Sage Gold Inc. (TSX VENTURE:SGX) 'Sage' is planning to commence drilling at its Clavos gold property located 32 kms east north east of Timmins, Ontario in the prolific East Timmins Gold Camp.
The program will consist of 1,500 metres of surface drilling involving 7 drill holes commencing next week. Drilling will initially start on the eastern portion of the "Main Mine Trend" of the Clavos deposit hosting significant mineralization in the Contact, Hangingwall (HW) and Footwall (FW) and Sediment Zones.
The current program's objective is to test a 235 metre gap between the existing underground infrastructure and the 960 Zone from section 514525E and 514765E. Five holes are planned in this area targeting a shallow plunging flexure controlling gold, arsenopyrite, pyrite, quartz vein mineralization located in the altered ultramafics and porphyries flanking the Porcupine Group sediments demarked by the Pipestone Fault structure. The vertical and horizontal continuity of four gold bearing zones will be evaluated between the 1150m elevation and 1080m elevation (mine reference elevations). A systematic drill hole spacing of 60 metres may further define the plunge orientation of some of the high-grade shoots identified within the existing mine infrastructure.
In addition, 2 drill holes are planned on the western end of the Clavos deposit between section 512800E and 512830E. These holes are intended to in-fill gaps in the historic surface and underground drilling beyond the limits of the existing underground workings at the 1125 elevation order to better define new stoping blocks.
Nigel Lees, President and CEO commented: "Sage announced the closing of a $11.5 million financing commitment in November 2016, of which approximately $7.2 million is allocated to fund the development and restart of the Clavos mine. Historical expenditures by St Andrew Goldfields and Sage on the property have exceeded $70.0 million excluding prior expenditures by United Tex-sol, Kinross and Canamax. Dewatering of the Clavos deposit underground workings has commenced and is on time and on budget. Rehabilitation will follow the dewatering process to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. Sage is permitted to produce 700 tonnes per day and has secured a life of mine milling agreement with Primero Mining's Stock mill 10 kilometres away."
The technical content of this news release has been reviewed and approved by Sage's consulting geologist, Peter Hubacheck, PGeo, who is a Qualified Person ("QP") as defined in National Instrument 43-101.
Sage currently plans to complete a 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 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.