01.23.2006
Sage Gold Inc. (“SAGE”) is pleased to announce a 5,000 metre diamond drill program for the Kerrs Gold Property situated near Lake Abitibi, Ontario. The program, expected to commence at the end of this week, consists of approximately 10 holes and is a follow-up to the successful 3,000 metre program completed in October 2005.
On the basis of holes K-05-1, 6 and 7, a significant new gold zone “The Mafic Replacement Zone” was identified. Encouraging gold mineralization was encountered in hole K-05-7, returning 5.73 g/t over 3.3 metres within a broader brecciated alteration zone grading 2.83 g/t over a 3.5 metre interval. K-05-1 returned 32.8 g/t over 0.18 metres, and 7.36 g/t over 2.97 metres. Sage drill holes K-05-01, 2, 3, 4, 5 & 6 establish a geological setting demarking the transition of an intercalated quartz feldspar porphyry (QFP)/ultramafic flow sequence to a thick mafic, andesitic flow sequence dipping to the east at -40 degrees. Gold mineralization is characterized by a green carbonate quartz vein (GCQ)/breccias that are continued to a stratabound shear deformation zone. Within the deformation zone are intercalated ultramafic flows and silicified, cherty tuffs and albitite intrusions at this transition, suggesting the presence of a hydrothermal vent sourcing from a parent magma chamber centred along a rift basin.
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 new exploration program is designed to expand and delineate the newly discovered gold mineralization of the Jam-Bell Lake zone.
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.
Following the issuance of the Shares pursuant to the Offering, there were 46,372,961 Common Shares issued and outstanding. The Company has leased and/or optioned claims consisting of 13,379 acres at the Kerrs Gold Property.
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.