Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

February 29, 2008 09:15 ET

Sage Gold Inc.: 78.92 g Au/T Channel-Gold Hill-Arizona

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2008) - Sage Gold Inc. (TSX VENTURE:SGX) has completed additional underground and surface channel sampling on several quartz breccia vein structures hosted in a quartz monzonite intrusive complex at the Gold Hill property located in Maricopa County, Arizona.

The highest grade in the channel samples assays is 78.92 grams of gold per tonne (2.302 ounces per ton) over a width of 0.35 metres (1.15 feet) and the highest grade grab sample is 16.18 grams of gold per tonne (0.472 ounces per ton).

The following assays are greater than 5.0 grams of gold per tonne (0.15 ounces per ton). All assays are reported on the Sage web site - www.sagegoldinc.com.



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Sample Number Au g/T Au oz/t True Width - Metres (Feet)
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67619 78.92 2.302 0.35 m (1.15 feet)
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67620 10.49 0.306 Grab - same location as 67619
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67621 12.07 0.352 0.45m (1.48 feet)
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67622 33.46 0.976 1.2 m (3.93 feet)
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67625 20.13 0.587 1.5 m (4.92 feet)
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67629 16.18 0.472 Grab
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67705 7.51 0.219 0.44 m (1.44 feet)
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67706 12.03 0.351 0.45 m (1.48 feet)
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67707 13.3 0.388 0.41 m (1.34 feet)
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67594 5.42 0.158 Grab
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67618 5.66 0.165 1.5 m (4.92 feet)
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Drilling

Sage has also completed the first hole of a 2,745 metre (9,000 feet) drill program on the Gold Hill project.

The first hole, collared at -47 degrees, intersected a hematized quartz breccia zone at a downhole depth from 694 feet to 718 feet, approximately 107 metres (350 feet) below the lowest level of the historic workings. The zone is characterized by the presence of hematite, limonite and goethite associated with a brecciated quartz monzonite with quartz stringers. Additional quartz breccias and quartz veins have been intersected in three other locations within the hole. Core samples will be sent to Jacobs Laboratories in Tuscon, Arizona with assay results expected shortly. The next series of holes will target the East Vein structure, approximately 100 feet (33 metres) below the workings, on a 50 foot x 50 foot stepout pattern to delineate and determine the continuity of grade within the gold bearing zone. Additional exploratory drilling to determine the strike extent of the vein structures is also planned from strategically located drill pads.

Sage has an option to acquire a 50% interest in the property by expending U.S. $250,000 and issuing U.S. $50,000 worth of common shares.

The channel and grab samples were crushed and pulped by Jacobs Laboratories in Tucson, Arizona. The samples were then dry-screened to 100 micron (150 mesh) to produce plus and minus fractions for screen fire assay. The samples were dissolved using acid digestion. The gold results were reported as the weighted average grade of gold based on the coarse and fine fractions.

Pony Spur - Carlin Trend, Nevada

During the month of October, 2007, Sage completed the first hole of a permitted 4 hole program on the Pony Spur property in Nevada. The Pony Spur property is contiguous to Grandview Gold's Pony Creek property which is reported to host a 1.426 million ounce inferred resource. Grandview (TSX VENTURE:GVX) announced (October 10, 2007) that they had intersected 2.18 grams of Gold per tonne over 120 ft on their Pony Creek Property.

The first hole of the drill program was designed to test a prominent northwest trending jasperoid breccia zone flanking a major high angle graben structure. Drill hole PS-07-01 was abandoned at a depth of 280 metres (934 feet) after traversing an open space cavity from 275 metres (917 feet) to 278.7 metres (929 feet). This hole was planned to intersect the high angle fault at 360 metres (1200 feet). Anomalous gold and silver values along with pathfinder elements consisting of arsenic, antimony, barium, copper, mercury, zinc, manganese, thalium and cerium were returned from hematitic matrix hydrothermal vein breccias and siliceous, sooty collapse breccias, similar to the Rain Mine gold zones. The gold and silver values returned over the 330 foot wide jasperoid zone range from 30 ppb to 410 ppb and 89 ppb to 3010 ppb. Further details pertaining to the Pony Spur drill program are available at www.sagegoldinc.com.

Sage is planning to drill 3 inclined holes designed to intersect the jasperoid zone and adjacent Chainman Formation contact. Drilling will be from permitted drill pads located on the north side of the graben structure. The program is scheduled to commence in early June, 2008. Project geological management for both the Pony Spur and Gold Hill projects was conducted by Hubacheck Consulting Geologists, an affiliate of W. A. Hubacheck Consultants Ltd.

Core processing, logging and storage for the Pony Spur project was carried out in secure facilities located in Elko, Nevada. The NQ size core was sawn and samples prepared in 0.75 metres (2.5 feet) to 1.5 metres (5 feet) standard lengths in breccias zones and variable lengths when necessary to sample veining, geological and alteration contacts. ALS Chemex labs in Elko were retained to perform sample preparation, QA/QC procedures for the gold AAS analyses which were conducted at Chemex's Reno facility and ICP-AES spectroscopy at Vancouver.

The geological material in this release has been reviewed by Peter Hubacheck, P. Geo. A.P.G.O; #1059 P. Geol. A.P.E.G.G.A #33789 a qualified person as defined by NI 43-101 regulations.

Please visit SAGE GOLD at Booth #2347 March 2-5, 2008 at PDAC, Metro Toronto Convention Centre, South Hall, Investors Exchange.

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

Some statements 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
    (416) 260-2243 (FAX)
    or
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    (416) 204-3170
    (416) 260-2243 (FAX)
    Website: www.sagegoldinc.com