06.10.2005
Sage Gold Inc. (CNQ listed: symbol SAGE) is pleased to report exploration results on the Kerrs property and future exploration plans.
Over the past few months, Sage Gold Inc. completed an extensive Mobile Metal Ion (MMI) soils survey and magnetometer survey on the Kerrs Property in northeastern Ontario (immediately north of the prolific Larder Lake break).
The MMI survey consisted of 1073 samples covering the entire property of 2,199 acres. Raw data from the survey reveal a geochemical anomaly southwest along strike with the Jam Lake Gold zone. The presence of anomalous nickel, cobalt, gold, silver and palladium in the Jam Lake area reflects both the presence of ultramafic units and the mineralized (2.5 grams Au/tonne over 10.2 metres and 11.69 grams Au/tonne over 0.76 metres) quartz carbonate green carbonate altered volcanics.
The Company is in the process of correcting the MMI data as per specifications for such analyses in order to better interpret the data. The magnetometer survey has aided in interpreting the subsurface geology through correlation with historical data, and indicates the presence of folded ultramafic units sandwiched between less magnetic volcanic units. The Company also completed a review of the historical exploration data associated with the Kerrs property. Between 1979 and 1988 Noranda completed Reverse Circulation (RC) drilling (4,723/metres), diamond drilling (5578/metres), and geophysics (very low frequency (VLF), electromagnetic (EM) and induced polarization (IP) surveys) on the Kerrs claim block. Sage has compiled all of the exploration data into a map series including the RC and diamond drilling, an airborne EM survey, and ground IP and magnetometer surveys.
The Company has commissioned a lithostructural study of the Kerrs property using LANDSAT and RADARSAT image data. The purpose of the study is to identify permeability zones, structures, intrusive/volcanic features and major lithological contacts on the property, in order to assist target identification.
Sage intends to complete an IP survey on selected portions of the Jam Lake grid. The survey is intended to identify areas of high resistivity and chargeability. Historic surveys show that the gold-bearing, quartz and green carbonate exhibits high resistivity (as evidenced in the airborne resistivity data). It is hoped that disseminated pyrite in the Jam Lake zone will yield positive chargeability anomalies.
The Jam Lake zone has been traced for over 100 metres of strike length and is open to the northeast, southwest and downdip. The Company intends to complete further drilling on the Jam Lake zone during the summer, subject to the completion of financing.
Eric Owens, P. Geo., a qualified person as defined by NI43-101, has reviewed and authorized this news release.
First Tranche of Financing Completed
The Company has completed the first tranche of its previously announced private placement financing with the issuance of 2,229,506 million units and 2,135,001 million flow-through common shares of the Company for aggregate gross proceeds of $327,338. Each unit consists of one common share (“Common Share”) of the Company and one-half of one Common Share purchase warrant (“Warrant”). Each whole Warrant entitles the holder to purchase an additional Common Share at a price of $0.10 per Common Share at any time until June 10, 2007. Following the closing of the first tranche, the Company has 21,139,182 issued and outstanding Common Shares.
For property descriptions and other information, please see the Company’s website at www.sagegoldinc.com.
Sage’s main focus is to build a mining corporation through exploration and acquisition of advanced development and production targets, primarily in gold and silver.
For further information, contact:
Nigel Lees, President and C.E.O., or Bill Love
Phone: 416-204-3170 Fax: 416-260-2243
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This release was prepared by management of the Company who takes full responsibility for its contents. The Canadian Trading and Quotation System Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.