This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
While the price of gold has slid recently, this doesn’t mean that precious metals producers and explorers have been operating in a holding pattern waiting for a price rebound. Companies have been making adjustments, striving to control costs, while producing to generate cash and build reserves. They know vagaries of gold price movements can be volatile both in going up and tumbling down.
The second quarter of 2013 saw a 13% decrease in average gold prices to US$1,414 per ounce. This marks the largest quarterly decline in gold prices since 1980. During that period, St Andrew Goldfields continued to make progress on its Taylor advanced exploration gold project about 50 kilometres east of Timmins.
An 8,500 tonne bulk sample from the Taylor project yielded 686 ounces of gold, which contributed to the 25,353 ounces of gold St Andrew Goldfields produced in the second quarter from its three operations. The company has advised that gold production from its Holt, Holloway and Hislop mines (“H3” cubed) is expected to be between 95,000 ounces and 105,000 ounces of gold in 2013.
“Our second quarter results remain strong with production at the 25,000 ounce level,” said Jacques Perron, President and Chief Executive Officer of St Andrew Goldfields. “With just under 50,000 ounces of gold produced in the first half of the year, we are on track with our plan and well positioned to meet our 2013 guidance. We remain focused on reducing costs and maintaining our strong cash position.”
Along with its three producing operations, the company holds an extensive land position east of Timmins, within the Abitibi greenstone belt, which is one of the most important historic gold mining districts in Canada. Along with the Taylor advanced exploration project, it is conducting a broad mineral exploration program across its properties straddling the Porcupine-Destor fault zone.
St Andrew Goldfields is targeting a production level in 2014 of 120,000 to 130,000 ounces of gold. Historic gold production from the Timmins to Val d’Or corridor is in the range of 180 million ounces of gold. Current proven and probably mineral reserves for St Andrew Goldfields contain more than 735,000 ounces of gold.
As well as a long track record as gold producer, St Andrew Goldfields has been a leading and creative supporter of the Ontario Mining Association’s So You Think You Know Mining high school video competition. This year, the company offered Ontario high school students of any St Andrew Goldfields employee who produced a film and entered SYTYKM eligibility for a $250 cash prize from a random draw.
The company made the same offer with a second $250 prize for the children of Quebec-based employees even though they are not eligible for SYTYKM, which is only for Ontario students. On top of this, which is what SAS offered in 2012, there was an opportunity for schools which are involved in SYTYKM to earn a $1,000 grant. The OMA is appreciative of the support and enthusiasm St Andrew Goldfields lends to SYTYKM and other Association initiatives.
St Andrew Goldfields has its head office in Toronto and about 300 employees at its operations. The company was founded in 1983. In 2007, it went through an adjustment in management and Mr. Perron became President and Chief Executive Officer. Mr. Perron joined St Andrew Goldfields from IAMGOLD, where he was Vice President Operations for North and South America.
For more information on St Andrew Goldfields, you can go to its website at www.sasgoldmines.com. This article is the twentieth in a series of profiles of OMA member companies and their contributions to the vitality of Ontario’s society and economy.