Trading Symbol - TSXV-SGX
TORONTO, May 3 /CNW/ - Sage Gold Inc. announces further results from its
recent drill program at the Kerrs Gold Property, located north of Kirkland
Lake, Ontario on the western shore of Lake Abitibi. Sage Gold Inc. completed a
3,000 m Phase 1 drill program in the fall of 2005 followed by a 4,200 m Phase
2 winter program completed in April 2006.
The program was designed to test strike and down-dip extensions of
quartz-pyrite replacement veining and green carbonate quartz vein breccia
zones varying in thickness from 10m to 40m. Gold mineralization occurs as
pyritized breccia margins within enveloping sheeted quartz carbonate veining
in the central portion of the breccia zones. Gold is primarily associated with
fine (1 to 5%) pyrite grains disseminated within veins and altered mafic
volcanics. Coarse gold also occurs in sulphide-poor quartz veins as observed
in K-06-13 returning 27.8 g/t over 0.5m. The Kerrs Gold System exhibits gold
grades between 2-5g/t with evidence of high grade sections such as exhibited
in K-05-01, K-05-07, K-06-10 and K-06-13.
Drill holes numbered K-05-01 through K-05-07 were drilled during the fall
of 2005 and were reported in the press release dated November 8, 2005. Drill
holes K-06-08, K-06-10 and K-06-12 were drilled during the winter program of
2006 and were reported in the press release of March 7, 2006. K-06-9 and
K-06-15 were also drilled during the winter program but did not yield
significant assay results. The results from K-06-13, K-06-14 and K-06-16 and
previously reported results are as follows:
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Hole Number Location Interval(Metres) Weighted Average
Au Grade/Metre -
True thickness(m)
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K-05-01 (x) L1150 N / 6+55W 284.3m - 286.16m 9.18g/t - 1.86m
Dip: 60 degrees incl.32.8g/t - 0.18m
Az 130 degrees 376.5m - 383.51m 7.43g/t - 3.22m
incl.18.3g/t - 0.95m
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K-05-7 (xx) L1200N / 70W 419m - 431.3m 2.60g/t-12.3m
Dip: -60 degrees including 5.72g/t-
Az 310 degrees 428m - 431.3m 3.8m (xx)
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K-06-08 L1200 N / 70W 430.6 to 436.2 0.64 g/t / 5.6 m
Dip: 90 degrees
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K-06-10 L1400N / BL0+00 337.4 to 337.9 50.1 g/t / 0.5 m
Dip: 90 degrees 432.4 to 434.3 4.56 g/t/1.9 m
511.3 to 518.0 2.19 g/t / 6.7 m
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K-06-12 L1400N / BL0+00 223.1 to 223.7 4.47 g/t / 0.6 m
Dip: -60 degrees 429 - 436 2.88 g/t / 7m
AZ 310 degrees 429.7 - 432.5 4.29g/t/2.8m
(includes 8.1g/t
over 0.9m)
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K-06-13 L815N / BL 0+40W 428.1 to 430.8 6.82 g/t / 2.5 m
including 429.1 to 429.6 27.8 g/t / 0.5 m
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K-06-14 L975N / BL 0+50W 406.3 to 409.3 1.09 g/t / 3 m
including 407.3 to 408.3 2.65 g/t / 1 m
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K-06-16 L1600N / BL 150W 322.4 to 326.5 1.22 g/t / 4.1 m
including 322.9 to 323.5 4.30 g/t / 0.6 m
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(x) K-05-01 re-assaying of pulps and pulp metallic analysis of rejects
(xx) K-05-07 was reported as 5.73g/t - 3.3m (press release of November 8,
2005). The core was re-analysed at a finer grind (-230 mesh from
plus 10 mesh) resulting in an improvement of approximately 11% in
the grade of the sample.
High grade gold-quartz glacial boulders, recovered down ice from Bell
Lake south of Kerrs property, have been assayed for gold / silver and analysed
for multi-element ICP. Results show background levels of arsenic, copper,
chrome and boron with enrichment of lead, consistent with typical analyses
returned from the green carbonate breccia mineralization encountered in the
Kerrs Gold System. High grade visible gold in this boulder sample assayed
91.5.g/t gold and 23g/t silver. The gold/silver ratio is also similar to the
higher grades observed in K-06-01. There is compelling evidence that the "East
Ford Lake Gold boulders" were glacially eroded from subcroppings of the "Kerrs
Gold System", possibly below and on strike of Bell Lake.
The Kerrs Gold System has been defined by 14 drill holes arrayed in a
200m x 200m pattern piercing a shallow dipping synclinal fold structure. The
results of drill holes K-06-08, 10, 11, 12, 13, 14, and 16 indicate that the
green carbonate quartz breccia zone and mafic replacement zones can be traced
for over 1,200 metres. The down-dip dimension of the fold structure has been
traced to depth along a curvilinear inclined plane from 150m to 750m. The
system is open to depth from surface and along strike to the northeast.
On the basis of stratigraphic and structural controls, alteration strain
and intensity observations, geological continuity has been established and the
integral objective of the next drill program will be definition drilling to
delineate a deposit. A preliminary study is currently underway involving
deposit modelling and gold trace element pathfinder analysis to assist the
drill hole layout and planning process.
Nigel Lees, President, commented "We are most encouraged by the continued
success of our drilling programs and the addition of further strike length to
the Kerrs Gold System. It is also apparent that the Kerrs Gold System may
represent the source of the East Ford Lake gold boulders."
Total leased and/or staked claims in the region surrounding the Kerrs
Gold Property now amount to approximately 14,700 acres.
The surface diamond drilling program involving geological core logging,
sampling and assaying tasks was supervised by Peter Hubacheck, P.Geo. No. 1059
(APGO) on behalf of Hubacheck Consulting Geologists (HCG), affiliated with
W.A. Hubacheck Consultants Ltd. Peter Hubacheck is a qualified person as
defined by NI-43-101 and has reviewed and authorised the geotechnical material
in this press release.
Sage Gold Inc is a mineral exploration and development company which has
an interest in seven exploration properties in Ontario and Quebec, six
exploration properties in Nevada and one exploration property in Arizona. 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. The Big Bend Gold
property is located in Yavapai County, Arizona. 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.
There are 69,709,871 issued and outstanding common shares.
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This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange 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.
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