Toronto, Canada May 7, 2015

Transcription

1 NEWS RELEASE SAS ANNOUNCES SUCCESSFUL EXPLORATION RESULTS FOR HOLT AND HOLLOWAY PROPERTIES: Successful Phase 2 drilling at Holt Zone 4 extends mineralized corridor to north New Drill Results Extend Holloway s Smoke Deep Zone to the east Mineralization outlined below existing Mattawasaga Pits Toronto, Canada May 7, 2015 St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ( SAS or the Company ) is pleased to provide an exploration update which includes assay results from both its Phase 2 deep surface drill program, targeting Zone 4 ( Zone 4 ) mineralization, the Mattawasaga Pit drilling program at its 100% owned Holt Mine ( Holt ), and underground drilling at the Smoke Deep Zone ( Smoke Deep ) at the Holloway Mine ( Holloway ). Highlights of Drilling Results Phase 2 Zone 4 Deep West Extension (Surface drilling): ZN W g/t Au over 23.6 metres including 6.04 g/t Au over 5.4 metres ZN g/t Au over 6.6 metres Mattawasaga Pit (Surface drilling): MAT 6(pit) 3.12 g/t Au over 16.3 metres including g/t Au over 1.4 metres. MAT-17 (pit) 1.66 g/t Au over 37.0 metres including 3.10 g/t Au over 4.6 metres. Holloway Smoke Deep (Underground drilling): g/t Au (20.12 g/t Au cut) over 6.0 metres g/t Au over 8.1 metres and g/t Au over 1.5 metres. Notes: All drillhole core intercepts are reported as core length as true widths are not known at this time. Zone 4 assays are cut to g/t Au, Smoke Deep assays are cut to g/t Au. These results are encouraging on all fronts. The continuation of successful drilling results at the Zone 4 Deep West Extension further demonstrates the potential for growth within this mineralized corridor between the McKenna and Ghostmount faults. Company-wide we have added nearly one million ounces of inferred resources in the fourth quarter of 2014 and we believe further additions are likely. Positive drill results at the Mattawasaga Pit will be incorporated into a geological model to determine the viability of these results in a near mill mining scenario, which would potentially contribute to our objective of maximizing capacity at the Holt Mill. Additionally, the Holloway Smoke Deep results demonstrate that the mineralized zone continues down plunge and the mine exploration efforts are focused on locating more mineralized material to expand this zone and expected mine life commented Duncan Middlemiss, President and CEO of SAS. 1

2 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 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 at Holt). Assay results from Phase 1 of this drill program were reported by SAS on October 9, 2014 and January 15, 2015 (See press releases, available under the Company s profile on or on the Company s website at Phase 1 drilling resulted in 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 both up-and down dip. Phase 2 drilling commenced in mid-january to address the following exploration objectives; to infill gaps in the drill coverage, to better define the geometry of the mineralized zones and to test the McKenna Fault (northern side of the mineralized corridor) for mineral potential. Refer to Figure 1. Figure 1: Holt Zone 4 Drill program longitudinal section (looking north) showing mineralized zones. In the first quarter of 2015 ( Q ), three surface holes and associated wedge cuts totaling approximately 5,000 metres ( m ) were completed on the Zone 4 West target. Hole ZN which targeted the up-dip extension of Zone 4 mineralization, returned assays of 4.78 g/t Au over 6.6 m. This intercept occurred approximately 145 m north of the initial assay intercept in drillhole WE which returned 9.97 g/t Au over 11.2 m. Drillhole ZN Wedge- 1 intersected 2

3 both the NBS Zone and Zone 4 mineralization 300 m to the east and returned assays of 3.37 g/t Au over 23.6 m including 6.04 g/t Au over 5.4 m. These recent drill results indicate that Zone 4 and NBS zone mineralization extends from the Ghostmount Fault to the south northward towards the McKenna Fault zone. The mineralization remains open both along strike and up-dip to the north. A drill isometric and cross-section showing the positions of the drill holes is found in Figure 2 and 3 (below). 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. Recent drilling targeted Zone 4 mineralization further north than any previous holes, confirming continuous mineralization extending to the northern half of the fault corridor. Previous drilling focused within m of the Ghostmount fault, on the southern half of the corridor. In light of the recent discoveries the zone remains open within the corridor to the north, along strike and down the plunge. Refer to Figure 2 for an isometric view of Zone 4 surface and underground drill intercepts. Figure 2: Holt Zone 4 Deep Extension isometric view looking north 3

4 Figure 3: Holt Zone 4 Cross-sectional view looking east showing recent drill intercepts Table 1: Phase 2 Holt Zone 4 Deep West Extension surface drill program assay results COLLARS - UTM NAD 83 BHID Easting Northing Elevation Azimuth Dip From To Length(m) Au (g/t) Au (g/t CUT) / Comment Z Vertical And Core Z W NBS And Z Zone 4 Z W NBS / Zone 4 Including Z Zone 4 Z W NBS zone And Zone 4 Notes: All lengths are reported as core length as true width is not available at this time. Assays are cut to g/t Au. 4

5 Holt Mattawasaga Pit Drill program The Mattawasaga Zone is situated 500m east of the Holt Shaft. Historical production records indicate 213,000 tonnes grading 2.68 g/t Au for a total of 18,341 ounces of gold were extracted from the two pits by a historical operator in the early 1990 s. In Q1 2015, SAS drilled 20 holes totaling 3,150 m which was designed to target Mattawasaga Zone mineralization situated below and west of the historical west pit. Typical Holt style mineralization was reported in holes below the western edge of the West Pit where wide zones of moderate gold grades were reported. Significant program assay results were returned in holes MAT-17 which returned 1.66 g/t Au over 37.0 m, MAT-06 which returned 3.12 g/t Au over 16.3 m and MAT-18 which returned 2.20 g/t Au over 11.9 m. A complete list of all program assay results is found in Table 2 (at the end of this press release). Refer to Figure 4 for an isometric view of Mattawasaga Pit surface drill intercepts. Figure 4: Isometric view looking NE showing recent drill results. Holloway Smoke Deep Underground Drill program Underground drilling east of Smoke Deep commenced earlier this year to test the possible eastern and down dip extension of the zone from the underground drift located on the 945m Sub-level. The drill program was successful, and continues to extend the Smoke Deep deposit both along strike further to the east and down plunge. This drilling has effectively extended the known mineralized strike length of the Smoke Deep deposit by 50 m for a total strike length of 550 m. Recent assay results include hole , which returned g/t Au (20.12 g/t cut) over 6.0 m and including hole which returned 8.27 g/t Au over 8.1 m. These drill intersections are typical Smoke mineralization, associated with the mafic volcanic / ultramafic volcanic contact. 5

6 SAS recently extended the hanging wall drift to the east to provide a drill platform, with drilling in progress from underground set-ups to test for the mineralized extensions both to the east and at depth. This zone remains open to the east with additional drilling planned to follow-up on the strike extension of this target. A list of assay results from the smoke Deep drill program is found attached at the end of this release. Refer to Figure 5 for a longitudinal section of Smoke Deep drilling. Figure 5: Holloway Smoke Deep Longitudinal showing recent drill results. Drilling, Assaying and QA/QC Surface drilling at Holt Zone 4, Mattawasaga and underground drilling at Holloway Smoke Deep zones was performed by Asinii Drilling based in Notre dame du Nord QC. Analytical work for Holt Zone 4 West was performed by Lab Expert Inc. 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. Analytical work for core samples from the Mattawasaga and Smoke Deep drill programs was performed at SAS s Holt mine assay lab and at Swastika Labs located in Swastika, ON. 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. 6

7 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 of Exploration. Mr. Cater is a qualified person as defined by NI , and has reviewed and approved this news release Annual Meeting of Shareholders and First Quarter Earnings Call The Company will hold the annual meeting of shareholders on Wednesday, May 13, 2015 at 11:00 AM EDT, and will release its 2015 first quarter financial results after market on Tuesday, May 12, The Company invites you to participate in its conference call to discuss its first quarter financial and operating results for The conference call will take place on Wednesday May 13, 2015 at 2:00 PM EDT. Participants may join the call via webcast at or call in toll free at A playback of the conference call will be available via the website and will be posted within 24 hours of the call. 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. Appendices Table 2: Holt Mattawasaga Pit drill program assay results Holt Mine Grid Core BHID Easting Northing Elevation Azimuth Dip From To(m) Length(m) AU_GPT MAT And And And MAT Including MAT Including MAT And

8 Including MAT Including Including MAT NSV MAT MAT And MAT NSV MAT NSV MAT NSV MAT MAT NSV MAT MAT And Including Including And Including MAT And Including Including And And MAT Including

9 Including Including Including Including Including MAT Including Including MAT Including Including Including Including MAT-20 Notes: All lengths are reported as core length. True width is approximately 60% of core length. Assays are cut to g/t Au. NSV = no significant values NSV Table 3: Holloway Smoke Deep 945 sub-level drill results. BHID Easting Northing Elevation Azimuth Dip From (m) To(m) Length(m) AU_GPT AU_G/T Cut 25 g/t And including

10 And including And including And And And including including including And And And And And And And And And And And And And And And

11 And And And including including And And And And And And And And including including including including And And

12 And And And including And And And And And including including And including including including

13 And NO SIGNIFICANT VALUES NO SIGNIFICANT VALUES And And And And Note: Drillholes through are in progress. 13

14 For further information about St Andrew Goldfields Ltd., please contact: Tel: or (416) ; Fax: (416) ; Website: Keyvan Salehi, P. Eng., MBA Vice President, Corporate Development and Technical Services Duncan Middlemiss, P. Eng. President & CEO Ben Au CFO, VP Finance & Administration FORWARD-LOOKING INFORMATION This news release contains forward-looking information and forward-looking statements (collectively, forwardlooking 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 the Holt and Holloway properties, and the completion of additional drilling at the Holt and Holloway properties. 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 forwardlooking 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