SAS ACCELERATES EXPLORATION PROGRAM AND RECEIVES POSITIVE RESULTS FROM
GARRISON CREEK AND DEEP THUNDER PROJECTS
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Sept. 15 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to provide an update on its ongoing exploration programs in the Timmins Camp. With the completion of the recent financing, the Company has accelerated its exploration programs at the Holloway Mine's Smoke Deep and Deep Thunder zones, the Garrison Creek Project, and the Taylor Project.
Highlights:
- Initial drilling at the Garrison Creek Project returned 0.81 g/t Au over 187.6 metres, including a number of sections of higher-grade gold mineralization containing visible gold; - Drilling at the Deep Thunder Zone continues to return positive results including most recently 24.5 g/t Au over 5.8 metres; - Completed an initial drilling program at the Taylor Project with encouraging results, and plans to commence a second phase of drilling in September; - Underground access ramp to complete further exploration drilling at the Smoke Deep Zone is proceeding on schedule and expected to be completed in Q1 2011; - The 2010 exploration budget was increased from $5 million per annum to $8 million in 2010, and $10 million in 2011; and - Accelerated exploration program will include approximately 47,000 metres of drilling in 2010, and 58,000 metres in 2011.
Garrison Creek Project
In June 2010, SAS commenced a 12-hole, 6,000-metre surface drilling program on the Garrison Creek Project ("Garrison Creek"), located approximately 20 kilometres due west of the Holloway-Holt Project. Garrison Creek is 90% owned by the Company and 10% by Goldcorp (Canada) Inc.
The current drilling program is designed to investigate four principal targets, only one of which has been previously explored to any significant degree. Three of the targets include possible strike extensions of known deposits or prospects that lie outside of the Garrison Creek property. The fourth target includes follow-up to anomalous values returned from 2007 SAS diamond drilling.
To date, the most significant drilling intersected sheared and heavily veined syenite previously sampled by drilling in 2007. The rocks are situated within the Garrison fault zone, a northwest-striking structure that cross-cuts lithologies and regional structures. Visible gold, along with pyrite, chalcopyrite, galena and rare sphalerite are hosted principally within quartz veins.
Initial drilling has highlighted two types of targets; first, a lower grade, large tonnage target within quartz-veined syenite, and second, higher grade gold values within zones of brittle/ductile sheared syenite in the presence of quartz-carbonate veins that contain several species of sulfide minerals. Of significance, one hole returned 0.81 g/t Au over 187.6 metres; which includes a central higher grade zone averaging 4.42 g/t Au over 22.9 metres, surrounded by a broad zone of lower grade gold mineralization.
These encouraging results are similar to other known syenite-hosted and syenite-associated, low to moderate grade, large tonnage deposits in the region, and this initial phase of drilling is expected to continue over the next several months. Significant intercepts from the 2010 drilling completed to date are summarized below.
Summary of 2010 Garrison Creek Drilling Program ------------------------------------------------------------------------- Intersection (Metres) Core Length Gold Grade ------------------------------------------------------------------------- Grams Per Hole Number From To Metres Tonne (g/t) ------------------------------------------------------------------------- GC10 - 03 234.0 235.5 1.5 35.50 ------------------------------------------------------------------------- GC10 - 04 219.1 257.1 38.0 0.95 ------------------------------------------------------------------------- GC10 - 06 405.3 592.9 187.6 *0.81 ------------------------------------------------------------------------- including 511.8 534.7 22.9 4.42 ------------------------------------------------------------------------- Notes: * denotes visible gold At this time, true widths are not available, and all intervals are reported as core length.
Deep Thunder Zone
Surface drilling at the Deep Thunder Zone commenced in early March, with a planned first phase 9,200-metre drilling program. On June 22, 2010, SAS announced assay results for the first several drill holes that successfully identified east-northeast ("ENE") trending high strain zones and bounding structures that are interpreted to be the controls on the gold mineralization.
Continued drilling intersected a zone similar in geology and structure to that of the previously mined Lightning Zone further to the west and the recently discovered Smoke Deep Zone. The gold mineralization intersected to date extends approximately 350 metres along strike and 500 metres down dip and remains open in all directions. Additionally, the drilling intersected quartz-carbonate veined ultramafic rocks in the footwall to the mafic-ultramafic contact. This is significant in that it may possibly represent a new, sub-parallel zone of gold mineralization in the footwall ultramafic rocks.
The recent drilling results are similar to those returned from the Smoke Deep Zone and drilling will continue along both of these favourable horizons to better define the higher grade gold mineralization as was discovered at Smoke Deep. Surface exploration completed to date is summarized in the table below.
Summary of 2010 Deep Thunder Drilling Program ------------------------------------------------------------------------- Intersection (Metres) Core Length Gold Grade ------------------------------------------------------------------------- Grams Per Hole Number From To Metres Tonne (g/t) ------------------------------------------------------------------------- GH10 - 02 1079.0 1080.6 1.6 4.32 ------------------------------------------------------------------------- GH10 - 03 576.2 577.5 1.3 1.97 ------------------------------------------------------------------------- GH10 - 04 808.5 810.0 1.5 7.23 ------------------------------------------------------------------------- GH10 - 04 893.2 893.5 0.3 18.00 ------------------------------------------------------------------------- GH10 - 06 1050.9 1053.9 3.0 5.30 ------------------------------------------------------------------------- GH10 - 06W1 591.4 599.0 7.6 6.48 ------------------------------------------------------------------------- including 597.5 599.0 1.5 27.53 ------------------------------------------------------------------------- GH10 - 06W1 1040.5 1052.7 12.2 1.70 ------------------------------------------------------------------------- including 1050.8 1052.7 1.9 5.69 ------------------------------------------------------------------------- GH10 - 06W2 518.1 519.0 0.9 10.5 ------------------------------------------------------------------------- GH10 - 06W2 871.2 876.8 5.6 2.27 ------------------------------------------------------------------------- GH10-07 872.1 886.2 14.1 4.09 ------------------------------------------------------------------------- including 872.4 877.0 4.6 9.02 ------------------------------------------------------------------------- GH10-07 1044.3 1044.6 0.3 *15.5 ------------------------------------------------------------------------- GH10-07W1 1039.9 1048.4 8.5 3.75 ------------------------------------------------------------------------- including 1046.3 1048.4 2.1 *8.99 ------------------------------------------------------------------------- GH10-07W2 807.8 808.2 0.4 15.91 ------------------------------------------------------------------------- GH10-07W2 1050.0 1051.5 1.5 5.96 ------------------------------------------------------------------------- GH10-07W3 788.2 791.5 3.3 4.10 ------------------------------------------------------------------------- including 789.5 790.7 1.2 8.67 ------------------------------------------------------------------------- GH10-76W2 1251.8 1257.0 5.8 *24.47 ------------------------------------------------------------------------- Notes: * denotes visible gold At this time, true widths are not available, and all intervals are reported as core length.
Taylor Project
The Taylor Project is strategically located along the Porcupine-Destor Fault Zone ("PDFZ"), approximately 53km east of Timmins. Considerable exploration work has been completed on the Taylor Project since gold was first discovered in 1962. The Taylor Project is host to two gold deposits that occur along the PDFZ, namely the West Porphyry and Shoot zones that contain measured and indicated mineral resources totaling 1,405,000 tonnes grading 7.6 g/t Au (343,000 ounces) and inferred resources of 737,000 tonnes grading 9.1 g/t Au (216,000 ounces), (see RPA Technical Report dated October 2006 filed on SEDAR at www.sedar.com and on the Company's website at www.sasgoldmines.com).
SAS believes that the Shoot and West Porphyry zones occur along the east-west trending PDFZ at the intersection with northeast trending fault splays. A similar structure has been interpreted to occur on the recently acquired Bourgeois claim, an area of land that lies between the Shoot Zone and West Porphyry Zone, and where no previous exploration work has been conducted.
Since mid-February, 12 holes totaling 4,600 metres have been drilled on the Bourgeois claim. Drilling along the western portion of the Bourgeois claim has intersected extensive quartz carbonate alteration similar to the Shoot Zone immediately to the west. Along the eastern margin of the Bourgeois claim, drilling intersected several wide zones of quartz carbonate alteration and quartz veining similar to that of the West Porphyry Zone. These geological results are believed to confirm the potential of the Bourgeois claim to host extensions of the Shoot and West Porphyry Zones. SAS plans additional follow-up drilling on the Taylor property, expected to commence in September.
Significant intercepts from the 2010 drilling campaign completed at the Taylor Project are summarized below.
Summary of 2010 (Phase One) Taylor Drilling Program ------------------------------------------------------------------------- Intersection (in Metres) Core Length Gold Grade --------------------------------------------------------- Grams Per Hole Number From To Metres Tonne (g/t) ------------------------------------------------------------------------- TA 10-006 213.9 219.9 6.0 1.41 ------------------------------------------------------------------------- including 218.4 219.9 1.5 4.17 ------------------------------------------------------------------------- TA 10-007 492.6 494.8 2.2 3.15 ------------------------------------------------------------------------- including 492.6 492.9 0.3 18.30 ------------------------------------------------------------------------- TA 10-007 504.6 508.5 3.9 3.61 ------------------------------------------------------------------------- including 506.5 507.2 0.7 12.60 ------------------------------------------------------------------------- TA 10-008 220.5 221.6 1.1 4.28 ------------------------------------------------------------------------- TA 10-009 154.1 160.5 6.4 4.23 -------------------------------------------------------------------------
Smoke Deep Zone
On June 29 2010, SAS announced the completion of an internal resource estimate for the Smoke Deep Zone ("Smoke Deep"). Using a cut-off grade of 3.0 g/t Au, the Inferred Mineral Resource totals 747,000 tonnes grading 5.83 g/t Au, containing approximately 140,000 ounces of gold.
The Company made a decision to advance its exploration efforts at Smoke Deep by driving an underground exploration ramp from the 730 level of the Lightning Zone (which lies approximately 1.2 kilometres to the west of Smoke Deep). The ramp is designed to conduct definition drilling and to provide drilling platforms to test the extension of the Smoke Deep Zone down dip, along strike and down plunge, where it remains untested. Ramp construction commenced in July, and to date approximately 120 metres has been excavated, which puts the Company on target to enter the zone by Q1 2011.
Other Exploration Properties
Clavos Project
The Clavos Project was optioned to Sage Gold Inc. in February 2010, granting Sage Gold the option to earn a 60% interest in the project over the next three years. Sage Gold advises that it plans to commence approximately 5,000 metres of drilling on the Clavos property during Q4.
Eskay Creek Project
The Eskay Creek Project was optioned to Eskay Mining Corporation in May 2008, granting Eskay Mining the option to earn an 80% interest in the project over 4 years. Eskay Mining Corporation is in its 2nd year of the option agreement, and commenced drilling at the end of July on what it indicates as a planned 5,000 metre drilling program on the Eskay Creek Project.
Drilling, Assaying and QA/QC
Surface drilling at Deep Thunder and Garrison Creek was completed by Orbit Garant, and surface drilling at Taylor was completed by Levert Drilling. Analytical work was performed by Laboratoire Expert Inc. in Rouyn-Noranda, and SGS Labratories in Sudbury, both accredited labs. SAS utilized a quality control/quality assurance program consisting of a number of sample standards and blanks that were inserted into the sample string, which represented approximately 5% of the total sample population.
Qualified Person
The exploration programs on the Company's various mineral properties are under the supervision of Michael Michaud, P.Geo, the Company's Vice President of Exploration. Mr. Michaud is SAS' qualified person as defined by NI 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, northeastern Ontario, which lies within the Abitibi greenstone belt, the most important host of historical gold production in Canada. SAS is focussed on developing its assets in the Timmins Camp which includes current and near-term gold production, and exploration activities.
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. Specifically this news release contains forward-looking information regarding the extent, timing, objectives and interpretation of exploration drilling programs to be conducted by the Company at the Smoke Deep Zone and Deep Thunder Zone at the Holloway Mine and at the Taylor and Garrison Creek Projects; and the completion of an underground exploration ramp at the Smoke Deep Zone. 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, unanticipated operational or technical difficulties which could escalate operating and/or capital costs and reduce anticipated production levels, fluctuations in gold prices and exchange rates, 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. 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 accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the ability to achieve capital and operating cost estimates, the sufficiency of the Company's cash flows and reserves to achieve its 2010 objectives, the ability to attract and maintain adequate skilled personnel to operate its mines and to conduct its exploration programs, and no significant decline in 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 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-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.
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; Suzette N Ramcharan, Manager, Investor Relations, Email: [email protected]; Jacques Perron, President & CEO, Email: [email protected]; Ben Au, CFO, VP Finance & Administration, Email:[email protected]
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