Sage Gold Receives Final Tranche of Clavos Financing
Sage Gold Receives Final Tranche of Clavos Financing
Momentum Public Relations
Press Release: July 27, 2017
TORONTO, ONTARIO–(Marketwired – July 27, 2017) – Sage Gold Inc. (“Sage” or the “Company”) (TSX VENTURE:SGX) has drawn down the third and final tranche of the gold prepayment facility from Cartesian Royalty Holdings Pte. Ltd. (“CRH“) to fund the ongoing re-opening of its Clavos gold project (“Clavos“) in Timmins, Ontario.
The third and final tranche draw down of $3.26 million was subject to certain conditions which have been fully satisfied. The CRH gold prepayment facility has provided $9.65 million to Sage, of which $7.22 million has now been received to fund the ongoing start-up and capital expenditures at Clavos.
Nigel Lees, President and CEO commented, “We are pleased to receive the final tranche of the gold prepayment financing. Our mine restart program is going well and the underground workings are in excellent condition. We are on time and on budget to ship to the mill for processing mineralized material in September.”
The historical underground workings include roughly 7 kilometres of underground development and extend down to the 300 metre level. Historical expenditures incurred by the previous operator and the Company prior to the restart of Clavos have exceeded $70.0 million.
Mine dewatering at Clavos commenced in the beginning of 2017 and is currently at the 225 metre level. The dewatering of the entire underground infrastructure is expected to be complete by the fourth quarter of this year. Currently, several stopes are available for mining above the 225 metre level. The Company is beginning to stockpile mineralized material extracted from the 150 metre East level using a combination of broken stope material that was left in place by the previous operator, and material developed through Sage’s ongoing definition drilling. An extensive definition drilling program has been underway since May 2017 and the exploration phase of the planned 9,300 metre underground drilling program will commence next month. The Company will provide a full operational update and initial drilling results on Clavos shortly.
Sage currently plans to complete a reserve estimate and a pre-feasibility study on Clavos. 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 a production decision.
Robert Ritchie P.Eng., the General Manager of the Clavos Project, is a qualified person (“QP”) under National Instrument 43-101 and has reviewed and approves the technical content of this news release.
Shares for Debt
Sage further announces that it intends to complete a debt settlement transaction (the “Debt Settlement“) with certain creditors (“Creditors“), providing for the settlement of $94,544 through the issuance of an aggregate of 472,000 common shares of the Corporation (“Common Shares”) at a deemed issue price of $0.20 per Common Share. The Debt Settlement is subject to regulatory approval. The Corporation expects to complete the Debt Settlement shortly after such approval is obtained.
About Sage Gold
The Company is a mineral exploration and development company with primary interests in advanced exploration properties in Ontario. Its main properties are the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}-owned Clavos Gold property in Timmins, the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}-owned Onaman 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.
CAUTIONARY STATEMENT: 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. This news release may contain forward looking information and the Company cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the Company included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to the Company’s future plans, objectives or goals, to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, metallurgical processing, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR.
This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Shares outstanding: 76.6 million
CONTACT INFORMATION
-
Nigel Lees
President and CEO
416-204-3170
nlees@sagegoldinc.com
www.sagegoldinc.com
Gold is moving, so is this Company!
Gold is moving, so is this Company!
By Christopher Ecclestone
The mining industry has got itself a reputation in recent years for slowness, so a project that is moving rapidly towards a production date from a standing start, in less than a year, is impressive indeed. Such a stock is Sage Gold.
This rocket propulsion is a combination of a skilled management team steeped in mine operating experience combined with an “oven-ready” project that was built at heavy expense by St Andrew’s Goldfields and picked up by Sage’s management for a song. This is the mining industry equivalent of Plug-and-Play.
What Sage has…
The Clavos mine, located within the Timmins mining camp, was mined briefly between mid-2005 until August 2006 and again until May 2007 under the ownership of St Andrew’s Goldfields.
The Clavos property covers 2,540 hectares in total area with the property 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned by SGX. Clavos is 20kms from the Hoyle Pond mine, which has produced more than 2.4mn ozs since 1985 and is still in operation.
Historically, some $60 million was invested by St. Andrew Goldfields and Sage in the mine/project. The existing infrastructure in place, includes underground ramp access to the 300 metre level, underground levels developed every 25 metres, power to site, surface ventilation system and a water management system. The project has an existing mining permit valid up to 2019.
The Black Fox Mill – The Shortcut to Production
A key part of the strategy to minimize the capital spend at Clavos is the utilization of a nearby mill to process the ore from the mine. Clavos is located around 10 kilometres from the Primero Gold’s mill in Stock Township.
The Black Fox mill site is located at the past-producing Stock mine, 28 kilometres by road from the Black Fox mine site. The mill is a 2,500 tonnes per day carbon in leach (CIL) facility.
Like Clavos, the mill was previously owned by St. Andrew Goldfields (now Kirkland Lake Gold) during the 2005-2007 periods when St. Andrews was operating the Clavos mine. The current operating management of the mill was around when over 100,000 tonnes of Clavos ore was processed hence the familiarity of the mill operators with the Clavos material.
Sage Gold has signed a binding toll milling agreement with Primero over the flow of ore they expect to send to the mill, processing up to 200,000 tonnes per year for a total of 1.1 million tonnes over the estimated seven-year mine life of the Clavos Mine.
It’s worth noting that the mill is actually closer to Sage’s mine than it is to Primero’s. Also, the haul road between Clavos and the mill is owned jointly by Sage and Primero. The haul road is not part of the Provincial highway system and Sage will be able to use larger haul trucks between Clavos and the mill than would otherwise be permitted on the Provincial highways.
The modus operandi will be that rather than a continuous feed from Clavos the ore from the mine will be loaded underground and trucked directly to the mill. It shall be stockpiled there and then the mill will operate alternating between feed from Clavos and feed from Black Fox in 10,000 tonne batches.
Here’s the Plan
A mine production rate of 600 tonnes per day is optimum for the mineralized structures contained within the Clavos deposit. The mine is however permitted to 700tpd. The plan is to start with 40 tpd productions with cut & fill mining of the stopes. An incremental 40tpd per day will be added to production every thirty days until capacity is reached.
This tonnage would permit a life of mine of seven years to extract 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the outlined mineral resource estimated tonnage of Indicated 1,258,400 tonnes plus Inferred 796,000 tonnes.
In the Clavos mine plan, there is readily available 847,133 tonnes of the 1,148,900 tonnes to be extracted prior to having to extract the remaining 301,767 tonnes which includes removing the crown pillar. The remaining 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Indicated and Inferred resource estimate was not included in the mineralized material extraction scheduling process.
A 23-month period to permit mine dewatering, mine rehabilitation, definition/delineation diamond drilling and pre-stope development scheduling is envisaged to achieve a full production rate of 600 tonnes per day, or 210,000 tonnes per year based on 350 operating days per year.
During this 23 month period, the following mineralized material will have been delivered to a custom milling facility for processing, and Clavos will have produced the gold.
Reasons to Invest
Sage Gold might be looked at as being St Andrews Goldfields Junior. Its main asset was developed by St Andrews at sizeable expense and now Sage Gold have picked it up for a mere fraction of the previously invested amount and are bringing it back to production.
Meanwhile Primero Mining had acquired up the Stock Mill complex (changing its name) from St Andrews and in a case of history repeating itself this mill (and the privately owned road connecting mine to mill) will be put back into operation to obviate the need for processing at site. Sage Gold is making the original vision of St Andrews into a functioning reality.
So how can a junior succeed where a well-known mid-tier could not? The secret we believe is a combination of a team that is heavy with skills from first tier players combined with restoring the previous synergies of the various assets and doing so with a strict approach to costs and efficiencies.
With dewatering moving ahead at a brisk pace, production should be initiated in the second half of 2017. With mining stocks having retreated from 2016 highs the old discriminator of producer versus developer/explorer comes back into play and the move by Sage Gold into production moves it into the most favoured category of mining stocks, those with cashflow.
We rate Sage Gold as a Long and are have upped our twelve-month share price target to CAD$0.94.
Sage Gold Closes Oversold Non-Brokered Flow-Through Private Placement
Sage Gold Closes Oversold Non-Brokered Flow-Through Private Placement
Momentum Public Relations
Press Release: June 23, 2017
TORONTO, ONTARIO–(Marketwired – June 23, 2017) – Sage Gold Inc. (“Sage Gold” or the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that further to its press release dated June 13, 2017, it has completed the closing of its non-brokered flow-through private placement (the “Offering“). The Offering consisted of the sale of 8,075,897 flow-through common shares of the Corporation, at $0.24 for gross proceeds of $1,938,216 million.
Securities issued pursuant to the Offering shall be subject to a four-month plus one day hold period commencing on the Closing Date under applicable Canadian securities laws. In connection with the Offering, finder’s fees of $90,944 was paid in cash and 378,934 compensation warrants were issued to certain eligible finders. Each compensation warrant entitles the holder to one common share at an exercise price of $0.30 per share for a period of 36 months following the closing date, whereupon the options will expire. The outstanding shares after this financing are 76,562,680 shares. The Corporation intends to use the net proceeds from the Offering to incur Canadian Exploration Expenses (CEE) on its properties.
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 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Gold property (“Clavos Project“) in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property including the Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp.
Sage Gold currently plans to complete a reserve estimate and a prefeasibility 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.
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.
CAUTIONARY STATEMENT
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.
This news release may contain forward looking information and the Company cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the Company included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to the Company’s future plans, objectives or goals, to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, metallurgical processing, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. This list is not exhaustive of the factors that may affect any of the Company’s forward- looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
SGX Shares 76,562,680
Nigel Lees
President and CEO
416-204-3170
nlees@sagegoldinc.com
www.sagegoldinc.com
Sage Gold Announces Private Placement of Flow-Through Shares
Sage Gold Announces Private Placement of Flow-Through Shares
Momentum Public Relations
Press Release: June 13, 2017
TORONTO, ONTARIO–(Marketwired – June 13, 2017) – Sage Gold Inc. (“Sage Gold” or the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that it intends to complete a non-brokered private placement (the “Offering”), subject to regulatory approval. The Offering will consist of the sale of 4.2 million common shares of the Corporation, on a Flow-Through share basis (“FT shares“) for gross proceeds of approximately $1.0 million. Eligible finders may receive in cash of up to 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and compensation share purchase warrants of up to 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Offering. Each share purchase warrant entitles the holder to purchase its holder to purchase one common share at an exercise price of $0.30 per share for a period of 36 months following the closing date, whereupon the warrants will expire.
The Corporation may at its discretion sell additional FT shares to raise additional proceeds of up to twenty-five per cent (25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) of the Offering.
Securities issued pursuant to the Offering shall be subject to a four-month hold period commencing on the Closing Date under applicable Canadian securities laws. The Corporation intends to use the net proceeds from the Offering to incur Canadian Exploration Expenses (CEE) on its Clavos and Onaman properties.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
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 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Gold property (“Clavos Project“) in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property including the Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp.
Sage Gold currently plans to complete a reserve estimate and a prefeasibility 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.
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.
CAUTIONARY STATEMENT
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.
This news release may contain forward looking information and the Company cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the Company included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to the Company’s future plans, objectives or goals, to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, metallurgical processing, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. This list is not exhaustive of the factors that may affect any of the Company’s forward- looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Shares 68,486,783
Nigel Lees
President and CEO
416-204-3170
nlees@sagegoldinc.com
www.sagegoldinc.com
Sage Gold (SGX:tsxv) Clavos Drill Results – New Gold Zone
Sage Gold Clavos Drill Results – New Gold Zone
Momentum Public Relations
Press Release: May 10, 2017
Sage Gold Inc. (TSX VENTURE:SGX) ‘Sage’ has completed the surface drilling program at its Clavos gold property located 32 kms east north east of Timmins, Ontario in the prolific East Timmins Gold Camp.
The drill program has yielded three important results; the continuity of gold mineralization across the gap between the main mine zone and the 960 zone, the discovery of a new gold zone (Sediment 2 zone CL 17-07 4.09g/t over 4.2 metres) 100 metres south of the existing sediment zone and the Footwall intersection in CL-17-08 of 5.15g/t over 3.9 metres. The intersection in hole CL-17-08 opens up approximately 300 metres of strike length of potential mineralization west of the western end of the 150m west level in the upper part of the existing mine workings.
DRILLING RESULTS
HOLE_ID | EASTING | NORTHING | ELEVATION | AZ | DIP | LENGTH | FROM | TO | ZONE | AVG GRADE |
TRUE WIDTH |
CL-17-01 | 514765 | 5384659 | 280 | 180 | -55 | 266 | 163.5 | 164.8 | CONTACT | 1.69 | 0.9 |
CL-17-01 | 174.5 | 177.3 | SEDIMENT 1 | 3.36 | 2.0 | ||||||
CL-17-02 | 514645 | 5384682 | 282 | 180 | -57 | 347 | 149 | 152.05 | FOOTWALL | 4.32 | 2.1 |
CL-17-02 | 228 | 229.8 | CONTACT | 16.76 | 1.3 | ||||||
CL-17-03 | 514585 | 5384669 | 278 | 180 | -59 | 386 | 181.6 | 182.6 | HANGINGWALL | 3.32 | 0.7 |
CL-17-03 | 197.4 | 199.4 | CONTACT | 4.93 | 1.4 | ||||||
CL-17-04 | 514705 | 5384454 | 274 | 360 | -62 | 284 | 191.4 | 192.4 | HANGINGWALL | 1.59 | 0.7 |
CL-17-05 | 514525 | 5384399 | 273 | 360 | -55 | 374 | 341.65 | 343.15 | SEDIMENT 1 | 3.12 | 1.1 |
CL-17-05 | 364.75 | 366.5 | CONTACT | 2.56 | 1.2 | ||||||
CL-17-06 | 514437 | 5384683 | 279 | 180 | -65 | 372 | 258 | 263.5 | CONTACT | 4.43 | 2.8 |
CL-17-07 | 514484 | 5384681 | 277 | 180 | -65 | 387 | 268 | 269 | CONTACT | 3.89 | 0.7 |
CL-17-07 | 375 | 381 | SEDIMENT 2 | 4.09 | 4.2 | ||||||
CL-17-08 | 512515 | 5384678 | 273 | 360 | -55 | 188 | 144 | 149.5 | FOOTWALL | 5.15 | 3.9 |
CL-17-09 | 512456 | 5384697 | 273 | 360 | -55 | 269 | 91 | 96.7 | CONTACT | 1.83 | 4.0 |
All drill intersections are based on calculated true widths
Nigel Lees, President and CEO commented: “The surface drill program has been successful in establishing a mineralized corridor from section 514425E, the ‘Main Zone’ to the western end of the 960 zone, the ‘Gap’, and in locating new mineralized intersections in holes CL-17-08 and CL-17-09 west of the 150 metre west level (mine elevation). The results of the eastern drilling now open up the possibility of driving further east off the 285 level (mine elevation) through mineralized material out to the 960 zone and potentially further east. It is interesting to note that Kinross (KC99-148) intersected 8.78g/t over 3.5 metres in the Contact zone roughly coincident with the Contact zone mineralization in CL-17-07. The “Sediment 2″ intersection in CL-17-07 represents the first significant mineralization in the new sediment zone. The Sediment 2 zone was encountered in CL17-01 and 02 with anomalous gold mineralization.”
The program consisted of 2,873 metres of surface diamond drilling involving 9 drill holes completed from January 23rd to April 7th. Seven holes were drilled east of the existing mine infrastructure and west of the 960 zone. Two holes were drilled west of the existing mine infrastructure.
The Contact Zone which demarcates the Pipestone Thrust Fault juxtaposing the Kidd-Munro Group ultramafics to the north and the Porcupine Group sediments to the south, has been intersected in four drill holes over a strike length of 330 metres.
The weighted average grade of the composite intervals vary from 16.76 g/t over 1.8 metres returned from drill hole CL-17-02 and 4.43 g/t over 4 metres returned from drill hole CL-17-06.
Hole Cl-17-07 has intersected a new “Sediment Zone” located 100 metres to the south of the Pipestone Thrust Fault returning 4.09 g/t over 6 metres.
Drill holes CL-17- 08 and 09 intersected significant mineralization at the Footwall Zone and Contact Zone establishing continuity along the 150 metre level (mine elevation).
The current program’s objective was to test a 340 metre gap between the existing underground infrastructure and the 960 Zone from section 514435E and 514765E. Seven holes targeted a shallow plunging flexure proximal to offsetting structures possibly controlling gold, arsenopyrite, pyrite quartz vein mineralization located in the altered ultramafics and porphyries flanking the Porcupine Group sediments demarked by the Pipestone Fault structure. A systematic drill hole spacing of 60 meters was employed to define the plunge orientation of some of the high-grade shoots located within the existing mine infrastructure.
These holes were also positioned between two major structures transecting the Pipestone Fault at 514300E and 514700E disrupting the horizontal continuity of four gold bearing zone. The orientation in plan view of these cross-cutting structures are at Az 330 and Az 055 identified by airborne magnetics. Both structures are now interpreted to be a high angle back thrust dipping to the east and low angle thrust fault dipping to the west evident on the recently completed grade / thickness longitudinal model.
Follow-up infill drilling at 30 metre spacing is warranted to define the extent of the Contact Zone Between sections 514300E and 514700E.
QA/QC Program Protocols
Sage Gold Inc. has implemented a rigorous QA/QC program using best practice principles which are being applied to the sampling/analysis of the drill core and complies with National Instrument 43-101 requirements for the Clavos property. The NQ core is delivered to the secure core shack facility on site by Crites Drilling personnel and/or Sage personnel. Prior to splitting, and core logging, all drill core is photographed. Core logging is focused on identifying the type and style of mineralization recording structure, lithology contacts, and alteration including quartz veining {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and total sulphide {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. Core splitting is done with a diamond core saw and 1/2 of the drill core is submitted to ALS Global Laboratories based in Timmins, an accredited laboratory for analysis. The remainder of the core is stored at the Clavos Mine Property. All samples are shipped in sealed rice bags with numbered security tags and transported in a company truck from the property to ALS Global Laboratories preparation lab in Timmins, ON.
Sage routinely inserts certified standards, blanks and field duplicate samples into the sample stream such that every 20 sample batch contains a blank and standard. The sample preparation procedures for drill core samples consist of crushing the samples to 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minus 9 mesh (2mm), pulverizing a 500g sub-sample to 85{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minus 200 mesh (75um), and analyzed by standard fire assay (FA) method using a 50 gram sample with AA finish and any samples assaying greater than 10 g/t Au are re-analyzed using a gravimetric finish. For mineralized zone intervals where visible gold is observed to be present, samples are submitted for analysis using the metallic screen method where the entire half core is crushed, pulped and screened to 100 mesh. The screen coarse and fine fractions are analyzed by fire assay (FA) method with a gravimetric finish and the total assay result is calculated.
The geotechnical content of this news release has been reviewed and approved by Sage’s consulting geologist, Peter Hubacheck, P. Geo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101.
Sage currently plans to complete a reserve estimate and a prefeasibility 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, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
Sage Gold Grade Thickness Model-High Grade Zones-Clavos
Sage Gold Grade Thickness Model-High Grade Zones-Clavos
TORONTO, ONTARIO–(Marketwired – May 3, 2017) – Sage Gold Inc. (the “Company”) (TSX VENTURE:SGX) has completed a Grade times Thickness model for the Clavos gold deposit located 32 kms east north east in the prolific East Timmins Gold Camp. The purpose of this analysis is to determine plunge trends for the higher grade gold mineralization within the Clavos gold system. An outcome of this work is that a number of high grade intersections are proximal to primary structures below the 300 metre level controlling the lens geometry. These uncut assays in these intersections were drilled by Kinross and previously reported by United Tex Sol Mines Inc. and include the following as reported in press releases:
KC 99-131- 94.6g/t over 9.6 metres uncut – (press release September 21, 1999)
KC 99-137- 61.59g/t over 3 metres uncut (press release November 17, 1999)
KC 99- 155W- 85.15g/t over 3.2 metres uncut (press release March 2, 2000)
These holes are assumed to be reported as drill core lengths.
The development of the grade thickness model as detailed below has led to a re-interpretation of the potential plunge directions and controls on the gold mineralization at Clavos. The majority of the higher grade composites occur below the 300 meter level below and adjacent to the mine infrastructure. The intersection of the high angle back thrust faults with the low angle imbricate thrust faults are within reach of drill stations on the 225, 285 and 300 levels. The model also provides vectors to potential new gold plunge directions higher in the Clavos deposit such as at the 100 metre east level. Underground definition drilling will commence on May 7th on the 100 metre east level. Further underground drilling will follow from the 225 level to fill in up plunge from KC99-137 and from the 285 and 300 levels to test up plunge from KC99-131 and 155W.
Nigel Lees, President and CEO commented, “This modeling will provide Sage with the analytical framework to more precisely target underground definition, exploration and resource drilling. The exercise of plotting grade times width across the Clavos deposit has yielded higher grade plunge trends that will potentially outline additional resources. We are looking forward to the commencement of our underground drill program and expect to be drilling these higher grade zones next month.”
Sage has recently completed a compilation of the surface and diamond drilling assay database focusing on the gold mineralization by computing composite weighted average grades over core lengths for the major gold zones specified in the 2012 NI 43-101 resource estimation report as well as sub-zones not included in this report. The drill database includes holes which have been previously disclosed by previous operators such as those quoted above and holes which are in the drill database. This data comprised 569 surface diamond drill holes for all of the Clavos area drilling totalling 126,894 m for an average drill hole length of 225 m. A total of 837 underground drill holes with a combined length of 64,225 m and an average length of 77 m were also provided. The Clavos area drilling spans a strike length of 3.3 km covered by 171 geological cross-sections spaced from 15 metres to 30 metres apart. A total of 30,836 surface drilling assays and 13,912 underground drilling assays.
GRADE / THICKNESS CALCULATIONS
Composite intervals were based on a minimum cut-off grade of 2.75 g/t over a minimum true width of 1.2 metres. Grade capping was set at 90 g/t affecting 29 assays. An allowance of 2 metres for internal dilution was employed factoring in the stockwork and replacement veining style of gold mineralization. True widths were calculated by applying a 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} correction factor to the assay core lengths.
A total of 499 grade (grams) / true width (m) composites were manually calculated from the surface drilling database. The composites having a grams x m product greater than 30 total 46.
A typical example of some of the high grade composites are the historic holes KC99-131, 155W, KC00-176 and 159 which were drilled by Kinross exploring the property in 1999 and 2000. Please note that drill holes KC99-131,137,155W as originally reported above have been cut to 90g/t and are reported as true widths.
The table below is a sampling of some of the higher grade composites.
TABLE: SELECTED COMPOSITES CUT TO 90 GRAMS
HOLE_ID | FROM | TO | GRADE (G) CUT 90 G |
TRUE WIDTH (M) | G X M | |||||
CL_KC99-131 | 341 | 350.6 | 30.5 | 7.38 | 225 | |||||
CL_KC00-176 | 327.2 | 333.95 | 34.78 | 5.19 | 181 | |||||
CL_KC00-159 | 298.5 | 306.5 | 24.26 | 6.15 | 149 | |||||
CL_KC99-137 | 409.13 | 411.13 | 30.83 | 2.31 | 71 | |||||
CL_KC99-155W | 650.8 | 655 | 17.91 | 3.23 | 58 |
A total of 515 grade (grams) / true width (m) composites were manually calculated from the underground drilling database. The composites having a grams x m product greater than 30 total 70. Refer to the Sage website – www.sagegoldinc.com – longitudinal plot of the grade thickness model.
MODELING PARAMETERS
Since the four major mineralized vein systems are stratabound in nature and located proximal to the steeply dipping Pipestone Thrust Fault, a longitudinal projection of the centroids of the composite intervals for each hole was projected to a vertical WEST/ EAST plane. The grade estimation parameters employed a search radius of 60 metres selecting 13 nearest grade composite by Inverse Distance Squared method in 3D, then plotting and contouring the values on a 2D longitudinal section where the drill holes pierce the section. The G X M product was contoured in colour ranges set at 5 to 8; 8 to 13; 13 to 21; 21 to 34; 34 to 55; 55 to 89; > 89.
INTERPRETATION
The grade / thickness geological model reveals six major structures cross-cutting the main mine stratigraphy and the Pipestone Thrust Fault. The orientation and arrangement of these structures also displays a remarkable symmetry with structural lineaments interpreted from airborne magnetics. In a regional context, four of these arcuate structures exhibit the habit of imbricate thrust faults facing to the southeast. They conform with right lateral strike-slip deformation during the later stages of the D2 deformation compressional juxtaposing the Kidd-Munro ultramafic assemblage with the Davidson-Tisdale felsic volcanics. The imbricate thrust faults have orientations varying from 55 degrees to 70 degrees and transect the grade / thickness model at shallow angles to the west. A conjugate series of four back thrust faults with orientations at Az 150 degrees steeply crosscut the longitudinal section facing to the east. These faults served as important fluid corridors enhancing gold enrichment processes.
The geological, modeling computations and interpretations of this news release has been reviewed and approved by Sage’s consulting geologist, Peter Hubacheck, P. Geo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101. Len MacKenzie, P.Geo. guided the geologic modeling of the grade / thickness exercise.
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, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
Sage currently plans to complete a reserve estimate and a pre-feasibility study on the Clavos property. 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 a production decision.
CAUTIONARY STATEMENT: 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. This news release may contain forward looking information and the Company cautions readers that forward looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of the Company included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to the Company’s future plans, objectives or goals, to the effect that the Company or management expects a stated condition or result to occur.
Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, metallurgical processing, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s public documents filed on SEDAR. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Shares 68,486,783
CONTACT INFORMATION
Sage Gold set on consolidation
Sage Gold set on consolidation
– Momentum Public Relations –
Press Release: March 17, 2017
The aggregation of Kirkland Lake Gold (CN:KL) into a far larger beast over the past two years has left the historic Timmins gold camp, Ontario, without a natural consolidator for its multiple small-deposit companies, but it’s a mantle near-production junior Sage Gold (CN:SGX) is happy to assume in the absence of others.
Sage chief executive Nigel Lees told an investor lunch in London this week he did not expect the market to take much notice of the company in its current state, but it would not be in its current state for too much longer.
The first part of the junior’s transformation will be to bring its modest Clavos brownfields, underground project into production.
Clavos has a 316,000 ounce indicated and inferred resource that it plans to mine at a rate of 25,000oz per annum and truck down the road to a mill owned by precious metals producer, Primero Mining (CN:P), which is running severely below capacity.
The life-of-mine arrangement with Primero underpins an initial capital expenditure of just C$8 million for the Clavos start-up, according to a 2013 preliminary economic assessment.
The mine permit was updated in record time – three weeks – which allowed Sage to secure the equity finance to start mining operations.
Much of that money will be spent on dewatering the previously established decline and updating the PEA to a prefeasibility study. Not that Lees considers a PFS necessary for a decision to mine – that has been made – but it provides greater market confidence.
So far, all work is on time and on budget and so Sage will be expecting to be mining by mid-year with the first ore delivered to the mill by end-September.
That will satisfy Lees’ need to see cash flowing from the business. It will also provide the market with confidence in management’s ability to execute on its plans and reassurance Sage is not a company that expects to be perpetually topped up through equity issues.
Though the commencement of mining operations is seen as the first key step in the company’s evolution, initial work has already started on the Clavos growth strategy.
Surface drilling began this quarter as Sage investigates the potential to grow the resource, which it and former owner Kinross Gold (CN:K) believe has every chance of swelling to 1 million ounces.
That is likely to come from three distinct opportunities.
First and most straight forward will be the inclusion of intercepts that meet the cut-off grade (2.75g/t Au) but fell outside a previous mine plan.
Second, and only slightly more complicated (it will require the drill rig), Sage is testing an untouched area between the Main mineralised zone and the established 960 zone.
And finally, requiring more effort still, will be the pursuit of ounces expected to be delineated at depth below the Main zone, where historic holes have returned exceptional hits such as 65.3g/t Au over 4m, including 374.1g/t Au over 0.7m.
But establishing a 1Moz resource is not going to put Sage on the map in a gold bull market, which is exactly what Lees believes we’re experiencing at the moment, albeit the early stages. He said an element of M&A is inevitable to build the “critical mass” needed to attract institutions.
“We’ll be looking to buy similar size projects to Clavos,” he told Mining Journal, adding there were “five or six” such projects in public and private vehicles in the immediate Timmins vicinity being evaluated.
Asked whether he expected stiff competition for these assets given his assessment of the market as one in a burgeoning bull run, Lees was relaxed. He said Sage was viewed as the district’s natural consolidator, having established itself with the locally “unique” standing as a fully-permitted, fully-financed company.
He said at one point Kirkland Lake may have bought these projects but with that miner having built itself into a position where it is a circa C$2 billion market capitalisation, international producer, few others are left with an appetite for district consolidation at this level.
Meanwhile, playing a supporting role in the Sage development story, is a polymetallic volcanogenic massive sulphide property, which is also in an established mineralised district in Ontario.
The Onaman property is being drilled in tandem with Clavos and is focused on the Lynx copper-gold deposit, though historic exploration results indicate an economic discovery could also include zinc, lead and silver, too. An inferred resource at Lynx was estimated at 1.94 million tonnes grading 1.44{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu, 39.6g/t Ag and 0.58g/t Au.
However, unless Lynx turns out to be a gold-silver project with base metal credits, it is difficult to see it remaining part of the Sage stable. More likely, exploration success could provide Lees with an opportunity to sell the project into what appears to be a parallel, early-stage bull run in both the copper and zinc markets.
A sale at Lynx would then combine with cash flow from Clavos to build the arsenal for Sage’s consolidation bid in Timmins.
Sage (SGX:tsxv) Drills Onaman and Clavos
Sage Drills Onaman and Clavos
– Momentum Public Relations –
Press Release: February 8, 2017
Sage Gold Inc. (the “Company”) (TSX VENTURE:SGX) is pleased to announce the commencement of a drilling program at Sage’s Onaman property in northwestern Ontario. This program is being carried out simultaneously with that underway on the Clavos gold property in Timmins announced on January 19, 2017.
With a history of episodic exploration activity dating back several decades, the Onaman property hosts numerous historical mineralized zones and occurrences that have been partly delineated to date. Hosted in a sequence of hydrothermally altered and tectonized mafic through felsic volcanics and derived volcaniclastics, the Onaman property displays the main features of a typical volcanogenic massive sulphide (“VMS”) system, and is consequently considered to host significant exploration potential. Sage will complete a preliminary program comprising 1,000 meters, drilled into the historical Headway zinc-silver-lead±gold deposit.
As discussed in the Company’s recent Onaman news release, a reassessment of the Lynx deposit – the historical focus of Sage’s exploration efforts on the property, has established that it is a “footwall feeder zone” of the type typically found underlying VMS deposits. The fact that the Headway lies immediately above it where the main mineralized body in a VMS system is typically found renders this historical mineralized zone significant from an exploration perspective.
Nigel Lees, President and CEO, commented: “The Headway and Lynx deposits, hosting a combination of base and precious metals between them, are two important parts of the as yet incomplete Onaman story. This current drilling program will help to further unravel it. It nicely compliments Sage’s ongoing drilling program at the company’s Clavos gold deposit where two holes have been completed between the main mine trend and the 960 zone.”
The juxtaposition of the Lynx deposit in the underlying footwall mafic volcanics, and the Headway deposit in the overlying mixed volcanic sequence (named the “In Between Zone” or “IBZ”), is suggestive of the typical mineralogical zoning seen in VMS systems where copper-dominant mineralization is found lower in the system and zinc-dominant mineralization is found in the upper parts of the system. Both deposits feature a hydrothermal alteration assemblage typical of VMS systems. Whereas both the Lynx and Headway are limited in size and grade to the extent that they have been drilled, to date, the exploration potential of the immediate area given the juxtaposition of these features is considered to be significant.
As a first step toward vectoring in on previously untested targets in this area, Sage is drilling a number of holes into the Headway deposit at and near holes drilled by Headvue Mines in 1951. Historical drilling over a strike lengthy approaching 1 kilometre intersected numerous, mostly narrow intervals of zinc-silver-lead±gold mineralization – up to a few meters wide and ranging mostly in the single digits for zinc and lead and up to and exceeding 100 g/t silver, along with wider intervals up to and exceeding ten meters or more of lower grade zinc-silver-lead±gold mineralization averaging in one-tenth the grade range. Sage geologists believe that this zone may be near a zone of focused hydrothermal discharge and associated metal concentration, and that the lithological, alteration, mineralogical and geochemical data derived from detailed analyses of fresh drill core may provide critical clues enabling them to vector in on previously undetected VMS targets in the immediate area.
The Company will provide additional information and updates regarding its progress at the Onaman and Clavos properties on a timely basis.
The technical content of this news release has been reviewed and approved by Sage’s consulting geologist, Avrom E. Howard, MSc, PGeo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101.
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, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
Sage Gold (SGX:tsxv) to Conduct Surface Drill Program at Clavos
Sage to Conduct Surface Drill Program at Clavos
– Momentum Public Relations –
Press Release: January 19th, 2017
Sage Gold Inc. (TSX VENTURE:SGX) ‘Sage’ is planning to commence drilling at its Clavos gold property located 32 kms east north east of Timmins, Ontario in the prolific East Timmins Gold Camp.
The program will consist of 1,500 metres of surface drilling involving 7 drill holes commencing next week. Drilling will initially start on the eastern portion of the “Main Mine Trend” of the Clavos deposit hosting significant mineralization in the Contact, Hangingwall (HW) and Footwall (FW) and Sediment Zones.
The current program’s objective is to test a 235 metre gap between the existing underground infrastructure and the 960 Zone from section 514525E and 514765E. Five holes are planned in this area targeting a shallow plunging flexure controlling gold, arsenopyrite, pyrite, quartz vein mineralization located in the altered ultramafics and porphyries flanking the Porcupine Group sediments demarked by the Pipestone Fault structure. The vertical and horizontal continuity of four gold bearing zones will be evaluated between the 1150m elevation and 1080m elevation (mine reference elevations). A systematic drill hole spacing of 60 metres may further define the plunge orientation of some of the high-grade shoots identified within the existing mine infrastructure.
In addition, 2 drill holes are planned on the western end of the Clavos deposit between section 512800E and 512830E. These holes are intended to in-fill gaps in the historic surface and underground drilling beyond the limits of the existing underground workings at the 1125 elevation order to better define new stoping blocks.
Nigel Lees, President and CEO commented: “Sage announced the closing of a $11.5 million financing commitment in November 2016, of which approximately $7.2 million is allocated to fund the development and restart of the Clavos mine. Historical expenditures by St Andrew Goldfields and Sage on the property have exceeded $70.0 million excluding prior expenditures by United Tex-sol, Kinross and Canamax. Dewatering of the Clavos deposit underground workings has commenced and is on time and on budget. Rehabilitation will follow the dewatering process to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. Sage is permitted to produce 700 tonnes per day and has secured a life of mine milling agreement with Primero Mining’s Stock mill 10 kilometres away.”
The technical content of this news release has been reviewed and approved by Sage’s consulting geologist, Peter Hubacheck, PGeo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101.
Sage currently plans to complete a reserve estimate and a prefeasibility 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, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
Sage Completes Equity Placement; Buys Kirkland’s 40 Clavos Interest
Sage Completes Equity Placement; Buys Kirkland’s 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Interest
– Momentum Public Relations –
Press Release: November 21, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that it has completed a C$1.85 million equity investment (the “Equity Investment”) by way of a private placement with CRH Mezzanine Pte. Ltd (“CRH Mezzanine”), and has executed a C$9.65 million secured gold prepayment investment (the “Gold Prepayment”) with CRH Funding II Pte. Ltd. (“CRH Funding”). Both CRH Mezzanine and CRH Funding are wholly-owned by Cartesian Royalty Holdings Pte. Ltd. The Equity Investment and Gold Prepayment comprise of the previously announced financing package of C$11.5 million (the “Financing”) provided by Cartesian Royalty Holdings Pte. Ltd. to fund the development and restart of the Corporation’s Clavos project situated in the Timmins mining camp in Ontario, Canada.
Sage’s President and CEO Nigel Lees commented, “We announced the financial package of C$11.5 million with CRH on September 29th. Since then we have completed the following;
-Purchased the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minority interest in Clavos from Kirkland Lake Gold Inc. for C$1.0 million
-Received a Change in Project Status for Clavos and is now permitted for production
-Completed a C$1.85 million equity placement with CRH
-Signed a binding toll milling agreement with Primero Mining’s Stock Mill
-Executed a C$9.65 million Gold Prepayment Agreement to retire the current secured debt and finance the Clavos restart
We are looking forward to dewatering and rehabilitating the underground workings at Clavos which will allow the Corporation to begin to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. The change of project status allows Sage to produce up to 700 tonnes a day.”
About the CRH Equity Investment
Under the terms of the Equity Investment, CRH Mezzanine has invested C$1.85 million for (i) 10,700,000 units (the “Units”) of the Corporation at a subscription price of C$0.10 per Unit, and (ii) 7,800,000 special warrants (the “Special Warrants”) of the Corporation at a subscription price of C$0.10 per Special Warrant. Each Unit consists of one common share and one common share purchase warrant, with each warrant exercisable for one common share at a price of C$0.1575 cents for a period of three years. Each Special Warrant entitles CRH Mezzanine to acquire one (1) Unit for no additional consideration. The Equity Investment has been structured such that CRH Mezzanine will not at any time own more than 19.9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. In addition, CRH Mezzanine has the right to acquire its pro rata share of future equity investments completed by Sage as long as it exercises control or direction over 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or more of the issued and outstanding common shares of Sage.
About the Gold Prepayment Agreement
Under the terms of the Gold Prepayment, CRH Funding will provide the Corporation with C$9.65 million payable in three tranches, subject to fulfillment of customary conditions. In consideration, the Corporation will deliver to CRH Funding 15.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of gold produced at Clavos commencing on the latter of; (i) the beginning of Commercial Production and (ii) 12 months from the date of payment of the first tranche of the Gold Prepayment, but in all cases no later than December 27, 2017, for a period of 72 months of Commercial Production, subject to a minimum total delivery of 16,100 ounces of gold (“Minimum”) and a maximum of 26,000 ounces of gold (“Maximum”). In the event that the Minimum has not been delivered within 72 months of Commercial Production at Clavos, the delivery obligation will continue until the Minimum has been delivered to CRH Funding. The obligations of the Corporation under the Gold Prepayment are secured against all of the assets of the Corporation, including its interest in the Clavos project.
About the Purchase of the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Interest
As part of the closing of the Financing, Sage completed the previously announced acquisition of the remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Clavos project from St Andrew Goldfields Ltd., a wholly-owned subsidiary of Kirkland Lake Gold Inc. The acquisition was completed for C$1.0 million and a 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Net Smelter Return Royalty. The C$1.0 million was satisfied from the proceeds raised from the Equity Investment. Sage now owns a 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the property.
Sage currently plans to complete a reserve estimate and a prefeasibility 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.
Before giving effect to the Equity Investment, Nigel Lees, President and CEO of the Corporation owned and controlled, directly or indirectly 4,282,881 common shares of the Corporation, representing approximately 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. After giving effect to the Equity Investment, the number of common shares Mr. Lees beneficially owned, directly or indirectly over which control or discretion is exercised was diluted causing his common share ownership to fall below 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. This notification of the decrease in Mr. Lees share ownership below the early warning reporting threshold is being issued in accordance with National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. For the purposes of this disclosure, the address of Mr. Lees is 200 University Avenue, Suite 1301, Toronto, Ontario M5H 3C6. . The early warning report respecting the transaction will be filed on System for Electronic Document Analysis and Review (SEDAR) under Sage’s issuer profile. To obtain a copy of the early warning report filed by Mr. Lees, please contact the Corporation at 416-204-3170 or refer to SEDAR under Sage’s issuer profile.
Shares for Debt
Sage further announces that it intends to complete a debt settlement transaction (the “Debt Settlement”) with certain creditors (“Creditors”), providing for the settlement of approximately $112,263 through the issuance of an aggregate of 935,528 common shares of the Corporation (“Common Shares”) at a deemed issue price of $0.12 per Common Share. The Debt Settlement is subject to regulatory approval. The Corporation expects to complete the Debt Settlement shortly after such approval is obtained.
About CRH
CRH Mezzanine and CRH Funding are wholly-owned subsidiaries of Cartesian Royalty Holdings Pte. Ltd. (“CRH”). CRH offers innovative financing structures with the goal of creating long-term growth and value in world-class gold projects around the globe. CRH is an affiliate of Cartesian Capital Group, LLC, a global private equity firm with proven expertise in assisting closely-held companies develop into global market leaders. Cartesian Capital Group manages more than US$2.4 billion in capital and has offices in New York, Sao Paulo, Shanghai, Warsaw, and Bermuda.
About Sage Gold Inc.
The Corporation 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 100 {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
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