Page 102 Cont’d on pg. 102 Sage Gold Inc. plans to r e-open former pr oducing Clavos Mine in T immins By Gregory Reynolds A commercia l production date of 2014 has been set by Sage Gold Inc. for its Clavos Gold project in Stock T ownship on the northeast border of the City of T immins. Sage is a Canadian exploration and development company with land positions in the T immin s and Beardmore areas in Northern On - tario. The company is focused on becoming a near -term gold pro - ducer . In 2010, Sage believes it made a quantum leap forward by optioning the Clavos mine from St Andrew Goldfelds (TSX:SAS) in the T im - mins Gold Camp. Clavos was briefy in production between 2005 and 2007 and SAS invested $46 million in mine and infrastructure development. Drill results to date have confrmed the existing resource and Sage Gold is encouraged by ongoing develop - ment work. Sage has completed a Joint V enture with SAS, meeting the require ments to now own 60 of the Clavos Mine. A new NI43-101 resource es - timate encompassing previous his - torical data and Sage’ s drill results to date is expected in Q3-4 of 2012. The resource estimate will be fol - lowed by a Preliminary Economic Assessment (PEA), expected by the end of 2012. A prior gold resource for Clavos was reported by SAS in October 2006. The resource estimate was calculat - ed by Roscoe Postle Associates (RP A) and comprises 37,000 gold ozs., 143,000 tons at 8.07 g/t Au in Measured and Indicated cate gories and 1 10,300 gold ozs., 529,000 tons at 6.5 g/t Au in the inferred category (assays cut to 60g/t). Management will focus on continu - ing to increase resources. The ore body is open at depth and in mul - tiple directions along strike. Sage Gold has access to SAS’ s mill in the area and is able to move into production quickly and cost ef fec - tively which will generate strong cash fow for the company . A suite of permits are in plac e and there may be revisions to the exist - ing closure plan. Sage plans to complete a Prelimi - nary Economic Assessment in Q4- 2012, and in Q1- 2013 make a pro - duction decision, undertake project fnancing, dewater and rehabilitate the mine and continue under ground and surface drilling. Small scale production will start in mid- late 2013 with commercial production scheduled for 2014. Sage has arranged fnancing by means of a $1.5 million pre-pro - duction fnancing debt facility with W aterton Global V alue, L.P . (W a - terton). Nigel Lees, President and CEO of Sage, commented “W e are very pleased to have concluded this frst tranche with W aterton for the pre- production costs on the Clavos gold project, especi ally in a diffcult f - Sage Gold Inc. plans to r e-open former pr oducing Clavos Mine in T immins “The Porcupine Camp” A New Golden Era Page 100