Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

December 14, 2007 10:00 ET

SAGE to Drill 22,000 Metres-Beardmore-Geraldton Gold Camp

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2007) - Sage (TSX VENTURE:SGX) has signed a contract for a minimum of 22,000 metres of core drilling in 2008 on its properties in the Beardmore-Geraldton Gold camp. This is in addition to the 8,000 metre program currently underway - which is expected to be completed by the first quarter of 2008 - at the Jacobus and Onaman properties.

On the Jacobus property, current drilling is designed to test lateral and down-dip extensions of an historical nickel (Ni) and copper (Cu) resource, as well as to explore the continuity of gold mineralization discovered during the fall 2007 drilling campaign (see press release of July 24, 2007). Thirteen holes totalling about 4,000 metres have been drilled to date. Assay labs are extremely busy, however Sage expects to be able to report initial Ni and Cu assay results in the near future.

The Jacobus property lies approximately 3 km north of a recent gold discovery by Kodiak Exploration Limited on the Hercules property. From the "Golden Mile" vein, Kodiak (November 29, 2007, press release) reported gold grades of "3.6 m grading 358.56 gpt (10.46 opt), 2.9 m grading 45.25 gpt (1.32 opt), and 4.1 m grading 20.77 gpt (0.61 opt)".

On both the Jacobus and Onaman properties, Sage has completed helicopter-borne magnetometer (Mag) and electromagnetic (EM) surveys. Preliminary results from the Jacobus property indicate a Mag high on the SE corner of the property that is contiguous with the northern extension of the Mag high on Kodiak's Hercules property. Within this high is a north-west trending low, which is interpreted by Sage to be a similar geophysical signature to the Kodiak Golden Mile quartz vein system. Jacobus Mining Corporation (1957) intersected a ten foot wide quartz vein within this Mag low, which was not assayed for gold. Sage is currently moving equipment into this area in order to begin trenching both the quartz vein and the northwest trending Mag low. A grid of lines will also be cut for detailed ground geophysics and geological mapping. The Jacobus property is underlain mainly by intermediate pyroclastics that are intruded by the Elmhirst gabbroic intrusion.

On the Onaman property, Sage has also completed a ground induced polarisation (IP) survey along the strike extension of the Lynx 1, 2 and 3 copper-silver-gold mineralisation. In addition, Sage has discovered a new zone of volcanogenic massive sulphide (VMS) mineralisation west of the Lynx zones which exhibits a large outcropping area of massive sulphides. This new zone (Lynx #4) has now been tested by IP and will be drill tested in 2008. Lithology consists of mafic pillow basalts, interbedded mineralized exhalite units and overlying felsic pyroclastics. The base of the steeply dipping NE trending-sequence is the Onaman batholith.

Sage has also been trenching and sampling a 1.5 km long VMS related alteration system which is expressed as an EM geophysical conductor on the western side of the Onaman property. This conductor, the Big M, was drill tested in 1995 by Goldbrook Ventures Inc who intersected up to 30 m of massive pyrite and pyrrhotite. By analogy with the Mattabi VMS deposit, the conductor overlies and caps a zinc-copper zone. Sage will drill test this system to about 500 metres in vertical depth.

Nigel Lees, President and C.E.O. stated: "We are very excited about the progress on all our Beardmore-Geraldton properties, especially in the light of the recent gold discovery by Kodiak and the implications for similar mineralisation on our Jacobus property. Our aeromagnetic survey - completed only last week on the Jacobus property - shows that we have a magnetic signature similar to that on Kodiak's Hercules property to the south. Also, in government assessment files we see that historical drilling on the Jacobus property encountered quartz vein structures within a stratigraphy similar to the Golden Mile. We have accelerated our exploration program in order to determine if the high grade mineralization extends onto our property".

While the drilling at Jacobus has proceeded more slowly than anticipated due to the late arrival of our second drill, we are most fortunate to have obtained a drill for our exclusive use for all of 2008 and we hope to add another rig during the year."

Dr. Ulrich Kretschmar, Ph.D., P.Geo., (APGO #1160), a qualified person as defined by NI 43-101, has read and approved the technical content of this press release.

Sage also announces the grant of 2,985,000 stock options at an exercise price of $0.50 per share issued to management, directors, employees and consultants. The options will vest over twelve months and are exercisable for a period of five (5) years.

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 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