St Andrew Goldfields Ltd.

St Andrew Goldfields Ltd.

November 10, 2006 15:38 ET

St Andrew Announces Commissioning of Gold Mill at Nixon Fork Gold Mine, Alaska

OAKVILLE, ONTARIO--(CCNMatthews - Nov. 10, 2006) - St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") is pleased to announce that commissioning of the gold mill at Nixon Fork Gold Mine has commenced.

Nixon Fork Gold Mill

Over the period from 2003 to 2005, St Andrew undertook a program of extensive metallurgical testing and engineering design to develop a metallurgical circuit that will produce saleable gold "dore" and copper products at its Nixon Fork Gold Mine. The existing gold mill, incorporating a metallurgical flow sheet of crushing, grinding, gravity separation, and flotation (2 separate stages), has been under a program of refurbishment and construction since the Spring 2006 to achieve the gold "dore " and copper products objectives.

The commissioning process of the gold mill at Nixon Fork Gold Mine has now commenced and is planned to be complete within the next 2 weeks, at which point it is expected that underground ore will be processed at the rated 150 tonne per day capacity.

Underground Mining at the Crystal Garnet Mine

Underground mining operations commenced at Crystal Garnet Mine in July, 2006. The Crystal Garnet Decline was rehabilitated and equipped for production operations. During the fall of 2006 underground ore production commenced with broken transported and stockpiled on surface waiting commissioning of the gold mill.

Nixon Fork Gold Mine Mineral Resource and Mineral Reserve Estimates

A NI 43-101 compliant "Technical Report on the Nixon Fork Project, Alaska, U.S.A." by Scott Wilson RPA and dated October 2, 2006, defined a mineral resource estimate and a mineral reserve estimate for the Nixon Fork Gold Mine as follows:

Nixon Fork - Mineral Reserves

Property Proven Probable
Tonnes Grams Au Ounces Au Tonnes g/t Au Ounces Au
er tonne
Nixon Fork(a) 47,000 34.05 51,500 137,500 18.6 82,230

Nixon Fork - Mineral Resources

Property Measured Indicated Inferred
Tonnes Grams Ounces Tonnes g/t Ounces Tonnes g/t Ounces
Au per Au Au Au Au Au
Fork(a) 23,400 36.8 27,700 126,000 21.6 87,700 93,000 15.5 46,300

(a) Grades are cut to 150 g/t gold; cut-off grade is 21 g/t gold. A US$550/oz Au price was used.

(b) The reserve estimate is based on a mining plan that includes internal dilution at a grade varying between 7.0 g/t and 21.0 g/t gold plus an additional 10% dilution at zero grade.

Production Plans for Nixon Fork Property

Gold production is forecast to commence in the second half of November 2006 with a large proportion of this initial gold production becoming "locked up" in the new gold circuit The Company anticipates that the Nixon Fork Property will achieve a production rate of 40,000 ounces of gold per annum in 2007.

Capital Expenditure at Nixon Fork Gold Mine

In the early summer of 2006, St Andrew commenced a construction and mechanical program of upgrading and rehabilitating the 150 tonne per day gold mill and related surface infrastructure.

Engineering was completed in April, 2006, onsite construction commenced in the second quarter of 2006 and underground rehabilitation commenced in the second half of 2006.

The Company has incurred the following Capital Expenditures on the Nixon Fork Gold Mine in 2006 to date:

- Reclamation Bonds - US$3,152,000
- Mill Upgrade and Power Plant - US$2,881,000
- Underground rehabilitation, development and equipment - US$2,288,000
- Surface infrastructure - US$ 710,000
- TOTAL - US$9,031,000
Approximately CDN $10,000,000

Tailings Retreatment

During the early part of 2007, a cyanide leach circuit will be installed in the gold mill to leach gold from the tailings produced by the above metallurgical circuit in the gold mill and to extract and retreat the tailings from the previous operation at Nixon Fork. Retreatment of tailings is expected to commence in early summer 2007.

Exploration Potential

The Nixon Fork Gold Mine has demonstrated potential for the mineralized bodies to extend at depth and some of the known shoots in the Crystal Garnet Mine and the Mystery Mine are untested or remain open at depth.

The company plans to commence an extensive exploration program on the Nixon Fork Property in 2007. Potential exists to define exploration targets and drill sites for additional regional skarn deposits and minesite, or brownfield targets.

St Andrew (TSX:SAS) is a gold mining and exploration company producing gold from its Stock Gold Complex in Timmins, Ontario and with gold production from its Nixon Fork project in Alaska scheduled to commence in November of 2006. 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 48.3% equity interest in New Zealand-based gold explorer, Glass Earth Limited.

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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