|SAS ENTERS INTO OPTION TO ACQUIRE UP TO 60% INTEREST IN STROUD'S --SDR---PROPERTY ADJACENT TO THE HISLOP MINE EAST OF TIMMINS|
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, April 28 /CNW/ -
St Andrew Goldfields Ltd. (T-SAS), ("SAS" or the "Company") is pleased to announce that it has entered into an option agreement with Stroud Resources Ltd. ("Stroud"), to earn up to a 60% undivided interest in Stroud's Hislop Gold Property ("Property"), which is situated adjacent to and immediately southwest of SAS's Hislop Mine in the Timmins mining district.
The Property consists of four contiguous patented parcels (259 hectares), plus the surface rights (only) of an additional adjoining parcel (65 ha) in Hislop Township, near Matheson, Ontario.
The Property is situated approximately 2½ kilometres south of the Porcupine-Destor Fault Zone ("PDFZ"). It is located within a complex 'tectonic wedge', bound to the north by the PDFZ, to the west by the Hislop Fault and to the south by a northeast striking shear zone in the footwall of the mineralized zone. The mineralized zone has been traced approximately 600 metres along strike and to a vertical depth of approximately 225 metres. To date, 179 drill holes totalling 39,440 metres have been drilled on the property.
Under the terms of the agreement, SAS will pay to Stroud $300,000 and incur $1,000,000 in exploration expenditures on the Property before December 31, 2011. Furthermore, upon completion of SAS' drill program and pursuant to a NI 43-101 resource calculation, if the resource estimate indicates the aggregate estimated measured and indicated resources have increased by at least 50,000 ounces of contained gold but less than 100,000 ounces of contained gold then SAS' option to acquire a 40% interest will be fully vested, and if the resource estimate indicates the aggregate estimated measured and indicated resources have increased by at least 100,000 ounces of contained gold, then the option to acquire a 50% interest will be fully vested. SAS also has the opportunity to earn an additional 10% in the Property by paying to Stroud $200,000 and by completing an internal prefeasibility study.
"We are happy to be able to work with Stroud on their Hislop Project," said Jacques Perron, President & CEO of SAS. "Our exploration programs have returned encouraging results over the past two years, and adding new and exciting targets to our mix of projects is always welcomed. We strongly believe that we are well situated in the district, and look forward to commencing drilling activities on Stroud's Hislop Project in the coming weeks."