28-CorpPresentation-OTR Montreal-TO-12Sept12.pptx [Read-Only] · fy forward-looking information....

1

St Andrew Goldfields Ltd.An Evolving Junior Gold Producer

in the Timmins Camp

On The RadarMontreal, Toronto

September 12th and 14th, 2012

TSX: SAS OTCQX:STADF

2© St Andrew Goldfields Ltd. 2012

Forward-looking InformationThis presentation contains forward-looking information and forward-looking statements (collectively, "forward-looking information") as defined under applicable securities laws, concerning SAS’ business, operations, financial performance, condition and prospects, as well as management’s objectives, strategies, beliefs and intentions. This presentation uses words such as “estimate”, “intend”, “believe”, “expect”, “anticipate” , “plan”, “potential”and similar terminology to identify forward-looking information. Specifically, this presentation contains forward-looking information including: the production, grade and throughput assumptions at the Holt, Holloway and Hislop Mines; the completion of various exploration drilling programs to be completed by the Company in 2012; as well as the expansion of mineral resources, mineral reserves and increase in the level of production through successful exploration and development; cash costs and start-up capital; the assumptions of the Taylor pre-feasibility study; and the Company's ability to achieve its 2012 objectives.

Forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, including relating to the interpretation of the geology, continuity, grade and estimates of reserves and resources; fluctuations in gold prices and currency exchange rates; unanticipated operational or technical difficulties; changes in laws or regulations; changes in general economic conditions and changes in conditions in the financial markets; the Company’s dependence on key employees; the Company’s ability to compete with other mining companies possessing greater financial resources; the Company’s ability to obtain requisite permits and licenses; risks arising from challenges to the Company’s title to its assets, including those arising in respect of aboriginal rights; the potential for conflicts of interest to arise. A description of these risks and uncertainties can be found in the Company’s Annual Information Form obtained on SEDAR at www.sedar.com. SAS disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.


About SAS

* Mine cash costs cited are before royalties


Experienced Team

Louis Gignac (Chairman) D. Eng David Michael Petroff B.MATH, MBA

Herbert Abramson Catherine A. Gignac Jacques Perron P. Eng.

John Hick B.A., LLB Graham Farquharson P. Eng. Warren Seyffert Q.C.

DIRECTORS

Jacques Perron P.Eng

President and CEOFormerly Senior VP, Operations with IAMGOLD and Cambior.

Ben AuCFO and VP of Finance

Formerly Controller with Agnico-Eagle Mines.

Duncan Middlemiss P.Eng

COO and VP OperationsFormerly Mine Manager with Kirkland Lake Gold and Chief Mine Engineer for Holt-McDermott Mine (Barrick).

Pierre Rocque P.Eng

VP of EngineeringFormerly Director of Technical Services with Lakeshore Gold Corp., and AMEC Americas Ltd.

Doug Cater P.Geo

VP of ExplorationFormerly with Sabina Silver Corp and Dundee Precious Metals.

SENIOR MANAGEMENT


Land Position in the Timmins District

Hislop North

Ghost Targets/Zone 4

Ontario/Québec Border


Holt, Holloway and Hislop Mines


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1 2 3 4 5 6

Increased Production Through Organic Growth

2009A 2010A 2011A 2012E 2013E 2014E90,000 ‐100,000

95,000 ‐105,000

120,000 ‐130,000

OUNCES

• The Holloway Mine commenced production in Q4/2009

• The Hislop Mine commenced production in Q2/2010

• The Holt Mine commenced production in Q2/2011

• Production from Holt and Holloway will continue to increase in 2012 and 2013

• Taylor is expected to commence production in 2014

Reducing Mine Cash Costs

US$800-$850


Q2/2012 Operating Results Overview

Note (1)Assuming gold prices at current levels(2)Mine Cash Costs and Cash Costs (Per Ounce of Gold Sold) are non-GAAP measures. Refer to 2012 Q2 Financial Report and MDA for full disclosure.

Q1/2012 Q2/2012 H1/20122012

ForecastGold Production 21,018 23,016 44,034 90,000 – 100,000

Mine Cash Costs US$858 US$785 US$820 US$800-US$850

Royalty Costs US$138 US$134 US$138 US$135-US$145(1)

Cash Costs(2) US$996 US$919 US$958 US$935-US$995


2011 and Q1/2012 Cash Cost Among Peers

Average Q2/2012 Cash Cost US$939/ounce*

* The average Cash Cost quoted is based on the selected group of companies used for this comparative

Q2/2012

Q1/2012

SAS Royalty Cost


2012 Share Price PerformanceSAS compared to a selection of peers (BRD, CRJ, LSG, SGR, RIC)


Comparison to Peer Group EV/Ounce of Reserves and Ounce of M&I Resources

Company Name EV(C$Millions)

Reserves (Moz’s)

EV/Ounce (P&P)

Resources (M&I)(Moz’s)

EV/Ounce (M&I)

Brigus Gold Corp. $222 1.9 $119 2.1 $113

Claude Resources Inc. $127 0.4 $356 1.0 $134

Kirkland Lake Gold $849 1.5 $576 1.6 $487

Lake Shore Gold Corp. $458 0.8 $555 2.1 $185

Richmont Mines $80 0.4 $218 0.8 $183

San Gold Corp. $261 0.2 $1,249 0.6 $637

St Andrew Goldfields Ltd. $153 0.7 $216 3.2 $42

Group Median $222 0.7 $356 1.6 $127

* Source, company filings & website, EV based on Q2 financial results


Taylor Project PFS Opportunities for Improvement

• Mineral reserves of 985,000t @5.45g/t Au for 173,000 ounces with estimated annual production of 41,000 ounces over the mine life.

• A conservative analysis was used for the estimation of the resources and the conversion of resources to reserves. As the project advances underground, re-interpretation may lead to better grade, additional resources, and additional reserves.

• This study only looks at the WPZ; additional upside is possible with further exploration and additional work on the Shoot Zone.

Pre-tax Cash Flow

Pre-tax NPV5%

Pre-tax IRR

$70 Million

$50 Million

56%

$20 Million

$12 Million

22%

US$1,319 Per Ounce US$1,600 Per Ounce

*Resources (M&I)West Porphyry & Shoot Zones2,625,000t @5.42g /t Au (457,000 ounces)


Taylor Project - Timeline

WPZ Advanced Exploration

Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q4/2013 Q2/2014

Pre-feasibility Study

Dewatering and Rehabilitation

Initial Bulk Sampling Program (top of zone)

Ramp Development to depth of known zone

Second Bulk Sampling Program (bottom of zone)

Commercial Production

COMPLETED


180 Million Ounce Gold Belt


HOLT – Ghost Zone Location


HOLT- Ghost Zone Drilling

See press release dated July 31, 2012


Ghost Zone - Selected ResultsHole Number

Intersection (Metres) (Metres) Gold Grade

(g/t)From To True Width

GZ12-004 595.8 599.0 2.9 7.10

GZ12-006B 535.4 548.0 9.8 5.91

GZ12-009B 526.9 536.1 5.8 3.89

GZ12-011 566.7 585.0 14.5 4.93

GZ12-013 563.5 571.0 6.1 5.28

GZ12-013 573.5 576.5 2.4 9.56

GZ12-013 579.0 585.0 4.9 4.11

GZ12-014 456.5 484.2 17.8 3.82

GZ12-015 494.4 502.5 5.4 4.17

GZ12-017B 583.5 601.5 15.2 4.16

GZ12-019 556.5 571.5 11.2 7.85

GZ12-023 404.6 423.5 12.3 6.34

* See press release dated May 7, 2012 and July 31, 2012


HOLT – Zone 4 *Reserves for Zone 41,215,713 t @ 5.18 g/t Au

(202,316 ounces)

925m Level

1075m Level

Underground Drilling

Drilling Targets from Surface

Highlights of Underground Drilling

13.01/ 11.6m11.30/ 13.5m6.80/ 12.8m10.20/ 12.5m9.32/ 20.7m7.34/ 18.1m8.32/ 21.4m11.28/ 12.8m•g/t Au/metres•All lengths are core length

OPEN


Hislop North Project

See press release dated July 31, 2012


Hislop North - Selected ResultsHole Number

Intersection (Metres) (Metres) Gold Grade

(g/t)From To True Width

H12-003 45.0 107.2 62.2 1.97

incl 45.0 55.5 10.5 3.63

incl 85.5 97.1 11.6 5.10

H12-005 83.1 84.1 1.0 32.00

H12-006 157.0 164.0 7.0 2.91

incl 157.0 158.0 1.0 8.81

incl 163.0 164.0 1.0 7.42

H12-008 102.8 127.2 24.4 8.56

incl 106.5 118.5 12.0 11.29

H12-010 101.9 111.9 10.0 9.72

incl 109.5 111.0 1.5 32.00* See press release dated May 7, 2012 and July 31, 2012


2011 Exploration Resulted in Significant Increases in Resources and Reserves

Replaced all mined Mineral Reserves

and added an additional

43,000 ounces

Proven & Probable Reserves

~700,000 Ounces

Increase in M&I Mineral Resources by

11% since 2009

Measured & Indicated Resources

~3.2 Million Ounces

* Mineral Resources are inclusive of Mineral Reserves, see Company website for more details


Share Structure 368.2 millionShares

Outstanding

Stock Options

Fully Diluted

12.5 million

380.7 million

Major Shareholders

Abramson FamilyTrapeze Asset ManagementSprott Asset Management

* Share structure as of July 31, 2012, Market Cap as of August 27, 2012

Market Capitalization ~155 Million


Cash Flow and Cash ResourcesAs of June 30, 2012

Cash and cash equivalents $16.9 million

Revolving Credit Facility $10.0 million (undrawn)

Bank Debt $15.0 million*interest rates vary depending on the Company’s total debt ratio and ranges between 2.00% and 2.75% above prime, based on prime rate advances, or 3.00% and 3.75% above LIBOR, based on LIBOR advances. *the Company must make semi-annual payments of US$2million to reduce the term credit owing.

Estimated Operating Cash Flow for 2012 ~$58 million

Capital Expenditures for 2012 ~$30 million*

*based on 95,000 ounces at cash costs of US$995/ounce, and an average annual POG of US$1,600


2012 Goals


Highlights

26© St Andrew Goldfields Ltd. 2012www.sasgoldmines.com

20 Adelaide Street East Suite 801

Toronto ON M5C 2T6Canada

Toll Free: 1-800-463-5139 Tel: 416-815-9855

Fax: 416-815-9437Email: [email protected]

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