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[dr_airtime]

SAS.TO - More...

...thanks Checkmate! Wanted to pull you out of the woodwork. I looked through the Q4-14 conference call transcript below and didn't see any mention of a 16k/quarter production profile for Taylor - where did you see that?

I am sold on SAS.TO as a core position should be get a sustained move higher in gold (because their AISC + royalties are currently around $1200). Taylor coming into production (9g/t from bulk sample) is a game changer and will make them a go-to if gold actually does break out of long term downtrend. Also, with the $CAD at .80 to the $USD and most of SAS.TO's costs in $CAD this is a strong 2015 headwind.

This could be a Richmont (RIC.TO) 2.0 story and SAS.TO should go higher even if gold stays at $USD 1200 in 2015 when Taylor brought online.

Here are some highlights from the recent conference call you alluded to:

http://seekingalpha.com/article/2916636-st-andrew-goldfields-stadf-ceo-duncan-middlemiss-on-q4-2014-results-earnings-call-transcript

At the Taylor advanced exploration project, we completed the second bulk sample of nearly 18,000 tons. As we press released on January 27, the preliminary results for the second bulk samples from Taylor were 17,540 tons extracted from the 1004 lift and processed at the Holt Mill. Reconciled grade of 9.01 grams in comparison to the geologically forecasted head grade of 7.2. Mill recovery was 97.4% and was 2.4% higher than the anticipated recovery of 95. Additional technical work has been undertaken and the company is pleased to announce the movement to commercial production. Taylor is becoming a mine. We look forward to updating the public on our progress throughout 2015 as we bring this asset into production and further solidify our higher production profile for the company.

I'll talk about Taylor. Ben can take the first question, but just while I’m on the line, Taylor essentially we’ve got a few key permits to get into the fold, really the mine development. We are well placed in terms of having access to the ore. Obviously the bulk sample was really developed down at the bottom of Taylor which -- that’s all of our reserves and resources essentially exposed to that development right now. Really the key event would be I would say getting the production closure plan filed. As we foresee things right now and we will update the market as time goes on, we do see September, October go ahead in terms of the commercial production. We feel confident with our plan in terms of the permitting and in terms of the production scenario which we’ve provided. So we look forward to updating the market as time goes on

Private Investor

Stockholder in Palo Alto, California. What is the royalty going to be on Taylor?

Duncan Middlemiss - President and CEO
Chris, I can proudly say that the royalty is going to be a 1% or 3% NSR depending on what portion of the West Porphyry Zone we mine. Based on that, when Taylor comes to full production at these gold prices, overall the company’s cost per ounce in terms of royalty, you saw we were about $110, $113 per ounce for the 2014 period. That would drop it down to about the US$80 per ounce. Significant impact in that. We look forward to starting to mine there

Right now what we’re modelling with, and believe me we think that Taylor has got tremendous opportunity for growth, but I think we’ve got 155,000 ounces in our 2P resources approved and probable category. We’ve got very a healthy resource there also. I think the significant thing about Taylor is the bulk sample essentially went down to the 400 meter elevation below surface and really that’s kind of the depth of our knowledge I would have to say. I know that Doug Cater, our VP of exploration is really anticipating getting some drills in there and drilling deeper to see other lenses because these lenses are stocked on Echelon and really I don’t think there’s any reason to believe that there’s not more lenses below and a long strike. I think the potential there is quite extensive. And obviously you’ve seen the grades, the year on year reserves, the grade has come up nicely from 5.6 last year to 6.3 this year. So essentially a nice increase there