Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

September 10, 2010 10:14 ET

Sage Finds 12,000 Metres of Unreported Drilling at Clavos Gold Mine, Timmins Area

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2010) - Sage Gold (TSX VENTURE:SGX) in its' ongoing technical review has located approximately 12,000 metres of unreported underground drilling completed by the previous mining operator; St Andrew Goldfields prior to the closure of the Clavos mine in May 2007. Sage has retained Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) to:

  • validate the existing drill hole database
  • determine the number of holes that post date the October 2006 resource estimate
  • define the resources net of the mined out areas
  • build a new resource model
  • complete a new NI43-101 resource estimate based on all of the existing underground and surface holes. The original NI 43-101 Resource Estimate on the Clavos project was prepared by Scott Wilson RPA in October 2006

Work to date indicates that approximately 12,000 metres of underground drilling was completed subsequent to the October 2006 resource estimate out of a new total amount of underground drilling of approximately 41,000 metres. Scott Wilson RPA and Glider Geoservices consulting geologist David Gliddon, P.Geo. (QP) are currently validating this data and the post October 2006 drill results are expected to be released shortly.

Sage has also examined the core from the St Andrew Goldfields (TSX:SAS) surface drill program conducted during the winter of 2004. In that program, fourteen holes were drilled to test the easterly and westerly extensions of the Clavos deposit. Selected results include (SAS press release of July 13, 2004):

  • Hole No. 04 - 07 1.0 metres @ 6.2 g/t Au
  • Hole No. 04 - 09 1.45 metres @ 7.5 g/t Au and 8.4 metres @ 2.26 g/t Au
  • Hole No. 04 - 12 1.85 metres @ 6.34 g/t Au
  • Hole No. 04 - 13 2.0 metres @ 6.91 g/t Au

The best results were yielded from the westerly holes which were intended to test (SAS press release of February 9, 2004) the conceptual main stage gold-bearing vein arrays steep westerly plunge in the western portion of the Clavos mineralization within the overall first order shallow easterly plunge of the system. The new resource model will provide an analytical framework to determine the extent of the steep westerly plunging vein arrays and the potential to extend the westerly mineralization through additional surface drilling. Drill hole 04-13 was stopped in mineralized porphyry with a final assay of 10.286 g/t Au over one metre.

The review of the surface drilling program of 2004 also has yielded some important geological observations regarding the relationship between gold grades and the presence of fine grained arsenopyrite which is not evident from a review of the drill logs.

Sage VP of Business Development Bill Love commented "We are encouraged by the extent of the unreported data and the potential impact it could have on the published resource. The data set also includes very detailed chip and muck sampling from the underground stopes that will also be incorporated into the resource model. The new model will be an invaluable tool in guiding this fall's drill program."

Sage plans up to 5,000 metres of drilling on the Clavos property during the fall of 2010. Sage has optioned the property from St Andrew Goldfields and is earning into a 60% interest over a three year period by incurring $3 million in exploration expenditures and issuing $210,000 in cash and share payments over the same period. The Clavos property includes existing infrastructure in place including underground ramp access to the 300 metre level, underground levels developed every 25 metres, power to site, surface ventilation system and a water management facility. The existing mining permit is in good standing until 2019.

The technical content of this news release relating has been reviewed by Sage's consulting Geologist David Gliddon, P.Geo of Glider Geoservices, who is a qualified person as defined by NI 43-101.

SAGE is a mineral exploration and development company which has primary interests in exploration properties in Ontario. Its main properties are the recently optioned Clavos Gold property in Timmins and its 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.
    Bill Love
    Vice President Business Development
    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