.2 7.69
including 547.7 551.7 4.0 10.05
including 554.6 557.9 3.3 13.25
including 561.0 563.5 2.5 9.80
Note:
((1))Denotes previously reported value. ((2) )All lengths are reported as core length as true width is not available at this time.
((3))Gold grades cut to 32.00 g/t Au.
Hislop North Project
SAS utilized one drill to test along its northern boundary of the Hislop property in order to follow-up on recent exciting results from its neighbours, which identified north-south structures with a potential of extending onto SAS's property. This is a structurally complex area as the Porcupine Destor Fault-Zone, the main structure in this region, turns southwards and splits into numerous splay faults.
Seven holes were drilled as part of this initial test program and all have intersected anomalous values. The most significant intersection to date is in hole H11-007 which returned 12.41 g/t Au over 9.0 metres in a brecciated albitic mafic volcanic with significant quartz veining. The interpretation remains open in all directions and follow-up drilling to further define the zone is ongoing.
The highlights of the 2011 drilling program are summarized in the table below:
Hislop North Project 2011 Drilling Program
Intersection (Metres) Core Length(1) Gold Grade(2)
Hole Number From To Metres Grams per Tonne (g/t)
H11-002 518.4 519.5 1.1 11.95
H11-004 210.6 211.1 0.5 6.42
H11-004 212.7 213.2 0.5 7.36
H11-004 432.2 433.2 1.0 16.68
H11-007 211.0 220.0 9.0 12.41
Note:
((1))All lengths are reported as core length as true width is not available at this time. ((2))Gold grades cut to 32.00 g/t Au.
2012 Exploration Program
SAS has budgeted a minimum of $7 million on its 2012 exploration program, which will focus on targets that lie near the existing operations. A surface drilling program at the Holt Mine will focus on testing the down plunge extension of Zone 4 (which currently hosts approximately half of the reserves at Holt). Once the exploration drift at Holloway's Smoke Deep Zone is complete (expected towards the end of Q2), underground drilling will commence on the eastern down dip extension of the Smoke Deep Zone. Follow up surface drilling will also continue at the Ghost and Deep Thunder zones, and preliminary drilling will take place at the Lightning Vein which lies further to the east. Additional surface drilling has commenced on the Hislop North Project, and regional grass roots targets will receive some preliminary test drilling throughout the year as well.
Mike Michaud, VP of Exploration, recently resigned in order to pursue an alternate career path. Mr. Michaud played a key role in early stage targeting and setting up the exploration program at SAS. We thank him for his commitment and wish him all the best in his future career. Craig Todd, the Company's Exploration Manager, will be supervising the programs and will continue to manage the exploration team as before.
Drilling, Assaying and QA/QC
Surface drilling was completed by Orbit Garant. Analytical work for the Ghost Zone was performed by Laboratoire Expert Inc., lab in Rouyn-Noranda, and SGS Canada Inc., in Toronto was utilized for the Hislop North Project. SAS utilized a quality control/quality assurance program consisting of a number of sample standards and blanks that were inserted into the sample string, which represented approximately 5% of the total sample population.
Qualified Person
The exploration programs on the Company's various mineral properties are under the supervision of Craig Todd, P. Geo, the Company's Exploration Manager. Mr. Todd is SAS' 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, 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 extent, timing, objectives and interpretation of exploration drilling programs to be conducted by the Company at the Ghost, Blacktop East and Deep Thunder zones at the Holloway and Holt Mine, and Hislop North Project; the time the Company's Resource/Reserve update; the time to complete the pre-feasibility study for the Taylor Project; and completion of the exploration drift and the commencement of drilling at the Smoke Deep Zone;. 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 reserves and resources, fluctuations in gold prices and exchange rates, changes in laws or regulations, the risks of obtaining necessary licenses and permits, 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 reserve and 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 2012 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.
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 & Administration
Email:jperron@sasgoldmines.comEmail:bau@sasgoldmines.com