St Andrew increases width of West Porphyry

Infill and stepout drilling by St Andrew Goldfields (SAS-T) continues to add potential to the West Porphyry zone on the Taylor property, near Matheson, Ont.

In the latest round, St Andrew drilled two infill and two stepout holes, bringing to 27 the total number of holes drilled in the zone. At a depth of 554.3 metres, stepout hole 88 intercepted 1.5 metres grading 16.4 grams gold per tonne, which was contained in a lower-grade, 5.9-metre core-interval averaging 4.9 grams gold. Farther down-hole, a second interval of 1.5 metres (from 638.3 metres) returned 11.7 grams gold, again contained in a lower-grade, 7.8-metre core-interval averaging 2.8 grams gold.

The drilling has served to increase the width of the zone by 61 to 243 metres. The second stepout hole intersected diabase and, as a result, will have to be redrilled.

Results from the two infill holes include: 5.2 metres (from 459 to 464.2 metres) of 9.2 grams gold in hole 84 and 1.5 metres (from 504.6 to 505.4 metres) grading 13.8 grams gold in hole 90. The latter hole also contained visible gold in the mineralized interval.

Results from a further five stepout holes are pending, and both infill and stepout drilling continue.

At last report, the West Porphyry zone hosted proven and probable resources of 248,658 tonnes grading 7.34 grams gold. These are contained in an overall resource of about 1.3 million tonnes grading 9.6 grams gold.

The zone has a drill-tested width of 152 metres, a length of 457 metres and an average thickness of 7.6 metres. It is open along strike, to the southwest and at depth.

Meanwhile, the company is proceeding with a rights issue aimed at raising $3.7 million, subject to regulatory approval. The offering would see each shareholder receive one right for each share held, with 10 rights entitling the holder to buy one share at a price that will be discounted to market.

St Andrew is also planning to consolidate its shares on the basis of one new share for five existing shares.