SAS DECLARES COMMERCIAL PRODUCTION AT ITS HOLT MINE
posted on
Apr 13, 2011 11:08AM
A gold mining, and exploration company with an extensive land package in the Timmins mining district
cnw
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES/
TORONTO, April 13 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce that the Holt Mine has
now achieved commercial production after operating for 90 days at an
average daily throughput of between 450 to 500 tonnes per day ("tpd").
Operational statistics will be provided in the Company's upcoming
scheduled first quarter 2011 earnings release on or about May 6, 2011.
The Holt Mine and Mill are located on the eastern portion of the
Company's extensive land package in the Timmins Mining District.
During the second half of 2010 the Company commenced pre-production
activities at the Holt Mine in order to bring the mine into production
at the beginning of the second quarter this year. During 2011, ore will
be extracted primarily from two zones (C-103 and Zone 4). Currently,
production mining is occurring in the C-103 Zone and development work
is being completed in Zone 4 with the objective to commence mining
activities in this zone during the second half of the year. Production
throughput is anticipated to increase from the initial rate of 500 tpd
to 1,000 tpd around the end of this year. The Holt Mine, along with the
Holloway and Hislop mines are targeted to produce between 85,000 to
95,000 ounces of gold for 2011.
"Commencing production at Holt was one of several major milestones in
the rebuilding of SAS," said Jacques Perron, President & CEO of SAS.
"This year remains a transitional year for the Company as we continue
to ramp up the throughput at Holt to 1,000 tpd; and shift the mining
areas at Holloway from the Blacktop Zone to the Smoke Deep Zone. We
believe our first few quarters will be impacted by these changes;
however, we are still on track to achieve our objectives. Now that we
have completed our initial operational goals and commenced our targeted
exploration programs, we can start to assess other opportunities in the
region in order to add to the continued growth and success of SAS."
Qualified Person
Production at the Holloway, Hislop and Holt mines, and processing at the
Holt Mill are being conducted under the supervision of Duncan
Middlemiss, P.Eng, the Company's Vice President & General Manager, East
Timmins Operations. Mr. Middlemiss 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, including in respect of production levels and
development at the Holt Mine during 2011; the completion of underground
access to the Smoke Deep Zone and its contribution to production from
the Holloway Mine; and the Company's gold production level in 2011.
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, the ability to convert inferred
resources into mineable reserves, unanticipated operational or
technical difficulties which could escalate operating and/or capital
costs and reduce anticipated production levels; fluctuations in gold
prices and exchange rates, insufficient funding or delays or inability
to raise additional financing on satisfactory terms, changes in laws or
regulations, the risks of obtaining necessary licenses and permits,
changes in general economic conditions, changes in conditions in the
financial markets and an adverse Appeal Court decision on the Holt
Royalty. Such forward-looking information is based on a number of
assumptions, including but not limited to the expected timeline to
complete pre-production activities, the availability of adequate
financing, 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 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 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.
For further information:
For further information about St Andrew Goldfields Ltd., please contact: Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: http://www.sasgoldmines.com/">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.com Email: bau@sasgoldmines.com