Nov 18 2016
Sage Gold Inc. (the "Corporation") (TSX VENTURE:SGX) is pleased to announce that it has signed a Toll Milling Agreement with Primero Mining Corp.'s ("Primero") Black Fox-Stock Mill ("Stock Mill") in Timmins to process up to 200,000 tonnes per year for a total of 1.1 million tonnes over an estimated 7 year mine life from the Clavos Mine. The Stock Mill is situated approximately 10 kilometers from Clavos and is accessed by a private haul road between the two properties.
Sage will be shipping run of mine material to the Stock Mill commencing July 2017 with the aim of running the first batch through the mill in September 2017. The Stock mill is a 2,500 tonnes per day carbon in leach (CIL) mill which is located in Stock Township and was previously owned by St. Andrew Goldfields (now Kirkland Lake Gold) during the 2005-2007 period when St. Andrews was operating the Clavos mine. The current operating management of the Stock Mill were present at the Stock Mill when +100,000 tonnes of Clavos ore was processed. Therefore, the Stock Mill is an ideal place to process the Clavos material given the proximity to the Clavos property and the familiarity of the mill operators with the Clavos material. Also, the haul road between Clavos and the Stock Mill is owned jointly by Sage (upon completion of the acquisition of the 40% interest in Clavos held by Kirkland Lake Gold) and Primero. The haul road is not part of the Provincial highway system and Sage will be able to use larger haul trucks between Clavos and the Stock Mill then would be permitted on the Provincial highways.
Sage has received notification that the Ministry of Northern Development and Mines (MNDM) has changed the status of its Clavos gold project from Inactivity to Mine Production and Development. The change in project status allows Sage to begin the process of mine dewatering, mine rehabilitation and eventually to produce up to a maximum daily tonnage of 700 tonnes/day.
Sage currently plans on completing a reserve estimate and a prefeasibility study for the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
Source: http://www.sagegoldinc.com/