Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

April 05, 2011 11:52 ET

Sage Accelerates Clavos Drill Program to 12,500 Metres With Second Drill

TORONTO, ONTARIO--(Marketwire - April 5, 2011) - Sage Gold Inc. ("the Company") (TSX VENTURE:SGX), as a result of the encouraging geological results from its continuing single drill program has now added a second drill and increased the 2011 program to 12,500 metres from the originally planned 5000 metre program at the Clavos mine in Timmins, Ontario. 

CLAVOS DRILL PROGRAM

The two drills will test two different mineralized zones. The first drill is presently drilling on near surface high grade gold mineralized zones that are located 600-900 metres east of the underground workings. The second drill will focus on drilling the untested historically defined projection of the down plunge and down dip extensions of the main mineralized horizon east of the underground workings. Both zones are outside of the volume encompassed by the 2006 resource (refer to www.sasgoldmines.com for resource). The intention is to generate both potentially new inferred and indicated ounces for an updated resource. The drilling will also be directed to test below the underground workings and the existing resource where several widely spaced high grade gold intersections were noted within the hanging wall (HW) zone.

Previous operators on the property have drilled a total of approximately 150,000 metres of surface and 42,000 metres of underground drilling. This historic drilling has been validated by consulting geologist David Gliddon P.Geo. of Glider Geoservices Inc. and Roscoe Postle Associates Inc.

FINANCING

Sage is pleased to announce that it has closed the first tranche of a $1,500,000 non-brokered private placement for gross proceeds of $1,000,000 through the sale of 4,545,454 flow-through units (the "FT Units") at $0.22 per unit. Each FT Unit is comprised of one common share of the Company ("Common Share") issued as a "flow-through share" under the Income Tax Act (Canada) and one-half of one warrant ("Warrant"). Each whole Warrant is exercisable to purchase one non-flow through Common Share at a price of $0.32 per share for 18 months from the date of issuance.

The total finder's fees paid in respect of the private placement of FT Units were comprised of $60,000 in cash (equal to 6% of the gross proceeds from the offering,) plus 363,636 brokers' options (equal to 8% of the number of FT Units sold.) The brokers' options are exercisable for common share units (the "CS Units") at a price of $0.22 per unit for a period of 18 months from the date of issuance. Each CS Unit is comprised of one non flow-through Common Share and one-half of one warrant, with each whole warrant having the same terms as the Warrants. 

If the Company's common shares achieve a closing price on the TSX Venture Exchange of $0.42 or higher for a period of 21 consecutive trading days, the Company may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants by written notice of not less than 30 days. 

All securities are subject to a four month hold period which expires on August 5, 2011. This private placement is subject to the final approval of the TSX Venture Exchange.

AGM

The Company held its Annual General Meeting on March 30, and all resolutions were passed.

Sage Gold is a mineral exploration and development company which has primary interests in near term production and exploration properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and the Lynx deposit, and other exploration properties in the Beardmore -Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.

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

Neither 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
    Communications Manager - Investor Relations
    416-204-3170
    416-260-2243 (FAX)
    www.sagegoldinc.com