St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

August 07, 2009 08:30 ET

SAS Announces the Completion of a Mineral Resource Estimate on the Hislop Project

TORONTO, ONTARIO--(Marketwire - Aug. 7, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

St Andrew Goldfields Ltd. (TSX:SAS) - ("SAS" or the "Company") is pleased to announce the completion of a National Instrument 43-101 ("NI 43-101") compliant Mineral Resource Estimate on the Company's Hislop Project, located near Timmins, Ontario. The Hislop Project is located in the central portion of the Company's 120km land package in the Timmins mining district, which straddles the Porcupine-Destor Fault Zone ("PDFZ"), host to numerous gold deposits in the region.

Highlights:

- Total indicated resources of approximately 425,000 ounces of gold (6,661,000 tonnes at an average grade of 1.98 g/t).

- Additional inferred resources of approximately 309,000 ounces of gold (5,338,000 tonnes at an average grade of 1.80 g/t).

- The recently completed Resource Estimate is a key step towards completion of a Prefeasibility Study expected in due course.

The technical report was prepared by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA"), Toronto, Ontario, Canada. Scott Wilson RPA has prepared the report in compliance with NI 43-101 standards. The complete Scott Wilson RPA Report on the project is available on the SAS website and on SEDAR at www.sedar.com.

The 2009 mineral resources were estimated by SAS using verified data from previous drilling campaigns, including the results from the recently completed 10,300 metre surface core drilling program that was designed to better define the distribution of the near-surface gold mineralization that can be mined by open pit mining methods. The mineral resource was estimated using a three-dimensional geological framework to constrain the gold mineralization, and the gold grades were interpolated into model blocks using parameters determined from a geostatistical analysis. Scott Wilson RPA has audited and accepted the SAS resource estimate.

The mineral resource estimate for the Hislop Project is summarized as follows:



MINERAL RESOURCE ESTIMATE FOR THE HISLOP PROJECT - JUNE 2009

Tonnes Grade Ounces Gold
Classification Zone (000) (g/t Au) (000)
----------------------------------------------------------------------------
Indicated
1-01 1,681 1.42 77
3-01 1,793 2.16 125
3-02 516 1.93 32
3-03 2,358 2.21 168
3-04 313 2.28 23
----------------------------------------------------------------------------
Total 6,661 1.98 425
----------------------------------------------------------------------------
Inferred
1-01 927 1.42 42
3-01 1,446 1.71 80
3-02 1,126 1.84 67
3-03 1,427 1.94 89
3-04 412 2.32 31
----------------------------------------------------------------------------
Total 5,338 1.80 309
----------------------------------------------------------------------------

Notes:
1. CIM Definition Standards were followed for Mineral Resources.
2. Mineral Resources were estimated at a block cut-off grade of 0.94 g/t Au.
3. Mineral Resources are estimated using a gold price of US$950
per ounce, and an exchange rate of C$1.00 equals US$0.85.
4. A minimum mining width of 2.0 m was used.
5. A bulk density of 2.84 t/m3 was used for all rock types except syenite
(2.68 t/m3).
6. Totals may not add exactly due to rounding.


"We are pleased with the results of the mineral resource estimate which has identified the presence of wide zones of lower grade gold mineralization that lie near surface.", said Jacques Perron, President & CEO. "We are now continuing with the Prefeasibility Study for the Hislop Project."

Ore from future mining of the Hislop Project will be processed at the Company's nearby Holt Mill, which would augment the mill feed provided from near-term underground production at the Holloway Mine. The gold mineralization characteristics at the Hislop Project are similar to that of the Holloway Mine, consisting of fine grained gold and sulfides within silicified mafic volcanics.

The Hislop Project is centrally located in the Abitibi greenstone belt in the Superior Province of the Canadian Shield, and lies approximately 85 kilometres east of Timmins, and 45 kilometres west of the Company's Holt Mill. Gold mineralization (associated with the PDFZ) occurs over a strike length of 1,200 metres following the fault contact between mafic flows to the north and ultramafic rocks to the south. Gold is associated with the margins of feldspar porphyritic syenite dikes, and sub-parallel zones of up to 20 metres in width, that are generally conformable to the contact between the mafic and ultramafic rocks striking west-northwest and dipping steeply to the north.

The Hislop Project was mined during several campaigns since the 1930's, and most recently in 1999-2000, and in 2006-2007. During these periods, a small open pit was operated from which approximately 238,200 tonnes at an average grade of 3.11 g/t gold were mined and processed at the Company's previously owned Stock Mill. Permits are in hand from previous mining campaigns with amendments to the existing closure plan currently in progress. Existing site infrastructure includes a series of access roads, a power line and a water settling pond. The site is cleared of trees and the central section has minimal overburden coverage, which should allow for the initiation of mining activities with less difficulty and expense than would be involved with similar projects in the area.

Qualified Person

Wayne Valiant, P.Geo., Principal Geologist, and R. Dennis Bergen, P.Eng., Associate Principal Mining Engineer with Scott Wilson RPA, are the Qualified Persons responsible for the review of the mineral resource estimates, and they have reviewed and approved this news release.

New Corporate Address

SAS is also pleased to announce that the corporate head offices have relocated to the Toronto downtown financial district, effective August 5th, 2009. The new address and contact details are:



20 Adelaide Street East, Suite 801
Toronto ON M5C 2T6 Canada
Tel: 416-815-9855
Fax: 416-815-9437


About SAS

SAS is a Canadian based gold mining, and exploration Company with an extensive land package in the Timmins mining district, Northeastern Ontario, Canada, which lies within the world famous Abitibi greenstone belt. With near-term production and 120 km of exploration upside potential, SAS is focussed on building a foundation for profitable growth.

FORWARD-LOOKING INFORMATION

This news release may contain 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", "anticipate", "intend" and similar words referring to future events and results, including in respect of the intention to complete a prefeasibility study of Hislop, the subsequent development of production at Hislop and the use of the Holt mill. 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 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 estimates of the mineral resources, unanticipated operational or technical difficulties, delay or inability to raise additional financing on satisfactory terms, 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. Readers are cautioned not to place undue reliance on this forward-looking information as actual results may differ materially from those expressed or implied in the 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.

Contact Information

  • St Andrew Goldfields Ltd.
    Suzette N Ramcharan
    Manager, Investor Relations
    1-800-463-5139 or (416) 815-9855
    (416) 815-9437 (FAX)
    sramcharan@sasgoldmines.com
    or
    St Andrew Goldfields Ltd.
    Jacques Perron
    President & CEO
    1-800-463-5139 or (416) 815-9855
    (416) 815-9437 (FAX)
    jperron@sasgoldmines.com
    or
    St Andrew Goldfields Ltd.
    Ben Au
    CFO & VP Finance & Administration
    1-800-463-5139 or (416) 815-9855
    (416) 815-9437 (FAX)
    bau@sasgoldmines.com