Thursday, February 3, 2011

The Enigma up the Mystery Creek

The unanswered question with this improbable promotion is why the Golder Associates study on grouting and pumping was never posted on Sedar.com by St Andrews. By absolute rights a body would expect a report this material to be found there.

The answer to that question is very straightforward after delving through St Andrews news releases around that period.

"St Andrew issued to holders of record of its outstanding common shares on May 7, 2007, 1.9 rights for each common share held, pursuant to the Rights Offering in which St Andrew intends to raise gross proceeds of up to approximately $124 million."

"St Andrew Goldfields Ltd. announces that it intends to conduct a non-brokered and brokered private placement offering of common shares for expected gross proceeds of up to $20.0 million."

SAS had over 144 million reasons to keep the problems at Nixon Fork under wraps for as long as possible and thats exactly what they did. The excuse eventually given when SAS stopped production entirely, besides the oblique reference to "ore face issues", was that it was ...

" ... in order to concentrate its efforts on better defining the existing mineral resources and identify new zones of gold-copper mineralization at the property ..."

So SAS continued drilling and did NOT release the damning Golder Study because doing so would have jeopardized a VERY badly needed capital infusion. By the time the dough was safely tucked away the entire Nixon Fork property was written down to zero.

When that happened there was no longer any obligation to release the Golder Study, or the acculmulated drill results, because they were no longer material or relevant to company affairs. Another obvious motivation was the fact it would show clearly that management was playing "hide the wiennie" with its financial backers at a critical time.