Page 24 Cont’d on pg. 25 By Gregory Reynolds Hopes by Sage Gold Inc. to bring its T immins Gold Camp property to pro - duction in 2014 have been strength - ened by a rece nt doubling of its gold ounces and the potential for a tripling of its former resource. In 2010, Sage optioned the Clavos property in the camp from St Andrew Goldfelds (trading as SAS). Clavos was briefy in production between 2005 and 2007 and SAS invested $46 million in mine and infrastructure de - velopment. Sage (trading as SGX) has formed a Joint V enture with SAS (owns 40%) after meeting the requirements to now own 60% of the Clavos property . The company’ s new NI43-101 Resource estimate for Clavos was completed by Roscoe Postle Associates (RP A) in October 2012. The total resource includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totalling 194,600 ounc - es of gold and Inferred mineral re - sources of 796,000 tonnes at 4.7 g/t Au representi ng 120,000 ounces. These resources are reported at a base case cut-of f grade of 2.75 g/t Au and individual assays have been capped at 60g/t. This 2012 resource estimate repre - sents a 1 13% increase in tota l ounces relative to the last published resource of October 2006 (by SAS) and is based on a long term gold price assumption of USD$1600/Oz and a cut-of f grade of 2.75 g/t Au. The SAS 2006 min - eral resource was calculated at a gold price assumption of USD$500/Oz and a cut-of f grade of 4 g/t Au. Sage president and CEO Nigel Lees says “the Clavos deposit remains open down dip and along strike providing a continuing opportunity to potentially increase the mineral resource with ad - ditional drilling. W e are very pleased with this new resource study . The growth in gold ounces relative to the previous pub - lished mineral resources refects the inclusion of additional under ground and surface drilling into the drill data - base and the addition of the 960 zone and Sediment deposits. A Prelim inary Economic Assessment (PEA) is being prepared which will analyse the economic potential of the mineral resources within the footprint of the existing infrastructure. This PEA is anticipa ted to be completed in six weeks. A closure plan has been fled and a project description of the proposed advanced exploration program is be - ing prepared. Public and First Nation consultation is currently underway . Assuming a positive PEA and com - pletion of fnancing, Sage anticipates that it will commence dewatering the existing Clavos workings in the frst quarter of 2013.” Lees believes there is the potential to at least triple the size of the resource at Clavos from what it is now . So far , the company has spent over $3 mil - lion on drilling and data compilation in determining the resource. Lees says his plans involve bulking up staf f with experienced mining per - sonnel, as well as looking for more gold assets in the T immins area. “W e like T immins as a camp very much. There is the opportunity for consolidation there. But our focus re - mains to proceed with Clavos toward production.” Sage’ s CEO says he expects between Doubling of gold r esour ce at Clavos has Sage looking to 2014 pr oduction Photo supplied by: Mining Industrial Photography TIMMINS / MA THESON CAMP Page 25 Cont’d from pg. 24 25,000 to 30,000 ounces per year of com - mercial production initially , which is antici - pated to expand with the resource base. “Our long-term strategy is to acquire depos - its with near -term production potential, and Clavos fulflls this very well. W e like the location, the fact that it has a compliant re - source estimate, as well as the fact that it has excellent infrastructure, low capex and rela - tively good grades.” Lees also notes that the property has a mill available, owned by St Andrew , so there is no need to build one. Sage says the Clavos Gold property compris - es 2,540 hectares and is locat ed in a prolifc gold camp where over 1 10 million ounces of gold have been produced historically . Sage is a Canadian exploratio n and develop - ment company with projects in T immins and Beardmore in Northern Ontario. The compa - ny is focused on becoming a near -term gold producer in 2014. The company also has a portfolio of explora - tion properties in the Northwestern Ontario Beardmore-Geraldton Gold Camp. There is a NI43-101 Resource on the L ynx Cu-Ag-Au property . The Inferred Resource defned to date comprises 1,936,000 tonnes at an aver - age grade of 1.44% Cu, 39.6 g Ag/T and 0.58 g Au/T and contains 61.3 million pounds of copper , 2.24 million troy oz of silver and 33,000 troy oz of gold. These resources are reported at a cut-of f grade of 0.5% copper . The Sage Gold management team and board have extensive experience in fnding, devel - oping and fnancing new projects. Sage con - tinues to identify additional properties for acquisition to further enhance shareholder value and create cash fows. N E ED W A R EH O US I N G TH A T M E E T S Y O UR BUD G E T ? W E U N DER ST A N D ! M e g a D ome ® i s t h e a f f o r d a b l e s o l u t i o n t o p r o t e c t m a t e r i a l s a n d ac ti v i ti e s f r o m th e e l e m e n ts . D e s i gne d w i t h s a f e t y a nd fu nc t i on in m ind , M e g a D o m e ® st r uc t u re s p r o v i d e a c l e a r s p a n s t o r a g e s p a c e t o f a c i l i t a t e m a c h i n e r y o p e r a t i o n a n d c o m e w i t h a r a n g e o f h e a v y - d u t y o p t i o n s t o s u s t a i n y e a r s o f u s e . M e ga D om e ® is : • D e s i g n e d a n d m a n u f a c t u r e d b y a C a n a d i a n c o m p a n y , p i o n e e r i n m e mb r a n e c o v e re d s t e e l s t r uc t u re s • M a d e o f s t r u c t u r a l s t e e l a n d o v a l t u b i n g f o r s u p e r i o r r e s i s t a n c e a n d l o a d c a pa cit y • N a t i o n a l B u i l d i n g C o d e c o m p l i a n t a n d C S A A 6 6 0 c e r t i f e d 1 8 8 8 4 2 7 6 6 4 7 me g a d ome b u i l d i n g s . c om YEARS Clavos fulflls long-term strategy TIMMINS / MA THESON CAMP