SOURCE: Sage Gold Inc.

June 14, 2007 11:53 ET

Sage Pulls Best Nickel Hole to Date at Jacobus

0.95% Ni and 1.16% Cu Over 11.45 Metres

TORONTO--(Marketwire - June 14, 2007) - Sage Gold (TSX-V: SGX) has completed six drill holes on the exciting Jacobus Cu-Ni property. The first results are available for SJ07-06. Sage will continue to trace the high grade section through additional drilling. Assays are pending on the remaining holes.

SJ07-06 intersected 11.45 metres (true thickness 8.5 metres) of 0.95% Ni and 1.16% Cu which includes 6.5 metres of 1.23% Ni and 1.40% Cu. In addition, platinum and palladium occur in anomalous amounts of up to 0.123g/t and gold is present up to 0.134g/t.

This hole was drilled 25 metres north from SJ06-02 which intersected 6.3 metres of 0.41% Cu and 0.38% Ni (Press Release - January 26, 2007). All drill holes were cored at NQ size.

Previous drilling by Sage and historical drilling by others suggests that the mineralization occurs in a trough like structure. SJ07-06 and SJ06-02 both intersected the mineralized zone 580 metres down plunge from the surface trenches.

Nigel Lees stated, "We are highly encouraged with the high grade results of SJ07-06. The zone continues to be open down plunge and we expect to have the results of the next holes within the next few weeks. Furthermore, Sage has also drilled five holes in the up plunge section of the mineralized zone in order to begin the process of qualifying the historical resource into NI43-101 compliance. The Jacobus Ni-Cu zone has now been tested over 580 metres down plunge from surface and exhibits thicknesses varying between 5 and 40 metres. The width of the trough like structure varies between 30 and 90 metres."

Nigel Lees will go "Beyond The Press Release" on the Company's official Investor Relations Site at www.agoracom.com/IR/sagegold, in which the above drill results will be discussed in detail. The recording is expected to be available on or after Thursday, June 14, 2007.

The Jacobus property is located in the northwest corner of Elmhirst Township near Beardmore, Ontario and consists of 24 claims. An historical resource of 958,804 tons grading 0.43% Cu and 0.40% Ni (Chesterville Mines - Canadian Mines Handbook, 2003-2004 p.340) was identified from surface down plunge to 150 metres. Sage has now extended the zone a further 430 metres from the margins of the historical resource. Sage believes it should be able to expand the historical resource with additional drilling.

The Jacobus Cu-Ni deposit is hosted in a differentiated, layered gabbroic sill contained within massive, porphyritic flows of dacitic to rhyodacitic composition. The mineralized zone occurs as a sulphide-rich layer within anorthositic gabbro. The sulfide mineralogy consists of pyrrhotite, chalcopyrite and pentlandite. Combined copper and nickel grades increase from the surface downwards.

The current exploration phase comprises 3000 metres of drilling and also includes review, re-evaluation and digitizing of historical drill data, surveying of historical drill hole collars as well as deposit modeling.

The historical grade and tonnage estimates presented above predate and are noncompliant with NI 43-101. Sage is unable to verify the reliability of the historical data and thus the historical resource is not relevant until such time as Sage is able to compare current drill results to historical results from individual holes. The historic holes will need to be located in the field and surveyed before a comparison can be made between historic and current drill holes. It is not possible at this stage to determine if the historic resource is inferred, indicated or measured. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Sage is re-evaluating all analytical and drill data to make the historical estimates conform to CIM Standards for Mineral Resource and Mineral Reserve estimates.

The Jacobus Cu-Ni exploration project is being supervised by Exploration Geoscience Associates of Orillia, under the direction of Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160). Dr. Kretschmar has extensive experience exploring for Ni-Cu, gold and base metal deposits in Archean terrain, and is a qualified person as defined by NI 43-101. He is responsible for the technical content of this news release.

Assays of the drill core samples were completed by ALS Chemex in Vancouver. Ore grade copper and nickel by aqua-regia digestion and atomic absorption. Platinum group metals with fire assay and ICP finish.

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 Kerrs, Onaman, and Jacobus properties in Ontario, the 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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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.

Contact Information

  • For further information, contact:
    Nigel Lees
    President and C.E.O.
    or
    Mike O'Brien
    Manager/Investor Relations
    Phone: 416-204-3170
    Fax: 416-260-2243

    SAGE GOLD INC.
    365 Bay Street
    Suite 500
    Toronto, Ontario M5H 2V1
    Tel: (416) 204-3170
    Fax: (416) 260-2243
    www.sagegoldinc.com