Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

November 23, 2010 10:13 ET

Sage Following Up on High Grade Historical Drilling Intersections on Clavos

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2010) - Sage Gold Inc. (TSX VENTURE:SGX) is to commence drilling at its Clavos mine located 32 kms east north east of Timmins, Ontario in the prolific Abitibi greenstone belt.

Sage is planning up to 5,000 metres of drilling on the Clavos mine during the fall and winter of 2010. Scott Wilson Roscoe Postle Associates Inc. ("RPA") has completed the rebuilding and validation of the drill database encompassing both the surface and underground drilling. The database comprises 514 surface and 837 underground holes with 25,965 assays from surface holes and 14,390 assays from underground drill holes. RPA concluded that the database is of acceptable quality for mineral resource estimation. Sage intends to complete a new resource study incorporating the results of ongoing drilling.

Nigel Lees, President and CEO commented: "Our two pronged drill program is designed to confirm certain historical drill holes as well as to expand and upgrade confidence level in existing resources (the resource was calculated by Scott Wilson RPA & Associates and supported by a NI43-101 report filed on SEDAR by St Andrew Goldfields). On completion we will assess whether to follow up with a further surface drill program or to dewater the extensive underground workings and underground drill for additional mineable reserves in preparation for a production decision".

The drill program will initially start on the western side of the Clavos deposit and beyond the limits of the existing underground workings to upgrade an existing resource block. Historic drilling 200m west of the underground workings intersected significant mineralization in the Hangingwall (HW) and Footwall (FW) Zones in 3 drill holes along a 30m strike length and less than 175m below surface.

Historic assay results included:

  • Canamax (1987) CL-234 – 13.72g/t Au over 1m; 5.47g/t Au over 3m and 2.09g/t Au over 8m
  • United Tek Sol (1996) CL-CN9616 – 8.64g/t Au over 4.3m (including 48.58g/t Au over 0.6m with greater than 25 specks of Visible Gold)
  • United Tek Sol (1997) CL-CN9782 – 6.81g/t Au over 1.53m
* Note: Interval widths reported are drill intercept widths and not true widths

The current program's objective is to test the vertical and horizontal continuity of this mineralization, with drill hole spacing targeted to be no more than 25-30m from these historic intercepts, and to further define the plunge orientation of the high-grade shoot.

Post freeze up drilling will focus on the eastern side of the Clavos deposit and beyond the limits of the existing underground workings in order to define new resource blocks.

Historic drilling at 250m, and also at 600-800m, east of the underground workings intersected significant mineralization in the HW and FW Zones at less than 200m vertical depth from surface in wide spaced drilling. Our objective is to test the vertical and horizontal continuity of the mineralization at 30m sectional spacing from these historic intercepts and to better define the plunge orientation of any high-grade shoot(s).

Historical assays included:

  • Canamax (1987) CL 167 10.27g/t Au over 5 metres; CL 210 8.5 g/t Au over 3 metres
  • Kinross (1999) KC 99-148 8.79 g/t Au over 3.5 metres
* Note: Interval widths reported are drill intercept widths and not true widths

This drilling will serve to check on high grade intercepts in holes currently in the resource database. Additionally, it will follow up on holes such as CL04-13 where the hole was stopped within a mineralized porphyry and assayed 10.286g/t Au over one metre at the end of the hole and was not included in the current resource database.

Sage has completed its analysis of unreported underground drilling (Press release of September 25, 2010). Refer to www.sagegoldinc.com for a longitudinal section detailing the 245, 268, 050 and 110 series holes. The following underground holes with sample composites greater than 3.0 g/t have not been previously reported:

Resource Holes - potentially able to add to Resources
 
HOLE-ID   FROM   TO   LENGTH
(m)
  AU_AVG
 g/t
  INCLUDING
(gpt/m)
                     
CL-050-03   102.1   104.85   2.75   2.36   4.066/1.2m
CL-050-03   106.95   112.4   5.45   3.04    
CL-050-04   71.5   73   1.5   4.615    
CL-050-05   73.95   75.25   1.3   3.74    
CL-110-02   4.2   4.8   0.6   4.39    
CL-110-02   14   16   2.0   3.186    
CL-110-02   55.7   58   2.3   3.803    
CL-268-54   83   83.75   0.75   3.002    
CL-268-87   78.5   81   2.5   3.058    
                     
Infill Holes - potentially able to upgrade resources
 
HOLE-ID   FROM   TO   LENGTH
(m)
  AU_AVG
 g/t
   
                     
CL-110-05   82.2   83.7   1.5   3.222    
CL-110-05   87.6   89.1   1.5   12.05    
CL-268-84   66   66.8   0.8   3.77    

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.

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

Sage has optioned the Clavos mine from St Andrew Goldfields Inc (TSX:SAS) and is earning into a 60% interest over a three year period.

The underground assays reported in this release were processed at the then wholly owned St Andrew Goldfields laboratory at their Stock mill. Samples were treated using Fire assay with atomic absorption finish. The high grade samples were treated with a gravimetric finish.

The historic surface drill hole assay results highlighted above were drilled by Canamax (1987), United Tex Sol (1996-97) and Kinross (1999). Because Sage is unable to verify the sampling, sample preparation, assaying, and QA/QC procedures of Canamax, United Tex Sol and Kinross Gold to meet industry standards at the time of drilling, these surface hole results are only being used as a guide to the current round of drilling.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario. Its main properties include the optioned Clavos Gold mine in Timmins as well as 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. 

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