Mr. Nigel Lees reports
SAGE IDENTIFIES NEW VEIN STRUCTURES AT CLAVOS
Sage Gold Inc. has identified new vein systems at the Clavos property.
The company is currently updating its mineral resource estimate, adding several hundred historical and recent drill hole composites from the definition and exploration drilling completed over the past few years.The new resource modelling, which factors in a higher drill hole density, has resulted in the identification of three new vein systems which now aggregate to a total of seven vein systems.These new vein systems are expected to have a positive impact on the total tonnage and ounces contained in the new resource model (refer to the update below).In addition, a revised mine plan is being prepared to focus on higher-grade mineral resource areas defined in the current resource model.
Update on the new mineral resource estimate
The cross-section interpretation completed to date indicates that there are seven vein systems which can be correlated.This analysis also noted that there are two alteration packages of sericitized ultramafics separated by unaltered talc chlorite ultramafics.The previous analysis as detailed in the current National Instrument 43-101 mineral resource estimate modeled only one alteration package which was flanked by hangingwall and footwall veins systems.The new hangingwall and footwall vein systems occur farther south and farther north, respectively, than the previous modelled hangingwall and footwall vein systems.The new vein systems do not appear to have been modelled and therefore are not included in the previous estimated mineral resource.
As previously reported (news release May 9, 2017), Sage Gold has discovered and further modelled a new sediment zone located 45 metres south of the Pipestone fault system. The company drilled a discovery hole CL 17-07 for the SED2 zone grading 4.09 grams per tonne goldover 4.2 metres during the 2017 winter drilling program.Both sediment zones, SED1 and SED2, become more pronounced farther east of 513800E (see news release May 3, 2017) and the grade-thickness slide in the current Sage Gold investor presentation available on the company's website.
The new HW1 and FW1 zones were identified through cross-sectional interpretation that includes all drilling to date -- both surface and underground.This analysis has determined that there are several hundred drill intersections greater than three g/t Au that were not included in the previous modeling of the estimated mineral resource.These intersections were largely linked to underground drilling completed by St. Andrew Goldfields Ltd. and Sage Gold.
The presence of the two new zones, HW1 and FW1, and the previously announced new sediment zone, SED2, are expected to have a positive impact on the tonnage and ounces contained in an updated mineral resource estimate.Also, the HW1 and FW1 zones become more prominent from 513400E, which is in the north-south structural trend that controls the higher-grade mineralization in the Clavos deposit.The new zones could have a direct impact on the sequence of extraction of mineralized material within the existing underground infrastructure.
Operational update
The company has made significant progress in optimizing the mine plan and updating the mineral resource estimate for its Clavos gold mine in Timmins, Ont., over the past few weeks, as the company continues to develop and extract mineralized material from the Clavos gold mine.To date, the company has produced approximately 1,031 ounces of gold from 18,272 tonnes processed.The next bulk sample shipment to the custom mill is planned for the first week of March, 2018. The mineralized material shipped to the mill consisted primarily of remnant, previously blasted mineralized material left in situ by the previous operator, St. Andrew, combined with development material recently mined to access higher-grade stopes.
The development and extraction are presently concentrated in the 100-150 West and 150 and 175 East levels.The company plans to establish both power and ventilation services below the 200-metre level to gain access to additional high-grade stopes such as the 261 West level. The company has recently raised additional working capital and is in the process of sourcing equipment financing in order to develop the lower levels of the current workings.
100-150 West levels
Sage Gold intends to develop a long-hole stope between 100 and 150 West in the footwall structure.The long-hole stope will encompass the stope blocks listed below as defined in the preliminary economic assessment dated April 12, 2013.The PEA forecasted long-hole stope costs of $85 per tonne.
150 East and 175 East level
Development continues on 150E and 175E on the footwall structure with the aim of driving east to 513600E to 513700E easting for the purpose of accessing the hangingwall and footwall stopes that were previously defined in the economic model associated with the PEA.
In addition, crosscuts at 513500E and 513530E will access long-hole stopes developed by the previous operator for the purpose of removing remnant mineralized material.
The easting locations referenced above are also available on the grade-thickness model in the Sage Gold investor presentation.The easting number provides a reference of the location of the stope block or crosscut relative to the 150E and 175E.
Power and ventilation services will be established below the 200-metre level, with the aim of accessing the 261W stopes developed by St. Andrew.The 261W stope is in a previously unextracted level left by St. Andrew with reported muck grades of 19.55 grams per tonne Au.
The geotechnical and geological content of this news release relating to the geological information and drill hole composites have been reviewed and approved by Sage Gold's consulting geologist, Peter Hubacheck, PGeo, who is a qualified person as defined in National Instrument 43-101.
The operational plans disclosed in this news release have been reviewed and approved by Sage Gold's consulting mining engineer Robert Ritchie, PEng, who is a QP as defined in NI 43-101.
The company plans to complete an updated mineral resource and mineral reserve estimate and a prefeasibility study regarding the Clavos project.In the event that a production decision is made that is not based on a prefeasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with NI 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
Amendment to offering
In connection with the private placement of units of the company at the price of 11 cents per unit, with each unit consisting of a common share of the company and a common share purchase warrant, exercisable into a common share at 16 cents per common share for 24 months, as disclosed more fully in the company's news releases dated Jan. 9, 2018, Jan. 15, 2018, Jan. 18, 2018, Jan. 26, 2018, and Feb. 16, 2018, the company has received a late subscription for 272,727 units, thereby increasing the number of units issued in connection with the offering to 21,451,769 and the overall gross proceeds of the offering to $2,359,694.87.
About Sage Gold Inc.
The company is a mineral exploration and development company that has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos gold property (100 per cent owned) in Timmins and the 100-per-cent-owned Onaman property and other exploration properties in the Beardmore-Geraldton gold camp.
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