02.20.2006
Sage Gold Inc. (“SAGE”) is pleased to announce that it has mobilized a second drilling rig to the Kerrs Gold Property near Lake Abitibi, Ontario. The planned 5,000 metre drilling program commenced last week.
The new program is a follow-up on the 3,000 metre fall 2005 program and is designed to expand and delineate the newly discovered gold mineralization of the Jam-Bell Lake Zone. Previous drilling primarily by Noranda in the 1970's and 1980's totalled 15,000 metres and identified a green carbonate quartz vein zone. Recent drilling by Sage has significantly extended this zone along strike and downdip to depth.
The Kerrs Gold System is focussed in a stratabound shear deformation zone having a strike length of 700 metres, a down dip length of 500 metres varying in thickness from 30 metres to 50 metres and is open to depth and along strike and bears a strong resemblance to the “green carbonate quartz vein and mafic flow ore” type which occurred at the Kerr Addison Gold Mine.
The current program is expected to be completed by the second half of March 2006.
Peter Hubacheck is a qualified person as defined by NI-43-101 and has reviewed and authorised the geoscience findings material to this press release.
The Company recently completed its obligations under the optioned Campbell 15-claim block in the Jam-Bell Lake area claim block around the Jam-Bell Lake and now owns a 100% interest in this claim block. Total leased and/or staked claims in the region surrounding the Kerrs Gold Property amount to approximately 13,380 acres.
There are currently 47,372,961 common shares of SAGE issued and outstanding.
SAGE is a mineral exploration and development company which owns interests or options in seven exploration properties in Ontario and Quebec and six exploration properties in Nevada. Its main properties are the Kerrs property (the “Kerrs Property”) which is located in the northern part of the Larder Lake Mining Division in northeastern Ontario, and the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf properties (collectively, the “Nevada Properties”) which are situated in northeastern Nevada, within Elko County. Technical reports relating to the Kerrs Property and the Nevada Properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.
For further information, contact:
Nigel Lees, President and C.E.O.,
or Bill Love, C.F.O.
Phone: 416-204-3170
Fax: 416-260-2243
The Listing Application and additional information about SAGE can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.
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This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange and the Canadian Trading and Quotation System Inc. have not reviewed and do 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.