TORONTO, ONTARIO--(Marketwire - Feb. 10, 2011) - Sage Gold Inc. (TSX VENTURE:SGX) has completed six drill holes of the 12 drill hole program in the first phase of drilling on the western extension at the Clavos mine in Timmins, Ontario. The drilling is designed to upgrade inferred ounces into the indicated category within the footwall zone (FW) and to add ounces into the resource within the hanging wall (HW) and FW zones. Hole CL-11-01 assayed 28.89 g/t Au (15.39 g/t cut to 60 g/t) over 1.3 metres and was outside of the inferred resource block identified in the St Andrew Goldfields Inc. (SAS) resource of October 2006. Refer to St Andrew Goldfields Ltd. profile on www.sedar.com. Holes CL-11-02 through CL-11-05 are also being drilled west of the previous resource block and thus could potentially identify new resource ounces.
The present drilling also intersected several low grade gold mineralized intercepts within porphyries. The porphyries occur between the HW and FW zones and the gold mineralization within the porphyries was excluded from the resource calculation in the SAS compliant resource of October 2006. The results to date are as follows:
CLAVOS 2010-11 DRILL PROGRAM
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HOLE ID SAMPLE FROM TO WIDTH(M) AU (GPT) COMPOSITE (AU
ID GPT/M)
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metre grams/tonne grams/tonne/metre
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CL-10-01 E680528 125 126 1 4.13 4.13/1.0
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E680532 127.46 128.1 0.64 1.065 1.065/0.64
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E680546 136.45 137 0.55 1.99 1.99/0.55
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E680560 154.4 155.28 0.88 11.05 11.05/0.88
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E680567 159.59 160.28 0.69 2.15 2.15/0.69
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E680575 166 167 1 2.32 2.32/1.0
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CL-10-02 E680603 66 67.09 1.09 1.045 1.026/1.87
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E680604 67.09 67.87 0.78 1
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E680633 226.79 227.5 0.71 1.465 1.465/0.71
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E680652 239 239.5 0.5 1.615 1.615/0.5
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CL-10-03 NSV
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CL-10-04 E680763 101 101.5 0.5 1.295 1.23/1.0
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E680764 101.5 102 0.5 1.17
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E680767 103 103.5 0.5 2.35 2.35/0.5
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E680774 112 112.83 0.83 1.005 1.005/0.83
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E680786 142 143.5 1.5 1.29 1.29/1.5
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E680789 144.25 145 0.75 3.07 3.07/0.75
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CL-10-05 E680842 234.15 235.22 1.07 1.975 1.975/1.07
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E680854 247 248 1 0.983 1.078/2.77
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E680855 248 249 1 0.994
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E680857 249 249.77 0.77 1.31
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CL-11-01 E680909 107.5 108 0.5 1.255 1.06/1.5
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E680911 108 109 1 0.956
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E680923 117.9 119 1.1 2.95 2.95/1.1
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J923351 139 139.5 0.5 1.42 28.89/1.3
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J923353 139.5 140 0.5 2.59 15.39/1.3 CUT 60GPT
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greater than 10 specks
J923354 140 140.3 0.3 118.5 VG
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E680961 146 147 1 3.6 2.969/1.8
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E680962 147 147.8 0.8 2.18
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Note: Assays results still pending from Holes CL-10-05 and CL-11-01 Interval
widths reported are drill intercept widths and not true widths
Upon completion of the western drilling, the drill program will shift to the eastern extension of the mineralized horizon where historic drilling has identified high grade gold mineralization outside of the volume encompassed by the 2006 resource. Historic operators on the property have drilled an approximate total of 150,000 metres of surface and 42,000 metres of underground drilling. Historic drilling included two sections of holes which yielded the following results:
EASTERN DRILL TARGETS - HISTORICAL DRILL HOLES
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SECTION ID HOLE ID FROM TO WIDTH (M) AU (GPT)
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514450E KC99-148 282 282.5 0.5 19.93
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345 348.5 3.5 8.784
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383.6 386.1 2.5 4.108
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514510E KC99-150 184.7 185.1 0.4 12.57
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243 246.7 3.7 3.113
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including 244.7 246.1 1.4 6.189
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514780E CL-109 238.5 239.5 1.0 11.16
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514810E CL-167 103 108 5.0 10.272
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CL-212 167 174 7.0 2.59
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including 167 171 4.0 3.56
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191 196 5.0 3.08
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including 192 195 3.0 4.15
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514870E CL-107 68 70 2.0 5.92
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156 157 1.0 4.41
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CL-210 127 130 3.0 8.5
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including 127 129 2.0 11.965
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Note: Interval widths reported are drill intercept widths and not true
widths
The historic drilling has been validated by consulting Geologist David Gliddon P.Geo. of Glider Geoservices Inc and Scott Wilson Roscoe Postle Associates Inc. These results are part of the drill database and current drilling will be aimed at testing the mineralized zone along strike at 30 metre spacing. The intention is to generate new inferred ounces for an updated resource. There is 1.6 km of strike length east of the October 2006 resource to the eastern boundary of the Clavos property.
Sage has optioned the Clavos mine from St Andrew Goldfields Ltd. (TSX:SAS) and can earn into a 60% interest over a three year period.
The Clavos mine is located north of the Pipestone Fault which marks the contact between the Porcupine sedimentary rocks to the south and volcanic rocks to the north. The deposit is localized in east-west to east-northeast trending high strain zones within ultramafic rocks defined by lenses of sericite-carbonate with some fuchsite alteration and hosts several small porphyry intrusive bodies in a 50-70m wide zone, termed the "DL Zone". This lies from 10-50m north of the sedimentary-volcanic contact. There are four mineralized zones at Clavos termed the Hangingwall, Footwall, Contact and Porphyry Zones. Gold mineralization occurs in two styles of quartz veins: a) early grey quartz veins, and b) quartz extension veins, sigmoidal extension vein arrays, and associated shear veins, which form veining networks. The latter phase of veining is geometrically, temporally and texturally compatible with formation during the main stages of gold mineralization in the central Timmins camp.
The technical content of this news release has been reviewed and approved by Sage's consulting Geologist David Gliddon P.Geo. of Glider Geoservices Inc., who is a qualified person as defined by NI 43-101.
The historic surface drill hole assay results highlighted (above were drilled by Canamax (1986- 87) and Kinross Gold Corp. (1999). Sage is unable to verify the sampling, sample preparation, assaying, and QA/QC procedures of Canamax and Kinross Gold to meet industry standards at the time of drilling. These surface hole results are only being used as a guide to the current round of drilling.
QA/QC Program Protocols
Sage Gold Inc. has implemented a rigorous QA/QC program using best practice principles 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 the drill contractor and/or Sage personnel. Prior to splitting, all drill core is photographed. Core splitting is done with a diamond core saw and 1/2 of the drill core is submitted to ALS Chemex Laboratories, an accredited laboratory for analysis. The remainder of the core is stored at the Clavos Mine Property. All samples are shipped in sealed bags with numbered security tags and transported in a company truck from the property to ALS Chemex Laboratories preparation lab in Timmins, ON.
Sage routinely inserts certified standards, blanks and field duplicate samples into the sample stream. The certified analytical standards were supplied by CDN Resource Laboratories Ltd. 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 30 gram sample with AA finish and any samples assaying greater than 5.0 gpt 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 ALS Chemex and internal Sage QA/QC samples are routinely monitored for contamination, accuracy and precision by an independent consultant.
The company confirms that the expiry date of the options announced December 24, 2010 is November 15, 2015.
SAGE 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 mine in Timmins and the Lynx deposit 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
This release was prepared by management of the Company who takes full responsibility for its contents.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information 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.
Neither 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sage Gold Inc.
Nigel Lees
President and C.E.O.
416-204-3170
Fax: 416-260-2243(FAX)
Sage Gold Inc.
Mike O'Brien
Manager/Investor Relations
416-204-3170
Fax: 416-260-2243(FAX)
Source: Sage Gold Inc.