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SAS SUCCESSFULLY ADVANCES RAMP TO SMOKE DEEP ZONE

31.05.2011  |  CNW

TORONTO, May 31, 2011 /CNW/ --
TORONTO, May 31, 2011 /CNW/ - St Andrew Goldfields Ltd. (T-SAS), ('SAS' or the 'Company') is pleased to announce that ramp development at
the Smoke Deep Zone ('Smoke Deep') has sufficiently advanced to start excavation of the first crosscut
providing access to the zone, which is situated approximately halfway
between the Lightning Zone and the Blacktop Zone at the Holloway Mine.


At the end of June 2010, the Company announced an inferred mineral
resource estimated at 747,000 tonnes grading 5.83 g/t Au totalling
140,000 ounces of gold, and made a decision to advance its efforts at
Smoke Deep by driving an underground ramp from the 730 level of the
Lightning Zone (which lies approximately 1km to the west of Smoke
Deep). The ramp is designed to conduct definition drilling and to
provide drilling platforms to test the extension of Smoke Deep where it
remains untested.


Ramp excavation commenced in July 2010, and as of May 2011 development
crews started excavating the first crosscut to provide access to the
western portion of the zone. Definition drilling has started and
development work is expected to be conducted during the third quarter
in order to facilitate the start of mining from Smoke Deep in the
fourth quarter of this year.


In addition, ramp development will continue until it reaches the eastern
extent of the zone, which is expected to be completed in the fourth
quarter of this year, at which time drilling platforms will be put in
place to allow access for continued exploration. This next phase of
drilling is expected to commence towards the beginning of 2012 and will
focus on testing the mineralized zone where it remains open along
strike, down dip, and eastwards, down plunge, and where previous
drilling encountered significant results; 5.83 g/t Au over 35.0 metres
including 8.84 g/t Au over 14.0 metres, 4.40 g/t Au over 36.0 metres
including 11.16 g/t Au over 7.5 metres (see press release dated June
22, 2010 available under the Company's profile on SEDAR at www.sedar.com or on the Company's website at www.sasgoldmines.com).


'We are pleased with the progress of the ramp development at Smoke
Deep.' said Jacques Perron, President & CEO of SAS. 'We have initiated
the definition drilling campaign and will be able to access the ore
zone shortly. We are also excited to see what continued exploration
will return once exploration drilling resumes. While the definition
drilling will provide us with the information for near term mining at
Smoke Deep, the future exploration drilling has the possibility to
increase the current level of resources and to extend the mine life of
the Holloway Mine.'


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 with three
producing mines and aggressive exploration activities across 120km of
land straddling the Porcupine-Destor Fault Zone.


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 planned development of
the Smoke Deep Zone at the Holloway Mine, and the timing thereof; and
continued exploration on the Smoke Deep Zone and the timing and results
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, uncertainties relating
to the interpretation of the geology, continuity, grade and size
estimates of the mineral reserves and resources, the ability to convert
inferred resources into mineable reserves, 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, the availability of adequate financing, 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 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 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.


 

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/31/c8906.html

Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com.

  Suzette N Ramcharan
Manager, Investor Relations
Email: sramcharan@sasgoldmines.com
 
Jacques Perron
President & CEO
Email:jperron@sasgoldmines.com
  Ben Au
CFO, VP Finance & Administration
Email:bau@sasgoldmines.com

 



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