Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

November 12, 2009 11:14 ET

Sage Drills 5.75 g Au/t Over 5.19 Metres-Pillars

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2009) - Sage Gold Inc. (TSX VENTURE:SGX) has completed 26 drill holes for a total of 3777.5 metres (m), on the Solomon Pillars and the recently acquired (Press release of October 22,2009) King Solomon Pillars properties ("Pillars") in the Beardmore -Geraldton Gold Camp (BGG). Hole 09S012 yielded 5.75 g Au/t over 5.19 metres including 17.27 g Au/t over 0.99 metres.

Sage President and CEO Nigel Lees commented, "We have now completed our Fall exploration program on our BGG properties. The program included drilling on the Pillars project, Paint Lake and Golden Extension for a total of 8133 metres. Sage has also completed prospecting, trenching, geophysics, geological mapping and extensive surface sampling on its property portfolio. Additional drill and surface sample results are forthcoming. We are pleased with the initial Pillars drill results as our reinterpretation of the structural environment has yielded favourable grades and widths."

Selected results are detailed below:

Hole NumberFrom (m)To (m)Width (m)Au g/t
09S01260.6265.815.195.75
Including  2.298.34
Including  0.9917.27
09S01462.5667.965.404.64
Including  2.197.54
Including  0.827.09
09S016109.95114.54.553.41
09S01769.8371.241.416.41
09S01817.5320.733.203.14

Drill indicated Widths – True Widths Unknown

Additional results will be available at www.sagegoldinc.com. Sage is awaiting assays on eight remaining holes from the Pillars.

Inco completed a historic resource calculation on the King Solomon Pillars property in 1986. The resource estimate included 275,892 tons at 0.126opt for a total of 34,762 ounces at a 0.04opt cut off grade. Sage has drilled in the area of the historic resource and has been successful in tracing the mineralized shoots down plunge.

Previous tonnages, grades, assays and other technical data are taken from historical records prior to the implementation of NI 43-101. While the data are believed to have been acquired, processed and disclosed by persons believed to be technically competent, it is unverifiable at present. A Qualified Person ("QP") as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves. Sage is not treating the historical estimates as current Mineral Resources or Mineral Reserves as defined in NI 43-101 and the historical estimates cannot be relied upon.

Mineralization on the Pillars project consists of: 1) silica altered and sulphide (pyrite and arsenopyrite) replaced oxide facies iron formation; 2) silica-sericite-carbonate-pyrite-arsenopyrite altered and sheared greywacke schists; 3) quartz-ankerite +/- pyrite, arsenopyrite, chalcopyrite and visible gold veins.

The first two forms of mineralization appear to occur as discrete shoots or lenses that plunge shallowly to moderately to the west. This likely indicates mineralization forming along the intersection of D2-D3 structures – a model that would be consistent with several other past producing mines in the Beardmore-Geraldton Belt.

There appears to be a close correlation between sulphide percentages and gold contents, the best grades coming from samples containing greater than 15% pyrite+arsenopyrite. Accessory chalcopyrite within gold bearing quartz-ankerite veins has also been noted.

The 2009 drilling suggests the potential that numerous plunging shoots exist, that were not recognized in the historic work on the property. Future drilling would further test this model in both strike directions and at depth, all of which remain open.

Technical Information

Assays from drill core reported in this news release were completed by the ALS Chemex Laboratory in Thunder Bay, ON. Drill assays reported above were analyzed using a 30g fire assay charge with an AA finish. The fire assay procedure uses lead collection with a silver inquart. The beads are then digested and an atomic absorption finish is used.

The technical content of this news release has been reviewed and approved by Sage's consulting geologist Robert B. L'Heureux, M.Sc., P.Geol., of APEX Geoscience Ltd., who is a qualified person as defined by NI 43-101.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Arizona. Its main properties are the Jacobus, Paint Lake, Pillars and Onaman properties in the Beardmore -Geraldton Gold camp in Ontario. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

For all Sage Gold Inc. investor relations needs, investors are asked to visit the Sage Gold Inc. IR Hub at http://www.agoracom.com/IR/sagegold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sgx@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Sage Gold Inc.
    Nigel Lees
    President and C.E.O.
    416-204-3170
    416-260-2243 (FAX)
    or
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    416-204-3170
    416-260-2243 (FAX)
    www.sagegoldinc.com