SAS Exploration Update - Successful Drill Program Expands Mineralization at Holt and Holloway

TORONTO, Aug. 5, 2015 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to provide an exploration update which includes assay results from its Phase 2 deep surface drill program, targeting Zone 4 ("Zone 4"), Zone 6 ("Zone 6"), and Tousignant West ("Tousignant") programs at its 100% owned Holt Mine ("Holt"), and the Smoke Deep and Blacktop Zones at its 100% owned Holloway Mine ("Holloway").


Highlights of Drilling Results

Phase 2 Zone 4 Deep West Extension (Surface drilling):

• ZN4-15-004               4.08 g/t Au over 9.9 metres – 265m west of current resources
• ZN4-15-004-W1        3.78 g/t Au over 10.2 metres including 4.33 g/t Au over 6.8m

Zone 6 (Underground drilling 710 sub-level):

• 710-103                    8.71 g/t Au (8.55 g/t cut) over 13.2 metres including 20.09 g/t Au over 3.1 metres.
• 710-113                    6.74 g/t Au (6.61 cut) over 23.6 metres
• 710-124                    9.62 g/t Au (9.40 cut) over 14.7 metres

Holloway Smoke Deep (Underground drilling 945 sub- level):

• 945-077                    9.51 g/t Au (8.91 cut) over 12.3 metres
• 945-080                    10.49 g/t Au over 7.7 metres

Holloway Blacktop Extension (Surface drilling):       

• GH15-002                 3.27 g/t Au over 11.9 metres including 3.62 g/t Au over 9.8 metres.

Notes: All drillhole core intercepts are reported as core length as true widths are not known at this time. Zone 4, West Tousignant and Blacktop assays are cut to 32.00 g/t Au.  Underground drilling assays from Zone 6 and Smoke Deep are cut to 25.00 g/t Au.

"We are very pleased with the successful results of the exploration programs at our core assets, Holt and Holloway" commented Duncan Middlemiss, President and CEO of SAS.  "Holt's Zone 4 Deep West Extension continues to grow in size with potential for further upside, both at depth and along strike.  We continue to test the extension of this mineralization and look forward to updating the market on our progress." "We are equally excited about the successful exploration programs at Holloway.  The drill results demonstrate that mineralization continues down plunge at both Smoke Deep and Blacktop Zones.  These results are very significant to the extension of mine life at Holloway, with current reserves, resources, and mineralization supporting mining operations until the end of 2017, and potential for further upside." added Duncan Middlemiss.

Holt - Phase 2 Zone 4 Deep West Extension Drill program

Recent 2015 surface exploration drilling programs on the Holt property continue to follow-up on the Zone 4 Deep West Extension, targeting multiple shallow dipping, en-echelon mineralized zones and ultimately targeting mineralization associated with the westerly strike projection of Zone 4 (the most significant production horizon being mined at Holt).  Previous assay results from Phase 2 drilling were reported on May 7, 2015. (See press releases, available under the Company's profile on www.sedar.com or on the Company's website at www.sasgoldmines.com.)

Phase 1 drilling had confirmed the presence of a total of 3 mineralized zones being defined (Zone 4 Lower / NBS and Vertical zones) and resulted in a 2014 year-end inferred mineral resource addition of 5.5 million tonnes grading 4.82 g/t Au containing 0.86 million ounces of gold (excludes V-93 and DL zones). These zones remain open with additional mineral potential available along strike to the east, west and extending up-dip towards the McKenna Fault. Figure 1 is a longitudinal view identifying both the infrastructure and mineralized zones at the Holt mine (Zone 4 in green and Zone 6 in purple).

Recent assay results from Phase 2 drilling continue to target both the strike and up-dip extension of Zone 4 and associated mineralized zones. Assay results from hole ZN415-004 and ZN415-004 W-1 (wedge) which assayed 4.08 g/t Au over 9.9 metres and 3.78 g/t Au over 10.2 metres respectively are noteworthy and demonstrate that Zone 4 mineralization extends an additional 265m west. (Refer to Figure 2 above).

Visually, the mineralized zones (which are readily recognizable in core) consist of a quartz breccia zone containing approximately 3-5% disseminated pyrite hosted within a sericitic and hematite altered mafic volcanic host rock. Zone 4 mineralization consists of multiple, en-echelon shallow dipping zones (20° South) which are structurally controlled between the McKenna Fault to the north and the Ghostmount Fault to the south. The mineralized drill intercepts confirm that Zone 4 remains open within the corridor up-dip to the north, along strike and down the plunge. Figure 2 is a longitudinal view of the deep drilling showing the recent intercept position relative to the yearend mineral resource shape.


Table 1: Phase 2 Holt Zone 4 Deep West Extension surface drill program assay results

	COLLARS - UTM NAD 83							Core
BHID	Easting	Northing	Elevation	Azimuth	Dip	From	To	Length(m)	Au (g/t)	Au (g/t CUT) / Comment
Z415-004	591282	5371963	4982	345	-73	1432.0	1441.9	9.9	4.08	Zone 4 extension
Z415-004 Wedge 1				345	-73	1429.6	1439.8	10.2	3.78	Zone 4 Extension
including						1433.0	1439.8	6.8	4.33

Notes:  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.


Holt – Zone 6 Underground Drill program

Zone 6 is situated approximately 500 m south of the Holt shaft and is accessible from the 775m and 925m Levels at Holt. The infill drill program which was conducted from a footwall drill drift situated on the 710m Sub-level, consisted of 35 holes, totalling 4,200 metres. The objective of the drilling was to confirm both the up and down dip extensions of the mineralized zone and to verify historical drill intercepts. Typical Holt style mineralization was intersected by the holes where zones of moderate gold grades were reported. Significant program assay results were returned in holes 710 -103  which returned 8.55 g/t Au over 13.2 metres, including 20.09 g/t Au over 3.1 metres and in hole 710-124 which returned 9.40 g/t Au over 14.7 metres (refer to Figure 3 above). A complete list of all 710 level program assay results is found appended at the end of this press release.

The drill program was successful, and continues to extend Zone 6 mineralization above the 4500 elevation. SAS has mobilized a drill to the 925m level to define Zone 6 Lower mineralization above and below the level.

Tousignant West –Surface Drill program
The Tousignant deposit is situated approximately 3 kilometres west of the Holt shaft and is accessible by road from the Holt property. The Tousignant deposit consists of 3 shallow west plunging en-echelon mineralized zones and one vertical zone situated along the Ghostmount North Fault zone – a splay off of the Ghostmount Fault. The deposit has been well drill tested and contains a mineral reserve / resource. Recent surface drilling conducted by SAS continues to test for mineralization associated with the Ghostmount and Ghostmount North Faults, along strike to the west of the Tousignant deposit. Recently, SAS completed a total of 6 holes totalling 2,537 metres, targeting near-surface mineralized extensions west of Tousignant. Significant program assay results were returned in holes TZ15-005 which returned 8.50 g/t Au over 4.8 metres and in hole TZ15-004 which returned 3.10 g/t Au over 6.1 metres. A complete list of all Tousignant West / Ghostmount drill program assay results is found below in Table 2.


Table 2: Holt Tousignant West Assay results

	COLLARS - UTM NAD 83							Core
BHID	Easting	Northing	Elevation	Azimuth	Dip	From	To	Length(m)	Au (g/t)	Au (g/t CUT) / Comment
TZ15-001	589380	5371554	300	345	-75	203.4	206.3	2.9	1.81	Ghostmount Fault
TZ15-002	589380	5371554	300	345	-55	205.8	206.6	0.8	5.09	Ghostmount Fault
TZ15-003	589548	5371760	300	345	-75	391.2	392.1	0.9	2.75	Ghostmount Fault
TZ15-004	589548	5371760	300	345	-63	136.5	142.6	6.1	3.10	Ghostmount Fault
TZ15-005	589548	5371760	300	345	-52	116.7	121.5	4.8	8.50	Ghostmount Fault
And						294.0	295.5	1.5	11.68	Qtz Vein / breccia – Tousignant?
TZ15-006	589402	5371459	300	345	-75	544.7	545.4	0.7	6.96	Ghostmount Fault.

Holloway Mine

Smoke Deep Underground Drilling

Underground drilling from the 945 sub-level, continues to evaluate both the easterly strike extension and down – plunge extension of Smoke Deep mineralization. Recent assay results from the 945 sub-level drill program are found summarized in table format below and plotted on the accompanying longitudinal section. (Refer to Figure 4).


Table 3: Holloway Smoke Deep Zone Assay results.

DDH	EASTING	NORTHING		ELEVATION	AZ	DIP	FROM	TO	LENGTH(m)	Au g/t	CUT 25 g/t Au
945-70	7437	4467		2368	5	2			NSV
945-71	7437	4467		2367	5	-10			NSV
945-72	7437	4467		2366	5	-35	103.6	106.4	2.8	9.48
945-73	7438	4467		2368	10	-4			NSV
945-74	7438	4467		2367	10	-19			NSV
945-75	7438	4467		2367	10	-35	97.6	102.4	4.8	5.53
And							123.0	128.4	5.4	5.63
Including							125.7	128.4	2.7	8.16
945-76	7438	4467		2365	14	-12			NSV
945-77	7438	4467		2364	14	-50	126.6	138.9	12.3	9.51	8.91
Including							126.6	135.5	8.9	10.21	9.39
And							136.8	138.9	2.1	12.16
945-78	7439	4467		2365	33	-16	100.1	101.2	1.1	8.28
945-79	7438	4467		2366	0	-60			NSV
945-80	7438	4467		2366	5	-50	128.6	136.3	7.7	10.49
Including							128.6	133.3	4.7	14.49
945-81	7439	4467		2365	33	-70			NSV
945-82	7438	4467		2366	10	-65			NSV
945-83	7440	4467		2369	33	-35	103.2	104.0	0.8	8.90
Including							111.0	113.0	2.0	6.39
945-84	7440	4469		2365	33	-50	91.6	94.4	2.8	7.30
And							98.0	102.9	4.9	6.68
And							149.6	151.3	1.7	4.91

NSV = No significant values


Blacktop Extension Surface Drilling program

Surface drilling commenced in Q2 with one drill rig completing 1,950 metres of drilling on 3 holes and associated wedges. The primary target area is the down dip extension of the Blacktop Zone, adjacent to, and along strike from Smoke Deep and Deep Thunder deposits. This program will continue into Q3. Assay results are illustrated in Figure 5 and are summarized in Table 4 below.


Table 4: Holloway Blacktop Assay results.

	COLLARS - UTM NAD 83							Core
BHID	Easting	Northing	Elevation	Azimuth	Dip	From	To	Length(m)	Au (g/t)	Au (g/t CUT) / Comment
GH15-001	595325	5374850	290	360	-73					No significant values
GH15-001W1	595325	5374850	290	360	-73	1006.4	1007.0	0.6	9.26	Blacktop Down dip
GH15-002	595050	5374775	290	360	-65	1035.0	1046.9	11.9	3.27	Blacktop Down dip
Including						1035.0	1044.8	9.8	3.62

Drilling, Assaying and QA/QC

Core drilling on all SAS programs was performed by Asinii Drilling based in Notre Dame du Nord QC. Analytical work for Holt Zone 4 West, Tousignant West and Blacktop was performed by Lab Expert Inc. located in Rouyn-Noranda, QC. Samples consisted of saw cut 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.   Analytical work for core samples from the Zone 6 and Smoke Deep drill programs was performed at SAS' Holt mine assay lab. Samples consisted of whole BQ caliber sized 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 VP, 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 and Holloway mines. 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.


Appendix: Table 5: Holt Zone 6 710 sub-level drill results. (Collar Coordinates in Holt mine grid system)

DDH	EASTING	NORTHING		ELEVATION	AZ	DIP	FROM	TO	LENGTH(m)	Au g/t	CUT 25 g/t Au
710-100	10820	9461		4298	226	1	99.3	100.2	0.9	3.97
710-101	10820	9461		4298	226	10	86.1	92.0	5.9	4.16
Including							89.0	90.0	1.0	7.00
Including							91.0	92.0	1.0	9.97
710-102	10821	9461		4300	213	65	77.6	84.7	7.1	4.24
Including							78.2	80.2	2.0	11.05
Including							83.7	84.7	1.0	3.78
710-103	10822	9462		4300	213	84	55.5	57.4	1.9	3.01
Including							55.5	56.5	1.0	3.68
							71.4	72.4	1.0	3.22
							73.6	74.6	1.0	3.71
							98.1	111.3	13.2	8.71	8.55
Including							98.1	101.1	3.0	12.37
Including							101.9	103.3	1.4	5.42
Including							107.5	110.6	3.1	20.75	20.09
710-104	10821	9461		4300	197	65	81.8	86.3	4.5	3.16
Including							81.8	82.8	1.0	6.35
710-105	10821	9462		4300	197	75	64.6	66.0	1.4	3.94
							84.7	85.3	0.6	6.16
							88.0	91.6	3.6	5.35
Including							88.0	90.0	2.0	6.09
Including							90.6	91.6	1.0	6.89
710-106	10821	9460		4299	186	25				NSV
710-107	10821	9460		4299	186	37	42.2	44.2	2.0	5.11
Including							42.2	43.2	1.0	9.06
							54.7	56.4	1.7	3.73
Including							55.7	56.4	0.7	6.55
							66.0	72.4	6.4	5.46
Including							67.9	71.8	3.9	7.64
710-108	10821	9461		4300	176	54	70.8	78.0	7.2	3.75
Including							70.8	71.8	1.0	3.53
Including							73.8	74.8	1.0	8.51
Including							76.6	77.0	0.4	20.06
710-109	10821	9461		4300	176	64	75.3	82.6	7.3	3.46
Including							75.3	77.5	2.2	4.86
Including							79.2	79.9	0.7	6.84
Including							80.8	82.6	1.8	3.56
710-110	10821	9462		4300	176	74	66.1	67.0	0.9	5.27
							83.4	85.0	1.6	4.53
							92.1	96.4	4.3	4.82
Including							92.1	92.9	0.8	12.20
Including							93.9	96.4	2.5	4.25
710-111	10821	9462		4300	176	80	66.3	69.0	2.7	6.65
Including							66.3	68.0	1.7	9.86
							95.0	103.6	8.6	7.93
Including							95.0	101.3	6.3	8.90
Including							102.4	103.6	1.2	9.31
710-112	10863	9475		4307	224	70	105.7	117.6	11.9	8.01	7.42
Including							108.0	110.8	2.8	11.17
Including							112.0	116.1	4.1	13.11	11.38
710-113	10863	9476		4307	224	80	79.5	81.5	2.0	4.61
Including							80.7	81.5	0.8	8.30
							108.0	131.6	23.6	6.74	6.61
Including							108.0	108.8	0.8	5.13
Including							110.1	110.5	0.4	18.86
Including							114.0	117.9	3.9	11.08
Including							118.9	120.5	1.6	9.31
Including							121.0	121.6	0.6	7.74
Including							123.7	124.7	1.0	3.03
Including							125.7	131.1	5.4	13.32	12.75
710-114					192	15	CANCELLED
710-115	10863	9474		4306	192	24	36.8	41.0	4.2	3.60
Including							36.8	39.5	2.7	3.56
Including							40.4	41.0	0.6	7.36
							61.9	63.4	1.5	4.07
							71.3	78.7	7.4	5.41
Including							74.8	76.7	1.9	10.9
Including							77.6	78.7	1.1	6.30
710-116	10863	9475		4307	192	64	65.3	66.2	0.9	4.56
							93.4	95.5	2.1	3.17
							100.1	105.0	4.9	5.46
Including							100.1	103.8	3.7	6.31
710-117	10863	9476		4307	192	77	106.8	133.0	26.2	6.64
Including							107.8	120.9	13.1	8.91
Including							127.0	132.2	5.2	11.82
710-118	10863	9474		4306	180	37	58.3	60.1	1.8	13.02
							69.0	73.7	4.7	5.88
Including							69.0	72.3	3.3	6.22
Including							73.2	73.7	0.5	12.17
							75.9	76.7	0.8	15.9
							80.6	80.9	0.3	12.44
710-119	10863	9475		4307	180	64	94.5	95.1	0.6	15.32
							97.0	102.7	5.7	7.88
Including							97.0	100.0	3.0	8.93
Including							100.4	102.7	2.3	7.52
710-120					168	27	CANCELLED
710-121	10864	9475		4307	168	54	79.2	90.7	11.5	6.32
Including							82.3	90.7	8.4	7.92
710-122	10864	9475		4307	168	64	88.7	101.6	12.9	5.45
Including							88.7	90.1	1.4	5.61
Including							90.4	94.2	3.8	6.08
Including							95.6	101.6	6.0	5.85
710-123	10863	9475		4307	168	72	101.1	111.5	10.4	9.57
Including							102.1	107.6	5.5	10.39
Including							108.5	111.5	3.0	12.66
710-124	10864	9475		4307	168	79	107.5	108.0	0.5	29.43	25.00
							112.0	126.7	14.7	9.62	9.40
Including							112.0	116.1	4.1	9.81
Including							118.8	119.8	1.0	10.98
Including							120.2	121.1	0.9	4.78
Including							121.8	126.7	4.9	15.85	15.17
710-125	10889	9473		4305	193	-6	69.7	78.5	8.8	7.63
Including							70.4	77.2	6.8	7.74
Including							77.7	78.5	0.8	15.25
710-126	10889	9473		4305	193	36	29.7	38.0	8.3	4.41
Including							31.9	34.7	2.8	6.00
Including							35.5	37.0	1.5	9.34
							43.6	44.6	1.0	4.02
							70.9	82.4	11.5	6.47
Including							71.9	75.5	3.6	9.95
Including							76.5	78.5	2.0	4.63
Including							79.5	82.4	2.9	8.18
710-127					184	-4	CANCELLED
710-128	10889	9474		4306	184	59	67.8	68.5	0.7	6.64
							80.4	92.8	12.4	5.22
Including							81.6	85.2	3.6	6.81
Including							86.2	89.2	3.0	6.85
Including							90.2	92.8	2.6	4.45
710-129	10889	9474		4306	184	74	99.9	114.2	14.3	4.95
Including							100.9	103.6	2.7	8.89
Including							106.9	109.0	2.1	5.13
Including							110.0	114.2	4.2	6.97
710-130	10889	9473		4304	172	6	39.5	40.4	0.9	3.06
							44.2	44.8	0.6	4.73
							66.0	74.2	8.2	5.23
Including							66.0	66.5	0.5	3.94
Including							68.9	70.9	2.0	7.82
Including							72.6	73.4	0.8	18.8
Including							73.7	74.2	0.5	4.77
710-131	10889	9473		4305	172	31	69.6	77.0	7.4	6.02
Including							69.6	71.3	1.7	11.08
Including							72.7	73.0	0.3	4.33
Including							74.1	77.0	2.9	7.28
710-132	10889	9473		4306	172	52	36.0	43.7	7.7	4.35
Including							36.0	39.0	3.0	5.33
Including							42.0	43.7	1.7	6.69
							64.5	65.4	0.9	3.38
							76.7	87.5	10.8	6.89
Including							76.7	78.2	1.5	3.51
Including							79.2	87.5	8.3	8.19
710-133	10889	9474		4306	172	64	40.0	42.0	2.0	4.17
							92.7	97.6	4.9	4.89
Including							92.7	95.4	2.7	6.78
Including							96.4	97.6	1.2	3.63
710-134	10891	9473		4304	12	-3	NSV
710-135	10891	9473		4304	128	8	104.9	106.0	1.1	3.16
710-136	10891	9473		4304	128	19	92.0	97.7	5.7	4.91
Including							92.0	93.0	1.0	3.39
Including							95.0	97.7	2.7	7.59
							103.5	105.5	2.0	5.28
Including							103.5	104.5	1.0	9.10
710-137	10891	9473		4305	128	33	51.0	51.6	0.6	3.07
							52.6	53.5	0.9	3.70
							84.5	85.6	1.1	4.02
							99	104.3	5.3	3.63
Including							100.4	101.3	0.9	4.25
Including							102.3	104.3	2.0	6.63

Notes: All lengths are reported as core length.  Assays are cut to 25.00 g/t Au. NSV = no significant values


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 at Holt, the extension of the mine life at Holloway and the completion of additional drilling at Holloway.

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 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; 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 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 sufficiency of the Company's cash flow and financial reserves to carry out its planned exploration 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.



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