St Andrew Goldfields Ltd.
TSX : SAS

St Andrew Goldfields Ltd.

April 08, 2009 08:00 ET

St Andrew Reports Progress at the Hislop Project, Timmins Camp, Ontario

OAKVILLE, ONTARIO--(Marketwire - April 8, 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 that its program to accelerate the development of the Hislop Project is progressing better than expected. The 10,000 metre surface core drilling program initiated in January 2009 has been completed one month sooner than had been anticipated. The past producing Hislop Project is located approximately 85 kilometres east of Timmins, Ontario and 45 kilometres west of the Company's Holt mill. The drilling program was designed to better define the distribution of the near-surface gold mineralization having the potential to 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, where the Project is transected by the Porcupine-Destor Fault Zone (PDFZ). 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 (see Technical Report on the Taylor, Clavos, Hislop and Stock Projects in the Timmins Area, Northeastern Ontario, Canada, dated October 2, 2006, Scott Wilson RPA, available on SEDAR at www.sedar.com). Gold is associated with the margins of feldspar porphyritic syenite dikes, and sub-parallel zones 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. Higher grade gold mineralization, previously mined at depth using underground mining methods, occurs within an envelope of lower grade mineralization extending to surface, which is the focus of the current drilling program.

The Hislop Project has been mined during several campaigns since the 1930's and most recently in 1999-2000 and in 2006-2007. During those 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 Stock Mill. The project operated under various permits, of which many remain in place. 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 any mining activities with less difficulty and expense than would be involved with other similar projects in the area.

Since the second quarter of 2008, the Company compiled an extensive amount of historic information from drilling and underground exploration on the Hislop Project. This information, combined with the results of the Company's surface drilling and re-sampling program of 2006-2007, was used to complete an updated geologic model and internal resource estimate in order to assess the potential viability of mining the near surface gold mineralization by open pit. These preliminary results warranted the current delineation drilling program, which will reduce the current drill spacing to approximately 15x15 metres and provide samples for further geotechnical, metallurgical and environmental examination. In addition, the Company is currently sampling approximately 7,000 metres of historical core that was not previously sampled, particularly in the mafic volcanics north of the syenite where the gold content was historically considered to be insufficient to support an underground mining operation.

To date, 80 delineation holes, totaling approximately 8,500 metres and 7 condemnation holes totalling approximately 1,500 metres, have been completed and assays from the first 44 delineation drill holes have been returned. The assay results received to date, which are in agreement with previous drilling, confirm the relatively consistent nature of the gold mineralization over significant widths. While previous drilling was focused on better delineating the higher grade portions of the gold mineralization that was mined from underground, this phase of drilling was concentrated along the margins of the mineralized zone where only limited drilling and sampling existed. A summary of the results to date are included in the following table:

Table 1: Summary of Results of Core Drilling at the Hislop Project, April 7, 2009



Hole No. From To Length Grade
(m) (m) (m) (g/t gold)

HD09-01 99.00 109.50 10.50 5.19
118.50 123.00 4.50 2.13
HD09-02 49.50 55.50 6.00 0.71
HD09-03 33.40 41.30 7.90 3.47
HD09-04 31.30 41.10 9.80 1.40
54.00 63.00 9.00 2.72
HD09-06 105.00 114.00 9.00 1.70
HD09-07 28.50 47.50 19.00 4.18
HD09-08 96.00 103.50 7.50 1.35
127.50 137.30 9.80 3.69
HD09-09 35.00 106.50 71.50 Less than 1 gpt
HD09-10 121.80 138.00 16.20 2.28
143.00 151.60 8.60 2.53
143.00 151.60 8.60 2.53
HD09-11 37.50 51.00 13.50 1.40
HD09-12 120.00 129.00 9.00 1.33
HD09-13 38.00 43.50 5.50 2.43
51.00 61.50 10.50 2.53
HD09-14 46.50 52.50 6.00 1.92
HD09-15 39.80 57.00 17.20 3.25
75.00 88.90 13.90 3.56
HD09-16 94.00 95.00 1.00 1.13
HD09-17 13.00 15.00 2.00 1.89
HD09-18 15.00 30.00 15.00 1.51
54.00 69.00 15.00 1.61
HD09-19 87.20 93.00 5.80 1.16
102.00 106.50 4.50 1.32
120.00 138.00 18.00 1.58
HD09-20 36.00 55.50 19.50 3.40
73.50 87.00 13.50 4.76
HD09-21 87.00 91.50 4.50 1.87
HD09-22 13.50 28.50 15.00 2.04
59.00 79.50 20.50 2.20
HD09-23 60.00 67.50 7.50 1.52
90.00 99.10 9.10 1.82
HD09-25 16.50 34.50 18.00 7.22
HD09-26 9.10 37.50 28.40 2.95
49.50 67.50 18.00 1.96
HD09-27 52.50 57.00 4.50 4.97
69.00 80.00 11.00 1.30
HD09-28 64.50 72.00 7.50 1.79
HD09-29 16.50 25.50 9.00 1.80
37.50 48.00 10.50 1.57
HD09-30 15.00 19.50 4.50 1.38
25.50 31.50 6.00 1.26
HD09-31 3.25 7.50 4.25 1.37
54.00 61.50 7.50 4.05
HD09-32 97.50 105.00 7.50 1.57
117.00 121.50 4.50 1.14
124.50 129.00 4.50 1.34
HD09-33 28.00 33.00 5.00 2.83
HD09-34 114.00 115.50 1.50 1.00
HD09-35 52.00 57.00 5.00 1.81
63.00 68.50 5.50 1.46
HD09-36 27.00 54.10 27.10 1.42
HD09-37 73.90 96.00 22.10 2.74
HD09-38 36.00 60.00 24.00 1.48
120.00 124.50 4.50 1.29
HD09-39 81.00 82.50 1.50 1.03
HD09-41 9.00 13.50 4.50 1.64
67.50 75.00 7.50 1.21
HD09-42 34.50 48.00 13.50 1.33
54.00 58.50 4.50 1.22
72.00 78.00 6.00 2.32
85.50 91.50 6.00 1.34
162.00 168.00 6.00 1.38
HD09-46 21.00 25.50 4.50 1.28
34.50 43.50 9.00 1.64
51.00 70.50 19.50 2.44
HD09-48 27.00 33.00 6.00 1.17
84.80 105.00 20.20 1.08
120.00 124.50 4.50 1.55
HD09-51 15.80 21.00 5.20 1.00
81.20 101.00 19.80 1.58
HD09-52 69.00 73.60 4.60 1.74
HD09-58 87.00 91.50 4.50 1.06
159.00 163.50 4.50 1.33
180.80 186.00 5.20 1.28
189.00 192.60 3.60 1.17
195.00 199.50 4.50 1.04


The results from the drill program will be used to construct an updated three-dimensional geological model that will be used as a foundation to estimate the mineral resources, and subsequently, an independent prefeasibility study. All assays results are expected by the end of April. It is anticipated that any future mining of the Hislop Project could be processed at the Company's nearby Holt mill, which would augment the mill feed to be provided from underground production at the Holloway Mine. The gold mineralization characteristic of the Hislop Project is 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 NI43-101 prefeasibility study on the Hislop Project, which is expected to be completed by the end of the second quarter of 2009.

"We are pleased with the progress and initial results of the current drill program that appear in agreement with the historic drilling results", said Jacques Perron, President and CEO of St Andrew. "All work to date confirms our positive preliminary analysis and we are proceeding to accelerate the completion of the 43-101 report and the subsequent development of Hislop".

The 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.

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.

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

  • St Andrew Goldfields Ltd.
    Jacques Perron
    President and CEO
    1-800-463-5139 or (905) 815-9855
    (905) 815-9437 (FAX)
    jperron@standrewgoldfields.com
    or
    St Andrew Goldfields Ltd.
    Ben Au
    CFO and VP Finance & Administration
    1-800-463-5139 or (905) 815-9855
    (905) 815-9437 (FAX)
    bau@standrewgoldfields.com