Sage Potash Corp. press release
Sage drill program extends Kerrs Gold System
TSXV - TSX Venture Exchange · Potash · Lithium · Bromine · Boron · Canada
Trading Symbol - TSXV-SGX
TORONTO, May 3 /CNW/ - Sage Gold Inc. announces further results from its recent drill program at the Kerrs Gold Property, located north of Kirkland Lake, Ontario on the western shore of Lake Abitibi. Sage Gold Inc. completed a 3,000 m Phase 1 drill program in the fall of 2005 followed by a 4,200 m Phase 2 winter program completed in April 2006. The program was designed to test strike and down-dip extensions of quartz-pyrite replacement veining and green carbonate quartz vein breccia zones varying in thickness from 10m to 40m. Gold mineralization occurs as pyritized breccia margins within enveloping sheeted quartz carbonate veining in the central portion of the breccia zones. Gold is primarily associated with fine (1 to 5%) pyrite grains disseminated within veins and altered mafic volcanics. Coarse gold also occurs in sulphide-poor quartz veins as observed in K-06-13 returning 27.8 g/t over 0.5m. The Kerrs Gold System exhibits gold grades between 2-5g/t with evidence of high grade sections such as exhibited in K-05-01, K-05-07, K-06-10 and K-06-13. Drill holes numbered K-05-01 through K-05-07 were drilled during the fall of 2005 and were reported in the press release dated November 8, 2005. Drill holes K-06-08, K-06-10 and K-06-12 were drilled during the winter program of 2006 and were reported in the press release of March 7, 2006. K-06-9 and K-06-15 were also drilled during the winter program but did not yield significant assay results. The results from K-06-13, K-06-14 and K-06-16 and previously reported results are as follows:
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Hole Number Location Interval(Metres) Weighted Average Au Grade/Metre - True thickness(m) K-05-01 (x) L1150 N / 6+55W 284.3m - 286.16m 9.18g/t - 1.86m Dip: 60 degrees incl.32.8g/t - 0.18m Az 130 degrees 376.5m - 383.51m 7.43g/t - 3.22m incl.18.3g/t - 0.95m K-05-7 (xx) L1200N / 70W 419m - 431.3m 2.60g/t-12.3m Dip: -60 degrees including 5.72g/t- Az 310 degrees 428m - 431.3m 3.8m (xx) K-06-08 L1200 N / 70W 430.6 to 436.2 0.64 g/t / 5.6 m Dip: 90 degrees K-06-10 L1400N / BL0+00 337.4 to 337.9 50.1 g/t / 0.5 m Dip: 90 degrees 432.4 to 434.3 4.56 g/t/1.9 m 511.3 to 518.0 2.19 g/t / 6.7 m K-06-12 L1400N / BL0+00 223.1 to 223.7 4.47 g/t / 0.6 m Dip: -60 degrees 429 - 436 2.88 g/t / 7m AZ 310 degrees 429.7 - 432.5 4.29g/t/2.8m (includes 8.1g/t over 0.9m) K-06-13 L815N / BL 0+40W 428.1 to 430.8 6.82 g/t / 2.5 m including 429.1 to 429.6 27.8 g/t / 0.5 m K-06-14 L975N / BL 0+50W 406.3 to 409.3 1.09 g/t / 3 m including 407.3 to 408.3 2.65 g/t / 1 m K-06-16 L1600N / BL 150W 322.4 to 326.5 1.22 g/t / 4.1 m including 322.9 to 323.5 4.30 g/t / 0.6 m (x) K-05-01 re-assaying of pulps and pulp metallic analysis of rejects (xx) K-05-07 was reported as 5.73g/t - 3.3m (press release of November 8, 2005). The core was re-analysed at a finer grind (-230 mesh from plus 10 mesh) resulting in an improvement of approximately 11% in the grade of the sample.
High grade gold-quartz glacial boulders, recovered down ice from Bell Lake south of Kerrs property, have been assayed for gold / silver and analysed for multi-element ICP. Results show background levels of arsenic, copper, chrome and boron with enrichment of lead, consistent with typical analyses returned from the green carbonate breccia mineralization encountered in the Kerrs Gold System. High grade visible gold in this boulder sample assayed 91.5.g/t gold and 23g/t silver. The gold/silver ratio is also similar to the higher grades observed in K-06-01. There is compelling evidence that the "East Ford Lake Gold boulders" were glacially eroded from subcroppings of the "Kerrs Gold System", possibly below and on strike of Bell Lake. The Kerrs Gold System has been defined by 14 drill holes arrayed in a 200m x 200m pattern piercing a shallow dipping synclinal fold structure. The results of drill holes K-06-08, 10, 11, 12, 13, 14, and 16 indicate that the green carbonate quartz breccia zone and mafic replacement zones can be traced for over 1,200 metres. The down-dip dimension of the fold structure has been traced to depth along a curvilinear inclined plane from 150m to 750m. The system is open to depth from surface and along strike to the northeast. On the basis of stratigraphic and structural controls, alteration strain and intensity observations, geological continuity has been established and the integral objective of the next drill program will be definition drilling to delineate a deposit. A preliminary study is currently underway involving deposit modelling and gold trace element pathfinder analysis to assist the drill hole layout and planning process. Nigel Lees, President, commented "We are most encouraged by the continued success of our drilling programs and the addition of further strike length to the Kerrs Gold System. It is also apparent that the Kerrs Gold System may represent the source of the East Ford Lake gold boulders." Total leased and/or staked claims in the region surrounding the Kerrs Gold Property now amount to approximately 14,700 acres. The surface diamond drilling program involving geological core logging, sampling and assaying tasks was supervised by Peter Hubacheck, P.Geo. No. 1059 (APGO) on behalf of Hubacheck Consulting Geologists (HCG), affiliated with W.A. Hubacheck Consultants Ltd. Peter Hubacheck is a qualified person as defined by NI-43-101 and has reviewed and authorised the geotechnical material in this press release.
Sage Gold Inc is a mineral exploration and development company which has an interest in seven exploration properties in Ontario and Quebec, six exploration properties in Nevada and one exploration property in Arizona. 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. The Big Bend Gold property is located in Yavapai County, Arizona. 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. There are 69,709,871 issued and outstanding common shares.
This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does 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.
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