Sage Gold Inc.
TSX VENTURE : SGX

Sage Gold Inc.

September 07, 2007 14:01 ET

Three Drills to Turn for Sage

- Closing of private placement -

TORONTO, ONTARIO--(Marketwire - Sept. 7, 2007) - Sage Gold (TSX VENTURE:SGX) is pleased to announce that it has closed a non-brokered private placement of $1,000,000 of flow-through units @ $0.16 per unit and $250,040 of non-flow through units @ $0.14 per unit for total proceeds to the Company of $1,250,040. Funds from this placement will be used to accelerate the Company's drill program and provide working capital. Details of the units are set forth below.

Drilling Update

Ontario

- Drilling will resume at the end of September, 2007 on the Jacobus nickel - copper (Ni-Cu) property in Ontario; following which,

- Drilling on the polymetallic Onaman property in Ontario is planned to commence on a new massive sulphide target.

Nevada

- Drilling is planned to commence on the Pony Spur property by the end of September, 2007

Additional Details

Ontario - Jacobus

The Company plans to undertake a drilling program of approximately 6,000 metres at Jacobus in order to confirm the existing historical resources and extend the down dip and lateral mineralization.

In 2006 and 2007 Sage drilled 16 holes totalling 4,440 m at the Jacobus Ni-Cu occurrence to augment the historical results from 80 previous drill holes. These data show that the Jacobus occurrence consists of a series of higher grade lenses that are aligned and form a mineralized zone within the Pinel Lake intrusion, a layered sill-like body composed predominantly of gabbro and quartz-rich leucocratic gabbro with minor pyroxenite and anorthositic gabbro. The zone varies in thickness from 6 to 25 metres and has been tested down dip from surface to about 580 metres. Currently, mineralization extends for 115 metres in a lateral plane near surface and high grade mineralization over significant widths were encountered. Hole SJ07-11 (the best hole to date) intersected 2.12% Ni and 1.02% Cu over 6.6 metres and Hole SJ07-06 yielded 0.95% Ni and 1.16% Cu over 11.45 metres (see June 14/07 Press Release).

Ontario - Onaman

The Company plans to drill 2,000 metres at the Onaman property on a new massive sulphide target.

Sage has obtained new technical material on the Onaman property which relates to the most recent drilling of geophysical conductors in felsic volcanics. Previous drill programs intersected up to 26 metres of massive pyrite and pyrrhotite with sub-economic zinc copper and gold. Volcanogenic massive sulphide (VMS) deposits often have pyritic sections overlying a zinc-copper core. The largest geophysical conductor has not been tested below 150 metres. The current drilling will target the massive sulfide horizon below the limits of previous drilling. The Onaman property comprises a number of copper-silver-gold and lead-zinc-silver-gold zones within a sequence of mafic volcanics. Sage has drilled several of these showings (see PR October 30/06 and December 21/06). Noteworthy intersections include 6 m grading 5.83% Cu, 141g/T Ag and 1.7g/T Au (Lynx #1 zone) and 2.6 m grading 6.33 % Cu, 2.25 g/T Au and 112.6 g/T Ag. (Lynx #2 zone.).

Nevada - Pony Spur

The Pony Spur property comprising of 48 lode claims (960 acres) is a sediment hosted Carlin-Rain type gold property located in south western Elko County, 24 miles south of the town of Carlin. This property is situated along the western side of the Pinon Range, 16 miles south-southwest of the Rain Mine, Saddle, and Emigrant Springs gold deposits of Newmont Mining Corporation. The area hosts several gold deposits including Pony Creek (contiguous to Pony Spur), Trout Creek, Railroad-Bullion, Dark Star and Dixie Creek. Sage proposes to drill-test the contact between the overlying Webb Formation fine-grained clastic rocks and the Devil's Gate limestone where the majority of the gold mineralization in the Carlin-Rain Trend has been found. Two drill holes of approximately 1500 feet (approx. 500 metres) in length will cut through a faulted section of Devils Gate limestone where high arsenic values (up to 1000 ppm) are associated with the Devils Gate limestone. On August 15, 2007 Grandview Gold commenced drilling the same fault structure west of the Pony Spur property - identified as their Pony Creek West target.

Financing Activity

The $1,000,000 flow-through financing consists of 6,250,000 flow-through units issued at $0.16 per unit (each unit consisting of one flow-through common share and one-half of one warrant) and the $250,040 non-flow through financing consists of 1,786,000 non-flow through common shares issued at $0.14 per unit (each unit consisting of one common share and one warrant) for total gross proceeds of $1,250,040. Each flow-through warrant is exercisable at $0.22 for 18 months. Each non flow-through warrant is exercisable at $0.19 for the first year following closing and $0.25 for the second year following closing.

Early Termination of Warrants

For both sets of warrants, certain early termination rights are included. If the Company's common shares achieve a closing price of $0.28 or higher for a period of 21 consecutive days, the Company may notify the warrant-holders that all unexercised warrants will expire in 30 days following the date that the notice is issued.

The Company has paid a cash finder's fee equal to 6% of the gross flow through proceeds and options to purchase units equal in number to 8% of the flow-through units sold . The finders' options have the same terms as the flow-through units.

All securities issued are subject to a four month hold period which expires on January 1, 2008.

Dr Ulrich Kretschmar, Ph.D, P.Geo (APGO #1160) is a Qualified Person as defined by NI 43-101. He is responsible for the technical content of this news release.

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.

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.

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.

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)
    Website: www.sagegoldinc.com