TORONTO, ONTARIO--(Marketwire - July 13, 2011) - Sage Gold Inc. (News - Market indicators) is pleased to provide an update on its Clavos Mine gold project in Timmins, Ontario. Based upon the encouraging results received to-date from the ongoing exploration and compilation of historic production and resources, Sage is taking the following steps toward making an accelerated production decision;
- New NI43-101 resource estimate to be completed in fall of 2011 by Roscoe Postle Associates Inc. (RPA)
- Toll milling negotiations and permitting processes are underway
- Preliminary Economic Assessment
- Resumption of drilling at Clavos in Fall 2011
- Production decision expected by end of 2011
In October 2006, RPA completed the following historical resource estimate for the previous operator, St Andrew Goldfields Ltd. (TSX:SAS) based on a US$500 per ounce gold price, a cut-off grade of 4 g/t Au, and a minimum width of 1.5 m. The mineral resources were classified according to CIM Definition Standards in effect at that time.
| |
Tonnes |
Grade g/t Au |
Contained Gold Ounces |
| Measured & Indicated: |
143,000 |
8.07 (cut to 60 g/t); 10.27 (uncut) |
37,100 (cut) 47,200 (uncut) |
| |
|
|
|
| Inferred: |
529,000 |
6.49 (cut to 60g/t); 6.70 (uncut) |
110,300 (cut) l14,000 (uncut) |
St Andrew continued production at Clavos until May 2007 when the operations were shut down.
The qualified person (QP) has not done sufficient work to classify the historical estimate as current mineral resources. Sage Gold is not treating the historical estimate as current mineral resources. The historical resource should not be relied upon.
Sage Gold optioned the property in February 2010 and since then has drilled 7,550 metres and 3D geological modelling is underway. Data compilation of historical surface and underground drilling has also been completed. Sage has commissioned RPA to complete a new NI43-101 resource study which is expected later in 2011.
The company has spent over $2.0 million to date at Clavos and is well ahead of the 60% earn-in with St Andrew Goldfields Ltd.(TSX:SAS) which requires $3.0 million to be spent by Feb 2013 in order for Sage to earn the 60% interest.
| Drill assay highlights previously released from the 2011 program include: |
- Hole CL11-06 with 6.31 g/t Au over 5.4 metres including 10.11 g/t Au over 2.5 metres and 4.71 g/t Au over 1.5 metres, intersected at 124.1 m depth
- Hole CL-11-07 with 8.08 g/t Au over 6.3 metres including 11.72 g/t Au over 3.5 metres ; intersected at 120.5 m depth
Both holes were drilled into the new gold zone discovery in the eastern section of the Clavos property.
Assays are pending on 9 additional holes.
The technical content of this news release has been reviewed and approved by Sage's consulting Geologist David Gliddon P.Geo. of Glider Geoservices Inc., who is a qualified person (QP) as defined by NI 43-101.
Sage President and CEO Nigel Lees comments:
"The reason we are excited about the Clavos property is that it has extensive above and below ground infrastructure. This infrastructure should lower the capital costs required to resume production. The new resource estimate will include about 20,000 metres of previously uncalculated historic and recent drilling. When Clavos was in production previously, the gold price was in the $500 to $600 range. With current prices around $1,500 we have decided to focus on assessing the economic viability of going into production earlier than originally planned. Finally, Clavos is located in Timmins, one of the best gold mining districts in the world."
Effective July 13, 2011 Sage will launch their new website at www.sagegoldinc.com.
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 mine 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 the 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. 
