Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

April 26, 2011 07:00 ET

Sage Gold Inc.: New Gold Zone at Clavos-6.31 g/t Au Over 5.4 Metres

TORONTO, ONTARIO--(Marketwire - April 26, 2011) - Sage Gold (TSX VENTURE:SGX) announces additional results from the ongoing diamond drill program at the Clavos mine in Timmins, Ontario. A new gold zone has been discovered within the main DL alteration zone east and up dip of the hanging wall (HW) and footwall zones (FW) that host the St Andrew Goldfields Ltd (TSX:SAS) October 2006 resource estimate (refer to www.sasgoldmines.com). Highlights from the eastern and western drilling are detailed below. Sage currently has two drills operating and has drilled approximately 4,000 metres to date at the Clavos mine.

Highlights

  • CL 11-06 – 6.31 g/t Au over 5.4 metres including 10.11 g/t Au over 2.5 metres and 4.71 g/t Au over 1.5 metres – eastern drilling - discovered new zone.
  • CL 11-05 – 17.7 g/t Au over 0.45 metres – eastern drilling – discovered new zone.
  • CL 10-05 – 14.15 g/t Au over 0.5 metres and CL 11-02– 3.57 g/t Au over 2.5 metres – western drilling.

Holes CL 11-05 and CL 11-06 were both drilled on Section 514840E, 640 metres east of the eastern end of the underground infrastructure, and were designed to test the DL alteration zone 30m east of the significant intersection returned in historic drill hole CL167 that returned 5 metres of 10.27 g/t Au. In CL 11-06, two zones of quartz-ankerite veining with pyrite and arsenopyrite mineralization are hosted within the intrusive units at 124.1-132.3m and 142- 147.5m. The assay results reported below in CL 11-06 were encountered in the upper zone within a chlorite-rich intermediate to mafic intrusive unit with 10% pyrite and arsenopyrite mineralization.

The mineralized horizon(s) in CL 11-06 occurs at approximately 105 to 125 metres in vertical depth and represents both new zones of gold mineralization and a new area for prospective inferred and indicated resources. Further assays are pending from both holes CL 11-05 and CL 11-06.

Highlights – Eastern Drilling

CLAVOS 2010-11 DRILL PROGRAM
HOLESAMPLEFROMTOINTERVALASSAYCOMPOSITE
ID#(M)(GPT)(GPT/M)
CL 11-05E681513565711.12.485/2
E681514575813.87
E68153269.6700.43.23.2/0.4
E68153571.872.40.61.0951.095/0.6
E68154176.0576.40.352.272.27/0.35
E68154377.1577.60.4517.717.7/0.45
ASSAYS PENDING
E681593113.4113.80.41.441.44/0.4
E681598115.61160.48.346.83/0.65
E681599116116.250.254.41
CL 11-06E681667124.11250.91.286.31/5.4
E681668125125.50.51.555
E681669125.5125.90.47.57
E681671125.9126.50.63.26
E681672126.51270.519.7INCLUDING
E681673127127.50.57.910.11/2.5
E681674127.51280.511
E681675128128.50.55.11
E681676128.51290.56.84
E681677129129.50.53.77
E681681130.51310.54.194.71/1.5
E681682131131.50.55.26
E681684131.51320.54.67
ASSAYS PENDING
Note- Interval widths reported are drill intercept widths and not true widths

Previously unreported assay results from Holes CL 10-05 and CL 11-01 through CL 11-04 are included in the table below and were drilled on the western side of the Clavos mine. These holes encountered intermediate to mafic intrusive and feldspar porphyry within the central portion of the sericite-altered fragmental ultramafic rock sequence of the DL alteration zone. Pyrite and arsenopyrite mineralization occurs primarily within the intrusive units or within the altered fragmental ultramafic rocks close to the vein margins and intrusive contacts.

Highlights – Western Drilling

CLAVOS 2010-11 DRILL PROGRAM
HOLE
ID
SAMPLE
#
FROMTOINTERVALASSAY
(GPT)
COMPOSITE
(GPT/M)
CL-10-05E680802676810.9930.993/1
E68081072.5730.514.1514.15/0.5
CL-11-01E680947137.1137.60.51.021.02/0.5
E680960145.61460.41.112.631/2.2
*E68096114614713.6
*E680962147147.80.82.18
CL-11-02E681115200.9201.40.51.893.573/2.5
E681117201.42020.60.931
E68111820220316.6
E681120203203.40.42.07
CL-11-03E681241201.62020.41.281.787/1.7
E681242202202.50.52.2
E681244202.52030.52.36
E681245203203.30.30.733
E681246203.3203.70.46.083.505/0.75
E681248203.7204.050.350.563
E681254206.7207.30.61.081.08/0.6
CL-11-04E681438215215.50.53.173.17/0.5
*Denotes previously reported assay results used to generate new composite
Note- Interval widths reported are drill intercept widths and not true widths

Drilling is ongoing on the current 12,500 metre drill program to test both the near surface eastern zone described above and the untested down plunge and down dip extensions of the main mineralized horizon east of the underground workings. Both areas are outside of the volume encompassed by the 2006 resource. The intention is to define by drilling both potentially new inferred and indicated ounces for an updated resource estimate. The drilling will also test below the underground workings and the existing resource area where several widely spaced high grade gold intersections were noted within the hanging wall (HW) Zone. The drill program may, however, be interrupted by the Spring breakup as access may be impeded by the spring runoff.

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.

The historic surface drill hole assay result highlighted above was drilled by Canamax in 1987. Sage is unable to verify the sampling, sample preparation, assaying, and QA/QC procedures of Canamax to meet industry standards at the time of drilling. The surface hole results are only being used as a guide to the current round of drilling.

QA/QC Program Protocols

Sage Gold Inc. has implemented a rigorous QA/QC program. Best practice principles are being applied to the sampling/analysis of the drill core and comply with National Instrument 43-101 requirements for the Clavos property. The NQ core is delivered to the secure core shack facility on site by the drill contractor and/or Sage personnel. Prior to splitting, all drill core is photographed. Core splitting is done with a diamond core saw and 1/2 of the drill core is submitted to ALS Chemex Laboratories, an accredited laboratory for analysis. The remainder of the core is stored at the Clavos mine Property. All samples are shipped in sealed bags with numbered security tags and transported in a company truck from the property to ALS Chemex Laboratories preparation lab in Timmins, Ontario.

Sage routinely inserts certified standards, blanks and field duplicate samples into the sample stream. The certified analytical standards were supplied by CDN Resource Laboratories Ltd. The sample preparation procedures for drill core samples consist of crushing the samples to 70% minus 9 mesh (2mm), pulverizing a 500g sub-sample to 85% minus 200 mesh (75um), and analyzed by standard fire assay (FA) method using a 30 gram sample with AA finish and any samples assaying greater than 5.0 gpt Au are re-analyzed using a gravimetric finish. For mineralized zone intervals where visible gold is observed to be present, samples are submitted for analysis using the metallic screen method where the entire half core is crushed, pulped and screened to 100 mesh. The screen coarse and fine fractions are analyzed by fire assay (FA) method with a gravimetric finish and the total assay result is calculated. The ALS Chemex and internal Sage QA/QC samples are routinely monitored for contamination, accuracy and precision by an independent consultant.

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.

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

    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    416-204-3170
    416-260-2243
    www.sagegoldinc.com