Trading Symbol - TSXV-SGX
CNQ-SAGE
TORONTO, March 7 /CNW/ - Sage Gold Inc. is pleased to report partial
results from its current drill program at the Kerrs Gold Property. The
property is located north of Kirkland Lake, Ontario on the western shore of
Lake Abitibi. Sage Gold Inc. completed a 3000 metre drill program in the Fall
of 2005. The Company has drilled four holes to date from its current drill
program and expects to complete a further six holes for a total of 5000
metres.
The 2005 fall drilling program identified a new significant gold zone
which is focused in a stratabound shear deformation zone having a strike
length of 700 metres, a down-dip length of 500 metres varying in thickness
from 30m to 40m and is open to depth and along strike. The program consisted
of 7 holes totalling 3,000 metres following up on the Jam Lake Trend in the
vicinity of the Noranda drill holes 87-16 and 88-20, as well as targeting
specific MMI soil gas and resistivity anomalies. The Fall program yielded
(selected assays) 7.36g/t over 2.97metres (K-05-01) and 5.73g/t over
3.3 metres (K-05-07).
The 2006 Winter program has been designed to test the strike and dip
extensions of the mafic replacement zone and the green carbonate quartz
breccia zone that were outlined in the Fall 2005 program. The results from the
holes drilled to date include:
<<
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Weighted Average
-----------------
Au Grade/Metre -
-----------------
Hole Number Location Interval (Metres) True thickness(m)
----------- -------- ----------------- -----------------
-------------------------------------------------------------------------
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 376.08m - 383.51m 7.36g/t - 2.97m
incl.15.7g/t - 1.2m
-------------------------------------------------------------------------
K-05-07 (x) L1200N / 70W 428m - 431.3m 2.66g/t-12.3m
Dip: -60 degrees including 5.72g/t-
Az 310 degrees 3.8m (xx)
-------------------------------------------------------------------------
K-06-08 L1200 N / 70W 430.6 to 436.2 0.64 g/t / 5.6 m
Dip: 90 degrees
-------------------------------------------------------------------------
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
-------------------------------------------------------------------------
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)
-------------------------------------------------------------------------
(x) Previously issued results
(xx) K-05-07 was reported as 5.73g/t - 3.3m (press release of November 8,
2005). The core was reanalysed at a finer grind (-230 mesh from plus
10 mesh) resulting in an improvement of approximately 11% in the
grade of the sample.
Sage drill holes; K-06-08, 10 and 12 intersected a mineralized zone of
hydrothermal alteration and brecciation that is associated with the transition
of an intercalated quartz feldspar porphyry (QFP) / ultramafic flow sequence
to a thick mafic, andesitic flow sequence dipping to the east at -45 degrees.
Gold mineralization occurs within this zone as pyritized margins within quartz
carbonate veining and is associated with fine pyrite grains disseminated
within veins and altered mafic volcanics. Gold also occurs stratigraphically
above the main zone within quartz veins and brecciated zones in massive
pillowed, mafic flows.
The results of drill holes K-06-08, K-06-10 and K-06-12 indicate that the
green carbonate quartz breccia zone and mafic replacement zones identified in
the Fall 2005 program can be traced to the northeast for a further 200 metres.
Therefore, the Kerrs Gold System has been extended over a strike length of 900
metres, a down-dip length of 500 metres varying in thickness from 30m to 40m
and is open to depth and along strike.
Nigel Lees, President, commented "We are most encouraged by the extension
of the Kerrs Gold System and the identification of additional high grade
mineralization. The two prevalent zones; the green carbonate quartz breccia
and the mafic replacement zone bear a strong resemblance to the ore types at
the historic Kerr Addison mine which produced for fifty years."
Sage's leased and/or staked claims, comprising the Kerrs Gold Property,
now total 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. The NQ core samples were collected by HCG
personnel at the drill from the drilling contractors (Heath and Sherwood,
Kirkland Lake Ontario) and transported to a core processing facility located
20 km. from the project site. The drill core was geologically logged for rock
type, alteration, mineralization, % recovery and RQD (rock quality
designation) factors, prior to being sawn lengthwise in half. Individual core
sample lengths (standardized from 0.5m to 1.5m) were selected by the HCG
personnel on a geological basis to delimit the gold mineralization based on
lithological rock type, alteration and structural features. The remaining half
core was stored on site in racks after core processing. The core samples were
bagged, labelled on site, and then transported in one-time-use wire sealed,
rice fibre bags by HCG personnel and delivered via Manitoulin Transport to
Accurassay Laboratories in Thunder Bay, Ontario. At this facility, there was
crushing of the total sample, splitting to 250 grams using a Jones Riffle, and
pulverized to 90% -230 mesh. Gold analysis was by atomic absorption (AA) and
AA samples greater than 2000 ppb were checked with gravimetric finishing by
fire assay Quality control was maintained by periodic check assays with the
insertion of Canmet Standards in the sample stream. As well as AA checks
performed by the lab for every 10 samples. HCG personnel also inserted blanks
obtained from barren basalt cored during the program. Duplicate samples were
also inserted using quartered core samples from selected samples taken from
the mineralized zones.
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 is a mineral exploration and development company which has an
interest 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.
There are 47,691,881 issued and outstanding common shares.
- - - - - - - - - - - - - - - -
This release was prepared by management of the Company who takes full
responsibility for its contents. The Canadian Trading and Quotation System
Inc. and the TSX Venture Exchange 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.
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