Sage Gold plans drill program on Kerrs Property

Trading Symbol - CNQ: SAGE

TORONTO, Aug. 9 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) is
pleased to announce that a 2,000 metre diamond drilling program is planned
for the Kerrs Property near Lake Abitibi in Ontario, commencing this week.
The program will consist of approximately 7 holes and will be focussed on
the Jam Lake zone.
Over the past few months, Sage Gold Inc. completed an extensive Mobile
Metal Ion (MMI) soils survey, magnetometer survey and Landsat interpretation
on the Kerrs Property in northeastern Ontario. The Kerrs Property is located
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 gold mineralization in altered volcanic
rocks. Similar soil geochemical targets have been delineated elsewhere on the
property, however it is the geochemical anomaly which adds support for the
subsurface gold mineralization at the Jam Lake zone that will be the focus of
the planned drilling.
The Jam Lake zone has been traced for over 100 metres of strike length
and is open to the northeast, southwest and downdip. It was discovered
through historic drilling by Noranda which yielded encouraging gold values
(2.5 grams Au/tonne over 10.2 metres and 11.69 grams Au/tonne over 0.76
metres) hosted in brecciated volcanic rocks with pyrite, quartz, carbonate,
and green carbonate alteration.
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
(5,578/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.
Recently, Sage had planned to conduct an Induced Polarization survey on
selected portions of the Jam Lake grid, however the dry weather has severely
reduced the available moisture in the glacial overburden thus curtailing the
current flow into the bedrock. The program has been delayed until such time
as moisture increases to normal levels.
Eric Owens, P.Geo., a qualified person as defined by NI43-101, has
reviewed and authorized this news release.
Sage also wishes to announce that Gary Robertson has joined the Board,
replacing John Craig. Gary Robertson is an asset manager based in New
Brunswick.
The Company recently raised approximately $1.1 million in flow-through
and unit financing. There are 32,122,182 issued and outstanding shares.


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.