Page 40 By Gregory Reynolds Sage Gold Inc has started to mine higher grade ore at its Clavos Gold Property On April 19 the company announced it had completed its latest bulk sample mill run The custom mill pro cessed 6252 dry tonnes of mineralized material yield ing approximately 513 ounces of gold Nigel Lees president and CEO commented we are pleased to see an improving trend in grade and tonnage as we are starting to mine higher grade material above and including the 200metre level The mineralized material in the April mill run was sourced from the 150 W est 150 East 175 East and 200metre levels More specifcally the milled mate rial was comprised of Clavos broken stope material from 150 W est previously mined material from 150 East developm ent material from the 175 Footwall East drive and remnant material sourced from the 175E480 and 200 493 long hole stopes develo ped by St Andrew Goldfelds the previous operator Sage is a mineral exploration and development compan y which has primary interests in near term production and ex ploration properties in Ontario Its main properties are the Clavos Gold Property 100 owned in T immins and the 100 owned Onaman Property and other exploration prop erties in the BeardmoreGeraldton Gold Camp The Clavos Mine is fully permitted for 700 tonnes a day pro duction Mineralized material mined at the Clavos is processed at the Stock Mill in T immins locate d 10 km from the Clavos Mine The mill is owned by McEwen Mining Inc On Feb 16 Sage said it had raised 23 millio n through a private placemen t The company intends to use the net proceeds from the ofering for mine development and general working capital purposes The company plans to complete a Mineral Resource and Mineral Reserve Estimate and a PreFeasibili ty study regarding the Clavos Project Sage is a dynamic Canadian near term produc er and exploration company with two principal assets both situated in Ontario s most vener able and secure mining jurisdictions T im mins known for producing well over 100 mil lion ounces of gold in more than a century and the Beardmore Geraldton Camp characterized by precious and base metal deposits including potentially lar ge VMS systems On Feb27 Sage announced that it had identi fed new vein systems at the Clavos Property The company said it was updating its Mineral Resource estim ate adding several hundred historical and recent drill hole composites from the defnition and exploration drilling completed over the past few years The new resource modelling which factors in a higher drill hole density has resulted in the identifca tion of three new vein systems which now ag gregate to a total of seven vein systems These new vein systems are expected to have a positive impact on the total tonnage and ounc es contained in the new resource model In ad dition a revised mine plan is being prepared to focus on higher grade mineral resource areas defned in the current resource model Sage Gold r eports impr oving grade tonnage at Clavos Page 38