St Andrew Goldfields Ltd.

St Andrew Goldfields Ltd.

February 01, 2007 15:06 ET

St Andrew Announces Exploration, Development and Production Plans for Holloway-Holt Gold Mine

OAKVILLE, ONTARIO--(CCNMatthews - Feb. 1, 2007) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew") is pleased to announce the 2007 exploration, development and production plans for its Holloway-Holt Gold Mine, located in the Timmins mining camp near Matheson, Ontario, Canada.

Exploration Plans at the Holloway-Holt Gold Mine

St Andrew is planning a 53,000 metre underground delineation and definition drilling campaign at the Holloway-Holt Gold Mine.

At the Holloway Mine, Heath and Sherwood of Kirkland Lake, Ontario has commenced an underground drilling program at the Blacktop Section of the mine to delineate and define reserves and resources ahead of planned mining operations.

At the Holt Mine, Garant Bros. Diamond Drilling Inc. of Rouyn Noranda, Quebec has commenced an underground drilling program in the Nos. 4 and 6 Sections of the mine to delineate and define reserves and resources ahead of planned mining operations.

The resources that are being drilled for delineation reserve definition and mine planning are based on the Mineral Resources tabled below.

Mineral Resources at the Holloway-Holt Gold Mine

Scott Wilson RPA provided an estimate of the mineral resources of the Holloway-Holt Gold Mine in a NI 43-101 compliant technical report dated October 2, 2006 (the "Holloway-Holt Technical Report"). This resource estimate is summarized in the table below:

Holloway-Holt Gold Mine - Mineral Resources

Mine Measured Indicated Measured + Indicated
Tonnes Grams Ounces Tonnes g/t Ounces Tonnes g/t Ounces
Au per Au Au Au Au Au
mine 537,000 6.7 115,000 500,000 8.9 144,000 1,037,000 7.8 259,000
mine 191,000 8.1 50,000 2,794,000 7.3 655,000 2,985,000 7.3 704,000
+ Holt 728,000 7.0 165,000 3,294,000 7.5 799,000 4,022,000 7.4 963,000

Mine Inferred
Tonnes Grams Au Ounces
per tonne Au
Holloway mine 477,000 6.3 97,000
Holt mine 677,000 7.9 173,000
Holloway + Holt 1,154,000 7.3 270,000

(1) CIM Definitions were followed for mineral resources.
(2) Mineral resources were estimated at a marginal cut-off grade of 3.0 g/t
Au and a block cut-off grade of 4.5 g/t Au.
(3) Mineral resources were estimated using an average long-term gold price
of US$500/oz (US$/C$ equals 1.25).
(4) A minimum mining width of 2.0 to 3.0 metres was used.
(5) Columns may not add exactly due to rounding.
(6) Mineral resources estimated as of April 30, 2006

Development Activities at the Holloway-Holt Gold Mine

At the Holloway Mine, St Andrew crews commenced underground development activities in early December 2006 in the Blacktop section to access and prepare this section of the mine for mining activities forecast to commence in the second quarter of 2007. Where ore development has taken place this ore has been hoisted to surface and stockpiled ahead of starting up the Holt Gold Mill in the second quarter, 2007.

At the Holt Mine, St Andrew has engaged the services of Dumas Contracting Ltd to conduct underground development activities in the No. 6 section to access and prepare this section of the mine for mining activities forecast to commence in the second quarter of 2007.

Additionally at the Holt mine, St Andrew crews will commence the underground development activities to access the No. 4 section of the mine.

Production Plans at the Holloway-Holt Gold Mine

The above programs of initial development and underground drilling at the Holloway and Holt gold mines are forecast to be completed in the second quarter of 2007. Underground production is forecast to commence in the second quarter of 2007. St Andrew forecasts that gold production at the Holloway-Holt Gold Mine Complex will be 75,000 to 100,000 ounces on an annualized basis. Assuming the successful development and conversion of the above mineral resources, the Company anticipates that this level of production could continue for a further seven years after 2007.

Exploration Potential at the Holloway-Holt Gold Mine

St Andrew is currently compiling all the existing geological data and information of the previous stand alone Holloway and Holt Mines into a single 3D geological database and model.

St Andrew management believes that the brown fields mine exploration potential immediately surrounding the Holloway-Holt Gold Mine (known as the "Holloway-Holt Exploration Project") consists of exploration properties with excellent exploration prospects.

Exploration will take the form of both surface and underground drilling programs.

Qualified Person

The exploration and drilling programs at the Holloway-Holt Gold Mine are being carried out under the direction of Warren Bates, P.Geol. Mr. Bates, with over 30 years experience in the exploration and mining industry, meets the National Instrument 43-101 guidelines for a Qualified Person.

About the Company

St Andrew is a gold mining and exploration company producing gold from the Stock Gold Complex in Timmins, Ontario and the Nixon Fork Gold Mine in Alaska. The recently acquired Holloway-Holt Gold Mine in the Timmins Mining Camp is forecast to increase St Andrew's gold production by 75,000 to 100,000 ounces per annum. St Andrew controls a very large land position in the Timmins Mining Camp, an extensive land position at Eskay Creek in northern British Columbia and land positions around Nixon Fork in the Kuskokwim-Tintina Mining Camp in Alaska. St Andrew also holds an approximate 50.2 % equity interest in New Zealand based gold explorer, Glass Earth Limited (TSX Venture-GEL) and a 10 % equity interest in Apollo Gold Corporation.

For further information about St Andrew Goldfields Ltd., please visit St Andrew's website at or contact Investor Relations toll-free at 1-800-463-5139 or email

The information in this release may contain forward-looking information under applicable securities laws. 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 material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. St Andrew 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.

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