Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

February 22, 2011 09:14 ET

Sage Completes Second Instalment of St Andrew Option Agreement

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2011) - Sage Gold Inc. (TSX VENTURE:SGX) announces that it has completed the second instalment for a property acquisition on the Clavos Mine under the terms of the Option Agreement between Sage Gold Inc. and St Andrew Goldfields Ltd. dated February 8, 2011 (the 'Option Agreement') by having incurred $500,000 of Exploration Expenditures, having paid the sum of $30,000 as a cash payment and, subject to TSX Venture Exchange approval, by issuing 147,783 common shares of the Company at $0.203 as settlement of debt of $30,000 due under the Option Agreement. Sage has the right to earn a 60% interest in the Clavos Mine under a four instalment property acquisition pursuant to the Option Agreement.

Sage has completed six drill holes of the 12 drill hole program in the first phase of drilling on the western extension at the Clavos mine in Timmins, Ontario. The drilling is designed to upgrade inferred ounces into the indicated category within the footwall zone (FW) and to add ounces into the resource within the hanging wall (HW) and FW zones. Hole CL-11-01 assayed 28.89 g/t Au (15.39 g/t cut to 60 g/t) over 1.3 metres and was outside of the inferred resource block identified in the St Andrew Goldfields Ltd.(TSX:SAS) resource of October 2006. Refer to www.sasgoldmines.com.

The present drilling has intersected several low grade gold mineralized intercepts within porphyries. The porphyries occur between the HW and FW zones and the gold mineralization within the porphyries was excluded from the resource calculation in the SAS compliant resource of October 2006.

Upon completion of the western drilling, the drill program will shift to the eastern extension of the mineralized horizon where historic drilling has identified high grade gold mineralization outside of the volume encompassed by the 2006 resource. Historic operators on the property have drilled an approximate total of 150,000 metres of surface and 42,000 metres of underground drilling.

The Clavos mine is located north of the Pipestone Fault which marks the contact between the Porcupine sedimentary rocks to the south and volcanic rocks to the north. The deposit is localized in east-west to east-northeast trending high strain zones within ultramafic rocks defined by lenses of sericite-carbonate with some fuchsite alteration and hosts several small porphyry intrusive bodies in a 50-70m wide zone, termed the "DL Zone". This lies from 10-50m north of the sedimentary-volcanic contact. There are four mineralized zones at Clavos termed the Hangingwall, Footwall, Contact and Porphyry Zones. Gold mineralization occurs in two styles of quartz veins: a) early grey quartz veins, and b) quartz extension veins, sigmoidal extension vein arrays, and associated shear veins, which form veining networks. The latter phase of veining is
geometrically, temporally and texturally compatible with formation during the main stages of gold mineralization in the central Timmins camp.

SAGE 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 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.

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
    Manager/Investor Relations
    416-204-3170
    416-260-2243 (FAX)
    www.sagegoldinc.com