52 52 Page 52 B y Gregory Reynolds Sage Gold Inc continues to move its Clavos Property towards production The Clavos is located in the prolifc T immins Mining Camp and close geographically 20kms to Goldcorp s Hoyle Pond Mine that has produced more than 24 million oz since 1985 and is still in operation Clavos is also located 10 kilometres from Primero Gold s mill in Stock T ownship The Clavos gold deposit is one of the few gold deposits in Canada with ad vanced permits situated in one of the most prolifc and active gold camps in Canada The improved investment environ ment for precious metal companies and the relative ly low capital costs re quired to place Clavos into production has greatly facilitated the company s ability to move the project ahead says president and CEO Nigel Lees A NI43101 new resource estimate in October 2012 includes Indicated min eral resources of 1258400 tonnes at 481 gt Au totalling 194600 ounces of gold and Inferred mineral resources of 796000 tonnes at 47 gt Au rep resenting 120000 ounces These re sources are reported at a base case cutof grade of 275 gt Au and indi vidual assays have been capped at 60 gt Sage currently plans to complete a reserve estimate and a prefeasibility study on the Clavos property In the event that a production decision is made that is not based on a feasi bility study of mineral reserves dem onstrating economic and technical viability prepared in accordance with National Instrument 43101 readers are cautioned that there is increased uncertainty and higher risk of eco nomic and technical failure associated with such a production decision It has one of the lowest CAPEX in the industry with 70 million historical ly invested by St Andrew Goldfelds and Sage excluding prior expendi tures by United T exSol Kinross and Canamax Infrastructure is in place including under ground ramp access to the 300 metre level under ground levels de veloped every 25 metres power to site surface ventilation system and water management system Existing mining permit is good up to 2019 Sage is a mineral exploration and de velopment company that has primary interests in near term production and exploration properties in Ontario Its main assets are the Clavos Gold Property 100 owned in T immins and the 100 owned Onaman Prop erty and other exploration properties in the BeardmoreGeraldto n Gold Camp T echnical reports and information relating to the properties can be ob tained from the System for Electronic Document Analysis and Retrieval SEDAR website at www sedar com and www sagegoldinccom Lees commented Sage announced the closing of a 1 15 million fnanc ing commitment in November 2016 of which approximately 72 million is alloc ated to fund the development and restart of the Clavos Mine Historical expenditures by St Andrew Goldfelds and Sage on the property have exceeded 600 million exclud ing prior expenditures by United T ex Sol Kinross and Canamax Dewatering of the Clavos deposit un der ground workings has commenced and is on time and on budget Reha bilitation will follow the dewatering process to defne the stope blocks and provide under ground drill stations to test the down plunge extensio ns of the existing zones Sage is gearing up for production at the Clavos Gold property as early as September of this year The mine is permitted for a 700TPD opera tion and Sage has an agreement with Primero Gold to process 600 TPD at the company s Stock Mill located 10 kilometers by a private road from the Clavos Mine On the basis of a Pre liminary Economic Assessment com pleted in 2013 management is plan ning to commence production from the highest grade lowestcost areas of the mine and at the same time com plete a new resource and prefeasibil ity study works towards r eopening former pr oducer Clavos Mine Sage Gold Page 53 Esker Camp The Company is greatly benefting from the money spent by the previous owners St Andrew Goldfelds in ad dition to the ability to utilize the excess milling capacit y at the Stock Mill The Clavos capex is fully fnanced In February Sage announced the com mencement of a drilling program at its Onaman property in Northwestern Ontario This program was carried out simultaneously with that underway on the Clavos W ith a history of episodic exploration activity dating back several decades the Onaman Property hosts numerous historical mine ralized zones and oc currences that have been partly delin eated to date Hosted in a sequence of hydrothermal ly altere d and tectonized mafc through felsic volcanic s and derived volcani clastics the Onaman property displays the main features of a typical volcano genic massive sulphide VMS system and is consequently considered to host signifcant exploration potential Sage has completed a prelimi nary pro gram comprising 1000 meter s drilled into the historical Headway zincsil ver leadgold deposit A reassessment of the L ynx deposit the historical focus of Sage s explora tion eforts on the property has estab lished that it is a footwall feeder zone of the type typically found underlying VMS deposits The fact that the Headway lies im mediately above it where the main mineralized body in a VMS system is typically found renders this historical mineralized zone signifcant from an exploration perspective Lees stated The Headway and L ynx deposits hosting a combin ation of base and precious metals between them are two important parts of the as yet incomplete Onaman story This current drilling program will help to further unravel it It nice ly compliments the ongoing drilling program at the company s Cla vos gold deposit Inno v a tiv e Solutions Right Solutions Right P ar tner alsglobalc om Find out mor e when y ou visit us online or cal l 1 705 560 7225 Servicing the R esour c e Lif e C y cle WITH