Oct 16 2017
Sage Gold Inc. is pleased to announce the following update on the Clavos gold mine.
Highlights
- Mineralized material is currently being delivered to the McEwen Mining's Black Fox-Stock mill for processing as a bulk sample.
- Our toll milling agreement with the mill has been assigned to the new owners, McEwen Mining.
- Mineralized Material continues to be stockpiled on surface at Clavos.
- Underground exploration drilling commenced from the 240 metre level and 245 metre levels - testing deeper historical Kinross intersections.
- Aerial Drone magnetic survey is complete - testing potential mineralized structures outside of main mine trend.
- Further surface exploration planned.
Nigel Lees, President and CEO stated, "We are happy to report that our first shipment has been made to the nearby Stock mill for processing. The majority is remnant broken material recovered in the mine from previous owners' workings along with our development rock. Essentially this is low cost but low grade mineralized material. However, it represents a milestone for our Company. We anticipate being connected to the Hydro One power grid in the near future which will then enable us to accelerate our mining and exploration activities. Going forward from today we will be continuing shipments to the mill and we also have an active exploration program planned."
Mining
Underground mining continues on the 150 metre level (mL) west with 7 active faces, 150 mL east with one active face and the 200 mL with active stoping. Mine planning is underway with respect to potential mining targets on the 220 and 250 mL.
Exploration
Sage Gold has commenced an underground exploration program utilizing two drills positioned from two drilling bays strategically positioned to test a high grade exploration target identified by historical Kinross era drill holes KC-99-137, KC-00-176 and KC-99-131 spanning a distance of 200m between grid lines 513600E and 513800E.
Three holes are planned for our B-15 electric/hydraulic drill from the south drift cross-cut on the 245 mL bracketing the 120 metre gap between high grade Kinross holes KC-99-137 (61.6 g Au/t over 3m) and KC-00-176 (61.8 g Au/t over 6.8m) piercing the 350mL elevation. There is no mine infrastructure in this region.
Five holes are planned for an air/electric drill located at the 245 level testing between high grade Kinross holes KC-00-176 and KC-99-131 (94.6 g Au/t over 9.6m) at elevations ranging from 280mL to 300mL mine level elevations.
A selective magnetic drone survey has been completed to transect 5 major local and regional structures including the Pipestone Fault structure. The survey area covers 355 hectares involving 52 line kilometers. Some of these structures penetrate our grade thickness longitudinal model with important implications for targeting new gold zones.
The center of the survey area on section 513800E is located 1.5 km from the center of the Clavos gold mine infrastructure.
A surface drilling program is planned to test several targets described as follows:
Target 1) Western extension of Hangingwall and Footwall zones on 150mL drift.
Target 2) Gap region between mine infrastructure at the 285mL eastward to "Contact and Sediment Zone" mineralization discovered in drill holes CL-17-06 and CL-17-07 during our 2017 winter drilling campaign.
Target 3) Select structural trends for drill testing based on the Drone magnetic survey.
The geotechnical content of this news release relating to the drilling program and the magnetic survey has been reviewed and approved by Sage's consulting geologist, Peter Hubacheck, P. Geo, who is a Qualified Person ("QP") as defined in National Instrument 43-101.
The operational plans disclosed in this news release have been reviewed and approved by Robert Ritchie P. Eng, 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 prefeasibility 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.