Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

January 15, 2008 08:30 ET

Sage Gold Inc.: Gold Hill Channel Samples-31.7 g/T Gold, Grab 54.8g/T Gold

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2008) - Sage Gold Inc. (TSX VENTURE:SGX) has completed underground and surface channel sampling of one of the quartz vein structures present at the Gold Hill property located in Maricopa County, Arizona. Forty-five channel samples have been cut based on 5 metre (16.4 feet) and 2.5 metre (8.2 feet) spacing along the East vein both underground and at surface. The samples were cut from the back of the main haulage. Additional channel sampling is underway on the West vein structure and on the four levels above the main haulage.

The highest grade in the channel samples assays is 31.7 grams of gold per tonne (0.925 ounces per ton) over a width of 1.2 metres and the highest grade grab sample is 54.8 grams of gold per tonne (1.598 ounces per ton). The following samples represent channel sample assays of greater than 10 grams of gold per tonne over the specified widths. All assays are reported on the Sage web site - www.sagegoldinc.com.



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True Width -
Sample Number Au g/T Au oz/t Ag g/T Ag oz/t Metres (Feet)
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67562 28.6 0.834 36.7 1.07 0.91 (2.99)
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67566 11.8 0.34 28.5 0.831 0.99 (3.25)
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67568 19.15 0.559 38.4 1.12 0.55 (1.80)
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67569 25.4 0.741 32.6 0.95 1.30 (4.26)
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67571 17.55 0.512 38.8 1.132 1.52 (4.99)
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67575 25 0.729 33.6 0.98 2.13 (6.97)
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67607 12.2 0.356 21.9 0.639 Dump grab
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67608 54.8 1.598 47 1.37 Dump grab
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67610 31 0.904 28.5 0.83 1.35 (4.5)
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67611 11.8 0.344 18.1 0.528 grab
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67612 31.7 0.925 84.4 2.462 1.2 (4.0)
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Sage also completed a thirty three element ICP (induced couple plasma) analysis of the sample material for base metals and trace elements. The geochemical analyses indicate that there is relatively low amount of base metal sulphides and that an average ratio of silver to gold is 3.74.

Nigel Lees stated; "We now have confirmation that the Gold Hill property contains high grade gold veins containing economically interesting grades. Sage intends to complete the underground and surface sampling programs in order to assess the resource potential of the accessible underground levels. In addition, Sage is planning a surface drill program in February to test the down dip extensions of the gold veins. The Gold Hill project is located on private patented land."

A series of parallel veins trend northwest - southeast and occur within a Proterozoic age porphyritic granite that intrudes a sequence of schists and argillites. Veins are exposed on the surface over a distance in excess of 1.5 kilometres (4,920 feet). The veins are delineated by exploratory pits, tunnels, shafts and adits. Historical workings from the period 1884-1898 resulted in a 90 metres (300 foot) haulageway with three production raises. Several exploratory winzes and underhand stopes were also developed along with four shafts which have since caved in. In the main haulage tunnel, driven within the East vein structure, oriented almost north-south, veins are exposed over a length of 100 metres (328 feet) with the greatest density of quartz veins occurring over a width of about 55 metres (180 feet).

Sage has an option to acquire a 50% interest in the property by expending U.S. $250,000 and issuing $US50,000 worth of common shares by March 2008. Sage issued 500,000 common shares to the vendor at the closing of the transaction (see Press Release March 13, 2007) and the vendor invested $USD250,000 in a private placement of Sage Gold.

There is an historical resource of 380,000 tons grading 0.27ounces/ton Au based on vein sampling from the existing workings. The existing workings were resampled in 1981 (Promet Services - December 1981, Duane Brown PhD) yielding the resource estimate defined below:



Proven Reserve - 30,000 tons at 0.27 oz Au/ton
Probable Reserve - 150,000 tons at 0.27 oz Au/ton
Possible Reserve - 200,000 tons at 0.27 oz Au/ton


The Company has not yet conducted sufficient exploration to define the indicated and inferred mineral resources. As such, the potential quantity and grade disclosed above is conceptual in nature based on sampling of underground workings at the Gold Hill property. The sample results are relevant in that they represent the most recent work conducted on the property. The reserve/resource categories predate NI 43-101 and given that there has been no feasibility study completed on the property these reserve categories should be defined as inferred, indicated and measured mineral resources.

Further exploration may not result in the discovery of additional mineral resources. All resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators.

The Company has not completed the work necessary to verify the classification of the mineral resource estimates. The Company is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Company has not completed a feasibility study and there is no certainty that the Company's planned operations will be economically viable. Sage intends to verify the historical results through an underground sampling program followed by underground drilling to test the lateral and vertical extent of the vein structures.

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 news release.

The channel samples were crushed and pulped by Jacobs Laboratories in Tuscon, Arizona. The total pulps were shipped to ALS Chemex in Vancouver. The samples were then dry-screened to 100 micron (150 mesh) to produce plus and minus fractions for screen fire assay. The samples were dissolved using acid digestion. A 33 element ICP analysis was completed to test for base metals and trace elements. The gold results were reported as the weighted average grade of gold based on the coarse and fine fractions.

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 Sugarloaf, 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