St Andrew funds Matheson drilling program

Through a private placement, St Andrew Goldfields (SAS-T) is raising funds to continue diamond drilling in the Matheson area of northwestern Ontario.

The junior raised $3.4 million by issuing 4 million shares of St Andrew at 40 cents per share and 4 million flow-through shares at 45 cents each.

Slightly more than half this amount will be applied to exploration; the remainder will be used as working capital.

Currently, three drill rigs are on the Taylor property, one is on the Stock property, and another is on the Hislop property. The work consists of stepout and infill work, as well as drill-testing of induced-polarization anomalies.

The company also plans to carry out an infill drilling program to add to existing reserves at the mine sites before starting underground development.

The Ontario land package covers 40 sq. km., and includes a modern 1,000-tonne-per-day mill. The company intends to start custom milling operations this year.