SAS reports Q1 2014 production results of 24,361 ounces of gold
April 14, 2014 --
TORONTO, April 14, 2014 /CNW/ - St Andrew Goldfields Ltd. (TSX: SAS) (OTCQX: STADF), ("SAS" or the "Company") is pleased to report first quarter 2014 production of 24,361 ounces of gold from its Holt, Holloway and Hislop mines. The Company's annual production guidance for 2014 is between 75,000 85,000 ounces of gold.
"We are pleased to see Holt, our flagship asset, off to a strong start in the first quarter of 2014," said Duncan Middlemiss, President & CEO of SAS. "Production from Holloway was as expected with grade in line with reserve grade. Throughput from Holt reached the sustainable rate of approximately 1,250 tonnes per day during the first quarter, an increase of 24 percent over the 2013 average throughput. The operations are performing as expected, and we look forward to updating the public with our financial results in May."
Q1 2014 Production Results
Q1 2014 Production
Note: Columns may not add due to rounding
Holt Mine ("Holt")
Holt produced 17,497 ounces of gold derived from Zone 4 on the 925m Level and 1075m Level mining areas and Zone 6 on the 775m Level. Head grade during the quarter was 5.08 g/t Au, and mill recoveries were at their expected level of approximately 95%.
Holloway Mine ("Holloway")
Holloway produced 5,154 ounces of gold, mostly from the Smoke Deep Zone with minor contributions from the Lightning Zone. The mill recovery rate of approximately 90% was slightly below expectations. Encouraging diamond drill results confirms the continuation of the Smoke Deep Zone below the 925m Sublevel.
Hislop Mine ("Hislop")
Hislop produced 1,710 ounces of gold in Q1 2014. The head grade averaged 2.09 g/t Au, which was slightly above the reserve grade for the mine (2.05 g/t Au). Ore reserve reconciliation proved challenging in the top benches of the west pit, resulting in lower production rates at Hislop. Mill recovery for Hislop during the quarter averaged approximately 80%, due to the processing of a significant amount of ore containing a fine gold size fraction. The reserves in the West Pit will be depleted within the next month, however, the Company will continue to process the ore stockpile which contains 25,000 tonnes of ore grading 1.90 g/t Au.
As disclosed in February, SAS identified indicated resources beneath both pits (Hislop Pit Complex) and converted resources into reserves beneath the West Pit outlining 283,000 tonnes at an average grade of 5.16 g/t Au for 47,000 ounces. The Company is assessing the timing of accessing these new reserves and subsequent underground production.
2014 Annual Meeting of Shareholders and First Quarter Earnings Call
The Company will hold the annual meeting of shareholders on Tuesday May 13, 2014 at 11:00am ET, and will release its 2014 first quarter results during that time. The Company invites you to participate in the upcoming conference call to discuss its first quarter financial and operating results for 2014. The conference call will take place on Wednesday May 14, 2014 at 10:00 AM EST.
Participants may join the call via webcast at www.sasgoldmines.com. A playback of the conference call will be available via the website and will be posted within 24 hours of the call. For more information regarding the annual meeting and the conference call please visit the SAS website.
Production at the Holt, Holloway and Hislop mines, processing at the Holt Mill, and mine development and production activities at the operations are being conducted under the supervision of Marc-Andre Pelletier, P. Eng., the Company's General Manager of Operations. Mr. Pelletier is a qualified person as defined by National Instrument 43-101, and has reviewed and approved this news release.
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 owns and operates the Holt, Holloway and Hislop mines and produced approximately 100,000 ounces of gold in 2013. The Company is also advancing the Taylor Project and is conducting aggressive exploration across 120km of land straddling the Porcupine-Destor Fault Zone.
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 accessing and mining underground reserves at Hislop, and achieving the Company's production guidance for 2014.
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 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 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.
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