Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

April 16, 2009 08:30 ET

Sage's Golden Extension Discovery-Surface Work Completed Drill Program for 2009

TORONTO, ONTARIO--(Marketwire - April 16, 2009) -

Golden Extension - Jacobus East

Sage Gold Inc. (TSX VENTURE:SGX) has completed the surface exploration program on the Golden Extension discovered in August 2008 in the Beardmore Geraldton Gold Camp. Two new gold bearing veins were discovered in March 2009 (Vein 9 and Vein 10) located 432 metres northwest of Vein 1 and 268 metres northwest of the northwestern end of Vein 4. The system consists of multiple gold bearing veins on the Jacobus East property, 30 kilometres north- northeast of Beardmore, Ontario and is located northwest of Kodiak Exploration Ltd's Golden Mile discovery.

The first phase of a 3000 metre drill program is planned for June 2009 and will target the high-grade gold vein structures.

Highlights of Surface Exploration Program

- Vein 9 - comprises two discrete veins separated by up to 15 metres of sheared carbonatized and mineralized wall rock. Visible gold is present within the sheared wall rock between the north and south offshoots. Stripped length of 50 metres.

- Vein 9 - Grab samples ranging from 0.56g Au/T to 36.23 g Au/T, channel sample of 2.95 g Au/T over 0.30 metres

- Vein 4 channel sample of 93.72 g Au/T over a width of 0.4 metres

- Vein 4 grab sample of 259.99 g Au/T; grab samples range from 1.7 g Au/T to 259.99 g Au/T with an overall average of 75.83 g Au/T

- Vein 1 channel sample of 136.5 g Au/T over 0.50 metres

- Magnetometer and Very Low Frequency (VLF) surveys underway - good correlation with vein systems and geophysics

- 1.2 kms of exposed vein structures

Refer to www.sagegoldinc.com for complete assay results

Sage President & CEO Nigel Lees stated: "We are encouraged by the lateral extent of gold bearing quartz vein systems that we have discovered during the winter stripping and sampling program. We have expanded our array of drill targets at the Golden Extension now comprising the original discovery on Vein 1, Vein 2, the main vein on Vein 4, the extensive quartz stockwork at the northwestern end of Vein 4 and the new mineralized complex of Veins 9 and 10. We will be able to test multiple targets from each drill platform as the vein systems are spatially close and we will also able to test new targets between the veins. In addition, we are expecting the results from the winter geophysical program which will provide new data on the direction of the existing vein systems and potentially new vein systems. We look forward to our summer drill campaign".

A grid of cut lines totaling approximately 149 kilometres has been completed over the Golden Extension. Magnetic and VLF-electromagnetic surveys are in progress over the grid and are approximately 80 percent complete at this date.

Preliminary data from the magnetic and VLF surveys indicate that all the gold occurrences discovered to date are closely associated with magnetic high anomalies. Some of the gold-bearing veins and vein systems also correlate with VLF conductors, which are interpreted to reflect zones of shearing in the granodiorite host rock. In addition to magnetic and VLF anomalies associated with known gold occurrences, there are numerous anomalies that remain to be tested by prospecting and/or excavating.

The summer exploration program for the Jacobus East property will include excavating on anomalies defined by the magnetic and VLF surveys, as well as geological mapping and geochemical surveying. A 3,000 metre diamond drilling program is planned to commence in June and will be split into two phases. The first phase will target the high priority targets on Golden Extension. A later program, during the late summer or early Fall, will follow up on the June drilling and any new zones that are discovered throughout the summer prospecting and excavating work.

Sage has completed the winter stripping and trenching program and has suspended field operations during spring breakup. The Company intends to conduct a detailed mapping program of the Jacobus vein systems in order to establish the structural characteristics of the mineralization prior to drilling in the early summer. Drilling will commence once the geological mapping program is completed.

Sage also plans to continue prospecting, excavating and geological mapping on its other two key gold properties; Paint Lake and King Solomon Pillars. The press release of March 12, 2009 detailed the sampling results from both properties. The summer field work is aimed at developing drill targets for drilling during the winter of 2009/2010.

Technical Information

Sage's channel samples are between 3 and 4 cm wide and are cut with a motorized diamond saw to a depth of approximately 5 cm. The channels are cut as close to perpendicular to the strike of the vein as permitted by the rock surface. Samples are taken from the footwall, the vein and the hanging wall. Sample intervals are chosen to provide a representative sample of the surface mineralization of the vein and the wall rock. Assays reported in this news release were completed by Accurassay Labs in Thunder Bay. Accurassay's gold analysis is performed using a 30g fire assay charge. The fire assay procedure uses lead collection with a silver inquart. The beads are then digested and an atomic absorption or ICP finish is used. All gold assays that are greater than 10 g/t are re-assayed by fire assay with a gravimetric finish.

The technical content of this news release relating to the Jacobus East Golden Extension project has been reviewed by Sage's consulting Geologist Colin Bowdidge, Ph.D., P.Geo. who is a qualified person as defined by NI 43-101.

SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario, Nevada and Arizona. Its main properties are the Jacobus, Paint Lake, Solomon Pillars and Onaman properties in the Beardmore Geraldton Gold Camp and the Kerrs property in Ontario. 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
    or
    Sage Gold Inc.
    Mike O'Brien
    Manager/Investor Relations
    416-204-3170
    416-260-2243 (FAX)
    www.sagegoldinc.com