Toronto, Canada September 20, 2012
St Andrew Goldfields Ltd. (T-SAS) (OTCQX-STADF), ("SAS" or the "Company") reports that it has filed on SEDAR (www.sedar.com) today amended versions of the 2011 Annual Report, Annual Information Form and annual Management Discussion and Analysis to correct an error in the stated amount of inferred mineral resources for the Holt and Holloway Mines.
The amended and restated inferred mineral resources as at the year ended December 31, 2011, is
1,045,000 tonnes at an average grade of 6.81 g/t Au for 229,000 ounces for the Holt Mine, and
2,755,000 tonnes at an average grade of 5.10 g/t Au for 452,000 ounces for the Holloway Mine. The inferred mineral resources at the Holt Mine were overstated by 665,000 ounces (3,791,000 tonnes
at an average grade of 5.46 g/t Au). The inferred mineral resources at the Holloway Mine were
overstated by 44,000 ounces (269,000 tonnes at an average grade of 5.09 g/t Au).
The measured and indicated mineral resources as well as the mineral reserves at Holt and Holloway as at the year ended December 31, 2011, have been reviewed in detail and there is no change to the previously reported numbers (see tables below).
"We have restated the inferred resources at Holt and Holloway as a result of a recently discovered tabulation error", said Jacques Perron, President and CEO. "We have had a successful year of exploration so far, focused on drilling targets situated on the Holt Mine property, as previously disclosed in our press releases dated May 7, 9, and July 31, 2012, which we believe will contribute significant upside to the year-end mineral resources estimation. Holt remains our flagship asset, with a great deal of exploration potential and we are confident we will continue to expand the reserve and resource base as we continue to advance our exploration programs."
Holt Mine - Amended and Restated Mineral Resources Estimate (As at December 31, 2011)Holt Mine | Measured | Indicated | Inferred | ||||||
Holt Mine | Tonnes ('000) | Grade (g/t Au) | Ounces Au | Tonnes ('000) | Grade (g/t Au) | Ounces Au | Tonnes ('000) | Grade (g/t Au) | Ounces Au |
Holt Mine | Tonnes ('000) | ('000 oz) | Tonnes ('000) | Grade (g/t Au) | ('000 oz) | Tonnes ('000) | Grade (g/t Au) | ('000 oz) | |
At December 31, 2010 | 2,272 | 5.4 | 393 | 2,459 | 6.1 | 478 | 1,197 | 6.5 | 249 |
At December 31, 2011 | 2,981 | 5.5 | 522 | 2,801 | 6.3 | 567 | 1,045 | 6.8 | 229 |
Holt Mine | Proven | Probable | ||||
Holt Mine | Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) | Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) |
At December 31, 2010 | 944 | 4.3 | 131 | 2,191 | 5.4 | 379 |
At December 31, 2011 | 860 | 4.9 | 136 | 1,548 | 5.6 | 279 |
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Holloway Mine - Amended and Restated Mineral Resources Estimate - December 31, 2011Holloway Mine | Measured | Indicated | Inferred | ||||||
Holloway Mine | Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) | Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) | Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) |
At December 31, 2010 | 356 | 4.0 | 46 | 267 | 4.7 | 40 | 1,080 | 6.0 | 209 |
At December 31, 2011 | 396 | 4.5 | 58 | 352 | 4.6 | 52 | 2,755 | 5.1 | 452 |
Holloway Mine | Proven | Probable | ||||||
Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) | Tonnes ('000) | Grade (g/t Au) | Ounces Au ('000 oz) | |||
At December 31, 2010 | 13 | 5.2 | 2 | 125 | 3.8 | 15 | ||
At December 31, 2011 | 153 | 4.3 | 21 | 70 | 4.3 | 10 |
Notes to Mineral Resources:
a) Mineral Resources are inclusive of Mineral Reserves;
b) Mineral Resources were estimated according to CIM
Definition Standards - November 2010;
c) Mineral Resources for Holloway and Holt were estimated
using an average long-term gold price of
US$1,200 per ounce and an exchange rate of CAN$1.00 =
US$0.98;
d) Mineral Resources for Holloway and Holt were estimated at
a cut-off grade of 3.0 g/t Au;
e) Mineral Resources for the Deep Thunder Zone (included in
the Holloway Mine) were estimated at a cut - off grade of 2.5
g/t Au;
f) Tonnes and gold ounce information is rounded to the
nearest thousands. As a result, rows and columns may not add
up exactly due to rounding.
Notes to Mineral Reserves:
a) Mineral Reserves were estimated according to CIM
Definition Standards - November 2010;
b) Mineral Reserves for Holloway and Holt were estimated
using an average long-term gold price of
US$1,100 per ounce and an exchange rate of CAN$1.00 =
US$0.98;
c) Mineral Reserves for Holloway and Holt were estimated
using a cut-off grade of 3.5 g/t Au;
d) Tonnes and gold ounce information is rounded to the
nearest thousands as such, rows and columns may
not add exactly due to rounding.
Qualified Person
The revised calculation of Mineral Resources for the Holt and Holloway mines completed by the
Company was under the supervision of Doug Cater, P.Geo, the Company's VP of Exploration. The calculation of Mineral Reserves was completed by the Company under the supervision of Pierre Rocque, P.Eng, the Company's VP of Engineering. Messers. Cater and Rocque are qualified persons as defined by NI 43-101, and have reviewed and approved this news release.
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About SAS
SAS (operating as "SAS Goldmines"), is a gold mining and exploration company with an extensive
land package in the Timmins mining district, north-eastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada.
SAS owns and operates the Holt, Holloway and Hislop mines and is forecasting 2012 production of between 90,000 - 100,000 ounces of gold. The Company is also advancing the Taylor Project and is conducting an aggressive exploration program across 120km of land straddling the Porcupine- Destor Fault Zone.
For further information about St Andrew Goldfields Ltd., please contact:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com
Jacques Perron
President & CEO
Suzette N Ramcharan
Manager, Investor Relations
Email: sramcharan@sasgoldmines.com
Ben Au
CFO, VP Finance & Administration
Email: jperron@sasgoldmines.com
Email: bau@sasgoldmines.com
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information and
forward-looking statements (collectively, "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", "estimate", "anticipate",
"believe", "intend" and similar words referring to future
events and results, including in respect of the reserve and
resource estimates; the impact of the results of the ongoing
exploration programs on the Company's mineral resources and
mineral reserves estimates ; the continuance of underground
drillin g at Zone 4 in 2013; and gold production levels in
2012.
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 expressed or
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 size estimates of the
mineral reserves and resources; fluctuations in gold prices
and exchange rates; unanticipated operational or technical
difficulties which could escalate operating and/or capital
costs and reduce anticipated production levels; operational
hazards and risks; compliance with applicable government
regulations, including the ability to obtain requisite
permits and licenses; dependence on key employees and changes
in general economic conditions and changes in conditions in
the financial markets. Such forward looking information is
based on a number of assumptions, including but not limited
to the level and volatility of the price of gold, the ability
to achieve capital and operating cost estimates, the accuracy
of reserve and resource estimates and the assumptions upon
which such estimates are based , the continued availability
of qualified personnel, and the sufficiency of the Company's
cash reserves and operating cash flow to complete planned
development and exploration activities. Should one or more
risks and uncertainties materialize or should any assumptions
prove incorrect, then actual results could vary materially
from those expressed or implied in the forward-looking
information and accordingly, readers are cautioned not to
place undue reliance on this forward-looking information. SAS
does not assume the obligation to revise or update this
forward