Feb 8 2016
Sage Gold Inc. (the "Company") continues to have discussions with third parties concerning the potential joint venture, production financing and/or sale of the Clavos gold deposit in Timmins, Ontario. The permitted Clavos deposit was the subject of a Preliminary Economic Assessment (PEA) released March 1st 2013 (see details on the Sage Gold website, www.sagegoldinc.com).
The recent rise in the gold price appears to have renewed interest amongst various financial and mining groups to deploy financial and mining resources in the belief that the precious metal market may have reached a correction bottom for this cycle.
Sage has been reviewing and will be revising potential mining scenarios for Clavos. The potential viability of the project has improved due to the favourable price of gold at approximately Cdn $1600 an ounce; the increased availability of experienced miners, technical expertise; and moderated labour costs. In addition, Clavos has the added benefit of a natural gas line on its property. Sage is studying the economic benefits of using compressed natural gas as a replacement for diesel fuel as well as providing a source of electricity and economic mine air heating.
Recent data compilation on Clavos has been completed and suggests that there is considerable potential to increase the resources through drilling. This new work has uncovered numerous drill intersections, the grade of which are above the cut-off grade and were not included in the latest resource study of October 2012 potentially further expanding the current resource.
Nigel Lees, President and CEO commented, "The Clavos gold deposit is one of the few gold deposits permitted in Canada and is located in one of the most prolific and active gold camps in Canada. Despite the most difficult recent period for precious metals and especially for junior mining stocks, we have managed to advance both the Clavos gold and Lynx polymetallic deposits, both located in Ontario. While we are aware that the current difficult environment may continue for a longer period, we are encouraged by the recent price performance of gold and silver and trust that this will, in time, favourably affect share prices and facilitate financing activity."
EXTENSION OF DEBT FACILITY
Sage has extended its unsecured promissory note for Cdn $1,122,846 due to a shareholder from February 7th 2016 to February 7th 2017. The interest rate is payable at a rate of 12 % per annum and will be accrued and paid at maturity.
Source: http://www.sagegoldinc.com/