NEWS RELEASE
ST. ANDREW GOLDFIELDS LTD.
*************************
TORONTO - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") is pleased to report its third quarter ("Q3 2015") production of 23,317 ounces of gold.
"Our third quarter production was in line with expectations and we are reiterating that the 2015 production will reach the higher end of our production guidance of 85,000 – 95,000 ounces for the Holt and Holloway Mines. Once the Taylor Mine is fully permitted, the Company will update its guidance based upon the expected Taylor production for the remainder of the year. The permitting process is progressing as expected and we expect to have Taylor in commercial production in the very near term," said Duncan Middlemiss, President and Chief Executive Officer of SAS.
Holt Mine ("Holt")
Holt produced 16,597 ounces of gold from Zone 4 on the 925m Level and 1075m Level mining areas (80 percent) and from Zone 6 on the 775m Level (20 percent).
Head grades were 22 percent higher than expected in Zone 4 due to stope sequencing and lower dilution.
The average throughput for the quarter was similar to the previous two quarters.
Mill recoveries were at their expected level of 95 percent.
Holloway Mine ("Holloway")
Holloway produced 6,720 ounces of gold from the Smoke Deep Zone (65 percent) and the Blacktop Zone (35 percent).
The production was slightly lower in Q3 compared to the previous two quarters due to reduced equipment availability, however steps have been taken to remedy this and the Company is looking forward to a stronger Q4.
Head grades were in line with expectations; however the mill recovery rate was slightly lower than expectations at 90 percent.
The contribution from the Blacktop zone was higher in the third quarter following successful grade control initiatives.
Based upon current mine exploration success, production from the Holloway Mine is expected to continue well into 2017.
Advanced Exploration Program - Taylor ("Taylor Project")
Underground development activities continued throughout Q3 2015 at the Taylor Project. A total of 867 metres of lateral development and 61 metres of vertical development were completed during Q3 2015. The development of the second egress is now completed and the Company's focus is to continue the ramp development to access the 1004 lens at depth and to bring the project into commercial production during the fourth quarter of 2015. All permitting requirements, including the mine production closure plan, are currently underway and on track.
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.
*************************
