Sage Gold Update on Clavos Deposit
TORONTO, ONTARIO -- (Marketwire) -- 02/08/12 -- Sage Gold (TSX VENTURE: SGX) ('the Company') provides the following update on the Clavos Deposit located in Timmins, Ontario.
Highlights:
-- Completion of $3.0 million expenditure pursuant to 60% earn-in
-- RPA revised 43-101 Resource estimate expected in Q1 of 2012
-- Scoping Study to follow after Resource estimate
-- Assays pending for new drilling in the 960 zone
Sage has completed the $3.0 million of expenditures pursuant to their 60% earn in obligation, with St Andrew Goldfields (TSX: SAS). The expenditure data has been sent to SAS for verification. In addition to the expenditure requirement, Sage is required to pay SAS $75,000 in cash and $75,000 worth in shares as well as replace the $250,000 closure bond.
Roscoe Postle Associates (RPA) are currently in the final stages of completing all required wire framing and block modelling associated with completing a Revised Mineral resource estimate for the Clavos Deposit. The mineral resource estimate is expected to be completed during Q1 2012 and will contain the mineral resources for the 'Existing Clavos' Deposit Zone, and the Sediment, 960 and Contact zones. The Sediment, 960 and Contact Zones were not included in the previous 43-101 Resource study prepared by RPA for SAS, dated October, 2006.
It is anticipated that the completion of the new resource study and the Scoping Study will provide Sage with the data required to evaluate the feasibility of a number of development options relating to the Clavos deposit including:
-- The potential for near term cash flow related to the extraction of
tonnage identified within the Existing Clavos deposit.
-- The feasibility of developing the 960 zone with one or two exploration
drives. The 960 zone is located 600 metres east of the existing Clavos
underground workings.
-- The position of the Sediment zone and the possibility that access to the
960 zone could be developed through exploration drives directed through
the Sediment zone. Thus offering a potential source of cash flow to
reduce the capital expenditures related to developing the 960 zone.
Sage has recently completed 2,400 metres of drilling within the 960 zone (assays pending). This drilling targeted the potential down dip extensions of the 960 zone, and tested the sediment zone to the south of the 960 zone. This drilling is in addition to the 7,800 metres completed previously with assay results posted on the Sage website at www.sagegoldinc.com.
The company is currently in discussions with various groups regarding the financing of the pre-production costs plus sustaining and working capital.
SAGE is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold Deposit in Timmins and the Lynx deposit and other 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.
Mike O'Brien
Communications Manager / Investor Relations
416-204-3170
416-260-2243 (FAX)