Sage Gold Receives Change of Project Status for Clavos Project-Permitted for Production
– Momentum Public Relations –
Press Releases: October 31, 2016
Sage Gold Inc. (TSX VENTURE:SGX) (“Sage”) has received notification that the Ministry of Northern Development and Mines (MNDM) has changed the status of its Clavos gold project from Inactivity to Mine Production and Development. The change in project status allows Sage to begin the process of mine dewatering, mine rehabilitation and to eventually produce up to a maximum daily tonnage of 700 tonnes/day.
Nigel Lees, President and CEO commented, “This Change of Project Status is a very significant development for Sage and, together with the recently announced agreement to acquire Kirkland Lake Gold Inc.’s remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minority interest in Clavos, is a major milestone towards completing the previously announced financing package of $11.5 million to fund the restart of Clavos. We expect to close the equity portion of $1.85 million in early November followed by the gold prepayment funding of $9.65 million by the end of November.”
Sage has an approved Production Closure Plan on file with the MNDM from previous mining activities and will be resuming the activities described under the filed Closure Plan. Financial Assurance for the Closure Plan is in place with the MNDM, in accordance with the Ontario Mining Act. Sage has the Environmental Compliance Approvals and Permits to allow for mine dewatering, development and production activities, and will be required to report environmental performance information to regulatory authorities as required by site-specific permits, as well as provincial and federal legislation.
Sage currently plans to complete a reserve estimate and a pre-feasibility study regarding the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
About Sage Gold
The Company 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 property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Lynx copper, gold, silver property 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.