Trading Symbol - TSXV: SGX/CNQ: SAGE
TORONTO, Jan. 23 /CNW/ - Sage Gold Inc. ("SAGE") is pleased to announce a
5,000 metre diamond drill program for the Kerrs Gold Property situated near
Lake Abitibi, Ontario. The program, expected to commence at the end of this
week, consists of approximately 10 holes and is a follow-up to the successful
3,000 metre program completed in October 2005.
On the basis of holes K-05-1, 6 and 7, a significant new gold zone "The
Mafic Replacement Zone" was identified. Encouraging gold mineralization was
encountered in hole K-05-7, returning 5.73 g/t over 3.3 metres within a
broader brecciated alteration zone grading 2.83 g/t over a 3.5 metre interval.
K-05-1 returned 32.8 g/t over 0.18 metres, and 7.36 g/t over 2.97 metres. Sage
drill holes K-05-01, 2, 3, 4, 5 & 6 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
-40 degrees. Gold mineralization is characterized by a green carbonate quartz
vein (GCQ)/breccias that are continued to a stratabound shear deformation
zone. Within the deformation zone are intercalated ultramafic flows and
silicified, cherty tuffs and albitite intrusions at this transition,
suggesting the presence of a hydrothermal vent sourcing from a parent magma
chamber centred along a rift basin.
The Kerrs Gold System is focussed in a stratabound shear deformation zone
having a strike length of 700 metres, a down dip length of 500 metres varying
in thickness from 30 metres to 50 metres and is open to depth and along strike
and bears a strong resemblance to the "green carbonate quartz vein and mafic
flow ore" type which occurred at the Kerr Addison Gold Mine.
The new exploration program is designed to expand and delineate the newly
discovered gold mineralization of the Jam-Bell Lake zone.
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.
The Company has leased and/or optioned claims consisting of 13,379 acres
at the Kerrs Gold Property.
There are currently 47,372,961 common shares of SAGE issued and
outstanding.
SAGE is a mineral exploration and development company which owns
interests or options 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.
This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange and Canadian
Trading and Quotation System Inc. 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.
