Sage Signs 7 Year Mill Processing Agreement
TORONTO, ONTARIO--(Marketwired - Nov. 17, 2016) - Sage Gold Inc. (the "Corporation") (TSX VENTURE:SGX) is pleased to announce that it has signed a Toll Milling Agreement with Primero Mining Corp.'s ("Primero") Black Fox-Stock Mill ("Stock Mill") in Timmins to process up to 200,000 tonnes per year for a total of 1.1 million tonnes over an estimated 7 year mine life from the Clavos Mine. The Stock Mill is situated approximately 10 kilometers from Clavos and is accessed by a private haul road between the two properties.
Sage will be shipping run of mine material to the Stock Mill commencing July 2017 with the aim of running the first batch through the mill in September 2017. The Stock mill is a 2,500 tonnes per day carbon in leach (CIL) mill which is located in Stock Township and was previously owned by St. Andrew Goldfields (now Kirkland Lake Gold) during the 2005-2007 period when St. Andrews was operating the Clavos mine. The current operating management of the Stock Mill were present at the Stock Mill when +100,000 tonnes of Clavos ore was processed. Therefore, the Stock Mill is an ideal place to process the Clavos material given the proximity to the Clavos property and the familiarity of the mill operators with the Clavos material. Also, the haul road between Clavos and the Stock Mill is owned jointly by Sage (upon completion of the acquisition of the 40% interest in Clavos held by Kirkland Lake Gold) 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 Stock Mill then would be permitted on the Provincial highways.
Sage has received notification that the Ministry of Northern Development and Mines (MNDM) has changed the status of its Clavos gold project from Inactivity to Mine Production and Development. The change in project status allows Sage to begin the process of mine dewatering, mine rehabilitation and eventually to produce up to a maximum daily tonnage of 700 tonnes/day.
Sage currently plans on completing a reserve estimate and a prefeasibility study for 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 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 Clavos Gold property in Timmins and the 100% 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.
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 contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws, which are based on expectations, estimates and projections as of the date of this report. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information.
These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, satisfaction of conditions for drawdown of the tranches of financing pursuant to the Gold Prepayment financing, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Canada or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully.
Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this report is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law. No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.