SAS reports significant exploration results from the Holt property

9.97 g/t Au over 11.2 metres (9.28 g/t Au cut) including 19.45 g/t Au over 4.6 metres (17.77 g/t Au cut)  

TORONTO, Oct. 9, 2014 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to announce initial assay results from its deep surface drill program conducted on the Zone 4 and South Zone ("Zone 4") target at the Holt Mine ("Holt"). 

Note:  All lengths are reported as core length as true width is not available at this time. Assays are cut to 32.00 g/t Au. 

"These recent results targeting the Zone 4 mineralization are potentially the most significant discovery SAS has generated on the Holt property. The mineral potential remains open in all directions and the original intercept is 600 metres west of 1075m level drift (nearest mine opening) and 440 metres west of historical surface diamond drill intercepts. The location is approximately mid-way between Zone 4 and the Tousignant Zone, which is located 3 km west of the Holt shaft.  We have added two additional drills to this program with results expected by year end", remarked Duncan Middlemiss President and Chief Executive Officer of SAS.  "Currently Holt has a very robust mine life with approximately 470,000 ounces of Au in reserves (3.10M t @ 4.74 g/t Au) at the beginning of the year and over 735,000 ounces of Au in the Measured (3.63M t @ 3.85 g/t Au) and Indicated (2.15M t @ 4.21 g/t Au) resource categories, and these recent results may add significantly to the resource base at Holt, provided the ongoing drill program's results continue as anticipated.  It is with great anticipation we embark on an accelerated phase of this program."

Zone 4 Surface Drilling Program  

In June 2014, SAS commenced a deep surface drilling program to test for multiple flat-lying, en-echelon mineralized zones and ultimately targeting mineralization associated with the westerly strike projection of Zone 4 (the most significant production horizon being mined by SAS at Holt). 

The first hole of the program, hole WE14-001 intercepted Zone 4 and returned assay results of 9.97 g/t Au over 11.2 metres (9.28 g/t Au cut) commencing at a downhole depth of 1,199.3 metres, including 19.45 g/t Au (17.77 g/t Au cut) over 4.6 metres.  The mineralized intercept which occurred at the 1050m elevation, is associated with a shallow dipping flat zone situated approximately 200 metres north of the Ghostmount Fault zone, a major structural feature in the area.   An examination of the core angles suggests that the true width of the mineralized zone is very close to the core length.

Upon receipt of the assay results, SAS commissioned a wedge cut commencing at a downhole depth of 600 metres from the master hole.  Hole WE14-001-W1 intercepted two mineralized zones which returned assay results of 4.38 g/t Au over 22.9 metres and 8.92 g/t Au over 10.5 metres.  This intercept is located approximately 170 metres south of the initial assay intercept.  The wedge cut was extended to allow the hole to intercept the Ghostmount Fault zone.  A third mineralized zone was also intersected which returned 7.89 g/t Au over 19.3 metres.

These intersections are postulated to be the westerly strike extension of the Zone 4 and South Zone mineralization. Multiple mineralized zones were intercepted in the master hole (refer to the assay result table below). The mineralized zone consists of a quartz breccia zone, containing approximately 3-5% disseminated pyrite, hosted within an altered mafic volcanic. Numerous specks of visible gold were observed in the core.   Although visible gold is not common in most of the Holt style of mineralization, it was noted regularly in the higher grade areas of the South Zone, the previous mining zone while the mine was operated by Barrick Gold Corp..

These drill intercepts have potentially extended the known mineralized strike length of Zone 4 by approximately 600 meters west of the 1075m Level drift (the closest development access point) and approximately 440 metres west of SAS's historical surface drilling.  Successful results from this drill program have initiated the immediate mobilization of 2 additional drills in order to accelerate this program; with the objective of defining the limits of Zone 4 mineralization.            

Refer to Figure 1 for a plan view of Zone 4 surface drill intercepts and Figure 2 a Longitudinal section of the Holt Mine – showing the location of recent drill intercepts relative to the underground workings.

Recent deep surface drill program results for Zone 4 are summarized in the table below:

Holt Exploration 2014

Note:  All lengths are reported as core length as true width is not available at this time.  Assays are cut to 32.00 g/t Au.

Drilling, Assaying and QA/QC

Surface drilling at Zone 4 was performed by Orbit Garant Drilling based in Val d'Or QC.   Analytical work was performed by Lab Expert located in Rouyn Noranda, QC.   Samples consisted of half sawn NQ caliber core. Gold analysis was conducted using 30 gram samples (1AT portions) with gold grades determined by standard fire assay preparation and a gravimetric finish.  SAS employs an industry accepted QA/QC program, consisting of certified reference standards and blanks that are inserted into the sample stream, which represent approximately 5% of the total sample population.

Qualified Person

The exploration programs on the Company's various mineral properties are under the supervision of Doug Cater, P. Geo, the Company's Vice-President, Exploration.  Mr. Cater is a 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, 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 which contribute approximately 100,000 ounces of annual gold production. The Company is also advancing exploration at Taylor; and is conducting an aggressive exploration program across 120km of land straddling the PDFZ.

Duncan Middlemiss
President & CEO
dmiddlemiss@sasgoldmines.com

Ben Au
CFO, VP Finance & Administration
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 expansion of mineralized zones, the completion of additional drilling at Holt and the timing thereof.

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 exploration and development initiatives, escalate operating and/or capital costs; 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; and changes in general economic conditions. Such forward looking information is based on a number of assumptions, including in respect of the ability to achieve operating cost estimates, the volatility and level of the price of gold including that the gold price will generally remain within a reasonable range of current levels, the accuracy of reserve and resource estimates and the assumptions on which such estimates are based, the sufficiency of the Company's cash flow and financial reserves to carry out its planned programs, the ability to attract and retain qualified personnel to conduct its exploration programs and operate its mines, 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.