GOLD MINING: Production resumes at Holloway mine

ONTARIO — Production has restarted production at the Holloway gold mine of Toronto's St Andrew Goldfields. About 30,000 tonnes of ore were processed at the company's Holt mill to yield 1,220 oz of gold in October. Mining began in the Blacktop zone at a rate of 1,000 t/d. The company is aiming to produce 15,000 oz of gold from the mine during Q4 2009.

Mineralization in the Blacktop and Lightning zones consists of replacement carbonate-quartzalbite-pyrite zones developed adjacent to and within the high strain zones that overprint early formed albite-hematite alteration that preferentially replaces variolitic flow units. Mineral resources include 850,000 tonnes at 7.2 g/t Au (measured), 81,000 tonnes at 7.0 g/t Au and 447,000 tonnes at 6.3 g/t.

Meanwhile, underground exploration is getting underway. A second phase of drilling has begun at the Smoke Deep zone. It will consist of 3,000 metres and 10 holes drilled from the 550-metre drift level. The Smoke Deep zone was first drilled in March 2008, with six holes over approximately 500 metres of strike length.

The Holloway mine is a former producer of approximately 910,000 oz of gold between 1996 and 2005. St Andrew acquired the property in 2006.

The St Andrew website is at www.SASGoldMines.com.