Sage Gold Inc.

Sage Gold Inc.

October 07, 2010 15:04 ET

Sage Gold Inc.: Airborne ZTEM Survey-Onaman Beardmore-Geraldton Gold Camp

TORONTO, ONTARIO--(Marketwire - Oct. 7, 2010) - Sage Gold Inc. (TSX VENTURE:SGX) has engaged Geotech Ltd. to complete a 1011 line kilometre helicopter based ZTEM (Z axis Tipper electromagnetic system) survey of its wholly owned Onaman property in the Beardmore Geraldton gold camp. The purpose of the survey is to explore for deeper copper-silver-gold and lead-zinc-silver–gold targets on the property.

This new ZTEM system relies upon the naturally occurring electromagnetic fields created by worldwide thunderstorms as the source of the primary electromagnetic field. The interaction between this primary field and the varying electrical properties of sub-surface rocks result in anomalous fields which are measured. The lower frequencies of the primary field penetrate much deeper than more conventional electromagnetic systems allowing the search for deep seated, large zones of elevated conductivity. This elevated conductivity may be indicative of areas of base metal mineralization.

Sage has explored a number of base and precious metals occurrences on the Onaman property including:

- The Lynx Cu-Ag-Au deposit comprises a compliant resource of 1,936,000 tonnes of 1.44% Cu, 39.6g/t Ag and 0.58g/t Au. The resource includes a near surface resource which could be developed using open pit methods. Using cut-off grade sensitivity scenarios of 1% Cu and 0.5% inferred resources ranging from 485,000 tonnes at 2.1% Cu, 45.3 g Ag/T and 0.70 g Au/T to 845,000 tonnes at 1.55% Cu, 34.6 g Ag/T and 0.51 g Au/T could potentially be mined from two tonnage blocks determined by the cut-off grades (Press Release of 3/31/09). The Lynx deposit zones are located in North area and South area. The Resource modeling indicates that there is scope to expand the high grade resource in the South area down dip to the southwest and updip to the northeast. Further, the North area has not been closed off to the north and all zones have only been drilled down dip to an average depth of 200 metres.

- The Currie zone is located northeast of the Lynx deposit and one kilometre east of the Tashota Nipigon mine. Channel sampling yielded results  of up to 11.1 g Au/t, 285.11 g Ag/t, 3.8% Pb and 4.6% Zn over 0.38 metres (Press Release 11/30/09).  A weighted average of the channels (12.1metres distributed over 75 metres of strike length) yields 0.6 g Au/t ,52.0g/t Ag, 0.9% Pb and 1.4% Zn. Twenty three channel samples were taken and all results have been received. The lowest channel sample of the reported group yielded 0.01g Au/t, 5.28 g Ag/t, 0.06% Pb and 0.05% Zn over 0.6 metres. Historical drilling by TJN Exploration drilled two holes 500 metres northeast of the Currie zone with results of 3.08 g/t Au and 133.71 g/t Ag over a true width of 2.56 metres and 2.13 g/t Au and 174.86 g/t Ag over a true width of 2.62 metres.

- The Headway Main zone is located approximately 600 m west of the Lynx deposit. It is a zone of mild to intense shearing in felsic tuff which occurs over an average width of 150 m and a total length of 420 m. The zone has an approximately vertical dip and on the basis of the longitudinal section, a plunge to the southwest of about 45°. The Main Zone was subdivided into A and B oreshoots by Hopkins (1951).

Resource calculations have been completed on the deposit by Hopkins (1951). He calculated a total tonnage for the A and B zones of approximately 250, 000 tons with a weighted average grade of 1.32 oz per/ton Ag and 4.44% Zn. Furthermore, he listed additional possible tonnage for the A zone of 39,600 tons and for the C zone 10,000 tons, but no grade was given for the latter two. A later report by Goldbrook Ventures Inc. (Bowdidge, 1992) claims an historical resource calculation of 739,400 tons grading 3.15% Zn and 1 oz/ton Ag. Sage Gold Inc. has not yet made an attempt to verify these results. 

- Cane Copper – drill result – Press Release 12/12/06 – 4.7% Cu, 216 g/t Ag and 0.13 g/t Au

- Cane Gold – Lead Concentrate - Press Release 9/22/06 – 4402 g/t Ag, 23.8 g/t Au and 66% lead

The results of the ZTEM survey will be used to test deeper targets within the existing zones and to develop new deeper targets. Sage will evaluate the data and determine potential areas for additional drilling.

Sage Gold Inc. has not yet conducted sufficient exploration to define the historical mineral resources calculations for the Headway Main Zone. As such, the potential quantity and grade disclosed in this presentation is conceptual in nature based on historical drilling conducted by previous operators. The reserve/resource categories predate 43-101 and given that there has been no feasibility study completed on the property these reserve categories should be defined as inferred, indicated and measured mineral resources. Further exploration may not result in the discovery of additional mineral resources. All resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators. Sage Gold Inc. has not completed the work necessary to verify the classification of the mineral resource estimates. Sage Gold Inc. is not treating the mineral resource estimates as NI43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. Sage Gold Inc. has not completed a feasibility study and there is no certainty that Sage Gold Inc. deposits will be economically viable.

Francis L. Jagodits (P.Eng, Consulting Geophysicist) is a Qualified Person and has reviewed the technical content of this press release as pertains to the description of the ZTEM system. The reader should refer to the individual press releases for the appropriate QP for each release.

SAGE is a mineral exploration and development company which has primary interests in exploration properties in Ontario. Its main properties are the Clavos Gold property in Timmins where an NI43-101 resource estimate is being completed 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 and

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
    416-260-2243 (FAX)
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    416-260-2243 (FAX)