Sage Gold drills 2.8 m of 16.6 g/t Au at Clavos

Dec 8, 2017

2017-12-07 10:46 ET – News Release

Mr. Nigel Lees reports

SAGE GOLD UPDATES CLAVOS GOLD EXPLORATION

Sage Gold Inc. has been conducting an underground exploration program utilizing two drills, strategically positioned from two drilling bays, to test an exploration target identified by historical Kinross era drill holes KC-99-131, KC-99-137 and KC-00-176, spanning a distance of 200 metres between 513600E and 513800E. See previous news releases dated April 20, 2017, and May 3, 2017.

The first six drill holes have been completed testing in the vicinity of KC-99-137 with weighted average grade composites listed below. Hole 3531-196 has been completed and assays are pending. All holes have successfully tested favourable Clavos hangingwall (HW) and footwall (FW) mineralized structures from 513565E to 513615E at depths ranging from the 975-metre level (mL) to the 855 mL. The results from this drilling will potentially extend existing mineral resource blocks. The company is currently evaluating these results, which will be used in planning further underground and surface exploration drilling.

Hole ID       From (m)   To (m)   Interval* (m)   Grade (g/t Au)

CL-3531-191     148.4    150.0             1.6             5.46
CL-3531-192     177.0    179.8             2.8            16.60
CL-3531-193     162.0    164.4             2.4             3.50
CL-3531-194     220.0    221.4             1.4             1.46
CL-3531-195     197.5    201.0             3.5             3.00
CL-3531-196     Assays pending                              

* Intervals reported are downhole lengths and are not corrected 
  to true widths.

These holes have been completed with a B-15 electric/hydraulic drill from a south drift crosscut bracketing the 120-metre gap between Kinross hole KC-99-137 and KC-00-176 piercing the 350 mL elevation. There is no existing mine infrastructure in this region.

Drill holes CL-3531-191 and 192 have been completed in the vicinity of KC-99-137. Drill hole 192 intersected a wide felsic porphyry with pyrite and visible gold mineralization occurring at the basal contact of the 7.3 m thick unit. The mineralized porphyry zone has an average grade of 16.6 grams per tonne Au over a thickness of 2.8 m in an FW zone setting. Drill hole CL-3531-192 is located 12 m up dip of KC-99-137.

Drill hole 191 intersected a similar felsic porphyry with gold bearing quartz-ankerite-pyrite veining in a sericitized ultramafic unit at the basal contact of the unit. The FW style mineralization grades 5.45 g/t Au over a thickness of 1.6 m.

Drill hole 3531-193 intersected quartz-ankerite pyrite veining grading from 3.5 g/t Au over 2.4 m in an FW zone setting where the felsic porphyry units taper in thickness up-dip.

Drill hole 3531-194 stepped out 45 m in the southwest direction intersecting 1.46 g/t Au over 1.4 m hosted at the contact of a 7.5 m thick felsic porphyry unit with silicified, sericitized ultramafics.

Drill hole 3531-195 intersected quartz-ankerite-pyrite veining 25 m in the southeast direction intersecting 3.0 g/t Au over 3.5 m in an FW setting where the felsic porphyry units taper in thickness to two m.

A five-hole underground drilling program is under way using an air/electric drill which is located at 513740E, testing between Kinross holes KC-99-131 and KC-00-176 at elevations ranging from the 280 mL to the 300 mL. This drilling program is near existing mine workings. Results from this drilling program will be forthcoming.

Quality assurance/quality control program protocols

Sage Gold has implemented a rigorous QA/QC program using best practice principles which are being applied to the sampling/analysis of the drill core.

NQ core is delivered to the secure core shack facility on site by Cabo Drilling (Ontario) Corp. personnel and/or Sage Gold personnel. Prior to core sawing and core logging, all drill core is photographed. Core logging is focused on identifying the type and style of mineralization, recording structure, lithology contacts, and alteration, including quartz veining percentage and total sulphide percentage. Core splitting is done with a diamond core saw for NQ core only. One-half of the drill core is submitted to SGS Canada Inc., an accredited laboratory for analysis. The remainder of the core is stored at the Clavos mine property. All samples are shipped in sealed rice bags with numbered security tags and transported in an SGS company truck from the property to SGS Laboratories in Cochrane, Ont.

Sage Gold routinely inserts certified standards, blanks and field duplicate samples into the sample stream such that every 20-sample batch contains a blank and standard. The sample preparation procedures for drill core samples consist of crushing the samples to 75 per cent minus nine mesh (two millimetres), pulverizing a 500-gram subsample to 85 per cent minus 200 mesh (75 micrometres), and analyzed by standard fire assay method using a 50 g sample with AA finish. Any samples assaying greater than 10 g/t Au are reanalyzed using a gravimetric finish. For mineralized zone intervals where visible gold is observed to be present, samples are submitted for analysis using the metallic screen method where the entire half core is crushed, pulped and screened to 100 mesh. The screen coarse and fine fractions are analyzed by fire assay method with a gravimetric finish and the total assay result is calculated.

The scientific and technical content of this news release relating to the exploration drilling program has been reviewed and approved by Sage Gold’s consulting geologist, Peter Hubacheck, PGeo, who is a qualified person (QP) as defined in National Instrument 43-101.

About Sage Gold Inc.

Sage Gold is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its flagship project is the 100-per-cent-owned Clavos gold mine in Timmins. Its main exploration properties include the 100-per-cent-owned Onaman property and other exploration properties in the Beardmore-Geraldton gold camp. Technical reports and information relating to the properties can be obtained from the SEDAR website and from the company’s website.

We seek Safe Harbor.

http://www.sagegoldinc.com/news/