Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

October 16, 2007 08:11 ET

Sage Commences Drilling Pony Spur, Nevada

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2007) - Sage Gold Inc.(TSX VENTURE: SGX) has commenced a diamond drilling program at its 100% owned Pony Spur Property located on the South Carlin Gold Trend in Nevada. Sage plans to drill up to four 900 foot holes to intersect the Devils Gate /Chainman - Webb contact.

"Having conducted geological and geochemical exploration on this property consisting of geological mapping, soil sampling, pH testing and alteration analysis, over the last three years, Sage has begun what it expects to be a multi year drill program in Nevada", commented Nigel Lees, President of Sage.

The Pony Spur property is contiguous to Grandview Gold's Pony Creek property which hosts a 1.426 million ounce inferred resource. Grandview (GVX-V) announced (October 10, 2007) that they had intersected 2.18 grams of Gold per tonne over 120 ft on the Pony Creek Property.

The Pony Spur property encompasses the Upper Devonian-Lower Mississippian Paleozoic stratigraphy exposed along the flanks of the Pinyon Range Anticline. The upper Devonian Devils Gate Limestone is composed of medium to thick-bedded, light and dark gray, fine-grained limestone. This unit is conformably overlain by the Chainman Shale which is a variable sequence of dark gray to black shale, siltstone, sandstone and conglomerate.

This stratigraphy is structurally controlled by the Pinyon Graben which is formed by the series of north-south trending faults, and this graben encloses the Pinyon Range Anticline and tertiary felsic, gold-bearing intrusions. Northwest trending, high-angle faults form a second order graben at Pony Spur. This trough structure appears to trend for a strike distance of 4,000' merging with the north/south Pinyon Anticline boundary faults flanking the Pinyon Range Anticline. A ridge-forming jasperoid occurs along this fault where it contacts the Devils Gate Limestone near the Chainman contact. The upper contact of the Devils Gate Limestone is not exposed at surface on the Pony Spur property, however, silty, calcareous, shales of the Chainman Formation are mapped in talus debris on the north facing slope of the jasperoid ridge. The NW/SE fault structure appears to be a reverse-fault which has served as a conduit for hydrothermal fluids to circulate and precipitate metals upward along fault structures and laterally along porous stratigraphic bedding contacts having favourable reducing conditions. The dimensions of the jasperoid breccia zone measure 100' in thickness and is exposed over a strike length of 1,000' trending at an azimuth of 280 degrees dipping 80 degrees to the north. Local karst development is observed on the ridgeline proximal to the jasperoid which appears to be emplaced at the Devils Gate/Chainman contact.

The geological material in this release has been reviewed by Peter Hubacheck, P. Geo., A.P.G.O., P. Geol., A.P.E.G.G.A., of W.A. Hubacheck Consultants Ltd., a qualified person as defined by NI 43-101 regulations.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario, Quebec, Nevada, and Arizona. Its main properties are the Kerrs, Onaman, and Jacobus properties in Ontario, the Dixie Fork, Triple Junction, Pony Spur and Dike properties situated in Nevada, and the Big Bend gold property located in Arizona. Technical reports relating to the properties can be obtained from the System for ElectronicDocument 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.

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation.Some forward looking statements and forward looking information 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