Sage Gold Inc. Increasing Confidence to Reopen Clavos Mine in Timmins
25.09.2010 | Marketwire
TORONTO, ONTARIO -- (Marketwire) -- 09/25/10 -- Sage Gold Inc. (TSX VENTURE: SGX) has completed data validation of unreported underground drilling completed between August 2006 and April 2007 by St Andrew Goldfields Ltd. (TSX: SAS) at the Clavos Gold mine in the Timmins area. Sage's independent consulting geologists URS/ Scott Wilson RPA and Glider Geoservices have selected underground drill holes that were completed after the October 2006 resource estimate was completed and that have not been affected by subsequent mining activities. There are 78 holes with 11,338 metres of underground drilling. Of these, 63 holes that have the potential to add new resources and 15 holes represent infill holes that may result in an upgrade of inferred resources to the indicated category. This drilling was completed as four series of underground holes from different locations in the mine. The 245 series is being reported in this press release. The additional series will be reported in subsequent press releases.The 245 series of holes were designed to test a portion of the unmined hanging wall resource below the second level. The prior gold resource was reported for the project by St Andrew Goldfields in October 2006. The resource was calculated by Scott Wilson RPA & Associates and supported by a NI43-101 report filed on SEDAR by St Andrew Goldfields.
The 245 series which Sage is reporting; 7 holes have the potential to upgrade inferred into the indicated category ('Resource Infill') and 23 holes have the potential to add new resources ('Resource Addition'). Refer to www.sagegoldinc.com for a longitudinal section detailing the location of the 245 series Sample composites exceeding 3g/t Au reported below:
RESOURCE ADDITION
-----------------
LENGTH AU AVG AU CUT TO INCLUDING
------ ------ --------- ---------
HOLE-ID FROM TO (metres) (g/t Au) 60g/t Au (g/t Au/m) Comment
------- ---- -- -------- -------- -------- ---------- -------
CL-245-10 36.1 37.85 1.75 3.442
CL-245-23 108.3 109 0.7 4.583
CL-245-24 110 111.5 1.5 5.147
CL-245-24 114.2 116.1 1.9 3.287
CL-245-25 113.4 114.1 0.7 6.57
CL-245-25 114.6 115.4 0.8 19.43
CL-245-25 117.7 121.7 4 4.316 11.63/0.5m
CL-245-26 140.6 143.3 2.7 8.561 14.99/1.3m
CL-245-29 163.1 166.6 3.4 2.653 3.456/1.3m
CL-245-29 170.6 171.35 0.75 4.782
CL-245-3 55.65 57.8 2.15 3.648
CL-245-33 153.3 154.75 1.45 3.108
CL-245-33 171.2 175.6 4.4 3.646 5.365/0.8m
Visible
Gold
CL-245-34 117 117.6 0.6 69.85 60.0/0.6m (VG)
CL-245-37 156.05 157.2 1.15 3.995
CL-245-37 175.3 179.85 4.55 5.987 11.308/1.5m
CL-245-37 181.45 184.2 2.75 3.105 6.155/0.8m
CL-245-37 185.85 188.85 3 7.323 12.843/1.6m
CL-245-38 198.85 199.8 0.95 2.981 VG
CL-245-38 207.6 212.15 4.55 2.609 3.046/2.95m
CL-245-39 220.8 221.1 0.3 3.536
CL-245-39 223.5 225 1.5 5.133
CL-245-39 233.5 235 1.5 6.033
CL-245-39 247.1 253 5.9 3.636 6.8/1.4m
CL-245-40 136 136.85 0.85 5.007
CL-245-41 154.5 157 2.5 2.831 3.125/1.5m
CL-245-43 174.95 175.95 1 11.223
CL-245-44 189.85 193.6 3.75 2.855 6.428/0.95m
CL-245-45 215.2 216 0.8 16.533 VG
CL-245-51 151.2 154.2 3 6.6 10.4/1.5m
CL-245-52 182.9 187.1 4.2 3.293 5.43/1.5m
CL-245-55 201 203.3 2.3 7.511
CL-245-56 163.55 164.9 1.35 8.467
CL-245-56 170.3 171.8 1.5 3.7
CL-245-58 156.4 160 3.6 5.668 15.567/0.75m
CL-245-64 238.8 242.3 3.5 10.488 VG
CL-245-64 277.3 278.5 1.2 7.077
RESOURCE INFILL
---------------
AU CUT TO INCLUDING
--------- ---------
HOLE-ID FROM TO LENGTH AU AVG 60gpt (gpt/m)
------- ---- -- ------ ------ ----- -------
CL-245-15 102.7 104.4 1.7 4.297 10.388/0.4m
CL-245-17 86.9 88.3 1.4 14.613
CL-245-19 85.4 86.4 1 11.573
70.865/0.2m
uncut;
CL-245-19 101 102 1 16.347 14.174 60/0.2m cut
90.567/0.45m
uncut;
CL-245-21 81.15 83 1.85 24.087 16.651 60/0.45m cut VG
CL-245-22 127.6 129.5 1.9 2.999 4.163/1.1m
CL-245-48 117 117.75 0.75 3.519
CL-245-49 133.5 134.65 1.15 4.148
Note: Interval widths reported are drill intercept widths and not true widths.
Note - Bolded assay intervals greater than 15g/t Au(i)metres
Sage is now planning the dewatering and rehabilitation of the underground workings as the first step to restarting production at the Clavos mine.
Nigel Lees President and CEO commented: 'We are very pleased to report these excellent drill results. It is important to emphasize that the underground drilling was conducted to expand the underground resource and that the investment in the underground infrastructure has already been incurred. The incremental investment to develop new zones will be small relative to a production investment in a new project. These results, combined with a much higher gold price will allow Sage to improve the economics of putting the Clavos Mine back into production.'
Sage is planning up to 5,000 metres of drilling on the Clavos property during the fall of 2010. Sage has optioned the property from St Andrew Goldfields and is earning into a 60% interest over a three year period by incurring $3 million in expenditures and issuing $210,000 in cash and share payments over the same period. The Clavos property includes existing infrastructure in place including underground ramp access to the 300 metre level, underground levels developed every 25 metres, power to site, mine ventilation system and a water management facility. The existing mining permit is in good standing until 2019.
The Clavos deposit is located north of the Pipestone Fault which marks the contact between the Porcupine sedimentary rocks to the south and volcanic rocks to the north, localized in east-west to east-northeast trending high strain zones within ultramafic rocks. The high strain zones are defined by lens of sericite-carbonate with some fuchsite alteration and hosts several small porphyry intrusive bodies in a 50-70m wide zone, termed the 'DL Zone' which lies from 10-50m north of the sedimentary-volcanic contact. There are four mineralized zones at Clavos termed the Hangingwall, Footwall, Contact and Porphyry Zones. Gold mineralization occurs in two styles of quartz veins: a) early grey quartz veins, and b) quartz extension veins, sigmoidal extension vein arrays, and associated shear veins, which form veining networks. The latter phase of veining is geometrically, temporally and texturally compatible with formation during the main stages of gold mineralization in the central Timmins camp.
The technical content of this news release has been reviewed and approved by Sage's consulting Geologist David Gliddon P.Geo. of Glider Geoservices, who is a qualified person as defined by NI 43-101.
Assays reported in this release were processed at the then wholly owned St Andrew Goldfields lab at the Stock Mill. The method used was Ore Grade Au 30g sample using Fire assay with atomic absorption finish.
Board of Directors
The Company announces that Geoffrey Gold will step down as a director of Sage Gold effective October 1 2010. Patrick Mars, Chairman of the Board of Directors of Sage commented: 'We have benefitted from having Geoff Gold as a director of Sage and we will miss his wise counsel. We wish Geoff well and thank him for his contributions.'
Investment Conference
Sage welcomes everyone to visit us at the Toronto Cambridge House Investment Conference this Saturday-Sunday September 25-26 at Booth #1016 and learn more about the Clavos Mine and the Company's ongoing program. The conference is in the north hall of the Toronto Metro Convention Centre at 255 Front St. Toronto, Ontario.
SAGE is a mineral exploration and development company which has interests in exploration properties in Ontario. Its main properties are the recently optioned Clavos Gold property in Timmins as well as its 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.
This news release contains certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and 'Forward Looking Information' within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information 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.
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.
Contacts:
Sage Gold Inc.
Nigel Lees, President and C.E.O.
416-204-3170, 416-260-2243 (FAX)
Sage Gold Inc.
Bill Love, Vice President Business Development
416-204-3170, 416-260-2243 (FAX)
Sage Gold Inc.
Mike O'Brien, Manager/Investor Relations
416-204-3170, 416-260-2243 (FAX)
www.sagegoldinc.com