Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

January 18, 2008 09:51 ET

Sage Gold Inc.: Jacobus Ni-Cu Drilling Continues to Return High Grade Intercepts

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2008) - Sage Gold Inc. (TSX VENTURE:SGX) -

On the Jacobus Nickel - Copper (Ni-Cu) property, in the Beardmore area, current drilling is designed to test lateral and down-dip extensions of an historical nickel (Ni) and copper (Cu) resource, as well as to explore the continuity of gold mineralization discovered during the summer 2007 drilling campaign (see press release of July 24, 2007).

Thirteen diamond drill holes totalling about 4,000 metres were drilled in the fall of 2007 and drilling is expected to resume in February 2008.

Selected assays from those received to date are reported below:



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Hole number Intercept Nickel (%) Copper (%)
(metres)
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SJ07-38 22.6 0.70 0.74
Including 11.8 0.93 0.92
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SJ07-24 15 0.65 0.78
Including 7.0 0.89 0.70
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SJ07-31 18.7 0.55 0.77
Including 12.6 0.70 0.96
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The assays for all holes that have been received to date are reported on www.sagegoldinc.com. Assays are still outstanding for diamond drill holes SJ07,15,19,22,26,32,35.

Sage had previously reported (July 24, 2007) 2.12% Ni and 1.02% Cu over 6.6 metres from SJ07-11.

Within the sulphide zone in the Elmhirst gabbro; platinum (Pt) and palladium (Pd) assays for SJ07-34 showed a 21 m interval (424-445 m) grading 0.08 grams of Pt per tonne and 0.04 grams of Pd per tonne. The 22.6 metre mineralized zone in SJ07-38 also contained 0.031 grams of Pt per tonne and 0.008 grams of Pd per tonne and 0.091 g Au/T.

Within this interval were three stratigraphic horizons with elevated gold content. The highest grade within the interval returned 0.222 g Au/T over 0.3 metres.

Drill core samples of high grade and low grade Ni-Cu ore have been sent to RPC (Research and Productivity Council) New Brunswick. RPC will conduct metallurgical testing on the Jacobus Ni-Cu material to determine the flotation characteristics of the nickel and copper sulphides. These tests will begin to define the feasibility of producing a combined Ni-Cu bulk concentrate or separate Ni and Cu concentrates.

Nigel Lees: "We are pleased that the drilling to date continues to confirm historic grade, tonnage and geometry of the Jacobus Cu-Ni deposit. The deposit consists of a series of high grade lenses with intervening lower grade disseminated material. It is unusual to have gold-rich layers in the gabbro that hosts the Ni-Cu mineralisation. However, we expect gold will give an added value to the Ni - Cu material.

Our next steps are to complete the current drill program of 8,000 metres of which 4,000 metres has been completed. We will also conduct an economic analysis using various current and projected metal prices, mining scenarios, milling costs as well as infrastructure and operating costs. Scott Wilson Roscoe Postle Assoc. Inc. has been retained to assist in modelling the deposit and the economics."

The Jacobus Nickel-Copper (Ni-Cu) occurrence consists of a series of higher grade lenses that are aligned and form a mineralized zone within the Pinel Lake intrusion, a layered sill-like body composed predominantly of gabbro and quartz-rich leucocratic gabbro with minor pyroxenite and anorthositic gabbro. The zone varies in thickness from 6 to 25 metres and has been tested down dip from surface to about 580 metres. The zone extends for 115 metres in a lateral plane near surface and has not been fully tested in the down-dip section. The mineralization includes disseminated sulphides, massive and net-texture sulphides and most importantly, a distinctive inclusion-breccia sulphide with greater than 40% sulfide and containing angular and rounded fragments of anorthositic, gabbroic, pyroxenitic and volcanic material up to 20 cm in maximum dimension. The majority of the fragments appear to be locally derived from gabbroic wall rock. However, the presence of pyroxenitic fragments which are estimated to be 10% of the fragments in the inclusion-breccia mineralization suggest that at least some of the fragments were derived from an ultramafic part of the intrusion, or from a magma chamber in the lower crust. Based on previous studies and preliminary current work, the Ni-Cu deposit has a simple mineralogy of pyrrhotite, pentlandite and chalcopyrite, with minor magnetite and pyrite. Ore-metal ratios and geological relations for Jacobus show similarities to Xstrata's Montcalm deposit located outside of Timmins, Ontario.

Gold Occurrences in Volcanics - Jacobus Property

The gold horizon reported from overlying volcanics (July 24, 2007 News Release) was intercepted in several holes. In hole SJ07-17 the gold horizon returned 0.20 m grading 0.06 grams of gold per tonne gold (g Au/T). Gold assays from the other holes that intercepted this horizon are pending.

Sage also continues to explore the possible extension of Kodiak's Golden Mile on the Eastern portion of the Jacobus claim block. Sage has completed the interpretation of an aeromagnetic survey that was finished in December 2007. A prominent magnetometer high occurs on the property and within the high there is a northwestern trending low which may reflect a structural or lithological break. Kodiak has published similar data pertaining to the Hercules property. Line-cutting, road building, surface stripping, channel sampling and drilling are planned to explore the gold potential on the eastern part of the property. Kodiak reported "2.9 m Grading 203 gpt (5.92 opt) Gold" from drilling on the Golden Mile on January 14, 2007.

The Jacobus Ni - Cu exploration project is being supervised by Exploration Geoscience Associates of Orillia, under the direction of Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160). Dr. Kretschmar has extensive experience exploring for Ni-Cu, gold and base metal deposits in Archean terrain, and is a Qualified Person as defined by NI 43-101. He is responsible for the technical content of this news release.

Sage announces the grant of 750,000 stock options at an exercise price of $0.50 per share issued to consultants. The options will vest over twelve (12) months and are exercisable for a period of five (5) years.

Assays of the drill core samples were completed by ALS Chemex in Vancouver. Ore grade copper and nickel assays were determined by aqua-regia digestion and atomic absorption. The gold assays were calculated using fire assay and ICP finish.

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
    or
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    (416) 204-3170
    (416) 260-2243 (FAX)
    Website: www.sagegoldinc.com