St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

May 27, 2009 16:32 ET

St Andrew Receives Final Assays From Drill Program and Advances Prefeasibility Study for Open Pit Development at the Hislop Project

OAKVILLE, ONTARIO--(Marketwire - May 27, 2009) -

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

St Andrew Goldfields Ltd. (TSX:SAS) - ("St Andrew", or the "Company"), is pleased to report final assay results from the recently completed 10,300 metre surface core drilling program at it's Hislop Project, located east of Timmins, Ontario. The drill program was designed to better define the distribution of the near-surface gold mineralization that can be mined by open pit mining methods.

The Hislop Project is centrally located in the Abitibi greenstone belt in the Superior Province of the Canadian Shield, and is transected by the Porcupine-Destor Fault Zone, and lies approximately 85 kilometres east of Timmins, and 45 kilometres west of the Company's Holt mill. Gold mineralization 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 (see "Technical Report on the Taylor, Clavos, Hislop and Stock Projects", dated October 2, 2006, Scott Wilson RPA, available on SEDAR at www.sedar.com and on the Company's website at www.standrewgoldfields.com).

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 225,000 tonnes at a grade of 3.14 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 other similar projects in the area.

While previous drilling focused on better delineating the higher grade portions of the gold mineralization mined from underground, this phase of drilling was concentrated along the margins of the mineralized zone where only limited drilling and sampling existed. In 2009, a total of 10,300 metres of core was drilled in 91 drill holes and approximately 7,000 metres of historical core sampled, confirming the existence of several continuous sub-parallel zones of near surface gold mineralization.

A summary of the results from the latter portion of the drilling program, completed along the western margin of the gold mineralization, are included in the following table (which excludes the results from the first 44 drill holes previously announced on April 8, 2009):

Table 1: Summary of Results of Core Drilling at the Hislop Project, May 22, 2009



Hole No. From To Length Grade

(m) (m) (m) (g/t gold)
HD09-05 151.50 156.00 4.50 3.41
HD09-24 48.00 57.00 9.00 17.70
102.00 111.00 9.00 1.10
HD09-26MA 16.50 39.00 22.50 1.51
52.50 58.50 6.00 4.71
HD09-40 18.00 28.50 10.50 1.33
33.00 37.50 4.50 2.53
HD09-43 34.50 39.00 4.50 1.13
HD09-44 6.00 28.50 22.50 1.71
HD09-45 5.00 9.00 4.00 1.61
34.50 40.00 5.50 1.27
96.00 100.50 4.50 1.31
112.50 117.00 4.50 1.31
HD09-47 66.40 85.70 19.30 1.33
94.50 99.00 4.50 1.05
HD09-49 27.30 39.00 11.70 1.64
61.50 66.00 4.50 1.28
HD09-50 20.00 53.00 33.00 Less than 1 g/t
HD09-53 2.40 73.00 70.60 Less than 1 g/t
HD09-54 31.50 37.00 5.50 1.43
HD09-55 33.00 46.50 13.50 1.28
94.20 99.00 4.80 1.21
108.00 113.30 5.30 2.15
HD09-56 16.40 24.00 7.60 1.52
HD09-57 6.00 10.50 4.50 1.05
72.00 81.00 9.00 1.29
108.00 117.00 9.00 2.00
123.00 126.90 3.90 1.00
HD09-59 43.00 47.50 4.50 2.09
HD09-60 37.50 41.00 3.50 1.92
HD09-61 106.50 109.50 3.00 1.38
139.30 142.50 3.20 1.09
HD09-62 34.50 38.00 3.50 2.05
43.50 48.00 4.50 1.73
138.00 161.50 23.50 1.72
HD09-63 13.20 16.70 3.50 2.50
29.60 36.00 6.40 1.44
HD09-64 24.00 28.50 4.50 1.13
43.00 48.00 5.00 6.50
HD09-65 57.00 61.50 4.50 1.35
HD09-66 82.50 87.00 4.50 1.21
121.50 126.00 4.50 1.14
157.50 163.50 6.00 9.91
171.00 175.50 4.50 1.24
HD09-67 24.00 34.00 10.00 Less than 1 g/t
HD09-68 17.30 47.00 29.70 Less than 1 g/t
HD09-69 16.50 19.50 3.00 1.01
HD09-70 62.20 66.00 3.80 1.24
78.00 82.50 4.50 1.31
HD09-71 67.50 72.00 4.50 1.07
84.00 88.50 4.50 1.00
101.00 105.00 4.00 1.12
HD09-72 28.50 33.00 4.50 1.12
39.00 43.50 4.50 1.21
49.00 57.50 8.50 1.26
66.00 78.00 12.00 7.06
HD09-73 31.50 36.00 4.50 2.39
72.20 76.50 4.30 1.38
HD09-74 2.00 150.00 148.00 Less than 1 g/t
HD09-75 3.00 135.00 132.00 Less than 1 g/t
HD09-76 133.50 137.50 4.00 2.33
153.00 159.00 6.00 2.52
165.00 171.30 6.30 3.25
HD09-77 135.00 151.50 16.50 1.38
HD09-78 19.00 84.00 65.00 Less than 1 g/t
HD09-79 34.50 39.00 4.50 9.41
HD09-80 39.00 43.50 4.50 1.03
63.00 69.00 6.00 2.15
HG09-01 36.00 51.00 15.00 1.27
HG09-02 34.50 39.00 4.50 2.56
45.00 61.50 16.50 1.40


The results from the drill program will be used to construct an updated three-dimensional geological model to be used as a foundation to estimate the mineral resources at Hislop, and subsequently, an independent prefeasibility study is expected to be completed by the end of the second quarter of 2009. Ore from future mining of the Hislop Project could 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.

Scott Wilson RPA of Toronto, Canada has been commissioned to complete a National Instrument 43-101 compliant prefeasibility study on the Hislop Project, which is expected to be completed by the end of the second quarter of 2009.

"We are pleased to have received the remaining assay results that have outlined continuous zones of near surface gold mineralization", said Jacques Perron, President and CEO of St Andrew. "We are now in a position to accelerate the completion of the prefeasibility study and the subsequent development of Hislop".

Drilling and Assaying

Drilling was completed by Orbit Garant Drilling Inc. Analytical work was performed by Swastika Laboratories Ltd. in Swastika, Ontario. Samples submitted to Swastika Laboratories were dried and crushed to 80% passing a 10 mesh screen. A split of 300-400 grams was taken from this material and pulverized so that 90-95% of the material passed through a 100 mesh screen. A 30 gram sample was taken for fire assay with an atomic absorption finish. In addition, St Andrew established a quality control/quality assurance program consisting of a number of sample standards and blanks that were inserted into the sample string every 25 samples.

Qualified Person

The exploration drilling was completed under the supervision of Michael Michaud, P.Geo, St Andrew's Vice President of Exploration, who is St Andrew's qualified person for this project as defined by NI 43-101 regulations, and who has reviewed and approved this news release.

About St Andrew

St Andrew is a gold mining and exploration company with operations in Timmins, Ontario. St Andrew controls a very large land position in the Timmins Mining Camp and an extensive land position at Eskay Creek in northern British Columbia.

FORWARD LOOKING STATEMENTS

This news release may contain forward-looking information under applicable securities laws, concerning St Andrew'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 and timing necessary to complete a resource estimate and 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 material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, delay or inability to raise additional financing on satisfactory terms, 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 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. 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.

Contact Information