ONTARIO – Encouraging numbers have Toronto-based St Andrew Goldfields planning underground development of the Smoke Deep zone at the Holloway gold mine at Matheson. The latest inferred resource is 747,000 tonnes grading 5.83 g/t Au or 140,000 oz of gold (3 g/t cutoff). Development will begin by extending a ramp from the Lightning zone to Smoke Deep.
Gold mineralization in the Smoke Deep zone occurs adjacent to the geological contact of mafic volcanics to the south and ultramafic volcanics to north, says the company. Generally, alteration and its associated gold mineralization occur within the mafic volcanics that have experienced significant alteration consisting of silica, sericite, hematite and albite with lesser chlorite, ankerite and carbonaceous minerals.
Gold mineralization, which is directly associated with sulphide content, varies in thickness from less than 1.0 metre up to approximately 36 metres true thickness, extends approximately 500 metres east-southeast along strike, and dips steeply to the south at approximately 80° over a vertical distance of approximately 350 metres. Several sub-parallel zones of high-grade gold mineralization (i.e. greater than 6.0 g/t Au) commonly define a moderate east dipping plunge. The mineralized zone remains open along strike, down dip, and eastwards down plunge.
St Andrew reopened the Holloway gold mine in October 2009. During last year the mine produced 18,712 oz of gold at a total cash cost per ounce sold of US$456.
A small gallery of photos is posted at www.SASGoldMines.com.