Sage Gold drills three new gold-bearing quartz veins

2008-11-07 06:42 ET - News Release

Mr. Nigel Lees reports

SAGE GOLD INC.: FOUR VEIN SYSTEMS-HIGH GRADE CHANNELS GOLDEN EXTENSION-BEARDMORE GERALDTON GOLD CAMP

Sage Gold Inc. has now located three new gold-bearing quartz veins associated with the original Golden extension discovery located in the Beardmore Geraldton gold (BGG) camp in Northwestern Ontario. The Golden extension discovery, reported in a press release of Sept. 2, 2008, with channel results of up to 136.5 grams per tonne gold, is believed to be the northwest extension of Kodiak Exploration Ltd.'s Golden Mile.

Highlights:

• Four vein systems discovered to date -- veins one to four, with a total trenched strike length of 290 metres -- veins open along strike.
• New channel results for vein No. 1 -- up to 35 grams per tonne gold over a channel width of 0.7 metre. Two excavators actively trenching followed by channel sampling of the vein systems.
• A new vein discovered 1.5 kilometres southeast of the Golden extension at the property boundary with Kodiak.

                          NEW CHANNEL AND GRAB RESULTS

Location              Channel #    Width (m)         Grade      Description
                                                   (g Au/t)

Golden extension             13        0.33           1.68      Quartz vein
 -- vein No. 1                                                    stringers
Vein #1                      13        0.50           0.03          diorite
Vein #1                      14        0.33           6.90      quartz vein
Vein #1                      15        0.33           6.58      quartz vein
Vein #1                      16        0.33           9.38      quartz vein
Vein #1                      17        0.72          25.40      quartz vein
Vein #1                      18        0.70          35.00      quartz vein
Vein #1                      19        0.60           1.01      quartz vein
Vein #1                     20A        0.50          11.90      quartz vein
Vein #1                     20B        0.30           0.05          diorite
Vein #1                      21        0.50           2.70      quartz vein
Vein #1                      22        0.50           0.01          diorite
Vein #1                      22        0.50           6.98      quartz vein
Vein #1                      22        0.50           0.25          diorite
Vein #1                      23        0.72           0.49      quartz vein
Vein #1                      24        0.70          14.05      quartz vein
Vein #1                      25        0.50          30.60      quartz vein
Vein #1                      26        0.50          34.30      quartz vein
Vein #1                      27        0.50           5.08      quartz vein
Vein #1                      28        0.70           0.89      quartz vein
Vein #1                      29        0.50           0.70      quartz vein
Vein #1                      30        0.50           1.35      quartz vein
Vein #1                      33        0.60           0.10      quartz vein
Vein #1                      34        0.60           1.78      quartz vein
Vein #1                      35        0.50           0.60      quartz vein
Vein #1                      36        1.00           0.61      quartz vein
Vein #1                      37        0.50           0.63      quartz vein
Vein #4                    Grab                      14.40      quartz vein
Vein #4                    Grab                       7.94      quartz vein
Vein #4                    Grab                       4.47      quartz vein
Vein #4                    Grab                      11.40      quartz vein
Vein #4                    Grab                      22.60      quartz vein

Description of vein systems

Vein No. 1 -- The Golden extension vein -- sampled over 60 metres of strike length, and is open both northwest and southeast. There have been 59 channels cut into the vein at a sampling density of one every metre. Visible gold is present within the vein and in the weathered zone immediately above the vein.

Vein No. 2 -- Located eight metres south of the northwestern end of the stripped area of Vein No. 1. Vein No. 2 strikes east-west and has been stripped for 78 metres. The vein and veinlets occur within a highly sheared zone up to six metres wide with siliceous wall rock and 5 to 10 per cent disseminated pyrite. Visible gold is present in both the vein material and the weathered zone immediately above the vein. Twenty channel samples have been cut within the veins and the mineralized wall rock. The vein is open to the west and east.

Vein No. 3 -- Located 25 metres north of vein No. 1. Vein No. 3 has been trenched for 90 metres and strikes at 100 degrees. Vein No. 3 consists of up to five metres width of sheared, and mineralized wall rock, veins and veinlets. Pyrite occurs as subhedral clots within the veins and as disseminated masses within altered and silicified wall rock. Molybdenite and chalcopyrite are also present in the vein and wall rock. Visible gold has been located in the weathered zone immediately over the sheared zone.

Vein No. 4 -- Located 57 metres northwest of vein No. 1, vein No. 4 comprises two parallel vein systems which have been stripped over a strike length of 62 metres and trend northwest-southeast. Visible gold has been identified in one of the veins.

In addition, continued prospecting of the southeastern strike of the Golden extension vein has located a one-metre-wide quartz vein 1.5 kilometres southeast of the Golden extension which may be part of the Golden extension -- Golden Mile mineralized corridor. The vein carries pyrite and chalcopyrite and is located at the Sage-Kodiak property boundary and along the projected northwestern extension of the Golden Mile. An excavator has been moved to this site and channel sampling is under way.

Sage will continue to trench and channel sample the Golden extension and parallel vein systems. The channel results, coupled with the geological interpretation of the vein systems, will be used to define drill targets for a 2009 drill program. A plan map of the trenched areas to date on the Golden extension vein system with the associated channel locations.

Assays reported in this news release were completed by ALS Chemex in Thunder Bay. Sample preparation was completed in the Thunder Bay facility of ALS Chemex and prepared samples were shipped to the ALS facility in Vancouver. The gold samples were assayed using induced coupled plasma (ICP) testing with a fire-assay finish for high grade precious metal samples.

The BGG project is supervised by Exploration Geoscience Associates of Orillia, under the direction of Dr. Ulrich Kretschmar, PGeo. Dr. Kretschmar has extensive mineral exploration experience in Archean terrain, is a qualified person as defined by National Instrument 43-101 and is responsible for the technical content of this news release.

We seek Safe Harbor.