St Andrew Goldfields Ltd. Reports Record Gold Production for Fourth Quarter 2015
TORONTO, Jan. 8, 2016 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report its fourth quarter ("Q4 2015") and annual 2015 production of 37,155 and 107,733 ounces of gold, respectively, achieving the mid-range level of its 2015 production guidance."We are very pleased to have achieved the midpoint of our 2015 production guidance of 100,000 – 110,000 ounces", said Duncan Middlemiss, President and Chief Executive Officer of SAS. "2015 was a transformational year that saw the addition of the Taylor Mine, the continuation of production and extension of mine life at the Holloway Mine, and continued stable production at the Holt Mine, which, when combined, has increased annual production by 19% from 2014 (90,676 ounces). The 2015 production was a record for the Company and with the Taylor Mine in production, 2016 should be a record year as well. I would like to take this opportunity to thank our team for a successful 2015 and I look forward to a safe and prosperous 2016."
| Q4 and Annual 2015 Production Results | ||||
| Tonnes | Head Grade | Average Mill | Gold Produced | |
| Holt | 104,270 | 4.56 | 94.0% | 14,348 |
| Holloway | 40,864 | 5.84 | 89.2% | 6,843 |
| Taylor | 69,084 | 7.55 | 95.1% | 15,964 |
| Q4 2015 Production | 214,217 | 5.77 | 93.5% | 37,155 |
| Annual 2015 Production | 675,907 | 5.28 | 93.8% | 107,733 |
Holt Mine ("Holt")
Holt produced a total of 14,348 ounces of gold from Zone 4 on the 925m Level and 1075m Level mining areas (75%) and from Zone 6 on the 775m Level (25%). Head grades were slightly higher than expected but lower than the previous quarter due to stope sequencing. The average throughput for the quarter was similar to the previous quarters. Mill recoveries were at their expected level of 94%. The development of the lower Zone 6 on the 925m Level started during the quarter and will continue in 2016, providing a new mining horizon later in the year.
Holloway Mine ("Holloway")
Holloway produced a total of 6,843 ounces of gold from the Smoke Deep Zone (70%) and the Blacktop Zone (30%). Head grades were in line with expectations and the mill recovery rate was slightly lower than expected, mainly due to the presence of graphite in the Blacktop ore. Based upon current mine exploration success, production from the Holloway Mine is expected to continue well into 2017.
Taylor Mine ("Taylor")
Taylor produced 15,964 ounces of gold since the Company announced commercial production in November 2015. All of the production came from the 1004 lens and the head grades were 26% higher than expected. The recoveries were similar to recoveries obtained during the bulk sample at 95%. Taylor is expected to be a significant contributor to 2016 production as the mine is now at its full production rate.
Holt Mill, Toll Milling
During Q4 2015, a total of 9,243 tonnes of ore were processed from toll milling operations. The toll milling tonnes were lower than the previous quarter due to the mill processing St Andrew's ore at maximum capacity during the last two months of the quarter. Revenue generated from toll milling operations is expected to have a positive impact on the overall processing costs for the quarter.
Qualified Person
Production at the Holt, Holloway, and Taylor mines, and processing at the Holt Mill are being conducted under the supervision of Marc-Andre Pelletier, P. Eng., the Company's General Manager & Vice-President, Operations. Mr. Pelletier is a qualified person as defined by National Instrument 43-101, and has reviewed and approved this news release.
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 Taylor mines. The Company is also conducting an aggressive exploration program across 120km of land straddling the Porcupine-Destor Fault Zone.
In November 2015, the Company entered into an agreement with Kirkland Lake Gold Inc. pursuant to which Kirkland Lake will acquire all of the shares of the Company by means of a plan of arrangement. Completion of the transaction, which is subject to Court approval and the approval of the shareholders of the Company and Kirkland Lake, is currently anticipated to be completed on or about January 26th. SAS' special meeting of shareholders in respect of the plan of arrangement will be held at 11:00 a.m. (EST) on January 19, 2016.
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 continued development of lower Zone 6 at the Holt Mine, the continued production from the Holloway Mine into 2017, the contribution to production of the Taylor Mine in 2017, the impact of toll milling on overall production costs and the completion of the plan of arrangement.
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, unanticipated operational or technical difficulties which could increase the time necessary to complete the development initiatives, escalate operating and/or capital costs and reduce anticipated production levels; uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of the mineral reserves and resources; the Company's dependence on key employees and changes in the availability of qualified personnel; fluctuations in gold prices and exchange rates; operational hazards and risks, including the inability to insure against all risks; changes in laws and regulations; changes in general economic conditions; and the failure to obtain requisite shareholders' or Court approvals to the arrangement Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, the level and volatility of the price of gold, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based and general business and economic conditions. 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. 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-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. A further description of the risks and uncertainties facing the Company may also be found in the Company's Annual Information Form available on SEDAR at www.sedar.com.
SOURCE St Andrew Goldfields Ltd.
Contact
about St Andrew Goldfields Ltd., please contact:
Tel: 1-800-463-5139 or (416) 815-9855
Fax: (416) 815-9437
Website: www.sasgoldmines.com
Keyvan Salehi, P. Eng., MBA,
Vice President, Corporate Development and Technical Services
ksalehi@sasgoldmines.com;
Duncan Middlemiss, P. Eng.,
President & CEO, dmiddlemiss@sasgoldmines.com; Ben Au, CFO, VP Finance & Administration
bau@sasgoldmines.com
