The Gold Hill property comprises six patented mining claims located in Maricopa County, Arizona and is located in schist intruded by a granite porphyry of Proterozoic age. The mineralized fault structure has a strike length exceeding 4,000 feet and has been delineated by numerous exploratory surface pits, development tunnels, shafts, and adits.
The highest grade in the recent 2008 channel samples assays is 31.7 grams of gold per tonne (0.925 ounces per ton) over a width of 1.2 metres and the highest grade grab sample is 54.8 grams of gold per tonne (1.598 ounces per ton) . The following samples represent channel sample assays of greater than 10 grams of gold per tonne over the specified widths. All assays are reported on the Sage web site – www.sagegoldinc.com.
|
Sample Number |
Au g/T Au oz/t |
Ag g/T Ag oz/t |
True Width – Metres (Feet) |
|
67562 |
28.6 0.834 |
36.7 1.07
|
0.91(2.99) |
|
67566 |
11.8 0.34
|
28.5 0.831
|
0.99 (3.25) |
|
67568 |
19.15 0.559 |
38.4 1.12
|
0.55 (1.80) |
|
67569 |
25.4 0.741 |
32.6 0.95
|
1.30 (4.26) |
| 67571
|
17.55 0.512 |
38.8 1.132
|
1.52 (4.99) |
| 67575
|
25 0.729 |
33.6 0.98
|
2.13 (6.97) |
| 67607
|
12.2 0.356 |
21.9 0.639
|
Dump grab |
| 67608
|
54.8 1.598 |
47 1.37
|
Dump grab |
|
67610 |
31 0.904
|
28.5 0.83
|
1.35 (4.5) |
| 67611
|
11.8 0.344 |
18.1 0.528
|
grab |
| 67612 |
31.7 0.925 |
84.4 2.462
|
1.2 (4.0) |
|
Sample Number |
Au g/T |
|
67550 |
<0.05 |
|
67551 |
0.12 |
|
67552 |
0.10 |
|
67553 |
0.10 |
|
67554 |
<0.05 |
|
67555 |
0.05 |
|
67556 |
<0.05 |
|
67557 |
<0.05 |
|
67558 |
0.05 |
|
67SS9 |
<0.05 |
|
67560 |
0.05 |
|
67561 |
0.19 |
|
67562 |
28.6 |
|
67563 |
2.72 |
|
67564 |
14.00 |
|
67565 |
3.75 |
|
67566 |
11.80 |
|
67567 |
4.03 |
|
67568 |
19.15 |
|
67569 |
25.4 |
|
67570 |
2.96 |
|
67571 |
17.55 |
|
67572 |
8.87 |
|
67573 |
9.18 |
|
67574 |
3.53 |
|
67575 |
25.0 |
|
67576 |
6.77 |
|
67577 |
1.23 |
|
67578 |
6.06 |
|
67579 |
1.24 |
|
67580 |
0.15 |
|
67600 |
0.20 |
|
67601 |
3.06 |
|
67602 |
0.27 |
|
67603 |
0.63 |
|
67604 |
1.20 |
|
67605 |
5.43 |
|
67606 |
8.30 |
|
67607 |
12.20 |
|
67608 |
54.8 |
Sage also completed a thirty three element ICP (induced couple plasma) analysis of the sample material for base metals and trace elements. The geochemical analyses indicate that there is relatively low amount of base metal sulphides and that an average ratio of silver to gold is 3.74.
A series of parallel veins trend northwest – southeast and occur within a Proterozoic age porphyritic granite that intrudes a sequence of schists and argillites. Veins are exposed on the surface over a distance in excess of 1.5 kilometres (4,920 feet). The veins are delineated by exploratory pits, tunnels, shafts and adits. Historical workings from the period 1884-1898 resulted in a 90 metres (300 foot) haulageway with three production raises. Several exploratory winzes and underhand stopes were also developed along with four shafts which have since caved in. In the main haulage tunnel, driven within the East vein structure, oriented almost north-south, veins are exposed over a length of 100 metres (328 feet) with the greatest density of quartz veins occurring over a width of about 55 metres (180 feet)
The Company has not yet conducted sufficient exploration to define the indicated and inferred mineral resources. As such, the potential quantity and grade disclosed above is conceptual in nature based on sampling of underground workings at the Gold Hill property. The sample results are relevant in that they represent the most recent work conducted on the property. The reserve/resource categories predate NI 43-101 and given that there has been no feasibility study completed on the property these reserve categories should be defined as inferred, indicated and measured mineral resources.
Further exploration may not result in the discovery of additional mineral resources. All resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators.
The Company has not completed the work necessary to verify the classification of the mineral resource estimates. The Company is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Company has not completed a feasibility study and there is no certainty that the Company's planned operations will be economically viable. Sage intends to verify the historical results through an underground sampling program followed by underground drilling to test the lateral and vertical extent of the vein structures.
There is an historical resource of 380,000 tons grading 0.27ounces/ton Au based on vein sampling from the existing workings. The existing workings were resampled in 1981 (Promet Services – December 1981, Duane Brown PhD) yielding the resource estimate defined below:
Proven Reserve - 30,000 tons at 0.27 oz Au/ton
Probable Reserve – 150,000 tons at 0.27 oz Au/ton
Possible Reserve – 200,000 tons at 0.27 oz Au/ton
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