Trading Symbol - CNQ: SAGE
TORONTO, June 10 /CNW/ - Sage Gold Inc. (CNQ listed: symbol SAGE) is
pleased to report exploration results on the Kerrs property and future
exploration plans.
Over the past few months, Sage Gold Inc. completed an extensive Mobile
Metal Ion (MMI) soils survey and magnetometer survey on the Kerrs Property in
northeastern Ontario (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 the mineralized (2.5 grams Au/tonne over 10.2
metres and 11.69 grams Au/tonne over 0.76 metres) quartz carbonate green
carbonate altered volcanics. The Company is in the process of correcting the
MMI data as per specifications for such analyses in order to better interpret
the data. The magnetometer survey has aided in interpreting the subsurface
geology through correlation with historical data, and indicates the presence
of folded ultramafic units sandwiched between less magnetic volcanic units.
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
(5578/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.
The Company has commissioned a lithostructural study of the Kerrs
property using LANDSAT and RADARSAT image data. The purpose of the study is to
identify permeability zones, structures, intrusive/volcanic features and major
lithological contacts on the property, in order to assist target
identification.
Sage intends to complete an IP survey on selected portions of the Jam
Lake grid. The survey is intended to identify areas of high resistivity and
chargeability. Historic surveys show that the gold-bearing, quartz and green
carbonate exhibits high resistivity (as evidenced in the airborne resistivity
data). It is hoped that disseminated pyrite in the Jam Lake zone will yield
positive chargeability anomalies.
The Jam Lake zone has been traced for over 100 metres of strike length
and is open to the northeast, southwest and downdip. The Company intends to
complete further drilling on the Jam Lake zone during the summer, subject to
the completion of financing.
Eric Owens, P. Geo., a qualified person as defined by NI43-101, has
reviewed and authorized this news release.
First Tranche of Financing Completed
The Company has completed the first tranche of its previously announced
private placement financing with the issuance of 2,229,506 million units and
2,135,001 million flow-through common shares of the Company for aggregate
gross proceeds of $327,338. Each unit consists of one common share ("Common
Share") of the Company and one-half of one Common Share purchase warrant
("Warrant"). Each whole Warrant entitles the holder to purchase an additional
Common Share at a price of $0.10 per Common Share at any time until June 10,
2007. Following the closing of the first tranche, the Company has 21,139,182
issued and outstanding Common Shares.
For property descriptions and other information, please see the Company's
website at www.sagegoldinc.com.
Sage's main focus is to build a mining corporation through exploration
and acquisition of advanced development and production targets, primarily in
gold and silver.
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.
