Resource World Magazine

38 www.resourceworld.com d e c e m b e r / j a n u a r y 2 0 1 6 St. Andrew Goldfields targeting 100,000 ounces per year by Jennifer S. Getsinger, PhD, PGeo st. andrew Goldfields Ltd. [SAS-TSX; STADF-OTCQX] is a successful Canadian junior mining company with actively producing gold mines in the Timmins Mining District of northeast Ontario. According to available documents, "the company's objective is to become a prominent mid-tier gold producer." In 2014, with three operating mines straddling the Porcupine-Destor fault zone (PDFZ; also known as the Porcupine-Destor Deformation Zone), St. Andrew Goldfields produced 90,679 oz of gold. Although the Hislop Mine is on care and maintenance for now, the Holt and Holloway mines, south and north of a splay of the PDFZ, respectively, are still producing gold at the expected rate of predicted guidance for 2015. Year-to-date figures, including the third quarter of 2015 total 70,578 oz gold grading about 5 g/t gold with a greater than 90% recovery rate, according to a news release dated October 15, 2015. Production in the third quarter alone was 16,597 oz for the Holt Mine and 6,720 oz gold for the Holloway Mine. All ore is processed at the Holt mill, which also provides revenue as a toll mill for other operating gold mines in the area. The projected total production for 2015 should reach 85,000 to 95,000 oz, especially if preliminary test production from the exploration program on the Taylor Project con- tributes the expected 10,000 to 12,000 oz gold by the end of the fourth quarter. All-in sustaining costs (AISC) so far in 2015 have amounted to some US $966/oz, leading to positive earnings for shareholders in the current year, an improvement over 2014. The Abitibi Greenstone Belt has remained perhaps the most significant geological host for historical gold production in Canada, stretching from Wawa, Ontario in the west to Val d'Or, Québec in the east. The belt has seen the development of over 100 mines and produced some 170 million ounces of gold since 1901. The two main mining properties now run by St. Andrew Goldfields have been devel- oped from the old Holt-McDermott and Harker-Holloway mines, which have had several owners, including Noranda, Canamax, Hemlo, Battle Mountain and Newmont over the years since discovery in the early 20th century. Not much was done with gold mining in the mid-20th century due to the stagnant price of gold, but in the 1980s and follow- ing there was a flurry of exploration and development activity. St. Andrew Goldfields purchased Holloway Mining from Newmont Canada in 2006, and has assembled a huge land base (Golden Highway property) of 48 property groups including 691 claims (mineral claims, leased claims, and pat- ented claims) tens of kilometres along strike parallel to the Porcupine-Destor Deformation Zone trend. There are a few pre-existing royalties carried over, but otherwise ownership is 100%. A March 2015 Technical Report car- ries summaries of mineral resources and reserves, updated as of December 31, 2014. Highlights include total measured and indicated mineral resource esti- mates for combined Holt and Holloway as 8,355,000 tonnes grading 4.00 g/t gold with 1,075,000 oz gold; and inferred min- eral resource estimates for both mines as 10,345,000 tonnes grading 4.72 g/t gold with 1,571,000 oz gold (assumptions include cut-off grade of 2.5 g/t gold, and a long term gold price of US $1,250/oz). Estimated combined proven and prob- able mineral reserves as of December 31, 2014, for both Holt and Holloway mines, are 4,099,000 tonnes grading 4.79 g/t gold, representing 631,000 oz gold. In addition to continued mining of cur- rently profitable producers, exploration programs remain focused on the near- mine targets" (Holt and Holloway, Zone 4 extension, Smoke Deep extension, and Tousignant Zone). Diamond drilling and geological and geophysical studies in other areas and parts of their extensive land pack- age is also being conducted. Recent results of underground drilling reported from Holt and Holloway include 9.51 g/t gold over 12.3 metres (hole 945-077) and 10.49 g/t gold over 7.7 metres (hole 945-080). One of the most promising prospects The Holloway Mine near Timmins, northeast Ontario. Photo courtesy St. Andrew Goldfields Ltd. mINING

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