Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

January 18, 2008 12:58 ET

Sage Drills Onaman Property-Beardmore Geraldton Gold Camp

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2008) - Sage Gold Inc. (TSX VENTURE:SGX) has started a drill program of 7,000 metres on the Onaman property in the area of the Lynx showings with the objective to extend along strike and at depth the known mineralization at the Lynx #1, # 2, and # 3 zones. Magnetometer and HLEM surveys were carried out in the Spring of 2007 (reported in News Release of March 2, 2007) and an IP survey was recently completed over the same grid. From data compilation and using the new geophysical and geological information, it appears that the Lynx horizon strikes north south and that Lynx #1, #2, and #3 may be contiguous over a strike length of 600 m. The current drill program will target all three zones.

During 2006 drilling, the main zone at the Lynx # 1 showing was intersected in hole S06-01 (see News Release of Oct 30, 2006) and yielded 5.83% Cu, 141 g Ag/T and 1.7 g Au/T over a width of 6.0 metres. The intersection included 9.36 % Cu, 206.8 g Ag/T and 1.72 Au g/T over 2.5 metres. The hole was drilled to duplicate historical hole 75-13, for which reported results are 5.38 % Cu, 4.55 oz Ag /T (141.5 g Ag/T) and 0.291 oz Au (9.05 g Au/T).

Also during 2006 (see News Release of Aug 31, 2006) surface stripping at Lynx # 2, over an area measuring 20X40 m, exposed mineralization averaging 0.59% Cu and 15.2 g Ag/T on the basis of 99 channel samples. Mineralization occurs as a series of discontinuous pods of chalcopyrite-pyrrhotite-sulfosalts primarily within chloritic tuffs, pyroclastic breccia and massive and pillowed basalt flows.

Within this stripped area, the Lynx # 2 mineralized horizon is 2. 5 m thick and grades up to 5.6% Cu and 53.1 g Ag/T based on channel samples.

Nigel Lees states that: "The Lynx high grade copper and silver-bearing exhalite horizons are folded, but generally trend north-south parallel to the regional stratigraphy. This new insight is guiding our exploration strategy and is helping us to select and prioritize for drilling, the many geophysical conductors in the area."

Big M

Sage has discovered previously unknown gold rich quartz veins in a chlorite-carbonate tuff on the southern end of the Big M anomaly on its Onaman property in the Beardmore Geraldton Gold Camp. Coarse, native gold was seen in several channel samples. Additional gold- bearing veins have been identified over a 15 m width and stripping and channel sampling is ongoing. The sampling program will concentrate on collecting representative samples for metallic screening in order to reduce the nugget effect of visible gold.

The Big M anomaly is due to a 1700 m long pyrite-pyrrhotite sulphide unit that is from 3.7 to 33 m thick and is a strong EM conductor. It is located 1 km west and parallel to the Lynx mineralized exhalite horizons. Underlying this unit, chloritoid and kyanite alteration of host volcanics is prevalent as is a 600 m thick felsic sequence which is the expression of a felsic volcanic centre. These characteristics are often associated with Noranda-type volcanogenic massive sulphide (VMS) deposits, suggests the presence of VMS sulphides.

Dr. Ulrich Kretschmar, Ph.D., P.Geo., (APGO #1160), a qualified person as defined by NI 43-101, has read and approved the technical content of this press release.

Sample preparation was in the Thunder Bay facility of ALSCHEMEX. The prepared gold samples will be sent to Vancouver and the "metallics" or screen fire assay analytical procedure will be used on the samples to minimize the nugget effect from the presence of metallic gold. The copper silver gold samples were assayed using induced couple plasma (ICP) testing with a fire assay finish for high grade samples.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and Arizona. Its main properties are the Jacobus, Onaman and Kerrs properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur and Dike properties situated in Nevada, and the Gold Hill and Big Bend gold properties in Arizona. 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.

This release was prepared by management of the Company who takes full responsibility for its contents.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news 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)
    Website: www.sagegoldinc.com