Sage Reports New Clavos Mineral Resource-194,600 Indicated Ounces Au at 4.81 g/t and 120,000 Inferred Ounces Au at 4.7 g/t
TORONTO, ONTARIO -- (Marketwire) -- 10/23/12 -- Sage Gold (TSX VENTURE: SGX) ("the Company") is pleased to announce that Roscoe Postle Associates ("RPA") has completed a National Instrument 43-101 mineral resource estimate for the Company's Clavos Gold deposit located in the Timmins Gold Camp.
Highlights:
-- The total resource includes Indicated mineral resources of 1,258,400
tonnes at 4.81 g/t Au totalling 194,600 ounces of gold and Inferred
mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000
ounces. These resources are reported at a base case cut-off grade of
2.75 g/t Au and individual assays have been capped at 60 g/t.
-- The gold mineralisation is contained within the Hangingwall, Footwall
and Sediment deposits in the 960 Zone and within the Hangingwall,
Footwall, Contact and Sediment deposits in the Main Zone. Gold
mineralisation is closely associated with mafic-felsic intrusions in the
Hangingwall and Footwall deposits and with banded sections of argillite
and greywacke in the Sediment and Contact zones.
-- This 2012 resource estimate represents a 113% increase in total ounces
relative to the last published resource of October 2006 and is based on
a long term gold price assumption of USD$1600/Oz and a cut-off grade of
2.75 g/t Au. The 2006 mineral resource was calculated at a gold price
assumption of USD$500/Oz and a cut-off grade of 4 g/t Au.
-- All deposits remain open down dip and along strike providing a
continuing opportunity to potentially increase the mineral resource with
additional drilling.
Nigel Lees (President and CEO) stated, "We are very pleased with this new resource study. The growth in gold ounces relative to the previous published mineral resources reflects the inclusion of additional underground and surface drilling into the drill database and the addition of the 960 zone and Sediment deposits. A Preliminary Economic Assessment (PEA) is being prepared which will analyse the economic potential of the mineral resources within the footprint of the existing infrastructure. This PEA is anticipated to be completed in six weeks. A closure plan has been filed and a project description of the proposed advanced exploration program is being prepared. Public and First Nation consultation is currently underway. Assuming a positive PEA and completion of financing, Sage anticipates that it will commence dewatering the existing Clavos workings in the first quarter of 2013."
The Clavos Gold property comprises 2,540 hectares and is located in the prolific Timmins Gold Camp where over 110 million ounces of gold have been produced historically. To date, $46 million has been spent on the infrastructure at Clavos. The formation of the Clavos Joint Venture (Sage - 60%, St Andrew Goldfields Ltd (TSX: SAS) - 40%) was announced in a Press Release on August 13, 2012.
Clavos Gold Mineral Resources by Area
Location Indicated Resources Inferred Resources
Grade Ounces Grade Ounces
Tonnes (g/t Au) Gold Tonnes (g/t Au) Gold
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Main Zone
Hangingwall 595,900 4.92 94,300 119,000 5.6 21,000
Footwall 267,000 5.11 43,900 162,000 4.2 22,000
Contact 237,800 4.45 34,000 0 - -
Sediment 66,400 5.07 10,800 243,000 4.2 33,000
Other 0 - - 112,000 6.0 22,000
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Total 1,167,100 4.88 183,000 635,800 4.8 97,000
960 Zone
Hangingwall 69,900 4.04 9,100 77,000 5.0 12,000
Footwall 10,200 3.91 1,300 51,000 3.5 6,000
Sediment 11,200 3.51 1,300 32,000 4.7 5,000
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Total 91,300 3.99 11,700 159,800 4.5 23,000
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Grand Total 1,258,400 4.81 194,600 796,000 4.7 120,000
Clavos Gold Resources by Cut-off Grade
Cut-off Grade Grade Contained Metal
Category (g/t Au) Tonnage (g/t Au) (oz Au)
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Indicated
4.0 635,500 6.25 127,700
3.0 1,115,300 5.06 181,400
2.75 1,258,400 4.81 194,600
2.5 1,399,100 4.59 206,500
2.0 1,618,100 4.28 222,500
Inferred
4.0 394,000 6.2 78,000
3.0 674,000 5.0 109,000
2.75 796,000 4.7 120,000
2.5 866,000 4.5 126,000
2.0 994,000 4.2 136,000
Notes to Mineral Resources in Table 1
1. Mineral resource estimates were prepared in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards
regarding mineral resources and mineral reserves.
2. Assays of drill core were completed at ALS Minerals of Vancouver, BC and
Cattarello Labs of Timmins, Ont. which included a comprehensive Quality
Assurance / Quality Control ("QA/QC") program. All aspects of the core
sampling, assay procedures and QA/QC program have been reviewed by RPA and
were judged to be of industry standard and suitable for use in the
estimation of mineral resources. RPA also completed a data verification
exercise including independent core sampling and assaying with acceptable
results.
3. Resource models were prepared based on drill section interpretation using
a nominal gold grade cut-off.
4. The estimation employed statistical analysis and of gold values with
construction of block models by zone. Block cell size was 10 m x 2 m x 10 m.
5. Grade interpolation to assign grade values to cells used Inverse Distance
cubed (ID3) method with Nearest Neighbour check.
6. The specific gravity of 2.76kg/m3 based on historic SG determinations
conducted by Kinross and SAS.
7. Mineral resources are reported at cut-off values of 2, 2.5, 2.75, 3 and 4
g/t Au respectively and are based on underground mining. A cut-off grade of
2.75 g/t Au is recommended for economic evaluations.
8. Minimum mining width - 1.5 m.
9. Resource classification involved a review of geological and grade
continuity and was based on drill hole spacing.
10. Assays are capped at 60 g/t Au as in previous RPA resource calculations
(2006).
11. Totals may not add due to rounding.
12. The Company is not aware of any environmental, permitting, legal, title,
taxation, socio-political or marketing issues that are material to the
statement of the mineral resource estimate.
13. This mineral resource estimate is effective as of October 12, 2012.
14. A copy of the mineral resource estimation report completed by RPA will
be posted on SEDAR and the Company's web site within 45 days of this
release.
15. RPA did not classify any resources into the Measured category. There is
some uncertainty regarding the survey data and the production records for
the underground workings and there is an incomplete set of QA/QC data for
the chip samples.
16. Mineral Resources are estimated using a long-term gold price of US$1,600
per ounce and a US$/C$ exchange rate of 1:1.
17. The resource category "Other" includes mineralised blocks not assigned
to other deposit areas.
Qualified Persons / Quality Control
The mineral resource estimate was prepared by Roscoe Postle Associates Inc. of Toronto, Ontario under the supervision of Chester Moore, P. Eng., Principal Geologist. Mr. Moore is an independent qualified person as defined by National Instrument 43-101.
The quality assurances and controls relating to verification and validation of the geotechnical information generated by the 2011/2012 exploration drilling program were supervised by Peter Hubacheck P. Geo. Mr. Hubacheck is a qualified person as defined by National Instrument 43-101.
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)
www.sagegoldinc.com