Sage Gold Clavos Drill Results - New Gold Zone
TORONTO, ONTARIO--(Marketwired - 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.
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 % and total sulphide %. 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% minus 9 mesh (2mm), pulverizing a 500g sub-sample to 85% 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% owned, in Timmins and the 100% 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.
Sage Gold Inc.
President and CEO