Sage Potash Corp. press release
Sage options Jacobus copper-nickel property, Beardmore, Ontario
TSXV - TSX Venture Exchange · Potash · Lithium · Bromine · Boron · Canada
Trading Symbol - TSXV: SGX
TORONTO, May 19 /CNW/ - Sage Gold has completed an option agreement with N.W.T. Copper Mines Limited to earn a 100% interest in the Jacobus property located near Beardmore Ontario. The option agreement includes total cash payments of $75,000 and a total work commitment of $325,000 over a three year term to earn into a 100% interest in the property. The vendor retains a 2% Net Smelter Return on base metals and 3% for precious metals. Sage can repurchase 1% of the royalty interest for $1 million. The Jacobus property is located in the northwest corner of Elmhirst Township and consists of 9 claims, totaling 14 units. The Jacobus Cu-Ni deposit is hosted by a differentiated, layered gabbroic sill intruding massive, porphyritic flows of dacitic to rhyodacitic composition. Drilling by Chesterville Mines in 1971 outlined a copper-nickel resource of 1 million tons grading 0.94% combined Cu+Ni. (Canadian Mines Handbook, 2003-2004, p.340). The Jacobus deposit is cylindrical in shape, dips at ~45 degrees and plunges to the northwest at ~45 degrees. It has been traced over a strike length of 3000 ft. The mineralized zone varies in thickness from 40 ft to 150 ft. In 1993 diamond drilling by SEG Exploration Inc. substantially expanded the mineral potential on the property beyond the 1971 resource figures. Results from two holes are as follows: << DDH No. Interval-Feet Width-Feet %Cu %Ni Cu+Ni (%) Cu/Cu+Ni 93-2 1117-1222 105 0.84 0.71 1.55 0.54 1133-1205 72 0.97 0.87 1.84 0.53 1152.2-1200 47.8 0.98 1.11 2.15 0.46 1157.2-1185 27.8 0.75 1.38 2.12 0.35 93-3 1228-1271.7 43.7 0.93 0.23 1.16 0.80 1234.5-1271.7 37.2 1.05 0.36 1.41 0.74
The last drill hole, 93-7, intersected 34.6 ft. of disseminated mineralization in mafic gabbro that is 600' further on strike, past the last ore intersection. Diamond drilling and borehole geophysics will be carried out by Sage in order to identify potential down-plunge extensions of mineralized zones and develop a three dimensional model of the mineralization. Copper-nickel intersections from the 1993 drilling are wide, and further understanding of the shape of the mineralized gabbro is required to fully evaluate this large, magmatic sulphide target. Sage will drill wedge holes off the 1993 holes in order to find possible extensions of the zone to the northwest and carry out metallurgical and beneficiation tests from mineralization exposed in the surface trenches. The above historical grade and tonnage estimates predate and are non- compliant with NI 43-101 reporting standards. The estimates should not be relied on except as an order-of-magnitude indication of mineral resources. Sage believes the estimates are based on reliable information, and were prepared by reputable individuals using accurate analytical techniques. Sage is digitizing and re-evaluating analytical and historical drill data, which when combined with results from the upcoming drilling, will conform to CIM Standards for Mineral Resource and Mineral Reserve estimates. Property acquisition and exploration work is being carried out by Exploration Geoscience Associates of Orillia, under the supervision of Ulrich Kretschmar, Ph.D, P.Geo. Dr. Kretschmar has extensive experience exploring for Ni-Cu deposits in Archean terrains, is a qualified person as defined by NI 43- 101 and is responsible for the technical content of this news release. The property acquisition identified in the press release of May 4, 2006 (the Onaman property) was approved by the TSX Venture Exchange on May 11, 2006, pursuant to which the Company entered into an option agreement to acquire a 100% interest in the Onaman property for $75,000 in cash and the issuance of 200,000 common shares to Lyle Henry Arthur Holt and Nolan Merritt Thomas Cox over the three year term of the option agreement. The Company wishes to correct a typographical error on the press release dated May 4, 2006 regarding the Onaman property. In the first paragraph the correct net smelter return royalty percentages are 3% on precious metals and 2% on base metals.
Sage Gold Inc is a mineral exploration and development company which has interests in exploration properties in Ontario and Quebec, Nevada and 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 north- eastern Ontario, the Onaman property near Beardmore, Ontario and the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf properties (collectively, the "Nevada Properties") which are situated in north-eastern 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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