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.
MacDonald Mines expands Wawa-Holdsworth Project: Acquires Contiguous Claims from Sage Gold
MacDonald Mines expands Wawa-Holdsworth Project: Acquires Contiguous Claims from Sage Gold
Momentum Public Relations
Press Release: July 4, 2017
TORONTO, ONTARIO–(Marketwired – July 4, 2017) – MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) (“MacDonald Mines”, the “Company”, or “BMK”) and Sage Gold Inc. (TSX VENTURE:SGX) (“Sage”) announce that they have signed a Letter of Intent for MacDonald Mines to purchase Sage’s 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Soocana Claims, adjacent to the Holdsworth property, in the Esquega and Corbiere Townships of Northern Ontario (Figure 1).
Quentin Yarie, MacDonald’s President and CEO commented: “We have secured the remainder of the 99-year lease on the Soocana Claims. Work done on the claims in the 1930s and 40s uncovered several quartz veins with varying concentrations of gold, but not much exploration has been conducted there since. We have reason to believe that the Soocana Claims host an extension of the Oxide Sands on the adjacent Holdsworth property – the immediate gold target on our Wawa-Holdsworth Project.”
Nigel Lees, Sage’s President and CEO commented: “We are pleased to sign an agreement with MacDonald Mines on this property. We are focused on our Clavos Gold property in Timmins. The MacDonald team has the knowledge and expertise in the area to successfully develop the property. We look forward to being a partner as a shareholder and royalty holder.”
About the Soocana Claims
The Soocana Claims consist of a contiguous block of 12 claims that cover 437.3 acres. The claims are under a 99-year lease agreement with Josephine Forest Resources Ltd. that expires on July 31, 2039.
The Reed-Booth Showing (Figure 1) forms the largest gold showing recognized to date on the Soocana Claims. The mineralized system, discovered in 1933 by Reed & Booth (who thereafter founded the Soocana Mining Co.) is comprised of two veins, the largest one being named Vein #1. Vein #1 was traced over a strike length of 414 metres in the 1930s by surface mapping and diamond drilling. The best channel sample taken in the 1930s by the Soocana Mining Co. in that vein contains 23.6 g/t gold over 3 metres (OFR5798). Grab samples taken by the Ontario Geological Survey in 1981 and 1990 in the waste rock of the vein system also returned high gold content with an individual grab sample containing up to 124.49 g/t gold and 33.86 g/t silver (OFR5798).
The Golden Goose Shear Zone, where MacDonald Mines collected a grab sample that contains 5.36 g/t gold (see December 13, 2016 news release) is located 875 metres NNW of the Reed-Booth Showing and falls along Vein #1’s NNW strike.
To view Figure 1, please visit the following link: https://media3.marketwire.com/docs/bmk0704fig1.pdf.
Acquisition Terms
In consideration for the acquisition of the claims, MacDonald Mines will issue 4,000,000 units of its Class A common shares and warrants to Sage and issue a 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} NSR (net smelter return) royalty on the property. Closing is subject to TSX Venture Exchange approval and certain other customary closing conditions.
Wawa-Holdsworth Project Highlights
- Approximately 285 hectares, 20 kilometres northeast of the town of Wawa
- 18 fee simple absolute patented claims, includes surface and mining rights
- Neighbouring Argonaut’s Magino Gold Project & Richmont’s Island Gold Mine
- Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor
- Year-long road access and easy access to rail, road, electrical power, labour force and suppliers
Overview of the Wawa-Holdsworth Project
Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:
- Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System);
- BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);
- Gold-bearing Oxide Sands developed from the weathering of the auriferous Pyrite Zones.
MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. These appear to extend for more than 2 kilometres on the property as corroborated by MacDonald’s recent airborne magnetics results (see June 1, 2017 News Release) and reach a depth of at least 8 metres.
Recent preliminary sampling of the Oxide Sands by MacDonald Mines returned an average grade of 5.45 g/t gold (seeMay 16, 2017 News Release).
Preliminary metallurgical testing conducted by previous operators on composite samples recovered, without crushing, between 69{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and 98.7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} gold. Earlier this year, MacDonald Mines initiated in depth metallurgical testing of the Oxide Sands to achieve the highest possible gold and silver recovery. Results are expected this Fall.
The soft and relatively unconsolidated Oxide Sands material can be extracted like an aggregate. The Company is working to better define the Oxide Sands as continues to prepare for their potential extraction.
Qualified Person
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
About MacDonald Mines Exploration Ltd.
MacDonald Mines Exploration Ltd. is a mineral exploration company headquartered in Toronto, Ontario focused on gold and silica exploration in Canada. The Company has built a portfolio of safe-jurisdiction, infrastructure-rich projects that demonstrate the greatest market potential for return. The Company is aggressively advancing its highly prospective Wawa-Holdsworth Project.
The Company’s common shares trade on the TSX Venture Exchange under the symbol “BMK”.
To learn more about MacDonald Mines, please visit www.macdonaldmines.com.
Cautionary Statement:
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.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The foregoing information may contain forward-looking statements relating to the future performance of the Company. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from the Company’s plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by the Company with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
MacDonald Mines Exploration Ltd.
Quentin Yarie
President & CEO
(416) 364-4986
qyarie@macdonaldmines.com
MacDonald Mines Exploration Ltd.
Mia Boiridy
Investor Relations
(416) 364-4986
mboiridy@macdonaldmines.com
www.macdonaldmines.com
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 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.
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