St Andrew drifting returns unexpected high gold values

St Andrew Goldfields (TSE) has intersected some unexpectedly high-grade gold values while drifting in the West zone of its Stock Twp. gold mine near Timmins, Ont.

At the company’s recent annual meeting in Toronto, chief geologist Otto Zavesiczky said 44 samples taken from a crosscut in an area 1,450 ft. west of the mine shaft averaged 0.51 oz. per ton cut.

He said the initial point of intersection was at the base of the ramp at the 7th level horizon, 1,000 ft. below surface.

One of the surviving juniors of the flow-through financing era, St Andrew has been struggling in the face of low gold prices to keep the Stock Twp. operation running. St Andrew suspended operations for two months in 1991, and it reported a loss of $2.8 million or 16 cents a share after producing 21,961 oz. gold from 145,713 tons of ore grading 0.16 oz.

With around $624,000 in cash at the end of the first quarter, the company is being forced by financial constraints to do exploration, development and mining almost at the same time.

That is why company officials are so encouraged by the high-grade samples which were extracted from 18 ft. of crosscutting and from 120 ft. of drifting in the West zone.

Zavesiczky told shareholders at the annual meeting that underground diamond drilling will begin immediately as the company bids to define the upward and downward extent of the high-grade area. Based on results of five widely spaced drill holes, possible reserve estimate in the West zone stands at 100,000 tons grading 0.13 oz. Total minable reserves at Stock Twp. stand at 235,645 tons grading 0.16 oz.

In the first three months of 1992, St Andrew reported a net loss of $176,543 (less than 1 cents per share).