Sage Gold plans to generate cash from production of the existing resources on Clavos and Lynx through project financing, joint venture or sale.
The Onaman Property:
An overlooked Mattabi-type system in northwestern Ontario
- 100%-owned, large property position, accessible on maintained roads 50 km north of the Trans Canada highway;
- Two known deposits hosting historical and compliant resources - the compliant Lynx deposit of 1,936,000 tonnes at an average grade of 1.45% Cu, 39.1 g Ag/t and 0.58 g Au/t. The compliant resources are reported at a cut-off grade of 0.5% copper. The historic Headway deposit consists of 739,000 tons grading 3.15% Zn and 31 g/t Ag.
- Lersch-Grossman Pit Optimization techniques were utilized to evaluate the near surface potential of the Lynx resource that could be amenable to mining by open pit methods. The results indicate the potential for one pit located in the Lynx North area. Using cut-off grade sensitivity scenarios of 1%Cu and 0.5% inferred resources ranging from 485,000 tonnes at 2.1% Cu, 45.3 g Ag/T and 0.70g Au/T to 845,000 tonnes at 1.55% Cu, 34.6 g Ag/T and 0.51g Au/T could potentially be mined from two tonnage blocks determined by the cut-off grades.
- Past-producing gold mine adjacent to the property in the same volcanic sequence;
- Several base and precious metal rich occurrences in mafic interflow exhalative horizons;
- Large, historically overlooked target area with several geophysical anomalies sitting atop a felsic volcanic center at the apex of zoned hydrothermal alteration in a typical Mattabi-type VHMS setting (“Big M”);
Note: grade and tonnage historical estimates for Headway presented above are historical in nature and were not prepared in accordance with 43-101 and has not been verified by a qualified person. and should not be relied on except to represent an order-of-magnitude estimate of mineral resources notwithstanding that Sage believes the estimates are based on reliable information prepared by reputable individuals using accurate analytical techniques. Goldbrook provided the source of the Headway historical estimate.
The Clavos Gold Deposit:
Sage has a 60-40 Joint Venture with St. Andrew Goldfields (SAS). A NI43-101 Resource estimate for Clavos was completed by Roscoe Postle Associates (RPA) in October 2012.The total resource includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totalling 194,600 ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000 ounces. These resources are reported at a base case cut-off grade of 2.75 g/t Au and individual assays have been capped at 60g/t. This 2012 resource estimate represents a 113% increase in total ounces relative to the last published resource of October 2006 (by SAS) and is based on a long term gold price assumption of USD$1600/Oz and a cut-off grade of 2.75 g/t Au.
A Preliminary Economic Assessment (PEA) for Clavos was released on March 1, 2013 highlighted by a $23MM Net Present Value and a 71% Internal Rate of Return based on $1500 Gold price. Please refer to NEWS section to view the details of the Clavos PEA. The PEA does not indicate the economic viability of the mineral resource. The PEA is preliminary in nature,includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have demonstrated economic viability.
The Sage Gold management team and board have extensive experience in finding, developing and financing new projects. SGX continues to identify additional properties for acquisition to further enhance shareholder value and create cash flows. (See "Corporate")
Qualified Person Reports:
The geotechnical information on this web site pertaining to the Lynx Resource was prepared and verified by Peter Hubacheck, P.Geo. and Garth Kirkham, P. Geo., who are qualified persons under NI 43-101 responsible for the mineral resource estimation contained on this web site . Garth Kirkham is the independant reviewer of the geotechnical data contained on this web site.
The Lynx Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to indicated and measured mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.
The mineral resource estimate for the Clavos deposit was prepared by Roscoe Postle Associates Inc. of Toronto, Ontario under the supervision of Chester Moore , P. Eng., Principal Geologist. Mr. Moore is an independent qualified person as defined by National Instrument 43-101.The quality assurances and controls relating to verification and validation of the geotechnical information generated by the 2011/2012 exploration drilling program were supervised by Peter Hubacheck P. Geo . Mr. Hubacheck is a qualified person as defined by National Instrument 43-101.
The PEA on the Clavos deposit was prepared by R. Ritchie P.Eng , an Independent Qualified Person. R.Ritchie provided overall responsibility for the technical content related to the Clavos PEA which includes the mining study CAPEX and OPEX cost estimates and conceptual economics. Mr Ritchie has read and accepts the technical content related to the Clavos deposit on the web site.
Peter Hubacheck P.Geo , an Independent Qualified Person, visited the Clavos JV property on two occasions between early February, 2012 through early March, 2012 to log core and supervise QA/QC protocols for the 960 Zone; prepare a detailed surface and underground exploration diamond drill program; prepare samples for metallurgical test work and provide guidelines and geoscientific contributions on behalf of Clavos JV and for the RPA Mineral Resource Estimate (2012).
The drill database and the associated QA/QC has been reviewed and validated by Roscoe Postle Associates (see NI43-101 Technical Report for Clavos Deposit October 2012).