Trading Symbol - CNQ: SAGE
TORONTO, Nov. 8 /CNW/ - Sage Gold Inc. is pleased to report the results
from its recent drill program at the Kerrs Gold Property. The property is
located north of Kirkland Lake on the western shore of Lake Abitibi. Sage Gold
Inc. has previously completed a MMI (mobile metal ion) survey and a ground
magnetometer survey on the property.
The 2005 fall drilling program identified a new significant gold zone -
the mafic replacement zone. 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 following table reports selective assay results
from 5 of the 7 holes drilled - two holes reported insignificant assays.
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Weighted Average
Hole Interval Au Grade/Metre -
Number Location (Metres) True thickness (m)
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K-05-01 11+50N, 6+55W 284.3m - 286.16m 9.18g/t - 1.86m
incl. 32.8g/t - 0.18m
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K-05-01 376.08m - 383.51m 7.36g/t - 2.97m
incl. 15.7g/t - 1.2m
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K-05-02 12+20N, 3+03W 254.12m - 256.44m 8.23g/t - 0.69m
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K-05-04 11+00N, 3+84W 251.75m - 252.5m 3.09g/t - 0.75m
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K-05-06 5+75N, BL-0 188.3m - 188.8m 6.58g/t - 0.5m
408.8m - 413.1m 1.2g/t - 4.3m
incl. 6.62g/t - 0.5m
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K-05-07 12+00N, 0+75W 428m - 431.3m 5.73g/t - 3.3m
441m - 444.5m 2.83g/t - 3.5m
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Sage drill holes; K-05-01, 2, 3, 4, 5 & 6 clearly establish a geological
setting demarking the transition of an intercalated quartz feldspar porphyry
(QFP)/ultramafic flow sequence to a thick mafic, andesitic flow sequence
dipping to the east at -50 degrees. Gold mineralization is confined to a
stratabound shear deformation zone at this transition characterized by a green
carbonate quartz vein (GCQ)/breccia zone (20 to 30 m thick).
On the basis of K-05-01, 6, & 7, the Kerrs Gold System 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.
Nigel Lees, President, commented "We are most encouraged by the recent
drilling on the Kerrs Property and are in the process of correlating all the
information both historical and recent. A follow up drilling program to
further delineate both the green carbonate and mafic flow replacement zone is
currently being planned for early in 2006."
The Kerrs gold mineralization bears a strong resemblance to the "green
carbonate quartz vein and mafic flow ore" types which occurred at the Kerr
Addison Gold Mine. Sage has discovered a similar "mafic replacement" zone in K-
05-07 downdip from the projected location of the GCQ zone intersected in K-05-
01. The occurrence of gold is a function of the abundance of pyrite where
higher observed pyrite concentrations yielded higher gold values. The "mafic
flow replacement" zone in K-05-07 is 37m in thickness and remains open along
strike and both "updip" and "downdip".
Previous exploration work on the property was conducted by Noranda during
the 1979 to 1988 period. Work programs carried out during that time consisted
of 114 reverse circulation holes and 14,289 metres of diamond drilling on the
property. A description of Sage's 2005 drilling program follows:
K-05-01 (azimuth 130 degrees, dip-50 degrees) was collared up-dip of
Noranda drill holes 87-16 & 88-20 and encountered 250 metres of green
carbonate quartz breccias intruded by albitite dykelets and silicified
feldspar porphyries, which is interpreted to have a surface expression at 550W
on Line 11N. Significant gold intersections included 32.8g/tonne over 0.18
metres and 7.36g/t over 7.43m (2.97m true width). The lower contact of the
green carbonate zone is present coincident with a surface MMI anomaly from
550W to 650W.
K-05-06 (azimuth 300 degrees, dip-55 degrees) was collared on line 5+ 75N
to test the southern extent of the GCQ zone intersected in DDH K-05-01, as
well as a coincident resistivity high and MMI soil anomaly. At a depth of
399.85m to 433.7m, a massive GCQ breccia zone was encountered returning
anomalous gold values (two intersections of 6.7g/tonne over 0.5 metres,) which
is located approximately 700m south of K-05-01. Based on this observation, a
direct correlation of MMI anomalies with the (GCQ breccia trend) outlines a
stratabound horizon having a strike length of 2000 metres from Line 20+00N to
the 0+00 BL origin lying in the central portion of the property.
K-05-07 (azimuth 312 degrees, dip-65 degrees) was collared on Line 12+00N
at 75W to test the down-dip extent of the intersection in Noranda's diamond
drill hole 88-20. At a depth of 411m to 448.3m, a zone of highly silicified,
pyritized, mafic flows containing replacement-type vein ghost breccias was
encountered returning anomalous gold values - 5.73g/t over 3.3m (including
10.5g/t over 0.5m) and 2.83g/t over 3.5m. The zone is located 230m down-dip of
88-20 which intersected 1.72 g/t over 9.2 m.
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 and BQ core samples were collected by
HCG personnel at the drill from the drilling contractors (Forage Orbit from
Val D'Or) 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, then transported in one-time-use wire sealed, rice fibre
bags by HCG personnel and delivered to Swastika Laboratories in Swastika, Ont.
At this facility, there was crushing of the total sample, splitting to 350
grams, and milling using Rolls Crusher to 10 mesh. Gold analysis was by fire
assay using a 30 gram sample -AA finish. Gold analysis on samples greater than
1500ppb was by fire assay using a 30-gram gravimetric finish. Quality control
was maintained by periodic check assays with the insertion of Canmet Standards
in the sample stream. 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 geoscience findings material to this press release
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.
There are 38,467,961 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 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.
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